from traditional to entrepreneurial: sa women take charge

As South Africa celebrates Women's Month (observed throughout August), a significant spotlight needs to be placed on one of the country's most powerful yet often understated economic engines: female entrepreneurship.

Long before boardrooms were digitised and balance sheets globalised, women in South Africa have played a pivotal role in shaping local economies, from informal trading and township enterprise to founding some of the country's most resilient SMEs. Today, their impact is not only measurable but also essential, as women hold some of the most significant and prominent positions in South Africa, ranging from boardroom leaders within the mining sector to policy leaders within South Africa's key industry watchdogs and Ombudsmen.

MANCOSA points out that the national narrative honouring the strength, innovation, and legacy of women leaders in business is a key discussion to have as it recognises the vital contribution female entrepreneurs continue to make in job creation, community upliftment, and long-term economic sustainability. "As we reflect on our past and look toward an inclusive future, celebrating and supporting women-led enterprise is not simply a social imperative, it is a strategic one," says Dr Omolola Arise: Academic Programme Leader at the MANCOSA School of Accounting, Finance and Tax.

To enable economic growth, it is becoming clear that South Africans must create their own employment opportunities as the country tries to overcome the challenge presented by the Unemployment Crisis.

South African women have embraced entrepreneurship at unprecedented rates, with 57% identifying as business owners in 2025, surpassing the regional average of 51% across Eastern Europe, the Middle East, and Africa. This represents substantial growth from a base of only 34% women-led SMEs reported several years prior.

Younger generations are leading this shift, with 89% of Gen Z women showing entrepreneurial interest. Entrepreneurial identification varies by generation but remains strong across all cohorts; Gen X women are leading this shift with 59% identifying as entrepreneurs and community leaders. Entrepreneurship among millennials is 59% while 58% of Gen Z are entrepreneurs. "This indicates a sustained cultural shift rather than a temporary trend," says Dr Arise.

Side hustles have become critical stepping stones, with 55% of South African women currently engaged in supplementary businesses, rising to 58% for Gen X. The primary motivations include earning more money (80%), gaining financial independence (52%), and creating financial safety nets (45%).

The above statistics are a clear indicator that South African women are playing a leading role in economic and community development, challenging their male peers who have long been seen as breadwinners, economic heads of households, and narrative builders.

"Although women-led SMEs are typically smaller than those owned by men, they often generate more jobs due to their strong focus on social impact, community engagement, and inclusive hiring practices, particularly of other women. These businesses frequently operate in labour-intensive sectors, such as education, healthcare, and retail, which drive local job creation. Women entrepreneurs also tend to be more resilient, adaptable, and innovative, especially during economic downturns, and bring fresh perspectives that lead to new business opportunities," says Dr Arise.

One main challenge facing female entrepreneurs is financing. Dr Arise points out that there is a significant gender gap when it comes to funding, which may be daunting for many entrepreneurs.

"The gender credit gap persists primarily due to structural bias in traditional financial institutions and lack of collateral. Innovative financing models such as crowdfunding offer women a low-barrier platform to raise capital while also building community support. Peer-to-peer lending enables decentralised access to funding that bypasses the restrictions of conventional banks. Blockchain-based solutions, including smart contracts and digital identities, can unlock transparent and traceable lending for women with limited credit histories. At MANCOSA, we are exploring how financial technology education can prepare our female students and alumni to leverage these models for growth and scalability," says Dr Arise.

Despite the financing challenge and many other challenges, Dr Arise points out that there is a significant long-term impact associated with female-led entrepreneurship. She points out that women entrepreneurs significantly enhance human capital development by reinvesting in education, skills training, and community upliftment. Their efforts lead to a more skilled workforce, driving economic growth and social mobility. These investments also help reduce gender inequality and foster stronger, more engaged communitp