By The South African Institute of Professional Accountants (SAIPA)

 

South Africa’s economy is under pressure. Economic growth remains subdued, unemployment continues to affect millions of people, and businesses are operating in an increasingly challenging environment. Against this backdrop, the country cannot afford to overlook any opportunity to stimulate growth, create jobs and build more resilient enterprises.

 

Yet one such opportunity continues to be underestimated: the economic contribution of women-owned businesses.

 

The conversation around women entrepreneurs is often framed as a matter of empowerment, transformation or gender equality. While these remain important objectives, viewing women-owned businesses through this lens alone misses a much bigger point. The real issue is economic participation.

 

Simply put, South Africa cannot reach its full economic potential if a significant portion of its entrepreneurial talent is unable to access the opportunities, funding and support required to grow sustainable businesses.

 

Women are increasingly starting businesses across a range of sectors, from professional services and technology to manufacturing, agriculture and retail. They are creating employment opportunities, generating income and contributing to local economies. Yet many continue to encounter barriers that make it more difficult to establish and scale successful enterprises.

 

The consequences extend far beyond individual business owners. When a promising business is unable to secure funding, employ additional staff or expand into new markets, the economy loses more than a commercial opportunity. It loses jobs, tax revenue, innovation and future growth. Multiply this across thousands of enterprises and the impact becomes significant.

 

At a time when South Africa’s unemployment rate remains among the highest globally, the country should be looking for every possible avenue to unlock growth and job creation. Supporting women-owned businesses is one of those avenues.

 

One of the most persistent challenges remains access to finance.

 

Despite years of discussion around financial inclusion, many women entrepreneurs still report difficulties in accessing the capital needed to grow their businesses. While various funding mechanisms have been introduced by both the public and private sectors, funding gaps remain particularly evident among small and medium-sized enterprises.

 

For many entrepreneurs, the challenge is not a lack of ambition or viable business ideas. It is the inability to access the financial resources required to take the next step.

Capital, however, is only part of the equation.

 

Access to markets remains equally important

 

Many large organisations have made public commitments to supplier diversity and enterprise development. These commitments are encouraging, but there is often a gap between intention and implementation. Women-owned businesses frequently struggle to break into established supply chains or secure contracts that would allow them to scale.

 

The result is that many capable businesses remain trapped in a cycle of survival rather than growth.

 

This is where both government and the private sector have an important role to play. Supplier development initiatives should not be viewed as compliance exercises. They should be recognised as strategic investments in economic growth. Creating meaningful opportunities for women-owned businesses to participate in value chains strengthens the broader business ecosystem and creates a more diverse supplier base.

 

Another area that deserves greater attention is financial capability and business sustainability.

 

Access to funding alone does not guarantee success. Businesses also need the systems, governance structures and financial management practices that support long-term growth. Investors, lenders and procurement decision-makers increasingly expect businesses to demonstrate financial discipline, sound governance and operational resilience.

 

Accountancy professionals play a critical role in this regard

 

Too often, the profession is associated solely with compliance, tax submissions and annual financial statements. In reality, accountancy professionals are strategic business advisers who help entrepreneurs understand their financial position, manage risk, improve cash flow and make informed decisions.

 

For many small businesses, particularly those seeking funding or preparing for expansion, access to professional financial advice can be the difference between stagnation and growth.

 

The importance of supporting women-owned businesses becomes even clearer when viewed through a broader socio-economic lens.

 

Research consistently shows that women are more likely to reinvest income into their families and communities. As businesses grow, the benefits often extend beyond the enterprise itself, contributing to improved household incomes, educational opportunities and community development. The impact therefore reaches far beyond balance sheets and profit margins.

 

South Africa has no shortage of talented, ambitious and capable women entrepreneurs. What is often lacking is an environment that enables those businesses to thrive.

 

This requires collaboration between policymakers, financial institutions, development agencies, corporate South Africa and professional bodies. Expanding access to finance, opening procurement opportunities, strengthening mentorship networks and improving access to professional business support are all practical interventions that can make a measurable difference.

 

Most importantly, we need to change the way we think about women-owned businesses. Supporting women entrepreneurs should not be viewed primarily as a social intervention or a transformation initiative. It should be recognised for what it is: a sound economic investment.

 

Every thriving business contributes to economic activity. Every new employee represents a household with improved prospects. Every successful entrepreneur contributes to a more resilient and inclusive economy.

 

South Africa’s growth challenge will not be solved by a single policy, programme or institution. It will require a combination of interventions that unlock opportunity and enable businesses to succeed.

 

The South African Institute of Professional Accountants (SAIPA)  is a Professional Accounting Organisation committed to serving and protecting the public interest