As South Africa observes Women’s Month throughout August, a vital focus must be placed on one of the country’s most powerful economic engines: female entrepreneurship.

Women have shaped local economies from long before the advent of modern corporate structures, from informal trading in townships to establishing resilient small and medium enterprises (SMEs). Their contributions are increasingly measurable and not merely anecdotal, as women continue to rise to prominent roles in various industries, including leadership positions within the major mining sector and policy-making bodies that influence economic practices.

Dr Omolola Arise, Academic Programme Leader at MANCOSA’s School of Accounting, Finance and Tax, emphasizes the importance of recognising the strength, innovation, and legacy of women leaders in business. “Celebrating and supporting women-led enterprises is not just a social imperative, it is a strategic one,” Dr Arise says, highlighting how female entrepreneurs contribute significantly to job creation, community upliftment, and sustainable economic growth.

Taking charge of economic growth In a time when South Africa grapples with its unemployment crisis, the need to create employment opportunities has never been more pressing. Women in South Africa have taken on this challenge with remarkable zeal; as of 2025, 57% of women identify as business owners, surpassing the regional average of 51% across Eastern Europe, the Middle East, and Africa. This figure stands in stark contrast to the earlier statistic of 34% women-led SMEs, showing significant growth in this sector.

This surge in female entrepreneurship is led by younger generations; a staggering 89% of Gen Z women are interested in starting their own businesses. The trend reveals a cultural shift rather than a temporary phase, with Gen X women leading the charge at 59% identifying as entrepreneurs, closely followed by millennials and Gen Z.

Side hustles are becoming essential, with 55% of South African women engaged in supplementary businesses – a figure rising to 58% among Gen X participants. The driving forces behind this shift include the quest for additional income (80%), independence (52%), and the establishment of safety nets (45%).

Changing the narrative

The statistics indicate an undeniable fact: South African women are assuming more significant roles in economic and community development, countering long-established notions of male-led households. Dr Arise notes that though women-led SMEs may typically be smaller, they frequently generate more jobs due to their emphasis on social impact and community engagement, especially in sectors like education, healthcare, and retail.

These businesses often demonstrate remarkable resilience and adaptability, particularly during economic downturns, and bring fresh perspectives that can lead to new opportunities.

However, significant challenges persist, most notably in securing funding. Dr Arise points out the considerable gender credit gap, primarily stemming from structural biases in traditional financial institutions. Innovative financing methods, such as crowdfunding and blockchain solutions, are becoming essential to empower women entrepreneurs by providing accessible capital and fostering community support.

MANCOSA is actively exploring how financial technology education can prepare female students to leverage these emerging financial platforms for growth.

The long-term impact of female-led entrepreneurshipThe impact of women entrepreneurs extends beyond immediate economic contributions; they play a crucial role in human capital development by reinvesting in education, skills training, and community upliftment. This approach develops a more skilled workforce, fostering social mobility and reducing gender inequality.

However, barriers like limited access to funding and societal expectations must be addressed to maximize their long-term potential.

To facilitate job creation through women-led SMEs, policymakers in South Africa must enhance access to finances, specialised training, and supportive regulatory frameworks. Initiatives such as the Isivande Women’s Fund and Black Industrialists Scheme will further empower these entrepreneurs, driving inclusive economic growth.

Toward an inclusive entrepreneurial future

Over the past decade, South African female entrepreneurs have transitioned from marginal contributors to being central to the SME ecosystem, with their impact on job creation, community development, and GDP growth increasingly significant. Representing just 21.1% of formal SMEs, their input represents a vital economic force, and breaking down existing barriers will unlock further growth.

The future of South Africa’s economy may hinge on ensuring women not only occupy seats in boardrooms but also play vital roles in shaping entrepreneurial policies and funding structures. The success of female entrepreneurs is not just a matter of gender equality – it is integral to the country’s economic ambitions.

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