Digitalisation: A game-changer for women entrepreneurs and economic growth

Written by Editor | Aug 22, 2024 8:55:23 AM

By Shakira Nursoo, strategy executive at Old Mutual

Women, especially women entrepreneurs, are imperative in a country’s economic and social development. Globally, research shows that women reinvest 90% of their incomes in their families and communities, compared to just 30-40% for men. In South Africa, the most recent Old Mutual Savings & Investment Monitor (OMSIM) highlights that women bear more family responsibilities, with 52% supporting adult dependents versus 44% of men, and 81% supporting children compared to 71% of men.

Despite their critical role, women continue to experience higher financial stress than men. According to the 2024 OMSIM, women's financial stress levels stand at 39%, compared to 34% for men.

The digital realm offers a unique opportunity to address the challenges faced by women entrepreneurs. Digitalisation can create a more inclusive environment for women entrepreneurs, thereby contributing to broader economic growth and enhancing their financial stability.

The International Finance Corporation reports that closing gender gaps in the e-commerce sector could add nearly $15-billion to the value of Africa’s e-commerce industry between 2025-2030 alone —putting billions in the hands of women entrepreneurs.

Benefits of digital for women entrepreneurs

Building a digital business offers lower barriers to entry. For example, women can make items to sell, receive money safely through mobile wallets, and get online guidance on tax implications as well as how to best save what they have earned.

Internationally, digital businesses have proven to be successful in helping women earn an income. A recent study by Business Fights Poverty found that 25% of the women it surveyed, 1 100 women entrepreneurs across 81 low and middle income countries, credited increased digital inclusion as being vital in business success, while 32.8% said they were being successful thanks to improved access to business networks, which included those online.