By Prof Linda Meyer, MD at Rosebank International and Visiting Professor at Nelson Mandela University
South Africa needs more businesses that can survive, expand, employ people and compete in established markets. Women-owned businesses can play a significant role in achieving that by widening economic participation, creating income, building community resilience and bringing different products, services and leadership approaches into the market.
But many women entrepreneurs are still expected to succeed in an ecosystem not designed around their realities, including limited access to finance, unequal networks, caregiving responsibilities, weaker market access and persistent gender stereotypes.
The central question is whether South Africa’s financial, procurement and business-support systems are enabling viable women-owned enterprises to move from survival to scale.
Role model for young women and future generations
Female representation does more than inspire, because it rewires what feels possible for the next generation. Seeing women in leadership offers tangible proof that executive success is attainable, dismantling historical stereotypes and creating psychological safety around traditionally feminine traits like empathy and collaboration. In turn, this lowers the psychological weight of the “glass ceiling,” helping younger women visualise a clear career trajectory of their own.
That visibility also bridges the mentorship gap, giving future generations relatable mentors and sponsors, which is a proven catalyst for career advancement and entrepreneurial success.
Women-owned businesses champion diversity by building inclusion into their core operations. They actively shape diverse supply chains, foster inclusive cultures through empathetic leadership, and design products that serve underrepresented demographics, an approach that drives equity alongside sustainable growth and economic empowerment.
Unemployment/inclusive economic growth
Women leaders actively reduce unemployment by prioritising inclusive economic growth, investing in social infrastructure like paid family leave and childcare, and championing equal pay. Organisations and countries with higher female representation in leadership consistently experience lower gender-based employment gaps and higher overall productivity. In South Africa’s public sector, women now hold around 45% of senior management roles, yet across the wider economy they remain under-represented in top management, highlighting both progress and the untapped potential of women’s leadership.
Structurally underserved
Despite their growing economic contribution, women-led enterprises in South Africa remain underserved by the systems intended to finance and support growth. According to estimates cited by the SME Finance Forum and IFC, women-owned businesses in South Africa face an unmet financing demand of around US$49 billion, constraining the capital available to start, expand, enter new markets or secure larger contracts and Blue Chip Digital‘s summary of the IFC findings.
Several structural barriers drive this gap. Traditional lenders often require property or other assets as collateral, yet women have historically had lower levels of asset ownership. Gender bias can also influence lending and investment decisions, with women-owned businesses sometimes perceived as higher risk despite their commercial potential.
Many businesses founded by women consequently remain at micro or small-enterprise level, unable to access the finance, networks and procurement opportunities needed to scale. Domestic and caregiving responsibilities can create further constraints, particularly where funding structures offer little flexibility.
Closing the gap is both an inclusion priority and an economic opportunity. When viable women-owned businesses cannot grow, South Africa loses potential jobs, suppliers, innovation and investment.
Diversity and resilience
Supporting enterprises led by women is especially important now. Given the country’s youth unemployment crisis, South Africa needs broader sources of growth, innovation and job creation, together with an economy that draws on the skills, ideas and entrepreneurial potential of the whole population. More businesses entering the market also increase consumer choice and strengthen competition.
Their value extends beyond economic diversity to wider social impact. At a time when many households and communities are under financial pressure, women entrepreneurs can strengthen local economies by supporting suppliers, creating employment and directing income into families and communities. This resilience is increasingly visible in the funding landscape itself, where female-owned SMEs now account for 36.1% of all funding requests in South Africa, up from previous years, despite the number of finance products designed specifically for women falling by 33%.
Market access is therefore increasingly important. Improved access to finance, public procurement, digital tools and commercial markets can help more women-owned enterprises move from small or informal operations into sustainable businesses capable of creating jobs and contributing to future-facing sectors. Targeted lending products, gender-responsive procurement policies, and business-support programmes are central to making that shift from micro to scale possible.
Ultimately, South Africa’s growth, employment and innovation goals depend on unlocking the full potential of women-owned businesses, yet systemic barriers in financing, procurement and support continue to hold viable enterprises back from scaling. The businesses profiled in this piece prove the potential is real, and what remains is building the systems to match it.
Prof Linda Meyer is the MD at Rosebank International and Visiting Professor at Nelson Mandela University
