Women Entrepreneurs Driving Economic Growth and Social Change

Women entrepreneurs are playing an increasingly vital role in driving economic growth and social change across the globe. Despite facing various challenges, such as limited access to funding, mentorship, and networking opportunities, women-led businesses are making considerable progress in contributing to job creation, innovation, and addressing social issues.

Recent studies have shown that record numbers of people are starting new businesses, with women and minorities making up a growing share of these entrepreneurs. In the United States, new business applications jumped during the pandemic and have continued at a record pace, with over 5.5 million applications filed in 2023 alone. A survey by payroll firm Gusto found that women made up 49% of new business owners in 2023, up from just 29% in 2019.

However, women entrepreneurs still face significant barriers, particularly when it comes to accessing capital. Only 3% of women-led businesses received private capital investment in 2023, compared to 9% of male-led businesses. To address this gap, various initiatives and programs have been launched to provide women entrepreneurs with the resources and support they need to succeed.

One such initiative is the Investing in Women in the Blue Economy in Kenya (IIW-BEK) programme, launched by the Africa Enterprise Challenge Fund (AECF). The programme provides grants ranging from US$15,000 to US$400,000 for women-owned micro, small, and medium enterprises (MSMEs) in the blue economy. AECF has also adapted its digital competition challenge-led approach to better cater to the needs of women entrepreneurs, providing pre-investment support and mentoring to help them refine their business models and enhance their presentation skills.

Why this matters: Empowering women entrepreneurs has the potential to drive significant economic growth and social change. By providing women with access to funding, mentorship, and training opportunities, these initiatives are helping to create a more inclusive and diverse entrepreneurial ecosystem, which can lead to job creation, poverty alleviation, and the promotion of gender equality.

Other initiatives aimed at supporting women entrepreneurs include the Mayor's Task Force for Austin Women Entrepreneurs in the United States, which has made 12 recommendations to address gaps in resources and opportunities for women-owned businesses in the Austin area. These recommendations include opening a local U.S. Small Business Administration Women's Business Center, creating an angel investor group specifically for women entrepreneurs, and establishing a child care initiative to assist women business owners.

In addition to these targeted initiatives, women entrepreneurs are also benefiting from the increasing use of Information and Communication Technology (ICT), which has enhanced their entrepreneurial capabilities and led to social and economic empowerment. Organizations like WE Power Food are also providing women entrepreneurs in the food industry with a supportive community, resources, and services to help them succeed.

First Lady Oluremi Tinubu recently launched the Southwest Huawei Renewed Hope Initiative (RHI) Women in Tech Training in Nigeria, which aims to equip women entrepreneurs with the necessary tech and digital skills to compete in the technology world. The training, held at the University of Lagos (UNILAG), is part of a broader initiative that covers various areas such as agriculture, economic empowerment, social investment, health, and education.

These initiatives highlight the growing recognition of the importance of empowering women entrepreneurs and the positive impact they can have on their communities and the broader economy. As Aisha Abubakar, a beneficiary of the IIW-BEK programme, stated, "This grant will help me to expand my business and create more jobs for women in my community. I am grateful for the support and mentorship provided by AECF, which has helped me to refine my business model and enhance my skills as an entrepreneur."

Key Takeaways

• Women entrepreneurs play a vital role in economic growth and social change globally.
• Record numbers of new businesses are being started, with women making up 49% in 2023.
• Women entrepreneurs face barriers, especially in accessing capital (only 3% received investment).
• Initiatives like IIW-BEK in Kenya provide funding and support to women-owned businesses.
• Empowering women entrepreneurs can drive job creation, poverty alleviation, and gender equality.