Entrepreneurs are key to a nation’s economic development, stimulating both economic activity, skills development and new jobs, yet little research is available on sustainable formal ventures run by women in South Africa.

In South Africa, there are 1.6 men to every female entrepreneur, with the number of women entrepreneurs decreasing from 9% to 6.2% from 2013 to 2014.

To understand the elements that need to be fostered and those that need to be overcome, the Sage Foundation commissioned Livingfacts to conduct research on how to foster female entrepreneurship in South Africa.

This study was carried out among females aged 25-65, who are formally employed in major metropolitan areas of South Africa, with a monthly income over R5,000.

604 quantitative interviews were conducted with women who were both successful and unsuccessful in the entrepreneurial businesses, as well as those who had not considered entrepreneurship.

In addition, a further 60 in-depth interviews were done with unsuccessful and potential entrepreneurs to understand their challenges in more detail.

Women in the Sage Foundation study agreed that entrepreneurship offers a multitude of benefits including the common, “you get rewarded for your own effort, as well as the freedom to be your own boss.”

The Sage Foundation study identified the challenges that need to be overcome to increase entrepreneurship among women, including creating an entrepreneurial vision for women as well as nurturing their confidence, risk taking and willingness to fail.

The report found that early exposure is essential and that girls who participated in discussions about business and finance at an early age were more likely to own a business as adults.

“Access to capital is also a huge stumbling block for women, and the challenge is that the face of poverty on the continent is a female face,” said Basetsana Kumalo, CEO of Basetsana Women Empowerment Holdings.

Managing the family struggle is another factor, and women underestimate the skills and time required to run a successful business, while the loneliness of entrepreneurship can also be off-putting.

Finally, the report found that women may underestimate what it takes for success, including market knowledge, tenacity and resilience.

“Not all of us are born entrepreneurs, though, and you need to find out where your strengths lie,” added Kumalo. “But the reality is that the job market can only absorb so many of us, and then some of us need to become job creators and entrepreneurs.”

For more information, visit the Sage Foundation website.