Women Entrepreneurship in South Africa:

What does the future hold?

Natanya Meyer
Mahsa Samsami
Angus Bowmaker-Falconer

2023 | 2024
Special Report
Acknowledgements
The authors wish to express their gratitude to the
following sponsors, contributors, partners, and
stakeholders, without whom this research would not
have been possible:

The GEM Global research team, specifically Jonathan

Carmona and Alicia Coduras, for their guidance and
dedicated support.

Stellenbosch University’s commitment to

entrepreneurship education, research, innovation and
support for sustainable new enterprise development.

Prof Mark Smith, former Director, and Gretchen

Arangies, Operations Director, Stellenbosch Business
School, for positioning and integrating the GEM
research at the School and for the financial support to
enable it. Angus Bowmaker-Falconer. Research Fellow,
Stellenbosch Business School. Digital Economy Africa
Prof Marius Ungerer for establishing GEM SA at the Research (DEAR).
Stellenbosch Business School and for leading the
GEM SA steering committee. Editing, design and production:
The Small Enterprise Development Agency (Seda) for Design, illustration, and layout: Edward Mitchell
their generous sponsorship of GEM SA since 2011, and
to Mduduzi Dlamini and Caswell Maloka for serving Case study narration and report editing:
as members of the GEM SA steering committee.
David and Naline Gephart - Gephart and Gephart (Pty)
The support provided by the University of Ltd
Johannesburg, specifically the SARChI Chair for
Entrepreneurship Education and the Department of Section authors
Business Management.
Section 1: N
 atanya Meyer, Mahsa Samsami and
Thank you to Louis Mclaren (B4i Productions) and Angus Bowmaker-Falconer
his team at OntbytSAKE for their sponsorship and
continued passion for showcasing South African Section 2: Caren Scheepers and Motshedisi Mathibe
entrepreneurs. Section 3: A
 nastacia Mamabolo and Marianne
NielsenIQ South Africa who conducted the Adult Matthee
Population Survey (APS), and specifically to Lizel van Section 4: Leonie Greyling
Biljon as senior research manager.
Section 5: Menisha Moos and Natanya Meyer
To our courageous entrepreneurs who contribute Section 6: N
 atanya Meyer, Danie Meyer and Angus
greatly to innovation, new economic development Bowmaker-Falconer
opportunities, and social cohesion in South Africa.
Section 7: Natanya Meyer
The government, academic institutions, organisations
in the public and private sectors, and individuals Contact
who are committed to advising and supporting Natanya Meyer ([email protected])
entrepreneurial success in our country.
Angus Bowmaker-Falconer ([email protected])
GEM South Africa team and report editors:
© Stellenbosch University together with the Global
Natanya Meyer. Associate professor, DHET-NRF Entrepreneurship Monitor South Africa (GEM SA), 2023.
SARChI Entrepreneurship Education, Department of All rights reserved. Meyer, N., Samsami, M., Bowmaker-
Business Management in the College of Business and Falconer, A. GEM SA 2023/2024 Special Report.
Economics (CBE), University of Johannesburg.
How to cite this report
Mahsa Samsami. Phd, Management and
Entrepreneurship, Postdoctoral Research Associate, Meyer, N., Samsami, M. and Bowmaker-Falconer,
Chemnitz University of Technology, Germany, A. 2024. Women Entrepreneurship in South Africa:
Research Fellow, Stellenbosch Business School. What does the future hold? Stellenbosch University:
Research Associate, University of Agder, Norway. Stellenbosch, South Africa.
 |1

REPORT SPONSORS
Stellenbosch University
Over the past century, Stellenbosch University has grown into a quality South
African higher education institution with the vision of being one of the continent’s
leading research-intensive universities, globally recognised as excellent,
inclusive and innovative, and as a place where knowledge is advanced in service
of society.

Stellenbosch University attracts outstanding students, employs talented staff

and is a world-class environment connected to the world, while enriching and
transforming local, continental, and global communities.

The 2040 vision and strategic framework serves to cultivate a thriving university,
provide a transformative student experience, foster purposeful partnerships and
inclusive networks, promote networked and collaborative teaching and learning,
encourage research for impact, and position the university as an employer of
choice.

Stellenbosch Business School

Is a triple-accredited African business school focused on responsible leadership
development. Established in 1964, it has to date offered world-class programmes
to students across 40 different countries.

It is the first school from an African university to receive all three major
international accreditations: AACSB, EQUIS and AMBA. This Triple Crown of
accreditations is held by an elite group of just over 100 business schools
worldwide.

Known for an African-focused but globally relevant expertise in areas such as

sustainable development, futures research, development finance, ethics and
corporate governance, responsible leadership development, management
coaching and emerging-country economics. It has the highest average number
of research publication citations for core faculty of any business school in South
Africa and Africa.

The school is proudly part of Stellenbosch University, which celebrated its 100-
year anniversary in 2018 and is the top-ranked research university in Africa.

Seda
Seda was established in December 2004 through the National Small
Business Amendment Act (Act 29 of 2004). It is mandated to provide business
development support services to existing small enterprises and aspiring
entrepreneurs through its national network, in partnership with other role players
in the small enterprise ecosystem.

Seda provides non-financial support to small enterprises and cooperatives.

Services are accessible through its fifty-four branches and over one hundred
incubation centres and hubs nationwide.

Seda has been mandated by the Department of Small Business Development

to provide innovative small business development support services based on
comprehensive and rigorous research in line with globally accepted standards.
For this outcome, Seda has for many years and continues to partner with the
Stellenbosch Business School in supporting the South African chapter of the
Global Entrepreneurship Monitor (GEM) study, which produces standardised,
reliable, and economy comparative data to inform decision-making about
entrepreneurship and small business development in South Africa.
2| GEM SA SPECIAL REPORT 2023 | 2024

University of Johannesburg
The DHET-NRF SARChI Chair in Entrepreneurship Education was awarded to
the University of Johannesburg and Prof Cecile Nieuwenhuizen as chairholder
and was established in 2019. The research programme of the Chair centres
on entrepreneurship and Small -, Medium – and Micro Enterprise (SMME)
education, training, development and related issues, such as policies, the
regulatory environment, programmes and support affecting entrepreneurs. The
primary focus is on entrepreneurship development in South Africa, but this will
be supported by research on international best practices in entrepreneurship
education and entrepreneurial framework conditions. The research programme
constitutes the central activity of the Chair. Research is undertaken primarily by
the holder of the Chair and by others linked to and funded through the Chair,
as well as in collaboration with other researchers at UJ, including from the
Departments in the College of Business and Economics at other South African
and international universities and research institutions.

The research programme focuses on at least the following four focus areas
within the broad field of entrepreneurship development:

• Post School Entrepreneurship education and training

• Entrepreneurial framework conditions
• Entrepreneurship and Innovation
• Corporate entrepreneurship, intrapreneurship and high-growth ventures

OntbytSAKE
OntbytSAKE celebrated their 1000th program in 2021, a milestone that doesn't
happen every day and is only possible if an incredible group of people work
together. This popular morning program on kykNET and kykNET & kie (channel
144 & 145) on DStv focuses on giving small and medium businesses national
television exposure. That is why, for the past twenty-three years, Ontbytsake has
been an indispensable part of many people's weekend morning routine, all over
the corners of South Africa and Namibia.

In the vibrant economic landscape of South Africa, small, medium, and micro
enterprises (SMMEs) are pivotal for growth and innovation. Yet, without visibility,
many of these entrepreneurial ventures struggle to thrive. Television exposure
on ontbytSAKE is a powerful catalyst, offering a platform to showcase these
businesses, their products, and their stories to a wider audience. This not only
attracts potential customers and investors, broadening market access but also
inspires a new generation of entrepreneurs by presenting relatable success
stories and practical business education. TV exposure transcends geographical
and social barriers, bringing the entrepreneurial spirit into homes across the
nation and fostering a supportive ecosystem where SMMEs can flourish. By
spotlighting women entrepreneurship, ontbytSAKE aims to play a transformative
role in stimulating economic development, encouraging self-reliance,
and empowering South African communities from within. Thus, prioritising
television time for these enterprises isn't just about airtime; it's about fuelling
our businesses, our people, and our pride! Louis Mclaren: Executive Producer,
ontbytSAKE, DSTV channels 144 and 145.
 |3

KEY GEM DEFINITIONS

AND ABBREVIATIONS
Entrepreneurial Framework Conditions (EFCs): The
APS Adult Population Survey
conditions identified by GEM that enhance (or hinder)
EBO Established Business Ownership new business creation in a given economy, and form
the framework for the NES. The conditions are:
EEA Entrepreneurial Employee Activity
A1. Entrepreneurial Finance: Are there sufficient
EFC Entrepreneurial Framework Conditions
funds for new startups?
GDP Gross Domestic Product
A2. Ease of Access to Entrepreneurial Finance:
NECI National Entrepreneurial Context Index And are those funds easy to access?

NES National Expert Survey B1. Government Policy - Support and Relevance:
Do they promote and support startups?
NFC National Framework Condition
B2. Government Policy - Taxes and Bureaucracy:
OECD Organisation for Economic Co-operation Or are new businesses burdened?
and Development
C. Government Entrepreneurial Programmes:
SDGs Sustainable Development Goals Are quality support programmes available?
SEA Social Entrepreneurial Activity D1. Entrepreneurial Education at School:
Do schools introduce entrepreneurship ideas?
SMEs Small and Medium-sized Enterprises
D2. Entrepreneurial Education Post-School: Do
SMMEs Small, Medium and Micro Enterprises colleges offer courses in starting a business?

Adult population: Working-age adults, i.e. adults E. Research and Development Transfers: Can
between the ages of 18 and 64 years. research be translated into new businesses?

Adult Population Survey (APS): The APS is a F. Commercial and Professional Infrastructure:
Are these sufficient and affordable?
comprehensive interview questionnaire, administered
to a minimum of 2 000 adults in each GEM economy, G1. Ease of Entry: Market Dynamics:
designed to collect detailed information on the Are markets free, open and growing?
entrepreneurial activities, attitudes and aspirations of
respondents. G2. Ease of Entry: Burdens and Regulation:
Do regulations encourage or restrict entry?
National Expert Survey (NES): The NES is
H. Physical Infrastructure: Is this sufficient and
completed by selected experts in each GEM
affordable?
economy and collects views on the context in which
entrepreneurship takes place in that economy. It I. Social and Cultural Norms: Does culture
provides information about the aspects of a country’s encourage and celebrate entrepreneurship?
socio-economic characteristics that, according
to research, have a significant impact on national
National Entrepreneurial Context Index (NECI):
entrepreneurship: referred to as the Entrepreneurship This summarises in one figure the average state of
Framework Conditions (EFCs). 13 national Entrepreneurial Framework Conditions
selected by GEM researchers as the most reliable
Total early-stage Entrepreneurial Activity (TEA): The
determinants of a favourable environment for
percentage of adults (aged 18–64) who are starting or entrepreneurship. It is calculated as the simple
running a new business. average of 13 variables that represent the EFCs, and
which have been measured through a block of items
Established Business Ownership (EBO): The
evaluated by an 11-point Likert scale and summarised
percentage of adults (aged 18–64) who are currently by applying factorial analyses (principal component
the owner-manager of an established business, method).
i.e. owning and managing a business that has paid
salaries, wages or any other payments to the owners, National Team: GEM is a consortium of “National
for more than 42 months. Teams”. Each team is led by a local university or other
institution with a strong interest in entrepreneurship.
Entrepreneurial Employee Activity (EEA): The rate The team is the official national representative of the
of involvement of employees in entrepreneurial project: responsible for collecting GEM data in the
activities, such as developing or launching new goods country on an annual basis, producing a “National
or services, or setting up a new business unit, a new Report” on their findings, and acting as the point of
establishment or subsidiary, as part of their job. contact for GEM enquiries.
4| GEM SA SPECIAL REPORT 2023 | 2024

LIST OF GEM INDICATORS

Entrepreneurial Employee Activity (EEA)
Percentage of adults aged 18–64 who, as employees, have been involved in entrepreneurial activities such as
developing or launching new goods or services, or setting up a new business unit, a new establishment, or a
subsidiary, in the last 3 years.
Nascent Entrepreneurship Rate
Percentage of adults aged 18–64 who are currently nascent entrepreneurs, i.e. are actively involved in setting
up a business they will own or co-own; this business has not yet paid salaries, wages, or any other payments to
the owners for more than 3 months.
New Business Ownership Rate
Percentage of adults aged 18–64 who are currently owner-manager of a new business, i.e. who own and
manage a running business that has paid salaries, wages, or any other payments to the owners for more than 3
months, but not for more than 42 months (3,5 years).
Total early-stage Entrepreneurial Activity (TEA)

Percentage of adults aged 18–64 who are either a nascent entrepreneur or owner-manager of a new business,
i.e. the proportion of the adult population who are either starting or running a new business.

Established Business Ownership Rate (EBO)

Percentage of adults aged 18–64 who are currently owner-manager of an established business, i.e. who are
owning and managing a running business that has paid salaries, wages, or any other payments to the owners
for more than 42 months (3,5 years).
Business Exit Rate
Percentage of adults aged 18–64 who have exited a business in the past 12 months, either by selling, shutting
down or otherwise.
Perceived Opportunities
Percentage of adults aged 18–64 who agree that they see good opportunities to start a business in the area
where they live.
Perceived Capabilities
Percentage of adults 18–64 who agree that they have the required knowledge, skills and experience to start a
business.
Knowing a Startup Entrepreneur
Percentage of adults aged 18–64 who personally know at least one person who has started a business in the
past 2 years.
Fear of Failure Rate (opportunities)
Percentage of adults aged 18–64 who agree that they see good opportunities but would not start a business for
fear it might fail.
Ease of Starting a Business

Percentage of adults aged 18–64 who agree that it is easy to start a business in their country.

Good Career Choice

Percentage of adults aged 18–64 who agree that starting a new business is a desirable career choice.

High Status
Percentage of adults aged 18–64 who agree that successful at starting a new business have a high level of
status and respect.
Media Attention
Percentage of adults aged 18–64 who agree that they often see stories in the public media and/or the internet
about successful new businesses.
 |5

TEA Sector

Percentage of TEA in: extractive, business services, transforming, and consumer services sectors.

Motive for Starting a Business: “To make a difference in the world”

Percentage of TEA who agree that a reason for starting their business is “to make a difference in the world”.

Motive for Starting a Business: “To build great wealth or very high income”
Percentage of TEA who agree that a reason for starting their business is “to build great wealth or a very high
income”.
Motive for Starting a Business: “To continue a family tradition”

Percentage of TEA who agree that a reason for starting their business is “to continue a family tradition”.

Motive for Starting a Business: “To earn a living because jobs are scarce”
Percentage of TEA who agree that a reason for starting their business is “to earn a living because jobs are
scarce”.
High Growth Expectation Entrepreneurial Activity
Percentage of adults aged 18–64 starting or running a new business (TEA) who expect to employ 6 or more
people 5 years from now.
Internationally Oriented Entrepreneurial Activity
Percentage of adults aged 18–64 involved in TEA who anticipate 25% or more revenue coming from outside
their country.
Innovation in Product/Services
Percentage of adults aged 18–64 involved in TEA having products or services that are either new to the area,
new to their country, or new to the world.
Innovation in Technology/Procedures
Percentage of adults aged 18–64 involved in TEA having technology or procedures that are either new to the
area, new to their country, or new to the world.
Market Scope

Percentage of adults aged 18–64 involved in TEA having customers locally, nationally and globally.

Opportunity Exploitation in Disruption

Early-stage entrepreneur: COVID-19 pandemic provided new opportunities to pursue a business.

Adoption Digital Technology

Early-stage entrepreneur: in response to the COVID-19 pandemic, the business is making use of digital
technologies.
Social Sustainability

Early-stage entrepreneur: making decisions about the future of the business, considering social implications.

Early-stage entrepreneur: taking any steps to minimise the environmental impact of the business.

Environmental Sustainability
Early-stage entrepreneur: making decisions about the future of the business while considering the
environmental implications.
Early-stage entrepreneur: taking any steps to maximise the social impact of the business.

Awareness of SDGs

Early-stage entrepreneur: awareness of the 17 United Nations Sustainable Development Goals.

