Led Enterprises in Africa
"There is nothing more fulfilling than running your enterprise or business." is one of the most frequently used phrases in the job market. Some use this quote to gratify a desire for leisure and pleasure attributable to being an entrepreneur.
At the same time, others utter these words to communicate their dreams. The quest to satisfy their lifelong passion is complex, and grasping at cliches is their first step.
A joint report by the Finance Competitiveness Innovation (FCI) & Gender Innovation Lab (GIL) revealed: "76% of ordinary Africans believe that entrepreneurship is a good career choice."
While many Africans believe entrepreneurship is a good career choice, the reality of running their own successful business is a significant challenge.
African women find successful entrepreneurship even more challenging. The journey for the African woman is interspersed with socio-cultural and politico-economic inequalities and access to financial freedoms.
In Africa, women own a significant chunk of Micro & Small Enterprises (MSMEs, including Agric-SMEs). 58% of all MSMEs in Africa are women-owned, according to the World Bank.
Nevertheless, "Women-led Micro-Enterprises (W-MSME) are deemed 34% less profitable than men," the report gathered. The Global Entrepreneurship Monitor did similar studies (GEM), an international entrepreneurship research think tank, with the same results.
The perceived results are because women's enterprises have decreased diversification and fewer capital ventures.
The comprehensive proportion of W-MSMEs in Africa is a missed opportunity. When revisited with appropriate interventions, it could unlock the potentials for accelerating the achievement of no poverty, zero hunger, gender equality, and decent economic growth.
The fact W-MSMEs generate less income, one might believe it also has a lower return on equity. The reality is there is a lesser impact on poverty alleviation and social inclusion agenda espoused by the SDGs.
In this light, the clarion invitation made to the International Development Organizations and African public and private institutions continues to redirect attention to women-led MSMEs.
