NINE FACTORS HOLDING BACK WOMEN’S BUSINESSES IN AFRICA

According to “Profiting from Parity: Unlocking the Potential of Women’s Businesses in Africa”, a report by World Bank’s Africa Region Gender Innovation Lab and the FCI Global Practice, there are nine factors impeding women’s entrepreneurship. These are:

1. LEGAL DISCRIMINATION: In many African countries, women simply do not have the same legal rights as men to open a bank account, register a business or own property.

2. SOCIAL NORMS: Women are affected by societal influences, and in many African countries, social norms do not match with a woman striving to grow a business.

3. RISK OF GENDER-BASED VIOLENCE: GBV takes its toll on women’s wellbeing, and working outside the home may put them at risk. In Malawi, 14 percent of female entrepreneurs have been subject to physical or emotional violence from a partner.

4. EDUCATION AND SKILLS GAPS: According to the report, self- employed women have completed fewer years of formal education than men, while men often have higher technical skills.

5. CONFIDENCE AND RISK PREFERENCES: Women business owners in Africa demonstrate less confidence in their abilities – in Ghana, women are 14 percent less likely than men to think they would be a good leader.

6. FINANCE AND ASSETS: Women control fewer assets, affecting their capacity for loans and investments.

7. ACCESS TO NETWORKS AND INFORMATION: Women don’t have the same access as men to large, diverse and well-resourced networks that enable their businesses to grow.

8. HOUSEHOLD ALLOCATION OF PRODUCTIVE RESOURCES: Women often lack authority over household assets and are often pressured to share resources.

9. DOMESTIC RESPONSIBILITIES: Women in Africa spend more time than men on domestic chores and caring for household members, which limits the amount of time they can dedicate to their business.