Economic Goals in SDGs

Early-stage entrepreneur: prioritising the social and/or environmental impact of the business above profitability
or financial gain.
6| GEM SA SPECIAL REPORT 2023 | 2024

CONTENTS
ACKNOWLEDGEMENTS
SPONSORS 1
KEY GEM DEFINITIONS AND ABBREVIATIONS 3
LIST OF GEM INDICATORS 4
CONTENTS 6
LIST OF FIGURES 7
LIST OF TABLES 7
FOREWORD 8
AUTHORS BIOS 9
SHARING THE JOURNEY 12

SECTION 1 SECTION 5
GEM CONCEPTUAL FRAMEWORK AND SUSTAINABILITY AND ADOPTION OF TECHNOLOGY
METHODOLOGY 5.1 Digitalisation and entrepreneurship 75
1.1 The GEM story 17 5.2 Sustainability and entrepreneurship 78
1.2 Who participated in the 2023 GEM 17
1.3 The GEM conceptual framework 18 SECTION 6:
1.4 How do we measure entrepreneurship 20 NURTURING GROWTH: THE VITAL ROLE
activity? OF ENTREPRENEURIAL ECOSYSTEMS IN
1.5 What makes GEM unique? 22 EMPOWERING WOMEN ENTREPRENEURS
6.1 National Expert Survey 85
SECTION 2 6.2 Enabling Environment Factors 91
BACKGROUND AND INDIVIDUAL ATTRIBUTES
2.1 Background of entrepreneurs 27
SECTION 7
2.2 Entrepreneurial mindset 32 CONCLUSION AND IMPLICATIONS FOR RESEARCH
POLICY AND PRACTICE
2.3 Entrepreneurial and societal attitudes 37
7.1 Implications for research, policy and 97
practice
SECTION 3 7.2 Developing a greater understanding 97
ENTREPRENEURIAL ACTIVITY TRENDS of the women entrepreneurship
phenomenon through research
3.1 Entrepreneurial pipeline 43
7.3 Better implementation of policies and 98
3.2 Reason for business exit 46 awareness thereof Promotion of women
3.3 Entrepreneurial process (TEA) 47 networks and associations
7.4 Promotion of women networks and 98
SECTION 4 associations
7.5 Greater media attention on the 98
ENTREPRENEURIAL MOTIVES AND OUTCOMES
importance of women entrepreneurship
4.1 Entrepreneurial motivations 57
7.6 Exposing women to the business 98
4.2 Entrepreneurial outcomes 62 environment from a young age
4.2.1 The current size of business 62 7.7 Greater representation of females in the 98
4.3 Innovation and entrepreneurship 64 business world

4.4 Exporting and entrepreneurship 67 7.8 Digitalisation and social and 98

environmental sustainability impacts of
4.5 Financing 68 women-led businesses
 |7

LIST OF FIGURES
Figure 1.1: The GEM conceptual framework 18
Figure 1.2: Entrepreneurial phases and GEM's entrepreneurship indicators 20
Figure 2.1: Adult population sample (Total sample 3038) 27
Figure 2.2: Involved in business 27
Figure 2.3: Differences among women and men entrepreneurs related to race 28
Figure 2.4: Age group of South African women entrepreneurs 29
Figure 2.5: Highest level of education: All women 30
Figure 2.6: Highest level of education: Women entrepreneurs 30
Figure 2.7: Highest level of education: Women not in business 30
Figure 2.8: Entrepreneurial mindset among South African adults 32
Figure 2.9: Entrepreneurial mindset among South African entrepreneurs 33
Figure 2.10: Societal attitudes: Adult population 37
Figure 2.11: Societal attitudes: Entrepreneurs 38
Figure 2.12: Entrepreneurial attitudes among South African Adults 38
Figure 3.1: Entrepreneurial activity 44
Figure 3.2: Reason for exit 46
Figure 3.3: Total early-stage entrepreneurial activity (TEA) by gender in South Africa 2005-2023 47
Figure 3.4: TEA Ratio of women to men 48
Figure 3.5: Sector grouping: Early-stage entrepreneurs (TEA) 50
Figure 3.6: Sector grouping: All businesses 50
Figure 4.1: Motives to become an entrepreneur 58
Figure 4.2: Current size of business: Early-stage entrepreneurs (TEA) 62
Figure 4.3: Current size of business: All business 63
Figure 4.4: Future job creation prospectives: All business 63
Figure 4.5: Innovation: New product 64
Figure 4.6: Innovation: New product 66
Figure 4.7: Internationalisation 67
Figure 4.8: Market scope: Early-stage entrepreneurs (TEA) 67
Figure 4.9: South African women informal funders 68
Figure 4.10: South African women informal funders 68
Figure 4.11: Gender of entrepreneur who received funds (all funders) 70
Figure 5.1: Digitalisation 76
Figure 5.2: Sustainability among all businesses 78
Figure 6.1: South African Entrepreneurial Framework Conditions 2021 to 2023 and GEM Average (2023) 88
Figure 6.2: Perceived support and access for women entrepreneurs: South African comparison to GEM and country 90
income levels
Figure 6.3: Enabling environment factors: Gender comparison 92

LIST OF TABLES
Table 1.1: Income grouping per country 18
Table 2.1: Global mindset perspectives 36
Table 3.1: TEA by sector 48
Table 3.2: Global TEA and women to men ratio for 2023 51
Table 4.1: Global motives to become an entrepreneur 59
Table 6.1: Entrepreneurial Framework Conditions (EFCs) 86
Table 6.2: Enabling Environment Factors 91
8| GEM SA SPECIAL REPORT 2023 | 2024

FOREWORD
No woman is more driven than one who is determined
to rise: women entrepreneurs have enormous
and growing beneficial effects on economies and
communities. It is the women themselves who put in
the most effort to reduce the gender gap, and they
Women’s entrepreneurship is a critical component are using their entrepreneurial mindset to overcome
of the entrepreneurial ecosystem. It contributes to the contextual disadvantages they experience daily.
socioeconomic development through job creation, Women do this by multitasking themselves through
innovation, poverty reduction, and levelling inequality. barriers, juggling the demands of work and family, and
In addition, women bring a diverse and unique skill set learning from their mistakes. Yet they need assistance.
to entrepreneurship. While some battles have been won, women still face
more hurdles than their male counterparts, particularly
In South Africa, as in the rest of the world, women in a country such as South Africa. It is common
are at the forefront of change as they establish and knowledge that research on entrepreneurship focuses
run successful businesses in different economic more on men than on women, with men being said to
sectors. However, they are over-represented in the be twice as likely to start a business relative to women.
small business sector, where they operate in highly Even while this ratio is improving in South Africa,
competitive, low-profit margin industries, with a there is still a sizable disparity. Previous GEM reports
significant proportion participating in the informal highlighted that women entrepreneurs are not only
sector with little or no support. Only a few women are growing businesses but also inventing products and
advancing into male-dominated fields where they are services, generating employment, and resolving social,
pushing the boundaries of creativity and innovation. environmental, and economic issues in the majority of
the world’s nations. However, women are more likely to
Since time immemorial, there has been an
pursue and succeed in entrepreneurship themselves
uneven playing field between women and men in
if they witness other women doing so. Seeing other
entrepreneurship. Gender inequality in accessing
successful women entrepreneurs in action may be a
critical business resources, stereotypes, and family
huge inspiration for women to defy social norms and
responsibilities limit women’s ability to reach their full
pursue their entrepreneurial endeavours. Women
potential. The current volatile, uncertain, complex and
might feel more motivated to reject traditional gender
ambiguous business environment amidst the negative
conventions and pursue their business goals when they
impact of climate change is forcing entrepreneurs
have access to role models and support systems.
to adopt new ways of thinking and doing business
to sustain their business ventures while leveraging Although GEM results have been published in
technology. Despite these obstacles, women forge special reports relating to women’s entrepreneurship
ahead, showcasing their entrepreneurial resilience to since 2019, this is the first GEM report focusing on
soar to greater heights in their business ventures. women entrepreneurs in South Africa. The purpose
of this report is to advocate policies and activities that
Over the years, the Global Entrepreneurship Monitor
promote gender equality and empowerment in the
(GEM) has been instrumental in tracking women’s
entrepreneurial ecosystem by showcasing the economic
entrepreneurial activities in many countries. The year
contributions made by women entrepreneurs. The
2024 is a milestone for South Africa as it marks the
data shows that although fewer women than men see
launch of the first GEM Women’s Entrepreneurship
good opportunities to start a business in the future.
Report. The report will closely monitor the intricacies
Fewer women than men also consider their skills to
of the women’s entrepreneurship landscape.
be satisfactory for starting a business. However when
The GEM Women’s Entrepreneurship Report South women enters the business domain, more women than
Africa is of interest to students, practitioners, scholars men see opportunies, perceive to have the right skills
of entrepreneurship, and economic development and set and even have better networks. Stakeholders should
public policy practitioners. It is a relevant resource for hone on these findings in order to dispel needless
students of entrepreneurship, particularly women’s prejudice and stereotyping.
entrepreneurship and economic development, at
Therefore, there is a much-celebrated need for this
the undergraduate and postgraduate levels. The
first women entrepreneurship GEM report in South
report also offers policymakers insights into policy
Africa. Like many others, I am excited about this report
directions and practical ways to develop women’s
as it will shed light on areas that require more support
entrepreneurship in South Africa by advocating for
and investment and offer insightful information on the
bespoke support initiatives complemented by gender-
unique possibilities and problems encountered by
responsive budgets.
women entrepreneurs in South Africa. I hope that key
To the courageous women entrepreneurs of the stakeholders—policymakers, scholars, organisations
rainbow nation of South Africa, we honour and salute that support entrepreneurship, and others—will use
you for contributing to socioeconomic development. the information in this GEM Women’s Entrepreneurship
Report 2023/2024 to help them make increasingly
Evelyn Derera PhD, School of Management, IT & defensible policy decisions that create the conditions
Governance, University of KwaZulu-Natal. necessary for women entrepreneurs to succeed
in their endeavours. If they use the full potential of
women entrepreneurs in this way, it will benefit society
as a whole.

Melodi Botha, Professor in Entrepreneurship and Head

of the PhD programme at the Department of Business
Management, University of Pretoria
 |9

GEM SOUTH AFRICA

TEAM, REPORT EDITORS
AND SECTION AUTHORS 

Natanya Meyer is an associate professor in the Department of

Business Management in the College of Business and Economics,
University of Johannesburg. She is part of the DHET-NRF SARChI
Entrepreneurship Education Chair. Prior to joining academia, she
owned and managed three successful businesses highlighting
her passion for entrepreneurship. She has been involved in the
development of entrepreneurial student societies, served as an
executive member of the Golden Triangle Chamber of Commerce
(GTCOC) and the former Chair of the community of practice for
entrepreneurship research in the Entrepreneurship Development
in Higher Education (EDHE) initiative launched by the Department
of Higher Education and Training (DHET) in 2017. Her research
focuses on entrepreneurial and economic-related topics as well as
tourism studies. She has been a member of the South Africa Global
Entrepreneurship Monitor team since 2022 and a member of the
Academy of Management. She holds a Y2 rating from the South
African National Research Foundation (NRF). She is an editor, editorial
board, scientific committee member, and reviewer for several national
and international journals.

Mahsa Samsami earned her PhD at the University of Agder in Norway.

Currently, she is a Postdoctoral Research Associate and lecturer at
Chemnitz University of Technology in Germany, a Research Fellow
at Stellenbosch Business School in South Africa, and a Research
Associate at the University of Agder in Norway. She has taught in
universities in Denmark, Norway, Germany, Iran, and Spain. She is
a member of the Global Entrepreneurship Monitor in South Africa
and has co-authored several national reports and special reports on
digitalisation, sustainability, and women entrepreneurship for GEM.
Her scholarly research is focused on the entrepreneurial tradition in a
family and institutionalised in a society, the entrepreneurial family, and
innovation, digitalisation, and sustainability. She publishes in journals
such as the European Journal of International Management, Journal
of Risk and Financial Management, and the International Review of
Entrepreneurship.

Caren Scheepers is a Professor at the Gordon Institute of Business

Science, University of Pretoria. She is a qualified Counselling
Psychologist and Professional Executive Coach. Her research focuses
on the influence of context on leadership, including virtual and
gendered entrepreneurial and corporate contexts. She is a member of
the Academy of Management. She holds a C2 rating from the South
African National Research Foundation (NRF). She is a section editor of
the South African Journal of Management and Economic Science, and
serves as reviewer for several national and international journals. She
authored, co-authored and co-edited seven peer reviewed business
books, nearly 50 internationally published teaching cases and more
than 40 academic articles in local and international journals. In 2020,
she received the international award: “Most outstanding contribution to
the Case Method” from the EFMD and The Case Centre.
10 |

Motshedisi Mathibe is an award-winning case writer, Associate

Professor, and Head of the Department of Business Management
and Entrepreneurship at the University of Pretoria’s Gordon Institute
of Business Science (GIBS). She helps pioneering social ventures
catalyse change. She works best at the interface of culture,
technology, formal and informal businesses, and social impact across
the African continent. Prof Mathibe teaches entrepreneurship and
strategic marketing. Her research interests are in the fields of Social
Entrepreneurship, Women Entrepreneurship, Informality, township
Economy, and Base of the Pyramid markets. In addition to teaching
and research responsibilities, Prof Mathibe is involved with The United
Nation’s Global Impact Young Sustainable Development Goals (SDGs)
Innovators Programme. Here, she mentors and supports a team
of young innovators in their efforts to frame a challenge, applying
sustainable business and innovative concepts/ideas to create tangible
business solutions with real market potential.

Anastacia Mamabolo is an Associate Professor at the Gordon

Institute of Business Science (GIBS) and was a visiting researcher
at Michigan State University in 2022/2023. She teaches research
design and methodology on various postgraduate programmes at
GIBS. Prof Mamabolo’s research focuses on the interlink between
entrepreneurship, human capital, and religion. She was involved in
GIBS Project Orbit, which explored African business and management
in Nigeria, Botswana, Kenya, Namibia, and Zimbabwe. In 2021/2022,
she led the Entrepreneurship Scoping study in seven African countries
(South Africa, Botswana, Malawi, Mali, Kenya, Senegal, and Nigeria)
focusing on Entrepreneurial Ecosystems. In 2022/2023, she led a
team of researchers from Morocco, Nigeria, Tanzania, and South Africa
on a research project to explore the hidden entrepreneurial businesses
that significantly contribute to innovation and economic development.
She has presented at international conferences and published articles
in peer-reviewed journals such as the Journal of World Business,
the International Review of Entrepreneurship, and the Journal of
Social Entrepreneurship. She is recognised by the South African
National Research Foundation as an emerging scholar and received
the Distinguished Young Woman Researcher Award for Humanities
and Social Sciences, presented by the Minister of Higher Education,
Science, and Innovation in South Africa.

Marianne Matthee, an Economics Professor at the Gordon Institute

of Business Science (GIBS), University of Pretoria, holds a PhD
in International Trade from North-West University. Marianne’s
expertise lies in Macroeconomics, which she teaches across various
postgraduate programs. She also co-teaches the MBA elective “Trade
in Africa.” Marianne’s research explores the intersection of economic
opportunities, international trade, and gender dynamics, focusing on
trade-related gender inequality and female entrepreneurial exporters.
She collaborates with esteemed organisations like the WTO and
UNCTAD, contributing to publications and reports. Recognised by the
South African National Research Foundation, she has also received
accolades such as the Distinguished Young Women Researcher
award. Marianne’s leadership as the GIBS Director of Research
(2021-2024) spearheaded efforts to elevate the School’s research
output. Passionate about global impact, she actively engages with
international platforms like the WTO’s Trade and Gender Research
Hub, fostering networks and driving change.

Evelyn Derera is an Associate Professor in the Discipline of

Management and Entrepreneurship in the School of Management, IT
& Governance at the University of KwaZulu-Natal, South Africa. She
teaches postgraduate and undergraduate courses in management
and entrepreneurship. Her research interests include entrepreneurship
education, entrepreneurship policy, social entrepreneurship, and
agriculture entrepreneurship, with a particular focus on gender.
 | 11

Leonie Greyling is a staunch advocate for entrepreneurial

development, which she embodies through the words of Dante
Alighieri - “If you give people light, they will find their own way”.
Leonie holds a PhD in Business Administration from the North-
West University’s Business School, an MBA from the University
of Pretoria’s Graduate School of Management, and a Bachelor
of Commerce from the University of Pretoria. Her academic
journey is distinguished by membership to the Golden Key
International Honour Society and notable accomplishments
as a top achiever in her studies. During her more than twenty
years in entrepreneurship support, Leonie launched impactful
initiatives such as stackable micro-credential short courses for
entrepreneurs and the Enterprising Women Programme, while
offering strategic advisory services to business incubators and
enterprise development centres to enhance their capacity to
support start-ups. She also championed technology transfer
and innovation projects and led numerous international
initiatives focusing on incubation and enterprise development.
Her research interests include the development of female
entrepreneurial identity and the relationship between impactful
entrepreneurial education and entrepreneurial identity.

Melodi Botha completed both her B Com and Masters Degrees

with cum laude and thereafter obtained a Doctoral Degree with
specialisation in Entrepreneurship at the University of Pretoria.
She lectures project management, business plan compilation
and other entrepreneurial courses in the department. She
also supervises honours, masters and doctoral students in
entrepreneurship. Her research focuses on training, educating,
and supporting entrepreneurs at different stages of preparing,
starting, and managing a business (which are referred to as
the stages of the venture life cycle). These stages include
nascent, potential, start-up and established entrepreneurs. She
has published several academic articles in both national and
international journals.

Menisha Moos is an Associate Professor in the Department

of Business Management at the University of Pretoria, South
Africa. She holds a DCom in Business Management degree
obtained from the University of Pretoria. Her research interests
are entrepreneurship and small business with a specific
focus on entrepreneurial ecosystems and its different types
of entrepreneurs, entrepreneurship education and gender
entrepreneurship. She is a section editor of the Southern African
Journal of Entrepreneurship and Small Business Management.
She has published in both national and international journals,
acted as a peer reviewer in accredited journals and supervises
Honours, Masters and PhD students.

Daniel Meyer is a professor at the College of Business and

Economics (CBE) at the University of Johannesburg (UJ), South
Africa. He is a National Research Foundation (NRF) rated
researcher. Daniel is a Development Economist and a specialist
in regional and local economic development analysis and
policy development. He has developed various innovative
measurement tools, indexes, and scales to analyse regional
economies. He also has a research focus on macroeconomics
and the linkages with good governance. He has authored
more than 150 internationally peer-reviewed research papers
since 2015 and has also presented more than 60 international
conference papers, including a number of keynote addresses.
His research is multi-disciplinary through the combination of
development economics, business, public management, and
governance.
12 | GEM SA SPECIAL REPORT 2023 | 2024

SHARING THE JOURNEY

Entrepreneurship is not only about the destination but also the journey. The process of becoming an
entrepreneur is dynamic, demanding, and involves a number of steps and activities. Although the path of
entrepreneurship can differ from one business to the next and from one entrepreneur to another, there are
certain components and lived experiences that usually accompany entrepreneurs on their journey. As part
of the important work the GEM does in collecting and disseminating data on entrepreneurial trends, which is
critical in decision-making processes, we also share some stories of real entrepreneurs, their challenges, and
how they overcome them. Doing so not only adds a personal perspective to the data but also aids in motiving
other nascent, new and even struggling established entrepreneurs. The journey of becoming an entrepreneur
is a frequently unpredictable one that calls for commitment, perseverance, imagination, and a willingness to
take chances. As they pursue their objectives, entrepreneurs must be adaptable to change with the times and
the market. In this year's report, we share several journeys, each with a different path, motivation, challenges
and ways of dealing with difficult decisions. What these entrepreneurs all have in common is the destination: a
successful, impactful business.

