Closing the gender gap in business.
“When we lift women, we lift humanity”- Melinda Gates.
“There is no tool for development as effective than the empowerment of women”.
“When women thrive, all of society benefits and succeeding generations are given a better start in life” — Kofi Anan.
Women are the pulse of every thriving economy. Their full participation across business value chains is critical for the socio-economic progress of any nation. According to a survey by Africa Global Funds (AGF), female entrepreneurs outnumber male entrepreneurs in Sub-Saharan Africa with one in three women managing a business.
In the Mastercard Index of Women Entrepreneurs(MIWE) published January 2021, Africa claimed the first three spots for the most women-owned businesses globally. In the report Uganda ranks first at 39.6%, followed by Botswana at 38.5% and Ghana at 36.5%. The results also showed a strong female entrepreneurial presence in Nigeria, Angola and Malawi.
In Nigeria, the impact of women-led businesses is significant. According to a 2020 PWC report, women own or manage 41% of MSMEs in Nigeria. This translates to about 23 million female entrepreneurs in the country placing Nigeria among the countries with the highest numbers of female entrepreneurs in the world.
These statistics point to the fact that women are the backbone of our economy as they tend to invest 90% of their income into their families and communities.
While these figures are encouraging, they haven’t translated into much because women continue to be underserved and underutilized economic resources. According to the African Development Bank, Africa has a $42 billion financing deficit for women-led businesses, with agriculture accounting for $15.6 billion. This means that men have an easier time accessing credit and other financial tools for their firms than women.
Despite the roles female entrepreneurs play in creating jobs and contributing to the economy, they are less supported and face stringent roadblocks to grow their businesses. Stereotypical ideas that women are solely wired to manage their homes and therefore lack the skills to run a business have contributed to the widening gap. Harmful cultural norms, unequal access to financing, education and decision making roles are key factors that hamper the potential of female entrepreneurs in Africa.
Unequal access to funding stands as the greatest hindrance to closing the gender financing gap in Africa. According to the OECD, Female entrepreneurs are not viewed as an interest group for traditional banking systems despite their track record of being compliant in payment than men. High-interest loans, requests for guarantees and lack of collateral or security are common tactics used to dissuade women from seeking funding for their businesses.
Some sustainable inclined institutions are however rising to the occasion in addressing the issue of gender financing. One of such is the recently launched Ellevate initiative by Eco Bank in Nigeria to provide women-centred businesses with financial and non-financial solutions to scale their productivity.
With the gender financing gap for agriculture at $15bn, HerVest, an inclusive digital platform actively addresses the inefficiencies by providing smallholder women farmers in Nigeria access to flexible credits, key assets, training and markets.
Seed fundings should also be available for female entrepreneurs to grow their businesses from the ground.
Other strategies to closing the gender financing gap include.
Relevant Training: Inequitable access to relevant and suitable training impedes female entrepreneurs’ ability to operate their enterprises effectively. Women should be supplied with customized training, tools, and initiatives to help them scale up their business strategies, according to financial experts. More so, Training should be prompt and accessible so that women are not forced to learn by trial and error, putting their businesses at risk.
In the heat of the pandemic, female companies suffered great losses because of their one marketplace approach. Women-owned companies should embody the innovation of varied and virtual markets. These companies can connect the world and extend their customer and supply chain bases thanks to the global potential in the online market. They should envision their companies as global and undertake digitization to reposition them accordingly.
The government also has a pivotal role to play here through the formulation of policies programs and business reforms that promote an equitable playing ground for businesses.
Ultimately, closing the gender financing gap will not be sustainable without a mindset shift about women. A mindset shift from the skewed belief that women are just homemakers and baby-making factories. That women are not tailored for businesses. That women should be relegated and muted. That women are undeserving of an education and growth opportunities.
Women are visionaries, achievers, and dreamers. Women can have positions as CEOs, CTOs, entrepreneurs, engineers, leaders, IT professionals, and so on. Women should be permitted and supported to pursue their life goals life. And until we consciously see women this way, hopes for economic transformation will be similar to a clipped wing expecting to fly.
