When it comes to bui lding strong economies and ensuring that everyone has a fair chance, businesses run by women play a vital role. However, in many places, women entrepreneurs face major obstacles, even though we often hear about the benefits of free markets.
This shows that our systems aren’t doing enough to support women who want to start their own businesses.
Women have the skills and dr ive to succeed as entrepreneurs, but they often lack access to important things: money to start their businesses (funding), ways to reach customers (markets), the technology needed to run their businesses (technology), and connections with other business people (networks).
Recent studies by the United Nations Development Programme show that women entrepreneurs in parts of Africa face significant challenges. For example, in one country, a large percentage of women work, but their businesses don’t always thrive.
This raises a key question: Why aren’t more women able to build successful businesses, especially when so many women work?
One major hurdle is getting the money needed to start a business. Many banks require women to have something valuable to guarantee they’ll pay back a loan, like property. However, in many places, women don’t own property because of traditional rules that favor men. This makes it very difficult for women to get loans on their own.
Furthermore, banks often have strict requirements for loans, such as demanding detailed financial records and professional business plans. These requirements can be difficult for small businesses to meet, as they may not have the resources to hire accountants or consultants.
Banks need to be more flexible and consider the potential of a business idea, rather than just focusing on the amount of money the borrower can put up as collateral.
Women entrepreneurs also struggle to connect with other people in business and lack the skills to use technology effectively. Building relationships with other business owners is crucial for sharing information, finding partners, and reaching customers. However, many women don’t have access to these important networks.
In today’s world, where many businesses rely on the Internet, this lack of access to technology and digital skills puts women at a significant disadvantage.
It’s important to help women entrepreneurs develop these skills. Programs that provide training in areas such as using computers, creating business plans, and building professional connections can be very beneficial. These programmes will not only empower individual women but also create a stronger and more inclusive business environment for everyone.
Societal attitudes also create challenges for women entrepreneurs. Some people believe that certain types of businesses are not suitable for women, which can discourage women from pursuing their entrepreneurial goals and make them afraid of failing. These deeply ingrained beliefs need to change so that women’s contributions to business are valued in all areas.
To address these challenges, governments and other organisations need to take action. For example, giving women the right to own property independently would significantly empower them financially. Banks should also explore new ways of lending money that prioritise the potential of a business idea, rather than just relying on traditional requirements.
Finally, it is important to ensure that existing laws and programmes that support small businesses actually benefit women. This includes making sure that women-owned businesses have a fair chance to win government contracts and access other opportunities.
Entrepreneurship is a powerful tool for creating jobs, fostering innovation, and building stronger economies. For women, it’s also a path to financial independence and equality. To unleash the full potential of women entrepreneurs, we need to take concrete steps to remove the barriers they face.