RECAPTURING FEMININITY AND SELF-ESTEEM

Adri Pretorius
Section 1, Page 19

BEAUTY AND BROW BAR

Cherize Henning
Section 1, Page 21

TIMELESS TOMATOES: NATURE’S GRACE

Anja Fourie
Section 1, Page 23

AFRICAN MAGIC IN EVERY STITCH

Phiwase Nxumalo
Section 2, Page 31

CREATING A BUSINESS THAT PROMOTES HEALTH AND WELL-BEING

Philancia Naidoo
Section 2, Page 34

THE GIRL WITH BIG DREAMS

Mathapelo Kubeka
Section 2, Page 39

THE BUSINESS OF BEING AN ARTIST

Usha Seejarim
Section 3, Page 45

ALWAYS WALK THE EXTRA MILE AND BE GRATEFUL

Hester Huysamen
Section 3, Page 49

SUSTAINING THE MOMENTUM BEYOND OURSELVES IN SOUTH AFRICA

Madelein van Zyl
Section 3, Page 52
 | 13

EMPOWERING WELLNESS: THE JOURNEY OF LADY K

Karien Lize Jafta
Section 3, Page 53

THE ART OF WALKING ON WATER

Juanita Kilian
Section 4, Page 61

THE SWEET JOURNEY OF OUMA ROOI

Gerda Swanepoel
Section 4, Page 65

BECOME INCREDIBLE
Izelda Spies
Section 4, Page 70

TRANSFORMING WORDS INTO LITERARY TREASURES

Haroldene Tshienda
Section 4, Page 71

FROM FARMGIRL TO BUSINESS OWNER

Mariëtte Stofberg-Coetzee
Section 5, Page 77

A COLOURFUL LIFE
Louise Volschenk
Section 5, Page 79

GOOD PROGNOSIS – YOUR GROWTH IS OUR BUSINESS

Sarahni Prins
Section 5, Page 80

CHANGING THE AFRICAN NARRATIVE THROUGH ANIMATION, VISUAL EFFECTS AND

CONTENT DEVELOPMENT
Nosipho Maketo-van den Bragt
Section 6, Page 86

RISING IN THE MIDST OF ADVERSITY

Morojane Maduna
Section 6, Page 93

BEHIND THE GLAM – A SPOTLIGHT ON THE TALENTED TOUCH OF A MAKEUP

MAGICIAN
Vanessa Motloung
Section 7, Page 99
GEM SA SPECIAL REPORT 2023 | 2024
 S E C T I O N

GEM CONCEPTUAL
FRAMEWORK AND
METHODOLOGY
Over the past 24 years, the GEM research consortium has tracked
the evolution of entrepreneurship within and across countries,
identifying the scale of its contributions to jobs and the economy,
and informing strategies and policies to support new ventures.
16 | GEM SA SPECIAL REPORT 2023 | 2024

THE GLOBAL
ENTREPRENEURSHIP
MONITOR
boasts an illustrious and highly esteemed
track record. A glimpse into GEM’s
contributions is summarised below.

Over 24 years
of gathered data, enabling comprehensive
analysis spanning diverse geographies and
country income levels.

Conducts upwards of

+170,000 interviews
annually, engaging with a spectrum of
experts and adult populations, inclusive of
entrepreneurs across all age brackets.

Data sourced from

120 economies
across regions offers a view of global
entrepreneurship.

Collaborates with

+370 specialists
and experts in entrepreneurship research,
ensuring depth and breadth in insights.

Engages with

+150 academic
and research institutions, fostering a rich
ecosystem of knowledge exchange.

Supported by

+150 funding institutions

underscoring its widespread recognition and backing.
 GEM CONCEPTUAL FRAMEWORK AND METHODOLOGY | 17

SECTION 1
Natanya Meyer, Mahsa Samsami and Angus Bowmaker-Falconer

GEM CONCEPTUAL FRAMEWORK

AND METHODOLOGY
1.1 The GEM story
GEM began in 1999 as a joint research project between Babson College (USA) and
London Business School (UK). GEM has evolved into the premier repository of dependable
information on entrepreneurship worldwide. Beyond its flagship annual GEM Global Report,
it publishes a diverse array of national and specialised reports each year, further solidifying
its position as the authoritative voice on global entrepreneurship and entrepreneurial
ecosystems.1

GEM employs two primary research tools. The first is related to the Adult Population
Survey (APS), and the second is associated with the National Expert Survey (NES). The APS,
encompassing a random sample of at least 2,000 adults between the ages of 18 and 64
years (henceforth simply referred to as "the adult population") per economy, discerns the
percentage of adults engaged in the inception or management of new ventures, termed
Total early-stage Entrepreneurial Activity (TEA). The NES is tailored to delve into the
nuanced entrepreneurial landscapes of individual countries around the world. This survey
engages a minimum of 36 meticulously chosen individuals renowned for their national
expertise in entrepreneurship across various domains.

1.2 Who participated in the 2023 GEM

In 2023, a total of 46 National Teams participated in the GEM APS. Among them was
Ukraine, whose national team conducted a smaller sample Adult Population Survey along
with the NES, overcoming challenging circumstances.

Participating GEM economies are categorised into one of three income groups based on
their GDP per capita. GEM adopted the classifications of low, medium, and high levels of
income.

GEM INCOME CLASSIFICATION

• Level A: Economies with a GDP per capita exceeding $50,000.

• Level B: Economies with a GDP per capita ranging from $25,000 to $50,000.
• Level C: Economies with a GDP per capita below $25,000.

While these thresholds are somewhat arbitrary, they provide a consistent framework for
presenting analyses, findings, and conclusions throughout this report. Level A economies
comprise 10 from Europe, two from North America, three from the Gulf region, and the
Korean Republic. Level B economies include 11 from Europe, five from Central or South
America, and three from Asia. Lastly, Level C economies demonstrate greater geographic
diversity, with six from Central or South America, five from Asia, two from Africa, and
Ukraine (refer to Table 1.1)2.

1
GEM (Global Entrepreneurship Monitor) (2024). Global Entrepreneurship Monitor 2023/2024
Global Report: 25 Years and Growing. London: GEM.

2
GEM (Global Entrepreneurship Monitor) (2024). Global Entrepreneurship Monitor 2023/2024
Global Report: 25 Years and Growing. London: GEM.
18 | GEM SA SPECIAL REPORT 2023 | 2024

Table 1.1: Income grouping per country

Level A Level B Level C

>$50 000 $25 000 - $50 000 $<$25 000
Canada Argentina* Brazil
France Chile China
Germany Croatia Colombia
Italy Cypres Ecuador
Republic of Korea Estonia Guatemala
Luxembourg Greece India
Netherlands Hungary Iran
Norway Israel Jordan
Qatar Japan* Mexico
Saudi Arabia Latvia Morocco
Slovenia Lithuania South Africa
Sweden Oman Thailand
Switzerland Panama Ukraine
United Arab Emirates* Poland Venezuela
United Kingdom Puerto Rico
United States Romania
Slovak Republic
Spain
Uruguay

*Participated only in the NES, not the APS. As a result, 46 economies participated in the APS (including Ukraine
with a limited sample), and 49 participated in the NES.

1.3 The GEM conceptual framework

The scale and longevity of the GEM project facilitates comprehensive research into the intricate patterns of
entrepreneurship, innovation, and economic development. This research, in turn, serves to enhance the quality of
policy formulation, programme design, and practical implementation within these domains.

The GEM conceptual framework is presented in Figure 1.1.

Figure 1.1: The GEM conceptual framework

Outcome
(socio-economic development)

Entrepreneurial output
(new jobs and value added)

Social, cultural, political, and Societal values

economic context regarding
entrepreneurship Entrepreneurial activity
• By phase
(nascent, new business,
National Entrepreneurial established business, business
Individual
framework framework exit)
attributes
conditions conditions
(demographic, • By impact
psychological, and (high growth, innovation, market
motivational factors) scope)
Basic requirements
• By type
Efficiency enhancers Total early-stage Entrepreneurial
Innovation and business sophistication Activity (TEA)
Established Business Ownership
(EBO)
Entrepreneurial Employee
Activity (EEA)
 GEM CONCEPTUAL FRAMEWORK AND METHODOLOGY | 19

RECAPTURING FEMININITY AND SELF-ESTEEM

As a successful female entrepreneur in South Africa, Adri Pretorius has
focused her energy on boosting her clients’ self-image with various
permanent make-up and tattoo techniques. Adri Pretorius Permanent
Make-up and Micropigmentation has been continuously providing women
with the best in beauty enhancement since its inception. During her
entrepreneurial journey, she has accumulated 24 years of professional
experience in the realm of beauty, permanent make-up, and paramedical
tattooing. Her proficiencies and expertise include the tattooing of areolas
for women who have experienced surgical scarring from breast cancer
surgery. This enables clients to achieve a more natural appearance. Adri
also specialises in using permanent make-up and tattooing to treat burn
victims, which helps them recapture their former natural appearance. These
techniques certainly go a long way towards allowing clients to improve their
self-esteem and confidence. This activity enables Adri to collaborate with
doctors and work together for the overall benefit of their patients, allowing
her clients to resume their previous life with a new-found confidence and
zeal for life.

From the outset Adri has consistently strived to stay abreast of cosmetic
and technical and skills. This provides most up-to-date treatment possible.
“Keep going, Accordingly, she reinvests in purchasing the latest technological and
equipment in order to expand the quality of her services and create further
and don’t give innovations relevant to her beauty applications. Her varying experience
allows herb to be flexible in conducting client evaluations and developing
up.” appropriate treatment procedures. As an energetic professional, Adri enjoys
to being busy and enjoys collaborating with her clients and observing their
absolute delight with the results of her restorative treatments. The rewards
she experiences from satisfied clients is overwhelming and even outweighs
any level of monetary compensation.

Adri explains that initially, her funding requirements were minimal, however,
as her business expanded, she began reinvesting in expansion of her
range of technical equipment. Accordingly, she purchased a carboxy
machine and a laser, to provide enhanced and innovative treatments for
her clients. Adri also provides the very artistic skill art and technical talent
for 3D areola tattooing. This sophisticated skill that requires an artistic eye
using the various tattooing skills and equipment. This differentiates from
normal permanent make-up to a higher skill level. The new treatments
are continuously evolving. It is necessary to access continuing education
and equipment in order to extend her treatment protocols and achieve
better cosmetic results. This includes training received in London and
where available international trainers visiting South Africa. Her business is
predicated on providing excellent service to her clients that helps create
a new and expanding clientele using word-of-mouth and social media
platforms, which translates into a continuous client stream.

Adri has developed her unique abilities and skills over a period of 24 years,
it is evident that she has reached a stage in her business where she has
achieved success while making a truly positive impact on her clients. With
her extensive experience and skills, she brings joy, satisfaction, and self-
confidence to numerous women who have experienced the ravages of
cancer and related surgical scarring. She often collaborates with doctors in
formulating a post medical treatment. This is a major part for the recovery
journey for victims of cancer and those who have experienced severe
You can reach out burn scars. Overall, Adri’s specialised treatment interventions have led
to Adri at: to numerous positive outcomes. At this stage, Adri is also sharing her
extensive knowledge by training young tattooists and permanent make-up
artists to assist victims and patients in need. In short, she offers hope and
normality to many and serves as a true inspiration to those who want to
make a difference.

[email protected]

https://www.facebook.com/adriforevermakeup/

@ adri_pretorius_
20 | GEM SA SPECIAL REPORT 2023 | 2024

GEM harnesses the APS data to derive insightful estimations of critical entrepreneurial variables, as delineated
in Figure 1.2 of its methodology. The APS includes inquiries that span the entirety of entrepreneurial activities,
from intentions to start a business through the nascent stage when first building a business (but not yet paying
more than three months in salaries) to new businesses (less than 3.5 years old), through ownership of established
businesses (more than 3.5 years old) and entrepreneurial exit.

In addition to quantifying entrepreneurial endeavours, GEM offers detailed insights into the personal attributes of
business owners, shedding light on their motivations for entrepreneurial pursuits and the cultural contexts shaping
their ventures. Furthermore, GEM furnishes comprehensive information regarding the enterprises themselves,
encompassing factors such as industry choice, job creation, innovation, growth expectations and their local,
national, and international market scope.

This wealth of data and analysis provided by GEM serves as a cornerstone for informed decision-making among
policymakers, program developers, and practitioners. By leveraging these insights, stakeholders can craft more
targeted interventions, design effective support programs, and foster conducive environments for entrepreneurial
success and sustainable economic growth.

Figure 1.2: Entrepreneurial phases and GEM's entrepreneurship indicators

EXITING THE BUSINESS

TOTAL EARLY-STAGE ENTREPRENEURIAL ACTIVITY (TEA)

Potential Owner-manager
Nascent entrepreneur: Owner-manager
entrepreneur: of an established
Involved in setting up of a new business:
opportunities, business: (more than
a business (up to 3.5 years old)
knowledge and skills 3.5 years old)
CONCEPTION

PERSISTENCE
FIRM BIRTH

EARLY-STAGE ENTREPRENEURSHIP PROFILE

Individual attributes Industry Impact

• Gender • Sector • Business growth
• Age • Innovation
• Motivation • Market scope

1.4 How do we measure entrepreneurship activity?

This report details the GEM's key entrepreneurship indicators but with a specific focus on gender differences and
comparisons. In some instances, economies are compared and ranked across these indicators. The GEM indicators
may be viewed as a dashboard representing a comprehensive set of measures that collectively reflect key aspects
of entrepreneurial activity.

The following key measures are highlighted: We evaluate the individual attributes of a potential
entrepreneur
We consider societal values and perceptions
Individual attributes include demographics,
Good career choice: psychological factors, and motivational factors.
The percentage of the adult population who believe
that entrepreneurship is a good career choice. Perceived opportunities:
The percentage of the population aged 18–64 years
High status of successful entrepreneurs: who see good opportunities to start a business in the
The percentage of the adult population who area where they live.
believe that high status is afforded to successful
entrepreneurs. Perceived capabilities:
The percentage of the population aged 18–64
Media attention to entrepreneurship: years who believe they have the required skills and
The percentage of the adult population who believe knowledge to start a business.
that there is significant and positive media attention for
entrepreneurship in their country.
 GEM CONCEPTUAL FRAMEWORK AND METHODOLOGY | 21

BEAUTY AND BROW BAR

The health, beauty, and cosmetic industry has become increasingly
important within the South African community and, with this growth,
Ms Cherize Henning has created a unique entrepreneurial venture
to accommodate this market. As a relatively new entrant into the
entrepreneurial community, Cherize took the initiative to enter this growing
sector and create an innovative approach to the beauty industry. After
working as an event planner, she decided to branch out and try something
new; thus, she opened her small business enterprise, ‘Reez Beauty and
Brow Bar’. Her salon was established about five years ago. Along with this
dramatic career transition, she decided to go into this realm with a mindset
of ‘all or nothing’, which created a significant challenge. That said, she
relates that she was extremely ambitious and highly motivated to succeed
in opening a profitable service business that focuses on quality, high
standards, and ethics. Her mission is to provide a one-stop shop for brow
and lash treatments with various treatment options while using top-quality
products to provide the best treatment results. Not only that, but Cherize
places a high value on maintaining a clean and aesthetic environment for
her patrons. Her primary business strategy was predicated on using various
social media platforms to promote her business, as well as using word of
mouth to spread the word through satisfied clientele.
“Anyone who
Besides this, Cherize is not just a successful entrepreneur but also a wife to
has never made her loving husband, Kobus, and a mom to their two beautiful girls. However,
as a successful female entrepreneur, she has set the benchmark for other
a mistake has women to follow. For example, Cherize continues to focus on upgrading her
never tried talents and knowledge by pursuing additional professional training each
year. She also follows the beauty market so as to keep abreast of new and
something new.” innovative treatment protocols that will allow her to provide new options for
her clients. Currently, she offers more than eight treatment plans and sees
up to 80+ clients per month. Moreover, while building her business, she
(Albert Einstein) volunteers that it is essential to cultivate support from friends and family,
as this can help develop new ideas, market strategies, and future growth
potential. Her business model is based on financial returns from satisfied
clients. She also conveys that you can learn from your mistakes as such
challenges make an entrepreneur stronger in the long term. Furthermore,
as a relatively new business owner, you should expect to experience ups
and downs during your venture, which will help you navigate through future
trials and errors. Cherize also recognizes that, while working with women,
she noticed that many lack self-confidence, which feeds low self-esteem.
Thus, she suggests that a large part of her service is to provide women
with treatments that will beautify them and make them feel good about
themselves and, as such, enhance their self-esteem. She also creates a
safe space for her clients to be able to unwind and offers a lending ear
to those who need it. In other words, she focuses on “trying to make a
difference in someone’s life, so that when they leave the salon, they have a
new spirit and zest for life, because every woman is worthy of being special
every day of her life.”

