Africa leads the world in the proportion of female entrepreneurs, with South Africa exemplifying this trend. The continent’s female entrepreneurship rate has climbed to 25.9%, meaning one in four women is running a business.
This rise in female entrepreneurship is driven by economic necessity, cultural roles, and women’s significant involvement in the informal economy. Many women turn to entrepreneurship out of necessity, seeking to support their families and achieve financial independence. In South Africa, where 40% of children are raised in single-parent households, women often become primary breadwinners, driven by resilience, innovation, and determination.
Faced with limited formal employment opportunities and a 29% unemployment rate, many women pursue entrepreneurship as a path to financial stability. Traditionally, women are seen as the backbone of families and communities, with cultural expectations pushing them to find innovative ways to support their families. This often leads them to start businesses that align with their daily responsibilities, such as selling traditional foods or offering childcare services.
Women are reshaping their narratives, turning challenges into opportunities, and redefining financial independence. They leverage their skills and creativity to build businesses that not only provide financial freedom but also challenge traditional workplace dynamics. By creating their own workplaces, they level the playing field and promote equal rights and opportunities.
A shining example of a female entrepreneur is Hetty the Entrepreneur, a business and monetization expert who helps African businesses thrive online. Hetty Boachie-Yiadom aims to expand Africa’s digital footprint through online monetization and digital marketing strategies.
“I’ve always had an entrepreneurial spirit. African women are driven by necessity and resilience. Economic challenges often force women to become entrepreneurs. Additionally, there’s a growing recognition of women’s potential as economic contributors,” she says.
iKhokha, working closely with South African entrepreneurs, has seen a remarkable 30% increase in total payment volume (TPV) from female entrepreneurs between 2022 and 2023. This growth reflects the success and resilience of female-owned businesses, with 78% achieving profitability in South Africa, according to SME Toolkit.
“There’s been a significant increase in the number of female-owned businesses trading with iKhokha, and we are committed to increasing this number,” says Matt Putman, CEO of iKhokha.
Access to working capital is crucial for the success of these businesses. iKhokha has advanced over R1.2 billion since 2019 to female entrepreneurs, enabling them to scale their operations and achieve greater success.
“iKhokha is investing in the future of South Africa by equipping women with the resources and confidence to build sustainable, impactful businesses,” adds Putman.
iKhokha provides a comprehensive ecosystem for businesses of all sizes and industries, offering a range of card machines, business funding, e-commerce products, and an intuitive app. The fintech company prides itself on equipping entrepreneurs with the tools and support needed to elevate their businesses.
With backing from companies like iKhokha, women are transforming their lives and communities, paving the way for a brighter, more equitable future. The journey of these entrepreneurs showcases their strength and resilience, proving that with the right support, anything is possible.
To learn more about iKhokha’s efforts to support South Africa’s entrepreneurs, visit iKhokha’s website.