Although it is extremely important for her to work hard and build a lasting
relationship with her clients, she also knows the importance of maintaining
a work-life balance with a strong spiritual focus. During the five years,
Cherize has been building her business by garnering more knowledge,
experience, skills, and yearly training in her profession, which has helped
her expand her customer base and, naturally, her profits. She also describes
the satisfaction she receives when she sees the smiles on her clients’ faces,
which validates the fact that she has accomplished her goal. Moreover,
in order to continue to enhance her talents and expand her business, she
You can reach out to
sets specific goals to further her success by setting one pragmatic goal
Cherize at:
at a time. After achieving this goal, she then envisions the next objective
and so on. The aforementioned begins with extensive planning and self-
determination to achieve those plans through making appropriate decisions
and establishing reasonable objectives to enhance the business. After
five years of growing her business, Cherize continues taking advantage of
[email protected] every opportunity to grow and expand her knowledge related to planning,
management, marketing, finance, decision-making, and learning from
https://www.facebook.com/ others. Lastly, she stipulates that you should believe in yourself and trust in
reez.beautybar/ the process.
22 | GEM SA SPECIAL REPORT 2023 | 2024

Entrepreneurial intention: Business discontinuance rate:

The percentage of the population aged 18–64 The percentage of the adult population involved in
years (excluding individuals involved in any stage of Total early-stage Entrepreneurial Activity (TEA) who
entrepreneurial activity) who are latent entrepreneurs have, in the past 12 months, discontinued a business
intending to start a business within the next three either by selling, shutting down or in some other way
years. discontinuing their owner/management relationship
with the business.
Fear of failure rate:
The percentage of the population aged 18–64 years 1.5 What makes GEM unique?
perceiving good opportunities who indicate that
fear of failure would prevent them from starting up a GEM is different from other studies because it focuses
business on people, not just businesses. Available data on
companies and enterprises mostly cover the number
We investigate the entrepreneurial activity indicators and size of businesses, new business registrations
and closures, and company revenues and profits. This
Entrepreneurial activity is defined according to the gives us a special understanding of entrepreneurship
phases in the life cycle of entrepreneurial ventures. in a society. By studying people's attitudes and
ambitions, along with societal norms, GEM helps us
The following indicators describe the life cycle of a
see what drives a country's entrepreneurial culture
venture:
and the process of starting and running businesses3,4.
Total early-stage Entrepreneurial Activity (TEA):
In GEM, entrepreneurial activity is seen as a
This is the percentage of the adult population who
continuous process rather than as individual events.
are either in the process of starting a business (a
It is like a pipeline, where each phase feeds into the
nascent entrepreneur) or owner-managers of a
next. That is why the APS is crafted to track individuals
new business that is less than 42 months old. This
across different stages of entrepreneurship:potential
indicator can be enriched by including information
entrepreneurship, entrepreneurial intentions,
related to motivation (opportunity versus necessity),
nascent and new business activity, progression into
inclusiveness (gender and age), impact (business
established business ownership, and discontinuance
growth in terms of expected job creation, innovation
of ownership.5
and internationalisation), and industry (sectors).
GEM has compiled data on entrepreneurship across
Established business ownership rate:
more than 120economies. A focus on women's
The percentage of the adult population who are
involvement in entrepreneurial activity has aleways
currently owner-managers of an established business,
been a key focus, and will be increasingly a priority
i.e. who own and manage a running business that has
enquiry going forward.
paid salaries, wages, or any other form of payment for
more than 42 months.
3
GEM (Global Entrepreneurship Monitor) 2024. Global
Entrepreneurship Monitor 2023/2024 Global Report: 25
Years and Growing. London: GEM

4
GEM (Global Entrepreneurship Monitor) 2023. Global
Entrepreneurship Monitor 2022/23
Women’s Entrepreneurship Report

5
Bowmaker-Falconer, A., Meyer, N. and Samsami, M.
2023. Entrepreneurial Resilience during Economic
Turbulence 2022/2023. Stellenbosch University:
Stellenbosch, South Africa.
 GEM CONCEPTUAL FRAMEWORK AND METHODOLOGY | 23

TIMELESS TOMATOES: NATURE’S GRACE

Over the past 20 years, Anja Fourie has actively pursued her love of farming;
more specifically, growing and processing tomatoes for resale in South
Africa. As a female entrepreneur involved in the agricultural industry, Anja
has made her mark in this competitive realm, namely, as a consummate
tomato farmer, manager, business planner, and marketing strategist.

Her love for farming and nature began as a young child being raised on
a farm, which instilled in her a passion for using the land in diverse ways.
Today, Anja lives on a farm located in Bethulie, where most farmers
raise sheep. In fact, Anja’s husband raises sheep, but she also wanted to
contribute to the farm enterprise and decided, against all odds, to attempt
to grow tomatoes in a dry and arid region. Her early interest in farming
inspired her to pursue her own dreams; thus, eventually, after much trial
and error, she succeeded and went the next step and registered her own
business, ‘Timeless Tomatoes’, in 2004. Furthermore, she began entering
various competitions to measure the quality and taste of her tomatoes
compared to other like-minded farmers and competitors. After receiving
numerous accolades for and compliments on her tomatoes and tomato
products, Anja knew she had something special and slowly expanded her
product line. She was even featured in a prominent South African women’s
“Just Start! magazine called Rooi Rose, which served as a true inspiration for others.

Start small. Overall, Anja’s inspiring entrepreneurial venture has essentially allowed
her to share her success with others and create jobs for other women in
Whatever the area. With the valuable assistance of her husband, they have turned
this once impossible dream into a successful business that far exceeds
you do, do it their original expectations. Moreover, with their faith in God and Anja’s
together with commitment to contribute to the family income, ‘Timeless Tomatoes’ has
consistently grown in popularity within the South African community. Today,
God.” the farm grows, processes, and markets all the tomato products in-house
and has a small factory on the property for processing activities. She also
focuses on grading her tomatoes in order to maintain quality control and
produce and market top-grade sun-dried and fresh tomatoes. Most of
the profits are also reinvested in the business, which allows for further
expansion. However, as a well-rounded professional, Anja is also a qualified
auditor, which has added to her adept knowledge of business and financial
practices. Additionally, she has 11 years of professional business-related
experience working with the Small Enterprise Development Agency (SEDA)
and DESTEA In short, Anja has not only worked hard to develop her farming
skills, but also has extensive experience in dealing with various aspects of
commerce, business management, and governmental fiscal policies that
impact entrepreneurs.

With a tremendous drive to succeed in the family farming enterprise, Anja

has overcome numerous challenges within the South African context. For
example, she and other entrepreneurs must contend with excessive taxes
and load shedding as major inhibiting factors that are not conducive to
business. She is also intent on gaining access to chain stores, which has
proved exceptionally challenging up until now. Even so, Anja has continued
to persevere and remains committed to expanding her enterprise,
regardless of current economic and other adversities that have a negative
impact on all South Africans. In other words, she and her husband will
continue to provide the very best tomato products to their current market
and remain optimistic regarding the future of their business and South
Africa as a whole. With their reliance on God and their ability to succeed,
You can reach out to Anja Anja and her family continue to set a prime example for others to realise
at: that they, too, can accomplish anything with faith, determination, and
fortitude.

[email protected]

https://www.facebook.com/TimelessTomatoes/

www.timelesstomatoes.com
24 | GEM SA SPECIAL REPORT 2023 | 2024
S E C T I O N

BACKGROUND
AND INDIVIDUAL
ATTRIBUTES
26 | GEM SA SPECIAL REPORT 2023 | 2024

EXECUTIVE SUMMARY
Level A: Economies with a GDP per capita exceeding $50,000
Level B: Economies with a GDP per capita ranging from $25,000 to $50,000
Level C: Economies with a GDP per capita below $25,000

Perceived Opportunity (%)

Women Men
GDP PER A: 53.1 A: 59.6
CAPITA
B: 50.5 B: 52.3
C: 63.1 C: 63.0

GEM
Women Men
AVERAGE
55 57
SOUTH
Women Men
AFRICA
61.7 66.7
Perceived Capabilities (%)
Women Men
GDP PER A: 46.9 A: 61.9
CAPITA
B: 53.9 B: 62.6
C: 67.1 C: 76.0

GEM
Women Men
AVERAGE
55.4 66.3
Women Men
SOUTH
AFRICA
66.2 72.4
Fear of Failure (%)
Women Men
GDP PER A: 49.9 A: 45.0
CAPITA
B: 50.9 B: 45.0
C: 48.1 C: 44.0

GEM
Women Men
AVERAGE
49.8 44.7
SOUTH
Women Men
AFRICA
52.5 51.6
Networking (%)
Women Men
GDP PER A: 48.7 A: 55.9
CAPITA
B: 54.1 B: 58.7
C: 52.1 C: 59.9

GEM
Women Men
AVERAGE
51.7 58.2
SOUTH
Women Men
AFRICA
36.7 41.5
 BACKGROUND AND INDIVIDUAL ATTRIBUTES | 27

SECTION 2
Caren Scheepers and Motshedisi Mathibe

BACKGROUND AND
INDIVIDUAL ATTRIBUTES
Section 2 focuses on the micro-level of analysis, Figure 2.2: Involved in business
namely the background and the individual attributes of
the participants. This section focuses on the results of 20
the 2023 GEM adult population sample (APS), that is,
from a minimum of 2 000 comprehensive interviews 15
in each GEM economy. The questions asked in
the APS revolved around the current involvement
10 19,9%
of participants in entrepreneurial activities, their
ages, education levels, entrepreneurial mindset, 13,5%*
intentions and entrepreneurial activities. Since women 5

entrepreneurs continue to play an important role

in driving economic growth and enhancing social 0
development,6 this report focuses on women's Involved in Entrepreneurship Men
entrepreneurship in particular.
Involved in Entrepreneurship Women
2.1 Background of entrepreneurs *R
 ead as: 13.5% of the South African women (between the ages of
18 and 64) were involved in entrepreneurial activity in 2023.
Figure 2.1 illustrates that in South Africa, interviews
were conducted with a total sample of 3 038. The Compared to the 2022 figures, the percentage
sample consisted of adults between the ages of 18 to of women involved in entrepreneurial activity
64, of which 52% were women and 48% were men. The increased since only 9.5% of women in the APS
gender ratio in South Africa attained a value of 95 men in 2022 were involved in entrepreneurial activity.
to 100 women in 2022.7 The increase in women’s involvement from 9.5% to
13.5% was consistent with the men's involvement
Figure 2.1: Adult population sample (Total in entrepreneurial activities, which, in turn,
sample 3038) increased from 11.1% to 19.9%. The men involved in
entrepreneurial activities showed a higher increase
over the two data gathering points than women
involved in entrepreneurial activities.

48% MEN 52% WOMEN Ahl (2006)8, in her seminal work on gender and
entrepreneurship, states that entrepreneurs and
entrepreneurship are male-gendered concepts,
which means that they have male connotations. It
is not only the frequent use of the male pronoun
but also the way the entrepreneur is described. As a
Compared to the male population, Figure 2.2 consequence, traditionally, more men were attracted
illustrates that only 13,5% of women, compared to to entrepreneurship than women. Over the years, this
19,9% of men, were involved in entrepreneurial activity trend has declined, with more women entering this
in South Africa in 2023. previous male-dominated environment. Although an
improvement in women’s entrepreneurial participation
has been noted over the years, there is still room for
6
GEM Women. 2023. Global Entrepreneurship Monitor improvement.
Women’s Entrepreneurship Report: Challenging Bias and
Stereotypes. London: GEM.
8
Ahl, H. 2006. Why research on women entrepreneurs
7
Global Data. 2022. The Gender Ratio in South Africa. needs new directions. Entrepreneurship: Theory &
Global Data, https://www.globaldata.com/data- Practice, 30(5):595-621. https://journals.sagepub.com/
insights/macroeconomic/the-gender-ratio-of-south- doi/10.1111/j.1540-6520.2006.00138.x
africa-325349/
28 | GEM SA SPECIAL REPORT 2023 | 2024

According to Statistics South Africa, the official unemployment rate decreased by 0,7 of a percentage point from
32,6% in the second quarter of 2023 to 31,9% in the third quarter of 2023.9 The breakdown per gender category
shows that in the second quarter of 2023, 35.7% of women were unemployed, while fewer men (30% of men) were
unemployed.10 When considering these unemployment statistics, it is concerning that the APS results of 2023
showed an even lower percentage of women (13.5%) and men (19.9%) being involved in any stage of business. The
question in the APS questionnaire posed to all participants was, “Are you, alone or with others, currently the owner
of a business you help manage, self-employed, or selling any goods or services to others/ or as part of your main
employment?”

The Competition Commission of South Africa published a report on “Women in Business Study”11 in 2023 and
notes that the South African context is further complicated by issues relating to the intersectionality between
gender and racial inequality, which compounds the barriers that Black women entrepreneurs face. In their study,
65% of the women entrepreneurs were Black women, 14% were White women, 11% Coloured women and 10%
Indian women. Figure 2.3 reflects the racial distribution of the GEM sample. Slightly more white men (22.9%) were
involved in entrepreneurship than African men (20.7%). However, the ratio between men and women was higher
for the white cohort (0.79) compared to the African group (0.63). Although the overall rates for coloured and Indian
entrepreneurs were lower, the male-to-female ratios were higher than the African group ratio (0.9 and 0.77). The
lower African women's entrepreneurial rate should be identified as a policy priority, and programmes and initiatives
to assist black women entrepreneurs are crucial to improving this issue.

Figure 2.3: Differences among women and men entrepreneurs related to race

Women Men

25

20

15

22,9%
10 20,7%
18,2%

13,2% 14,2%
12,8%
5 10,2%
7,9%

0
African Coloured Indian White

The results of the GEM SA report point to the importance of creating a supportive environment or ecosystem for
entrepreneurship for both men and women in South Africa. It also shows that when unemployment statistics are
mentioned, it is essential to disaggregate the data to show the differences between men and women in order to
customise interventions towards women’s unique needs. The GEM report of 2022/2023 on Women entrepreneurs
in emerging markets noted, for example, that COVID-19 more adversely impacted women.12 This GEM report
also recommended disaggregation of data to focus on women’s entrepreneurial needs. The Mastercard Index of
Women Entrepreneurs (2022) for South Africa shows that 11.1% of working-age women were involved in early-
stage entrepreneurial activities, which is slightly lower than the GEM SA statistics. However, The Mastercard Index
also showed a similar trend of a lower rate of entrepreneurial activities among women compared to men.13

9
Stats SA. 2023. Statistics South Africa on Quarterly Labour Force Survey quarter three 2023. 14 Nov 2023, https://www.
gov.za/news/media-statements/statistics-south-africa-quarterly-labour-force-survey-quarter-three-2023-14

10
Rowling, N. 2023. Unemployment rate in South Africa from Q1 2016 to Q2 2023, by gender. Stats SA, https://www.
statista.com/statistics/1129142/unemployment-rate-by-gender-in-south-africa/

11
Competition Commission South Africa. 2023. Promoting effective entry and participation of Women Entrepreneurs in
the South African Economy, June 2023, https://www.compcom.co.za/wp-content/uploads/2023/08/CC_Women-in-
Business-Study.pdf

12
Elam, A., Bosma, N., & Shankar, A. 2022. Covid-19 impact on Women Entrepreneurs in emerging markets. Global
Entrepreneurship Monitor (GEM), London.

13
Mastercard Index Women Entrepreneurs (MIWE). 2022. South Africa grows number of women business owners, despite
challenges. Mastercard Index of Women Entrepreneurs, 8 March 2022, https://www.mastercard.com/news/eemea/
en/newsroom/press-releases/press-releases/en/2022/march/south-africa-grows-number-of-women-business-
owners-despite-challenges-mastercard-index-of-women-entrepreneurs/
 BACKGROUND AND INDIVIDUAL ATTRIBUTES | 29

Figure 2.4: Age group of South African women entrepreneurs

18-24 11,3%*

25-34 12,6%

35-44 15,9%

45-54 13,8%

55-64 14,2%

0 20 40 60 80

* Read as: 11.3% of the South African women entrepreneurs were between the ages of 18 and 24 in 2023.

With regards to the age group of South African Stats SA reports that the youth indeed remain
women who are involved in entrepreneurial activities, vulnerable in the labour market; however, the third
the highest number of women entrepreneurs were quarter of 2023 results show that the total number
between the ages of 35 and 44 (15.9%), according of unemployed youth (15–34 years) decreased by
to Figure 2.4. It was interesting that at ages 45 to 54 174 000 to 4,6 million, while there was an increase
(13.8%) and even 55 to 64 (14.2%), more women are of 237 000 in the number of employed youth to
involved in entrepreneurial activities, compared to 6,0 million. This resulted in a decrease in the youth
younger women between 18 to 24 with 11.3% and unemployment rate by 1,9 percentage points from
between 24 to 34 with 12.6%. 45,3% in Q2:2023 to 43,4% in Q3:2023.17

It appears that women in South Africa tend to enter The importance of exposing young women and girls
entrepreneurship at a later age. This finding requires to entrepreneurship cannot be overstated. It’s not
further investigation since it could imply that the just about education for employment but also about
women entrepreneurs had a corporate career and that empowering them to use their education to shape
the higher percentage of older women entrepreneurs the world they aspire to live in. The integration of
could indicate a leaking pipeline in corporate entrepreneurship skills into the curriculum, with a
employment in South Africa. Research in South African particular emphasis on fostering these skills among
organisations indicates, for instance, that the glass girls, is a strategy worth considering. This approach
ceiling in corporate South Africa pushes women into could potentially lead to a generation of women
entrepreneurship with the hope of experiencing less who are not only educated but also entrepreneurial,
gender inequality.14 It might also mean that some capable of transforming their aspirations into
women only decide to enter into the entrepreneurial reality. This result highlights that interventions to
journey after raising kids or when they are older. expose young women and even girls at school to
Women tend to have more challenges when it comes entrepreneurship are essential.18
to child and home responsibilities15.
In the total sample of 1580 women who were
It is concerning that only 11.3% of young women in interviewed in South Africa, Figure 2.5 reveals that
South Africa were involved in entrepreneurial activities. only 1% had a Master’s degree or Doctoral degree,
The unemployment rate of the young population (men whereas 10.8% had a Bachelor’s degree or Post
and women) in South Africa was high at (50.47% Q1: Graduate Diploma. In this total sample, 21.1% had a
2023).16 This youth unemployment rate refers to the higher certificate or diploma and 31.6.% completed
share of the economically active population (men and high school and achieved a matric qualification. Of this
women) aged 15 to 24 currently without work but in sample, more than a third (30.3%) had an education
search of employment. level of a Grade 12 or lower qualification.

14
Chengadu, S. & Scheepers, C. B. 2017. Women leadership 17
Stats SA. 2023. Statistics South Africa on Quarterly
in emerging markets. Routledge, Taylor & Frances. Labour Force Survey quarter three 2023. 14 Nov
2023, https://www.gov.za/news/media-statements/
15
Rodhain, A., Belghiti-Mahut, S., Lafont, A.L. & statistics-south-africa-quarterly-labour-force-survey-
Rodhain, F. 2020. Parenting: Towards a work-life quarter-three-2023-14
articulation model of women entrepreneurs. Revue de
l’Entrepreneuriat, 19(3):23-47.
18
Madyibi, N., & Mathibe, M. 2024. Prepare schools to
16
O’Neill, A. 2024. South Africa: Youth unemployment rate develop entrepreneurial skills. Mail and Guardian,
from 2004 to 2023. Statistic South Africa, https://www. 25 March 2024, https://mg.co.za/thought-leader/
statista.com/statistics/813010/youth-unemployment- opinion/2024-03-25-prepare-schools-to-develop-
rate-in-south-africa/ entrepreneurial-skills/
30 | GEM SA SPECIAL REPORT 2023 | 2024

The GEM Women’s Entrepreneurship report (2022/2023)19 observes that globally, women entrepreneurs tend to
be more educated than men, with higher levels of graduate education (W/M 1.08) and lower levels of secondary
or less education.

Figure 2.5: Highest level of education: All women

Master’s or Doctoral Degree 1,0%*

Bachelor’s degree (3 or 4 years or Post Graduate Diploma 10,8%

Higher certificate or diploma (Matric, IBE or Equivalent) 21,1%

Higher school completed (Matric, IBE or Equivalent) 31,6%

Secondary education (Grade 12 or Lower, but no Matric) 30,3%

Primary education (Grade 7 or lower) 5,0%

Pre-primary education 0,1%

0 5 10 15 20 25 30 35

* Read as: 1% of women included in the South African APS had a Master’s or Doctoral degree in 2023.

When considering the women entrepreneurs in the sample, this group had 2.3% Master’s or Doctoral degrees,
compared to the total sample of 1.01%. Figure 2.6 further illustrates that with regard to the other education levels,
the sample of women entrepreneurs had higher qualifications than the total sample of women and the sample of
women not involved in business (Figure 2.7). For example, more women entrepreneurs (11.6%) had a Bachelor’s
degree compared to the total sample (10.8%) and women not in business (10.6%). With regard to higher certificates
or diplomas, 29.8% of the women entrepreneurs had this education level compared to 21.1% of the total sample
and 19.7% not in business. With regard to a Matric qualification, 31.2% of the women entrepreneurs had this
qualification. Compared to the total sample, where 35.6% of women had a Grade 12 or lower qualification, 25.5% of
women entrepreneurs had an education level of Grade 12 or lower qualification.

Figure 2.6: Highest level of education: Women entrepreneurs

Master’s or Doctoral Degree 2,3%*

Bachelor’s degree (3 or 4 years or Post Graduate Diploma 11,6%

Higher certificate or diploma (Matric, IBE or Equivalent) 29,8%

Higher school completed (Matric, IBE or Equivalent) 31,2%

Secondary education (Grade 12 or Lower, but no Matric) 19,0%

Primary education (Grade 7 or lower) 6,5%

0 5 10 15 20 25 30 35

* Read as: 2.3% of South African women entrepreneurs had a Master’s or Doctoral degree in 2023.

Figure 2.7: Highest level of education: Women not in business

Master’s or Doctoral Degree 0,8%*

Bachelor’s degree (3 or 4 years or Post Graduate Diploma 10,6%

Higher certificate or diploma (Matric, IBE or Eqivalent) 19,7%

Higher school completed (Matric, IBE or Eqivalent) 31,6%

Secondary education (Grade 12 or Lower, but no Matric) 32,2%

Primary education (Grade 7 or lower) 4,8%

Pre-primary education 0,1%

0 5 10 15 20 25 30 35

* Read as: 0.8% of South African women not in business had a Master’s or Doctoral degree in 2023.

19
GEM Women. 2023. Global Entrepreneurship Monitor Women’s Entrepreneurship Report: Challenging Bias and
Stereotypes. London: GEM.
 BACKGROUND AND INDIVIDUAL ATTRIBUTES | 31

AFRICAN MAGIC IN EVERY STITCH

Phiwase Nxumalo is a progressive and artistic female entrepreneur
who started her business, ‘The House of Diva’, in 2009. Her high-quality
ready-to-wear clothing brand includes women’s, men’s, and children’s
clothing, as well as offering homeware and accessories. Her interest in the
clothing business began when her father would travel around Africa and
return with the most elegant and original printed clothing for her mother.
However, even though Phiwase loved the prints, she felt the designs were
unflattering and outdated. Her interest in fashion, however, never faltered,
and as the years passed, she reignited her interest in African fashion
with a new-found zest. With the help and encouragement of her close
friend, she embarked on creating her business, ‘The House of Diva’, which
became a fashion house devoted to promoting her high-quality African
print clothing line. Her fashions inculcate the rich heritage and culture
of the African continent while promoting fashionable trends that display
the unique flavour, vitality, and authenticity that showcase her exquisite
designs. Since launching her brand on the AFI runway in 2009, she has
experienced continued success, which allowed her brand to break into the
international market after being selected for Beyonce’s fashion directory in
2021. To date, Phiwase’s timeless fashions have captured the attention of
fashion-conscious individuals in South Africa, Africa, and the international
“We offer the community in a very short span of time.

very best in Phiwase explains that the marketing of her ready-to-wear fashions has
relied heavily on digital online platforms, which also reach the international
ready-to- marketplace. In the beginning, her challenge was to locate talented
seamstresses and pattern markers, as well as delivery and administrative
wear African personnel. With her leadership skills, she developed a cooperative and
print inspired harmonious team that embraced the same vision and commitment to
success. Moreover, while collaborating with suppliers so as to have a
by timeless steady stream of fabrics and accessories to offer, Phiwase also sought
out various partnerships and collaborations that would further advance
fashion.” her business. Most of her fabrics are purchased in bulk so as to garner the
most affordable price and achieve their profit targets. That said, Phiwase
presents herself as a multi-faceted business owner with numerous abilities
that include organisational, communication, and leadership skills, which
have helped drive her business toward success. Moreover, with her ability
to adapt to changes within the fashion industry, she was able to navigate
through the COVID-19 pandemic and meet the economic challenges that
are prevalent in the fashion industry. With her courageous and indomitable
personal attributes, Phiwase maintains her vision for the future by focusing
on her work with an eye on the “bigger picture”, which is a prime motivating
factor to achieving success.

As a female entrepreneur, she is focused more on her business operation

than concerning herself with constraints related to gender. Moreover,
her business was predicated on her love for fashion and the multitude of
innovations that lend themselves to fashion trends, both current and future.
With her creative talents and progressive view of fashion designs, Phiwase
has been the primary driver of her success; however, she also relates that
much of her creative support is compensated by her family, particularly her
parents, three siblings, and nephews. Accordingly, she relies on this family
support system, which provides inspiration and ideas for creating new
fashion designs. Lastly, her advice to others who have a desire to open their
own business is that they do their research and seek professional advice
from their target audience and other entrepreneurs. Next, put your plan into
You can reach out to action and pursue your dream through hard work, dedication and passion,
Phiwase at: which will generally lead to success.

[email protected]

https://www.facebook.com/TheHouseofDiva/

@Hod_Diva
32 | GEM SA SPECIAL REPORT 2023 | 2024

The women entrepreneurs, therefore, had higher qualifications than the total sample of women and those not in
business. This finding is significant and requires further investigation. Higher education levels might indicate that
women’s qualifications offer them a sense of entrepreneurial self-efficacy and build their confidence to take risks
and venture into entrepreneurship.20

Other studies in South Africa also found that the women founders were highly qualified when involved in export
trade, for example, and in digital platform businesses.21

2.2 Entrepreneurial mindset

This section focuses on the entrepreneurial mindset, which includes the following measurements22:

• Perceived opportunities - Percentage of adults aged 18–64 who agree that they see good opportunities to
start a business in the area where they live.
• Perceived capability - Percentage of adults 18–64 who agree that they have the required knowledge, skills
and experience to start a business.
• Fear of failure - Percentage of adults aged 18–64 who agree that they see good opportunities but would
not start a business for fear it might fail.
• Network or knowing and entrepreneur - Percentage of adults aged 18–64 who agree that they see good
opportunities but would not start a business for fear it might fail.

Figure 2.8 presents a comparative analysis of the percentage of women and men across these four distinct
categories. In the category of perceived opportunity, it is observed that approximately 61.7% of women and 66.7%
of men perceive opportunities in their environment, suggesting a slightly higher perception of opportunities
among men. The observed differences are significantly shaped by societal norms and expectations, which
often depict men as more driven and bold. Cultural and gender stereotypes act as a motivational force for
women’s entrepreneurship, resulting in a larger number of women entrepreneurs driven by necessity rather than
opportunity. Due to these gender stereotypes, a significant number of women entrepreneurs are reluctant to
venture into unfamiliar sectors and manage larger businesses that could potentially yield higher profits23.

Figure 2.8: Entrepreneurial mindset among South African adults

Women Men
80
72,4%
70 66,7% 66,2%
61,7%*
60
52,6% 51,5%
50
41,6%
40 36,7%
30
20
10
0
Perceived Opportunity Perceived Capability Fear of Failure Networking

* Read as: 61.7 % of women in South Africa agree that they see good opportunities to start a business in the area where they live.

In the perceived capabilities category, 66.2% of women and a notably larger 72.4% of men view themselves as
competent. This substantial disparity in self-perception could be linked to the confidence gap. Research indicates
that women are prone to undervaluing their skills, whereas men are inclined to overvalue theirs. This tendency

20
Matthee, M., Myers, K., Scheepers, C. B., & Mamabolo, A. 2023. Lived experience of women entrepreneurial exporters in
a developing country context. In, Making trade work for women: key learnings from the World Trade Congress on Gender
(Chapter 4). WTO. https://www.wto.org/english/res_e/booksp_e/making_trade_work_for_women_e.pdf

21
Swartz, E., Scheepers, C. B., & Toefy, T. 2022. Women entrepreneurs’ opportunity identification of digital platform start-
ups: Emerging evidence from South Africa. International Journal of Gender and Entrepreneurship, 14, 252-374. https://
www.emerald.com/insight/content/doi/10.1108/IJGE-06-2021-0096/full/html 

22
Global Entrepreneurship Monitor. (2023). Global Entrepreneurship Monitor 2023/2024 Global Report: 25 Years and
Growing. London: GEM. https://www.gemconsortium.org/file/open?fileId=51377

23
Adom, K., & Anambane, G. 2020. Understanding the role of culture and gender stereotypes in women entrepreneurship
through the lens of the stereotype threat theory. Journal of Entrepreneurship in Emerging Economies, 12(1):100-124.
 BACKGROUND AND INDIVIDUAL ATTRIBUTES | 33

might be shaped by societal stereotypes and biases that depict men as more adept. Studies suggest that factors
such as entrepreneurial education and a proactive personality can enhance self-perception among women
entrepreneurs24,25.

When considering fear of failure26, it is observed that approximately 52.6% of women and 51.5% of men express a
fear of failure. This is the only category where the percentage of women slightly surpasses that of men. The fear of
failure could be due to a higher inclination towards avoiding risks, a characteristic often associated with women.
It could also be a consequence of societal expectations and norms, where women face harsher criticism or
repercussions for failure. The integration of women into fields traditionally dominated by men could be influenced
by factors such as patriarchal norms, cultural barriers, and the continuous need for skill enhancement.

Networking, the percentages are relatively close, with 41.6% of men feeling they have networking opportunities
compared to 36.7% of women. This data indicates that men generally see more opportunities and abilities and
have more networking prospects than women. However, women express a marginally greater fear of failure
than men, possibly due to the prevailing gender imbalances in numerous professional sectors. Men may have
more access to networks owing to their historical predominance in certain industries. It’s important for women
entrepreneurs to improve their networking skills27,28. The research indicates that there’s a connection between the
enhancement of networking activities and the success of enterprises. If women entrepreneurs concentrate on
building their networking abilities, that could be one step towards funding solutions. This approach can help them
become more self-sufficient and successful.29

Figure 2.9: Entrepreneurial mindset among South African entrepreneurs

Women Men
100

80

60

91,5% 83,9%*
40 79,5% 83,9%*
74,7% 74,8%

20 42,3% 44,9%

0
Perceived Opportunity Perceived Capability Fear of Failure Networking

* Read as: 83.9 % of women entrepreneurs in South Africa agree that they see good opportunities to start a business in the area where they
live.

Research argues that an entrepreneurial mindset plays a crucial role in the success or failure of any business30.
Figure 2.9 provides an interesting comparison of mindset factors among men and women entrepreneurs in South
Africa. What is interesting is that when considering the mindset of only entrepreneurs compared to the full sample,
women entrepreneurs now perceive some of these factors higher than male entrepreneurs. For example, women
entrepreneurs now have a higher perception of seeing an opportunity (83.9%), higher perceived capability (94.3%),
and, although only by 0.1%, a higher networking ability compared to male entrepreneurs. These figures tell a
different story compared to those reflected in Figure 2.8 and showcase the positive effect entrepreneurship can
have on the mindset of women. Unfortunately, fear of failure is also still higher for women entrepreneurs (44.9%)
than for men (42.3%), although much lower than for the full sample (Figure 2.9).

24
Chauke, T. A., & Obadire, O. S. 2020. Using gender differential motivations in youth entrepreneurship as economic
survival strategy in South Africa. Gender and Behaviour, 18(1):15202-15216.

25
Maziriri, E. T., Nyagadza, B., & Chuchu, T. 2023. Key innovation abilities on capability and the performance of women
entrepreneurs: the role of entrepreneurial education and proactive personality. Business Analyst Journal, 44(2):53-83.

26
Diale, D., & Carrim, N. M. 2022. Experiences of black African women entrepreneurs in the South African male-dominated
entrepreneurial environments. Journal of Psychology in Africa, 32(3):216-223.

27
Chinyamurindi, W., Mathibe, M., & Hove-Sibanda, P. 2023. Social Enterprise Performance in South Africa: The Role of
Strategic Planning and Networking Capability. Journal of Social Entrepreneurship, 1-18.

28
Mathibe, M. S., Chinyamurindi, W. T., & Hove-Sibanda, P. 2022. Value co-creation as a mediator between strategic
planning and social enterprise performance. Social Enterprise Journal, 19(1):23-39.

29
Barkhuizen, E.N., Masakane, G. and van der Sluis, L., 2022. In search of factors that hinder the career advancement of
women to senior leadership positions. SA Journal of Industrial Psychology, 48(1), pp.1-15.

30
Akinbinu, B. M., & Chiloane-Phetla, G. E. 2022. Career mindset and entrepreneurship development in South
Africa. Journal of Contemporary Management, 19(2):675-706.
34 | GEM SA SPECIAL REPORT 2023 | 2024

There is a burgeoning interest in the entrepreneurial mindset. This interest is predicated on the understanding
that such a mindset plays a pivotal role in fostering and enhancing the competencies and abilities inherent in
entrepreneurs. Consequently, this facilitates the trajectory towards a prosperous entrepreneurial endeavor24,31.

Table 2.1. explores the complex interplay between global mindset and entrepreneurship, focusing on aspects
such as networking, perceived opportunity, perceived capabilities, and fear of failure. These factors are crucial to
the entrepreneurial journey, and their prevalence varies widely across diverse cultural and economic landscapes.
The table compares these elements across several countries, but when examining the BRICS group of countries
(Brazil, China, India, and South Africa), we observe distinct patterns. For instance, Brazil leads in networking with
75.6% of men and 66.3% of women, while South Africa lags with 41.5% of men and 36.7% of women.

In the realm of perceived opportunity, India outshines the rest, with 85.9% of men and 78.9% of women recognising
opportunities, whereas South Africa trails with the lowest score among women at 61.7%. When it comes to
perceived capabilities, India again tops the chart for both men (87.6%) and women (75.3%). Finally, in terms of fear of
failure, Brazilian men exhibit the least fear at 44.1%, followed by South African men at 51.2%.

Each of these countries, with their unique socio-economic landscapes, provides a rich tapestry of insights into
how global mindset perspectives shape entrepreneurial ventures. These findings help uncover the nuances
of entrepreneurship in these countries and shed light on how individuals perceive opportunities, leverage
their capabilities, build networks, and navigate the fear of failure. In doing so, this report contributes to a more
comprehensive understanding of global entrepreneurship and inspires future research in this dynamic field.

31
Maziriri, E. T., Nyagadza, B., & Chuchu, T. 2022. Innovation conviction, innovation mindset and innovation creed as
precursors for the need for achievement and women's entrepreneurial success in South Africa: entrepreneurial
education as a moderator. European Journal of Innovation Management.

CREATING A BUSINESS THAT PROMOTES

HEALTH AND WELL-BEING
In 2016, Philancia Naidoo, a female entrepreneur commonly known as
Philly, founded a business called D’Vida Wellness Spa, which focused on
a broad spectrum of physical, health-related issues. This small business
venture, which was self-funded, began in a single cottage with only one
employee. In 2017, the business moved into a two bedroom area with
two staff members. With a strong business strategy and an appealing
combination of an affordable spa menu, and a variety of therapeutic
treatments, the spa took flight. D’Vida Wellness Spa is now located at a
luxury hotel in the Vaal Triangle, and boasts six treatment rooms and a
highly skilled team.

Prior to, and during this entrepreneurial experience, Philly experienced

numerous challenges consisting of both financial and health-related
setbacks. In 2010, she fell seriously ill with a rare autoimmune disease
that prompted a number of adverse health-related issues, resulting in
her having to leave her work in the financial sector. Being unemployed,
ill, and having a keen interest in alternative healing, she decided to learn
about massage therapy. These courses and her intrepid desire to succeed
inspired her decision to start her small business venture to assist others
through massage therapy and alternative healing. Although she was
“The wealth of physically unable to conduct the treatments herself, she employed two
therapists who provided the treatments under her supervision. Philly began
knowledge and building her brand with a new and inspiring vision and strong strategy for
her spa. Through sheer determination, divine intervention, and a fierce will
experience that to succeed, she focused on developing a more estimable and valuable
I have acquired business, dedicated to the healing of others.

along the way is During the COVID-19 pandemic, the spa was forced to temporarily
close. During this time she pursued online courses relevant to
priceless.” personal development, holistic healing, trauma healing, subconscious
reprogramming, and business development. As her knowledge expanded
during this challenging time in her life, she discovered the enormous
benefits of natural healing and began to manage her own health condition
and treatments by incorporating natural and alternative healing tools
 BACKGROUND AND INDIVIDUAL ATTRIBUTES | 35

and treatments into her own life. This discovery sped up her healing and
even improved the state of her body and mind. Her healing journey and
commitment to personal development led to her achieving her five-year
goals in half the time. As this path unfolded, Philly became more aware the
critical importance of healing trauma, the mind, and the body.

This newfound passion for healing and well-being birthed the second
business venture, called Rise with Zen Sai. This brand focuses on
the emotional, mental, physical, and spiritual aspects of healing, and
maintaining well-being. With her ever increasing knowledge of business,
marketing and wellness, Philly began hosting wellness and transformative
healing retreats as part of her services. The brand began attracting a new
target market, one that connected with both Philly as a Wellness Coach,
and a need for their own journeys of self discovery, healing and growth.

While one on one healing sessions and wellness retreats are highly
effective in person, Philly has made coaching sessions and wellness classes
available online, for the convenience of those who are unable to attend but
still require the services and the benefits thereof. The brand now includes
corporate wellness sessions and retreats, catering to the needs of stressed
and unhealthy employees. These wellness sessions are aimed improving
the state of health holistically for individuals, helping them become more
alert and productive in both their personal and professional space.

At present, D’Vida Wellness Spa has become a popular brand within the
Vaal and surrounding areas. However, Philly dreams of branching out
internationally with Rise with Zen Sai. As such, she is constantly improving
and expanding her skills by attending relevant seminars, networking and
doing courses. To add to her to certificates in alternative healing, trauma
healing and Diploma in Marketing, she is also currently busy with an
Advanced Diploma in Management Practice, to develop her skills and
experience as an entrepreneur and leader.

Phillys advice to new entrepreneurs is to thoroughly research all aspects of

their business and plan ahead to avoid pitfalls and inevitable challenges.
A huge part of building a successful business is acquiring as much
knowledge and experience as possible to equip you for the road ahead.
Although Philly is succeeding in growing her businesses, she acknowledges
that it is a challenging task to build a profitable business under the current
economic climate of South Africa. Building a business in a stressed and
largely challenged economy requires innovative thinking, sound strategies,
immense will power, discipline and commitment to overcome issues such
as load shedding, water restrictions, unreasonable labour laws, and the high
cost of living. Furthermore, to be a successful business owner and a strong
leader requires one to be self aware and to be grounded in a strong value
system that provides your direction in life. “What is within you personally
will flow from you professionally. A sound knowledge of self is critical to
succeeding, hence the importance of personal development.”

With this being said, Phillys incredible hunger to succeed and do well in all
aspects of life encourages her to constantly find diverse ways to expand
You can reach out to in knowledge, business and leadership. Certainly, others can follow her
Philly at: lead. In fact, Philly has demonstrated that financial and personal challenges
actually tend to prompt management innovations and creative marketing
strategies that can lead to financial and personal success for the dedicated
entrepreneur.

[email protected] or
[email protected]
https://www.facebook.com/HealthWellnessSpa/
https://www.facebook.com/HealingandDevelopment/
www.dvidaspa.co.za and
www.zensai.co.za
@dvida_spa and
@rise_with_zen_sai
36 | GEM SA SPECIAL REPORT 2023 | 2024

Table 2.1: Global mindset perspectives

Perceived Perceived
Networking Fear of Failure
Opportunity Capabilities
Country Women Men Women Men Women Men Women Men
Brazil 66,3 75,6 66,4 64,4 60,9 71,1 54,1 44,1
Canada 47,0 56,0 58,5 66,4 49,2 64,0 56,9 52,7
Chile 72,2 73,0 56,7 62,2 71,8 79,6 48,9 42,5
China 55,5 56,6 69,7 68,8 49,2 61,7 69,4 62,8
Colombia 71,7 73,0 60,5 59,3 70,4 74,4 38,9 38,1
Croatia 69,4 74,1 60,8 67,3 69,6 77,5 52,0 44,2
Cyprus 65,3 68,6 37,2 42,4 54,7 66,4 59,7 55,1
Ecuador 62,4 68,7 53,7 54,9 72,4 77,9 39,8 36,1
Estonia 43,8 44,8 47,4 51,6 38,6 55,3 55,7 44,1
France 58,7 62,3 46,4 55,1 44,0 55,1 53,6 46,3
Germany 31,0 42,0 37,6 45,0 30,5 53,5 49,0 37,9
Greece 32,3 33,9 46,8 43,8 48,8 58,8 62,6 56,9
Guatemala 67,3 79,1 71,2 72,5 75,0 83,0 47,2 36,0
Hungary 45,5 56,8 27,6 28,9 30,9 45,8 45,8 38,7
India 46,2 65,9 78,9 85,9 75,3 87,6 54,9 59,5
Iran 47,5 59,4 27,7 25,5 53,0 68,5 44,2 45,5
Israel 67,2 69,6 48,3 46,1 30,7 43,4 54,4 49,7
Italy 41,2 51,4 30,4 37,0 45,2 56,6 56,6 47,6
Jordan 48,9 63,3 55,4 41,3 67,4 78,1 56,8 52,2
Latvia 41,5 46,3 46,3 39,7 46,8 58,0 47,4 36,2
Lithuania 65,1 75,1 58,0 64,7 53,2 61,4 41,6 34,9
Luxembourg 44,0 47,5 45,8 52,4 42,1 57,9 49,0 48,6
Mexico 53,3 57,6 61,3 61,8 67,2 71,4 43,4 41,2
Morocco 43,7 47,5 71,0 70,4 61,3 75,0 38,4 30,0
Netherlands 55,4 65,3 63,8 70,6 39,9 52,2 41,7 39,3
Norway 43,9 54,2 64,6 71,0 42,1 66,9 42,4 42,3
Oman 55,3 65,6 72,7 64,9 74,1 71,7 35,1 31,4
Panama 45,8 51,7 48,6 56,3 74,3 79,0 38,7 40,1
Poland 46,9 45,3 74,6 72,7 45,2 50,9 57,3 54,4
Puerto Rico 65,8 70,3 63,4 63,3 67,2 75,8 45,2 38,5
Qatar 48,1 54,7 73,5 67,3 58,9 70,8 42,6 39,2
Romania 45,1 46,0 57,2 54,2 53,1 52,2 60,8 57,2
Saudi Arabia 86,9 88,7 93,2 93,2 88,9 92,3 59,3 56,3
Slovakia 57,4 62,1 30,6 35,1 45,4 56,1 54,0 42,2
Slovenia 49,2 61,1 46,6 53,6 52,3 72,7 52,5 42,8
South Africa 36,7 41,5 61,7 66,7 66,2 72,4 52,5 51,5
South Korea 33,5 42,2 30,8 44,0 46,2 63,3 33,2 35,9
Spain 45,9 50,7 27,8 33,5 47,6 58,7 50,5 47,0
Sweden 47,8 55,1 67,3 70,3 37,6 56,3 44,8 40,5
Switzerland 49,7 58,6 43,5 61,1 37,5 52,0 52,0 43,5
Thailand 20,9 24,1 79,1 79,7 72,4 80,9 51,6 45,2
United Kingdom 52,2 53,6 44,9 49,6 46,1 59,8 65,7 56,7
United States 42,0 47,0 50,2 57,0 43,0 54,6 49,5 46,1
Uruguay 56,0 64,8 54,1 62,5 65,3 74,6 54,9 52,3
Venezuela 57,1 67,0 63,8 67,9 81,7 86,5 34,8 30,1
 BACKGROUND AND INDIVIDUAL ATTRIBUTES | 37

Based on the analysis, it can be concluded that there are significant differences in networking, perceived
capabilities, and fear of failure between Morocco (the only other African country participating in the 2023
GEM) and South Africa. South Africa demonstrates lower networking rates for both men (41.5%) and women
(36.7%), suggesting a potential area for improvement. On the other hand, Moroccan men exhibit high perceived
capabilities (75.0%), indicating a strong belief in their ability to succeed, followed by South African women at 66.2%.
Interestingly, Morocco records low fear of failure rates for both genders, with men at 30.0% and women at 38.4%.
This could be indicative of a risk-tolerant culture that encourages entrepreneurial activities. This could also be due
to an environment that is enabling and supporting entrepreneurs.

These findings highlight the importance of understanding cultural and gender differences in entrepreneurial
attitudes and behaviours within the African continent. They also underscore the need for targeted interventions to
enhance networking in South Africa and sustain the high perceived capabilities and low fear of failure in Morocco.

2.3 Entrepreneurial and societal attitudes

Societies' positive or negative perceptions of entrepreneurship are important influencers of entrepreneurial
ambitions and support for entrepreneurship.

The specific questions in the Adult Population Survey (APS) around these perceptions were as follows: “In your
country, most people consider starting a new business a desirable career choice; those successful at starting a new
business have a high level of status and respect, and you will often see stories in the public media and/or the internet
about successful new businesses.”

The APS in South Africa in 2023 revealed that men (84.7%) perceived entrepreneurship as receiving more media
attention than women (82.6%) (Figure 2.10). However, women perceived entrepreneurship to have a higher level of
status (86%) and respect, as well as a better career choice (79%) than men perceived entrepreneurship as a career
choice. Overall, the GEM SA 2022/202332 reports that since 2003, societal attitudes towards entrepreneurship,
which include a good career choice, high status and media attention, have shown a steadily upward trend. This
report also highlights that the higher scores could result from an increasing appetite for entrepreneurship and
higher media coverage, as well as government attention to the importance of entrepreneurship within the South
African context.

Figure 2.10: Societal attitudes: Adult population

Women Men

82,6%*

Media attention
84,7%

86,0%
High Status
85,0%

79,0%
Good career choice
77,9%

0 20 40 60 80 100

* Read as: 82.6 % of women in South Africa agree that they often see stories in the public media and/or the Internet about successful new
businesses.

Figure 2.11 provides insight into how men and women perceive entrepreneurship. In view of entrepreneurship as
a good career choice, the data shows 82.5% of men and 79.7% of women, which suggests a positive perception
of entrepreneurship as a career option among both genders, with men showing a slightly higher percentage.
Approximately 88.1% of men associate entrepreneurship with high status, and 85.5% of women share this view,
albeit slightly less than men. This suggests that a substantial majority of both genders consider entrepreneurship
to be a profession of high status.

The category of media attention reveals that approximately 91% of men and 92% of women believe that
entrepreneurs receive media attention. Interestingly, in this category, the percentage is slightly higher for women.

32
Bowmaker-Falconer, A., Meyer, N., & Samsami, M. 2023. Global Entrepreneurship Monitor South Africa: Entrepreneurial
resilience during economic turbulence. Stellenbosch University: Stellenbosch, South Africa.
38 | GEM SA SPECIAL REPORT 2023 | 2024

Figure 2.11: Societal attitudes: Entrepreneurs

Women Men
100

80

60

88,1% 85,5% 91,0% 92,0%

40 82,5%* 79,7%*

20

0
Good career choice High Status Media attention

* Read as: 79.7% of women entrepreneurs in South Africa agree that starting a new business is a desirable career choice

When considering the entrepreneurs in the APS study’s perceptions (Figure 2.11), it is interesting to note that
compared to the general adult population of women in the sample (of which 82.6% perceived that entrepreneurs
received media attention), a higher percentage (92.0%) of the women entrepreneurs perceived that entrepreneurs
received media attention. Compared to male entrepreneurs, the women entrepreneurs also perceived
entrepreneurs to receive more media attention. A lower percentage (79.7%) of women entrepreneurs, compared
to 82.5.% of men entrepreneurs, perceived entrepreneurship as a good career choice. The percentage of women
entrepreneurs (79.7%) was nearly the same as the general sample of women in terms of their perceptions
of whether entrepreneurship was a good career choice. Women entrepreneurs also perceived the status of
entrepreneurship as being at a lower status, at 85.5%, than men entrepreneurs, where 88.1% of the sample
perceived entrepreneurship as being at a high status.

Figure 2.12: Entrepreneurial attitudes among South African Adults

Women Men
100

80

60

40 86,0% 85,0% 82,6% 84,7%

74,4%* 73,9% 79,0% 77,9%

20

0
Similar standard of living Good career choice High level of status The public media and/or
internet about successful
new business

* Read as: 74.4% of women in South Africa would prefer that everyone had a similar standard of living.

When examining the entrepreneurial attitudes among South African adults, four questions were posed:

1. In your country, most people would prefer that everyone has a similar standard of living.
2. In your country, most people consider starting a new business a desirable career choice.
3. In your country, those successful at starting a new business have a high level of status and respect.
4. In your country, you will often see stories in the public media and/or the internet about successful new
businesses.

Figure 2.12 shows entrepreneurial attitudes among South African adults. The data shows that the perception of
the standard of living amongst both women and men appears to be on par, with women at approximately 74.4%
and men at around 73.9%, suggesting that across genders, a similar standard of living is important. In terms of
career choices, women seem to have a slightly more positive outlook, scoring around 79%, compared to men, who
score close to 77.9%, indicating that women might be slightly more content with their career choices than men.

The social status of women is perceived to be higher than that of men at about 86%, compared to men at around
85%, suggesting that women might feel they have a marginally higher social status than men. Lastly, regarding
the perception of successful new businesses in the media or on the internet, men score slightly higher at around
84.7%, compared to women, who score just under 83%. This could imply that men might feel more positively
influenced or represented by successful new businesses in the media or on the internet.
 BACKGROUND AND INDIVIDUAL ATTRIBUTES | 39

THE GIRL WITH BIG DREAMS

As a consistently growing and innovative retail business within the
burgeoning South African food service industry, ‘Thapie’s Kitchen’ has
become a distinguished and reliable food vendor, which was started in
2020 by Mathapelo Kubeka. This black female-owned business provides
specialized catering for various public and private events, offering the
finest in traditional African cuisines, such as renowned local meat products,
maize pap (porridge, similar to breakfast grits in Southern USA) and Kota,
which is a bread stuffed with a blend of meats, chips and other ingredients
(a variant of bunny chow). This culturally specialized bread meets the
demands of even the most sophisticated palate and is a popular mainstay
in Johannesburg and other regions of the country. Previously, Mathapelo
started a similar business venture known as a ‘Shias-nyama’, which also
offered food to the public. Even though this initial start-up failed, it did
provide some valuable marketing and management experience that has led
to her current success in the food service industry. Mathapelo’s combined
experience in the food service industry spans a six-year period and is
continuing to grow into a superb food catering enterprise, especially after
she was able to purchase her catering van.

The services provided by ‘Thapie’s Kitchen’ include servicing the local

“I generally East Rand community, specifically the township called Wattville. As a
small independent enterprise, Mathapelo has consistently provided her
solve problems community with high-quality, tasty, and moderately priced food selections.
Her marketing strategy consists of using social media platforms to locate
by determining feasible events and ‘word-of-mouth’ to promote her personalized culinary
customer needs offerings. Thus, she has taken advantage of available technology to
advance her business and expand her vision for future success. Based
and demands.” on Mathapelo’s strong work ethic, integrity, tenacity and a ‘never-give-up’
attitude, she has overcome many adversities that have plagued many
black South African women for decades. That said, she stands as a model
for others from all walks of life to succeed, regardless of economic,
educational, and cultural challenges. Her husband has also assisted with
the success of this venture since he has had difficulty finding work in the
current economic climate that continues to afflict a vast section of the
South African nation. As an experienced cook, Mathapelo has used her
skills to create her own source of income and serves as a beacon of hope
for all people to use their particular talents to overcome setbacks and
eventually reach financial independence. With her dogged determination
and commitment to succeed, she is continuing to work hard and rise to
meet the ever-changing economic environment that was exacerbated by
the COVID-19 pandemic.

Another major challenge for female entrepreneurs is the continuing

escalation of crime within South Africa. For example, one of Mathapelo’s
major concerns is maintaining a safe work environment, as there is a
prevalence of armed robberies that necessitates business owners to
pursue diverse protective measures that are also costly. Nevertheless,
even in these adverse conditions, she has reached a level of financial
independence where she no longer needs government assistance to
survive. Moreover, Mathapelo’s work ethic is validated by the fact that she
has consistently worked since her high school days, as she was compelled
to earn her own keep since that time. Adding to these hardships, Mathapelo
relates that she and her brother were adopted since their parents were not
financially able to support them. This prompted them to use their innate
survival skills and fortitude to lift themselves out of poverty and continue to
succeed one step at a time. Today, she continues to focus on building her
You can reach out to business, which is predicated on developing new marketing strategies and
Mathapelo at: innovations to increase her profits and finally realize her ambition of opening
her own restaurant.

[email protected]

https://www.facebook.com/Thapie’sKitchen/
40 | GEM SA SPECIAL REPORT 2023 | 2024
 S E C T I O N

ENTREPRENEURIAL
ACTIVITY TRENDS
42 | GEM SA SPECIAL REPORT 2023 | 2024

EXECUTIVE SUMMARY
Level A: Economies with a GDP per capita exceeding $50,000
Level B: Economies with a GDP per capita ranging from $25,000 to $50,000
Level C: Economies with a GDP per capita below $25,000

TEA (Early stage of Entrepreneurship (%)

Women Men
GDP PER A: 10.2 A: 13.7
CAPITA
B: 11.8 B: 15.4
C: 16.6 C: 19.1

GEM
Women Men
AVERAGE
12.6 15.9
SOUTH
Women Men
AFRICA
9.7 12.7
Entrepreneurial pipeline (%)

Entrepreneurial intention

Nascent entrepreneurs

New businesses

Early stage entrepreneurs (TEA)

Established businesses

Discontinued businesses
WOMEN

15.4

13.9

12.7
MEN

9.7
9.4

7.9
6.9

5.8
5.1

4.8
4.5

4.1
 ENTREPRENEURIAL ACTIVITY TRENDS | 43

SECTION 3
Anastacia Mamabolo and Marianne Matthee

ENTREPRENEURIAL
ACTIVITY TRENDS
The engagement of entrepreneurs in entrepreneurial Intention: Explores whether individuals intend to
activity contributes to economic growth by exploiting start a business within the next three years. Intentions
opportunities that translate to actual businesses. are required to enter the entrepreneurial activity but
Men and women create and manage businesses sometimes do not translate into actions to start a
that contribute to economic growth through job business.
creation and innovation. Considering this significant
contribution, it is essential to deeply understand Nascent entrepreneurs are the percentage of adults
entrepreneurial activity rates drawn from the 2023 aged 18-64 years who devoted tangible or intangible
Adult Population Survey (APS) in South Africa. This resources to start a business and are actively involved
section focuses on the meso-level or business in setting up a business that they will own or co-own
analysis, highlighting the trends in entrepreneurial but have not yet paid salaries, wages or any other
activity comparing men and women. However, the payments the owners for more than three months.
core discussions focus on how women entrepreneurs
engage in the stages of entrepreneurial activity. This New business entrepreneurs have transitioned
section focuses on the entrepreneurial pipeline, and beyond the nascent stage. They are owner-managers
specifically a review of Total Early Entrepreneurial of new businesses that have paid salaries, wages,
Activity (TEA). Reasons for exiting an entrepreneurial or any other payments to the owners for over three
activity is also considered to understand the full months but not more than 42 months.
entrepreneurial cycle.
Early stage of Business activity (TEA) is the core
measure of GEM, which illustrates the percentage
3.1 Entrepreneurial pipeline
of the adult population who are either in the process
GEM conceptualises entrepreneurial activity as a of starting a business (a nascent entrepreneur) or
continuous process of identifying new opportunities, owner-managers of a new business that is less than
setting up a new business, and managing an 42 months old.
established business. This process, set up as a
Established Business entrepreneurs own and manage
pipeline of activities, has different stages. Figure
businesses that have paid salaries, wages, or any other
3.1 shows that the stages are: intention to become
payments to the owners for more than 42 months.
entrepreneurs, nascent, new business, early stage of
business (TEA), established business, and business Business discontinuation reflects the entrepreneurs
discontinuance. Individuals participating in each stage who have exited a business in the past 12 months,
of the entrepreneurial activity form a basis for potential either by selling, shutting down, or otherwise
advancement to the next phase. These stages were discontinuing being the owner-manager of the
derived from the APS research featuring adults aged business.
18 to 64. Briefly, the phases are explained as follows33:

33.
Bowmaker-Falconer, A., Meyer, N. and Samsami, M.
2023. Entrepreneurial Resilience during Economic
Turbulence 2022/2023. Stellenbosch University:
Stellenbosch, South Africa
44 | GEM SA SPECIAL REPORT 2023 | 2024

Figure 3.1: Entrepreneurial activity

Women Men
20

15,4%
15
13,9%*
12,7%

10 9,4% 9,7%

7,9%
6,9%
5,8%
5,1% 4,8%
5 4,5%
4,1%

Intention Nascent New business Early stage of Established Discontinued a

to become businesses businesses business
entrepreneurs

* Read as: 13.9% of women in South Africa have intention to become entrepreneurs.

The entrepreneurial pipeline is quite varied. Overall, Regarding business continuance rate, the findings
men showcase more entrepreneurial activity than demonstrate that men have a slightly lower rate than
women. Figure 3.1 shows that in the early stage of women. This means that slightly more South African
entrepreneurial activity, 13.9% of women in South women than men exited a business in the past 12
Africa intend to become entrepreneurs, compared months for various reasons. It is concerning to see
to 15.4% of men. A higher percentage of male that the business exit rate was higher than the new
entrepreneurs (9.4% compared to 6.9%) are classified and established business rates, suggesting that more
as nascent entrepreneurs (i.e., they are involved women disengaged in business activities than own
in setting up their business but have not received and manage businesses. These findings suggest
wages from their business for three months or more). that women need more support in managing and
More male entrepreneurs are also classified as new developing their new businesses into established
business owners than their female counterparts, ones.
which indicates that 5.8% of male entrepreneurs
have been paid for three months or more (but less It is encouraging to observe that the South African
than three-and-a-half years) compared to 4.5% women's business discontinuance rate is less than
of women entrepreneurs. Likewise, more male the 2022 average African rate of 7.48%34. Further, the
entrepreneurs (12.7%) are in the early stages of their South African exit rate (5.1%) of women is slightly lower
business than women entrepreneurs (9.7%). The than the average rate of women in the Middle East
highest differentiation between men and women and Africa, which is 5.2%35. While the current exit rate is
entrepreneurs is further along the entrepreneurial below the regional rates, it is still too high compared to
pipeline, where 7.9% of male entrepreneurs have the average exit rate (2.2%) in low-income countries36.
established businesses and only 4.1% of women This could be because South African women
entrepreneurs are established. Male entrepreneurs entrepreneurs have low start-up activities compared
discontinuing a business have a slightly lower to women from other low-income countries like Togo,
percentage (0.3%) than their female counterparts. Morrocco, Guatemala, and Colombia. Further, as South
Africa’s income levels and economic activities improve
These findings demonstrate that the difference compared to other low-income countries, there are
between men and women in the early stages of more business exits. Therefore, efforts should be
the entrepreneurial pipeline (intention, nascent, and targeted to improve start-up activities and identify
new business phases) is less than 3%, with men reasons for business exit.
having a higher percentage than women. However,
as the stages unfold, the difference between
men and women in the established phase is more 34
Bowmaker-Falconer, A., Meyer, N. and Samsami, M.
comprehensive at 3.8%, demonstrating that it is 2023. Entrepreneurial Resilience during Economic
more challenging for women to run their established Turbulence 2022/2023. Stellenbosch University:
businesses than it is to start. It is crucial to explore the Stellenbosch, South Africa
challenges women managing established businesses
face to develop suitable interventions to improve the
35
GEM 2022/23 Women’s Entrepreneurship Report
number of businesses in that phase. 36
GEM 2022/2023 classifies South African as a low-
income country, characterised by a GDP per capita of
less than $20,000.
 ENTREPRENEURIAL ACTIVITY TRENDS | 45

THE BUSINESS OF BEING AN ARTIST

Ms Usha Seejarim has been working as a professional artist in South
Africa since the year 2000, but in 2015, she registered her company, Usha
Seejarim (Pty) Ltd. During this time, she has had numerous successful
experiences, such as participating in large public art commissions and
highly renowned exhibitions. Honours include being recognised by
receiving a number of various awards for her artistic endeavours, which
have led to her artworks being presented in galleries that prompted sales
to private collectors. Living out her dream, over the past nine years, Usha
has continued producing a significant amount of contemporary artwork
that has been championed by various galleries, collectors, dealers, and
fellow artists. Her creative talents provide her with two streams of income,
which consist of indirect sales from galleries as well as public artwork
commissions from specific clients that create a platform for direct sales.
As related to her sales volume via galleries, Usha explains that these sales
are somewhat erratic and difficult to predict. Moreover, the profit margin
from direct commissions is higher than that of gallery sales, as the gallery
takes a 50% commission from each sale. Thus, her public commissions
are significantly more profitable and have prompted her to pursue various
international platforms that provide more opportunities for artists. Overall,
these international platforms constitute an essential part of establishing a
“Having ideas network of local and global connections that enhances her ability to attract
commissions for her artwork.
is great, but
In order to further promote her artistic endeavours, Usha outsources
making things some publicity work to qualified individuals and teams, which also assists
happen takes her in building and nurturing various relevant relationships within the
contemporary art industry. Since these relationships are the backbone
time and of this industry, Usha is proactive in areas such as participating in various
related events, teaching, and mentoring. Moreover, she assists young artists
learning.” by guiding them in their exhibitions and judging amateur competitions, as
well as being a board member of a few art organisations. Additionally, Usha
is acutely aware that she must work hard to succeed in a male-dominated
industry, as well as meeting the challenges of being a woman of colour
who represents a minority within the contemporary art industry. In short,
she is aware that respect and authority within this or any industry must be
predicated on earning one’s place through hard work and dedication to
their craft. Thus, it is apparent that Usha wants to carve her place within
this industry based on her professional credentials and creations rather
than being elevated because of her gender or race. Even though South
Africa poses a challenging environment for artists, she is also convinced
that the current atmosphere in her market provides more opportunities
than other African countries. However, Usha is ready and willing to explore
other opportunities via the international marketplace, even though there
are many gatekeepers and barriers that limit the success of newcomers.
Nevertheless, she is significantly committed to her drive for success in her
field and is prepared to diversify her creations in an effort to expand her
exposure in the international market.

In preparation for extending her presence in the local and international

market, she is currently pursuing her MBA through the Henley Business
School in an effort to learn more about the industry from a business
perspective. Moreover, having studied art at the postgraduate level, Usha
has proven that she is a woman who is a dedicated professional who will
meet all challenges that may inhibit her journey toward earning a higher
level of notoriety in the world of art. She further relates that learning is
a prerequisite to problem-solving, and her new-found knowledge will,
You can reach out
thus, assist her in breaking into new markets. Finally, her commitment to
to Usha at:
success stands out as a tremendous incentive to other like-minded women
struggling to succeed in their areas of expertise.

[email protected]

www.ushaseejarim.com

https://www.linkedin.com/in/usha-seejarim
46 | GEM SA SPECIAL REPORT 2023 | 2024

3.2 Reason for business exit

Since entrepreneurial activity is viewed as a process with stages, entrepreneurs can exit at any stage. GEM’s
business exit percentage is based on adults who have sold, shut down or quit a business they owned or managed
in the last 12 months. Figure 3.2 maps the reasons that influenced business exit. Understanding these reasons
could help develop programs targeted at the specific challenges women entrepreneurs encounter. Further, the
mapping shows if the reasons are based on individuals, the firms, the business environment, and contextual
conditions.

Figure 3.2: Reason for exit

Women Men

3,7%
Problems with supply
0,0%

3,7%
Another business opportunity
1,1%

4,7%
The coronavirus pandemic
8,6%

0,9%
Government/tax policy/bureaucracy
0,0%

12,1%
Family or personal reasons
21,5%*

10,3%
Retirement
0,0%

6,5%
Another job
2,2%

17,8%
Problems getting finance
21,5%

21,5%
The business was not profitable
34,4%

18,7%
An opportunity to sell the business
10,8%

* Read as: 21.5% of women entrepreneurs in South Africa exited their businesses due to family or personal reasons.

Exploring the reasons for exiting a business, Figure 3.2 reveals a surprising diversity, with stark differences
emerging between men and women entrepreneurs. The main reason why men and women entrepreneurs exited
was their businesses being unprofitable (34.4% and 21.5%, respectively). However, women entrepreneurs also
exited their businesses for family or personal reasons (21.5%), whereas male entrepreneurs exited due to selling
their businesses (18.7%). Obtaining finance was another large contributor to the exit of both men and women
entrepreneurs, with the percentage for women slightly higher (21.5%) than for men (17.8%). Further reasons for male
entrepreneurs exiting included pursuing another business opportunity (3.7%), experiencing problems with supply
(3.7%), the COVID-19 pandemic (4.7%), finding another job (6.5%), or retiring (10.3%). The reasons differ slightly for
women. Over 10% of women entrepreneurs achieved a successful exit by selling their businesses. However, 8.6%
exited due to the challenges of the COVID-19 pandemic. Relatively few women (2.2%) left to pursue other jobs,
and even fewer (1.1%) transitioned to other business opportunities. Government bureaucracy was not a widespread
reason for exiting.
 ENTREPRENEURIAL ACTIVITY TRENDS | 47

While all business exit reasons matter, the main reasons for leaving are family and personal reasons, problems
getting finance, unprofitable businesses, and an opportunity to sell the business. First, there is consensus that
women in business are challenged to balance business and household activities. This is due to the societal
expectations that women are homemakers and take most of the responsibility for managing their homes.
Consequently, there are spillover effects, where home activities spill over into the business and how others
perceive women (e.g., funders), resulting in adverse outcomes37. These findings show that the expectations of
women as nurturers and homemakers are still dominant in society.

Second, access to finance is generally reported as the main challenge entrepreneurs face. A study that compared
women and men found that women entrepreneurs obtaining credit in the founding year is significantly lower
than their male peers in the same industry. The few given loans in the founding year are less likely to default than
men-led companies38. Research has also shown that financial literacy and effective policies on financial access
contribute to women's empowerment in entrepreneurial journeys39. In addition to providing policies supporting
finance access, women entrepreneurs should also receive financial literacy training.

Third, most women exited the entrepreneurial activity due to unprofitable businesses. It has been reported
that women have a lower return on assets when compared to males40. It can be argued that the multiplicity of
challenges, such as financial access and shared time between family and business, negatively influence business
profitability. In addition, the industry in which women-owned businesses operate could have an impact on
profitability41. Lastly, and positively, the study showed that some women do not exit due to failure but as a result of
opportunities to sell the business. These findings suggest the need for distinctions between women who fail and
those who exit because of business opportunities. Our findings do not show if the women entrepreneurs exited
and re-entered the entrepreneurial activity.

3.3 Entrepreneurial process (TEA)

The Total Early Entrepreneurial Activity (TEA) is the fundamental GEM indicator that measures the percentage of
the adult population participating in the two initial stages of the entrepreneurial cycle. It measures the percentage
of adults (18-64 years) starting or running a new business.

Figure 3.3: Total early-stage entrepreneurial activity (TEA) by gender in South Africa 2005-2023

Women Men

20% 18,8

15%
16,2
12,7
11,5
10,8 10,9

10% 9,1

9,6 9,7*
6,8
5,7 8,4 7,9
6,5
5%

4,3 4,3

0%
2005 2009 2013 2015 2019 2021 2022 2023

Read as: 9.7% of South African women were involved in early-stage entrepreneurship (TEA) in 2023.

37
Ogundana, O. M., Simba, A., Dana, L. P., & Liguori, E. 2021. Women entrepreneurship in developing economies: A gender-
based growth model. Journal of Small Business Management, 59(sup1), S42-S72.

38
De Andrés, P., Gimeno, R., & de Cabo, R. M. 2021. The gender gap in bank credit access. Journal of Corporate Finance, 71,
101782.

39
Andriamahery, A., & Qamruzzaman, M. 2022. Do access to finance, technical know-how, and financial literacy offer
women empowerment through women’s entrepreneurial development?. Frontiers in psychology, 12, 776844.

40
Oladipo, O., Platt, K., & Shim, H. S. 2023. Female entrepreneurs managing from home. Small Business Economics, 61(2),
447-464.

41
Anna, A. L., Chandler, G. N., Jansen, E., & Mero, N. P. 2000. Women business owners in traditional and non-traditional
industries. Journal of Business venturing, 15(3), 279-303.
48 | GEM SA SPECIAL REPORT 2023 | 2024

Figure 3.3 shows that since 2005, more South African men were involved in TEA than women. The gap widened
in 2015 (10.8% compared to 6.5%) but closed during the COVID-19 pandemic (18.8% compared to 16.2%). TEA for
both women and men spiked during the COVID-19 pandemic. Although the levels have receded since 2021, they
are still higher in 2023 compared to 2019, with 9.7% of women and 12.7% of men involved in TEA. Unfortunately, the
gap between men and women involved in TEA widened again in 2023.

Three possible explanations exist for the changes in TEA findings from 2019 to 2023. First, the findings
demonstrate that TEA rates increased during the COVID-19 pandemic, suggesting that more people could have
identified opportunities and started entrepreneurial businesses between 2019 and 2021 or that they started a
business due to necessity. Second, the difference between women's and men's TEA closed around the pandemic,
suggesting that there was no considerable difference in how it had an impact on both genders. It is worth
exploring the factors that positively contributed to the TEA rates. Lastly, the increasing gap in 2023 suggests that
post-pandemic recovery could have significantly impacted women entrepreneurs in startup and new business
phases. If these challenges are not addressed, the TEA gap will widen.

Figure 3.4: TEA Ratio of women to men

15%

0,88
0,86 0,86

10% 0,76*
0,75
0,73

0,63
0,60
5%

0%
2005 2009 2013 2015 2019 2021 2022 2023

Read as: In 2023, the women-to-men ratio for early-stage entrepreneurship (TEA) was 0.76.

Figure 3.4 illustrates the TEA ratio of women to men. While COVID-19 pandemic reduced the gap between women
and men in TEA, it has subsequently widened again. In 2023, the women-to-men ratio for TEA was 0.76.

In the past three surveys (2019-2022), the South African TEA ratio of women to men was higher than in most low-
income and high-income country contexts. However, in 2023, the ratio decreased by 1%, demonstrating fewer
women identifying and exploiting them to form new businesses. These findings are aligned with the widening
2023 TEA gap between women and men, as seen in Figures 3.3 and 3.4. A detailed analysis of the TEA by sector
(see Table 3.1) could explain the differences.

Table 3.1: TEA by sector

Sector in TEA Women Men

Agriculture, Forestry, Fishing 0,7% 1,7%
Mining 5,4% 13,1%
Manufacturing 2,7% 4,0%
Utilisation, Transport, Storage 2,7% 5,1%
Wholesale Trade 6,8% 13,1%
Retail Trade, Hotels and Restaurants 60,1%* 51,1%
Information and Communication 0,0% 0,6%
Financial Intermediation, Real Estate Activities 1,4% 0,6%
Professional Services 0,7% 0,6%
Administrative Services 0,0% 2,8%
Government, Health, Education, Social Services 19,6% 6,8%
Personal/Consumer Service Activities 0,0% 0,6%

* Read as: 60.1% of women involved in early-stage entrepreneurship operated their business within the retail, trade hotels and restaurant
sector.

Table 3.1 provides a nuanced view of TEA per industry sector, disaggregated for women and men. Most women
(60.1%) and men (51.1%) involved in TEA operated their businesses within the retail trade, hotel, and restaurant
sector. The second largest sector for women was in the government, health, education and social services sector
(19.6%), compared to 13.1% of men involved in TEA operating in both wholesale trade as well as mining.
 ENTREPRENEURIAL ACTIVITY TRENDS | 49

ALWAYS WALK THE EXTRA MILE AND BE

GRATEFUL
Ms Hester Huysamen has become a pioneer in the transport industry of
South Africa after being inspired by her late husband. In short, she helped
pave the way for other women to follow in her footsteps after forging her
place in this male-dominated industry. Initially, she garnered relevant work
experience in this field by working as a transport broker for an established
transport company. Following the death of her husband, she decided
to use her past work background to open the current family-owned
company, Premier Transport. This move exemplified profound courage and
commitment to challenge the gender stereotypes related to this particular
industry. With the odds against her, she began navigating through the
challenges of succeeding in a highly competitive business environment.
Notwithstanding, Hester started her venture with only four truck and
trailer combinations, which has now expanded into nine combinations
(truck & trailer). However, she was then confronted with problems such as
developing a customer base and ensuring clients made their payments in a
timely manner.

As a new start-up venture, Hester utilised her personal funds to help

finance her business, but was compelled to take out bank loans to
purchase her trucks and trailers. Her limited financial situation pushed her
“In the to advertise her services quickly and develop her clientele, whereby she
was assisted by her son and other family members. In short, Hester never
beginning, allowed her inspiration and vision to become clouded with such challenges;
thus, she pursued her dream with vigour and determination. After acquiring
there was a her trucks and trailers, her son came onboard and obtained the required
stereotype that training to broker transport contracts. They also relied on referrals from
various companies and clients with whom they had already developed
the transport and completed work, which expanded their networks for generating new
clients. Through various relevant contacts, word-of-mouth, and diversified
business is a advertising, this family-owned business has continued to grow and develop
new clients during the past 13 years of its existence. One of the major
man’s world... challenges Hester met was to overcome the challenges of the COVID-19
now women are lockdown. Like many businesses, this was an extremely difficult time,
but through sheer determination and applying good management skills,
nearly on the her company managed to remain relatively sound. You might say this is a
‘family affair’, as the backbone and success of the company is and has been
same level as predicated on the dedication and tenacity of family members, with Hester
men.” assuming the dominant leadership role. This has helped the company
survive numerous trials and tribulations as the family is truly committed to
overcoming all adversity, which is the symbol of good company culture and
governance.

Hester describes the future as being led by her desire to leave a successful
legacy for the next generation. Moreover, she places substantial value on
hard work and loyalty to customers, employees, family, and her community.
She is also aware that the transport industry, as a whole, has now become
more accepting of females in this previously male-dominated sector. In fact,
Hester mentions that, as the years passed, it is apparent that more women
are entering this field, and it has now become somewhat of a norm. Overall,
this female entrepreneur has established her company as a reliable and
established entity that embraces the highest ideals and integrity that lead
You can reach out to to success in any realm of business. Her advice to newcomers is to “do your
Hester at: homework beforehand” and bring this specialised knowledge into the field
of work that you are pursuing.

[email protected]
50 | GEM SA SPECIAL REPORT 2023 | 2024

The findings demonstrate that women’s participation is lower in sectors that are male-dominated or heavily
attributed to masculinity, like the mining industry and wholesale retail. The challenging workloads, long hours,
high startup capital, and heaving machinery within the mining environment could deter women from exploiting
entrepreneurial opportunities. Further, women who participate in male-dominated environments are reported to
have experienced male supremacy, discrimination, and stereotyping42. Therefore, women entrepreneurs opt for
industries with strong customer orientation, low entry barriers (e.g., financial capital), and male dominance, like
retail trade, hotels, and restaurants.

Figure 3.5 provides TEA percentages according to the sector groupings, namely, extractive (including oil and gas,
mining, and agriculture), transforming (together with manufacturing and transport), business services (as well as
communications and professional services), and consumer services (inclusive of hotels and restaurants, retailing,
and personal services).

Figure 3.5: Sector grouping: Early-stage entrepreneurs (TEA)

Women Men
67,0%
Consumer Oriented 81,9%*

4,5%
Business Services
2,7%

26,7%
Transforming
14,8%

Extractive 1,7%
0,7%
0 20 40 60 80 100

* Read as: 81.9% of women involved in early-stage entrepreneurship operated their business in one of the customer oriented sectors.

Extractive: including oil and gas, mining, and agriculture.

Transforming: including manufacturing and transport.
Business Services: including communications and professional services.
Consumer Services: including hotels and restaurants, retailing, and personal services.

Figure 3.5 provides the classification of the sectors provided in Table 3.1 per industry type. Most early-stage
entrepreneurship is operated in customer-oriented industries. More specifically, a significantly higher proportion
(around 13% more) of women are involved in TEA-operated customer-oriented businesses than men (80.1% vs.
67%). In comparison, more men (26.7%) than women (14.8%) are involved in TEA operated in transforming industries,
which include manufacturing and transport. More men than women also operate in both the business services and
extractive industries.

The high concentration of women in consumer-oriented firms shows that they select industries with easy entry
requiring limited startup and human capital. Additionally, by participating in these industries with low male
dominance, women conform to societal expectations as they do not disregard the entrenched gender roles.
However, the small percentage of women participating in extractive, transforming, and business service sectors
use strategies like partnering with male counterparts to enter the sector and become business owner-managers43.
Figure 3.6 shows the percentage of women and men in all entrepreneurial business phases analysed according to
their sector grouping.

Figure 3.6: Sector grouping: All businesses

Women Men

63,2%
Consumer Oriented 76,7%*

7,5%
Business Services
4,3%

27,1%
Transforming
17,1%

Extractive 2,1%
1,9%
0 10 20 30 40 50 60 70 80

* Read as: 76.7% of women involved in any stage of entrepreneurship operated their business in one of the customer oriented sectors.
42
Nondwangu, K. 2022. Gender-barriers faced by women entrepreneurs in the South African mining industry (MBA research
report, University of Pretoria, South Africa).
43
Ojong, N., Simba, A., & Dana, L. P. 2021. Female entrepreneurship in Africa: A review, trends, and future research
directions. Journal of Business Research, 132, 233-248.
 ENTREPRENEURIAL ACTIVITY TRENDS | 51

When aggregating the data to include all stages of entrepreneurship, it is evident from Figure 3.6 that
entrepreneurs mostly operate in customer-oriented industries, following the same trend for men and women as
in Figure 3.5. Likewise, a similar pattern is observed for entrepreneurs operating in other industries. More men
entrepreneurs operate in business services (7.5% vs. 4.3%), transforming industries (27.1% vs. 17.1%), as well as
extractive industries (2.1% vs. 1.9%).

It is worth pointing out that when all businesses are considered, the difference between men and women in the
extractive industry is 0.2%. The low percentage difference could suggest that along the entrepreneurial pipeline,
there is a stage with more women in the extractive sector. However, Figure 3.6 does not provide details of the
entrepreneurial stage, where many women participate in the extractive sector. Finally, Table 3.2 provides a
detailed picture of Global TEA, which also features South African ratios.

Table 3.2: Global TEA and women to men ratio for 2023

Country Level Country % Women TEA % Men TEA W/M Ratio

Canada 15,4 24,2 0,6
France 9,0 12,5 0,7
Germany 6,0 9,3 0,6
Italy 6,3 10,3 0,6
Luxembourg 8,7 10,6 0,8
Netherlands 12,2 15,2 0,8
Norway 4,9 8,8 0,6
A Qatar 13,8 14,4 1,0
Saudi Arabia 23,0 27,1 0,8
Slovenia 5,0 9,0 0,6
South Korea 7,7 12,7 0,6
Sweden 7,3 11,1 0,7
Switzerland 9,8 10,8 0,9
United Kingdom 10,3 13,3 0,8
United States 13,4 16,0 0,8
Chile 30,2 32,0 0,9
Croatia 9,9 16,4 0,6
Cyprus 7,6 14,5 0,5
Estonia 9,9 16,2 0,6
Greece 5,9 7,6 0,8
Hungary 7,1 12,7 0,6
Israel 7,7 9,9 0,8
Latvia 12,2 16,5 0,7
B Lithuania 7,2 6,1 1,2
Oman 8,3 13,0 0,6
Panama 28,5 34,1 0,8
Poland 2,4 2,8 0,8
Puerto Rico 20,0 24,8 0,8
Romania 4,9 6,8 0,7
Slovakia 8,9 12,6 0,7
Spain 6,1 7,5 0,8
Uruguay 23,9 28,8 0,8
Brazil 14,7 22,8 0,6
China 7,3 6,3 1,2
Colombia 26,1 20,7 1,3
Ecuador 33,4 31,9 1,0
Guatemala 28,9 36,2 0,8
India 9,3 14,6 0,6
C Iran 8,8 10,7 0,8
Jordan 10,7 19,9 0,5
Mexico 16,1 17,7 0,9
Morocco 4,6 8,1 0,6
South Africa 9,7 12,7 0,8
Thailand 24,5 22,8 1,1
Venezuela 21,4 24,0 0,9

Level A: Economic with a Gross domestic Product (GDP) per capita of more than $50 000
Level B: Economic with a GDP per capita of between $25 000 and $50 000
Level C: Economic with a GDP per capita of less than $25 000
52 | GEM SA SPECIAL REPORT 2023 | 2024

Widening the comparison to a global scale, Table 3.2 shows that South Africa’s percentage of women's TEA is
9.7%. Compared to other Level C countries, this rate is rather low, with only Morocco (4.6%), Iran (8.8%), India (9.3%)
and China (7.3%) showing lower women TEA rates. When comparing the women-to-male ratios, several level A,
B, and C economies showed higher and lower ratios, putting South Africa at an average rate. Countries such as
Thailand (1.1), Columbia (1.3), China (1.2) and Lithuania (1.2) have ratios higher than 1, indicating that more women
are in business than men.

This section reviewed the entrepreneurial activity in 2023 by comparing men and women. Examination of the
different stages of the entrepreneurial pipeline revealed that the percentage of men was higher than that of
women in the intention, nascent, new business, and established phases. Further, the findings demonstrated that
more women exit entrepreneurial activity than men. Some main reasons attributed to business exit include lack
of access to finance, profitability, an opportunity to sell the business, and motherhood. A closer examination of
TEA rates also showed fewer women than men in the nascent and new business stages. When the TEA rates were
compared across the industries, the results showed that women focus on customer-oriented sectors with low
entry barriers and male dominance. Therefore, the analysis of the entrepreneurial activity in this section challenges
the entrepreneurial actors to develop interventions to improve women entrepreneurs’ experiences when starting
and managing their businesses.

SUSTAINING THE MOMENTUM BEYOND

OURSELVES IN SOUTH AFRICA
The Labora Yard is a business complex that Madelein van Zyl and het
husband established as a container development project in 2009. As a
self-starter, visionary, and dedicated South African female entrepreneur,
Madelein created a viable and unique space where smaller businesses
can operate successfully. The Labora Yard, located in Centurion, South
Africa, is a space that provides a community venue or complex for small
businesses to thrive in the challenging economic environment of South
Africa. This complex was never originally created to only make money but
to produce a space by using shipping containers that offer opportunities
for small business enterprises and, thus, job creation. Currently, one of the
businesses at The Labora Yard is exporting their gin to Namibia, Africa.
Overall, this plaza has now created 50-plus jobs and is continuing to grow
while offering a popular venue for live entertainment. In other words,
Madelein has managed to develop a growing and successful complex
that provides a thriving and provocative commercial area with an Italian
pizza restaurant,brewery, coffee shop, a Kakiebos clothing shop, a 20,000
litre LP gas tank supply, and live entertainment, as well as two distilleries
(Stadspoor Gin & Earthbound Distillery) and a brewery on a corner. Madelein
also heavily focuses on promotional activities via social media.

“Understand Madelein reports that her biggest challenge was to navigate through the
meticulous approval process while designing parking facilities in the midst
time, money, of trying to accrue a sustainable cash flow. The plaza is often the centre of
innovative business ideas .and serves the public with a variety of specialised
and skills to shops and a distinctive atmosphere that promotes start-ups. Accordingly,
co-create your Madelein’s creative vision has become a gathering place for entrepreneurial
achievement with far-reaching components that help others begin their
dream.” commercial journey in a highly eclectic environment. As the mother of two
student daughters, she has worked hard to turn this plaza into reality. Other
challenges include conflict management, negotiations, time management,
various taxes, and administrative activities. Overall, Madelein certainly
presents herself as a woman who is exceptionally focused on creating
a space for diverse business entities that have propagated her vision
and inspiration to facilitate an aesthetic environment for novel business
ideologies to come to fruition. Moreover, she has developed certain
attributes such as patience, tempered with her creative and innovative
vision to move ahead with her ability to conceive a vibrant, relaxed, and
profitable venue.

[email protected]
You can reach out
https://www.facebook.com/laborayard/
to Madelein at:
www.laborayard.co.za

@the_labora_yard
 ENTREPRENEURIAL ACTIVITY TRENDS | 53

EMPOWERING desire to follow in her father’s footsteps and continue

his profound legacy by offering these natural products
to a wider market by taking advantage of various social
WELLNESS: THE and commercial platforms. Accordingly, her business
value is predicated on providing highly effective
JOURNEY OF LADY K natural products that target the specific needs of her
customers, especially those suffering from diabetes,
while advancing the importance of clinical validation,
customer education, sustainability, innovation,
and community involvement. The company’s
marketing strategy is consistent with a multi-faceted
approach that involves accessing local, national, and
international markets. This all-encompassing strategy
focuses on developing strong partnerships with
local pharmacies, retail establishments, and various
community clubs/organisations, as well as creating a
national and international distribution network using
e-commerce principles. Another major aspect of this
business is that Lady K Wellness provides financial
opportunities for individuals to work as home-based
agents/distributors. Moreover, in order to ascertain
customer preferences, trends, and competitiveness
in each target market, Karien relies heavily on market
research. Hence, this level of commitment, flexibility,
and innovative marketing has established Lady K
Wellness as a true standard for other small and
medium-sized business ventures.

“We strive to fulfil our The aforementioned business, along with a profound
ambition to expand and succeed, has catapulted Lady
mission of promoting K Wellness’s consistent growth with unlimited profit
potential, even in the face of our current economic
health, wellness, and instability. Karien also leads by example in that she
happiness…one herbal attempts to inspire her staff by fostering appropriate
management principles that are founded on integrity,
remedy at a time.” hard work, family values and unity. Moreover, the
company provides various training and development
opportunities that lead to professional growth,
loyalty, team building, and retention. By maintaining
Lady K Wellness was developed under the umbrella
these management protocols, Lady K has been able
of High Rollers Trading and Projects CC, marketing
to overcome numerous challenges, including the
various natural health-related products under
resolution of issues related to financial constraints and
the Lady K brand. In 2010, Ms Karien Lize Jafta, a
gender biases and capturing a larger share of the retail
progressive female entrepreneur, registered High
market even in the face of significant competition.
Rollers Trading and Projects CC, which became the
Lady K is also a major supporter of women’s economic
catalyst for the Lady K Wellness brand. At present,
empowerment. Ultimately, as a highly skilled and
Lady K’s herbal products are produced and marketed
competitive entrepreneur, Karien continues to focus
from its headquarters in Johannesburg, South Africa.
on the further expansion of Lady K Wellness, with
The company has been consistently expanding since
the aim of becoming a major player within the global
its inception, and its products are currently exported
health and wellness market. In short, it is remarkable
throughout the continent of Africa, as well as to Asia.
how Karien’s vision and passion have impacted so
Moreover, Karien’s dedication to quality, service,
many lives in a positive manner.
and innovative marketing concepts has been the
primary driver for the company’s expansion, which
also includes selling wellness products via Makro
Marketplace. As a highly successful entrepreneur,
Karien has been recognised by being nominated as an
international ambassador for small businesses, which You can reach out to Karien at:
is a true accolade. Additionally, she has been praised
for her unwavering commitment to promoting natural
products, which advances sustainability within the
business sector.

Karien’s success was also inspired by the fact that her

father, a homoeopathic practitioner, developed the [email protected]
herbal products that are currently marketed under
the brand Lady K Wellness. Under the tutelage of her https://www.facebook.com/ladykherbs/
father, she developed a passion for natural remedies
and holistic healing while absorbing a tremendous www.hrtradingandprojects.co.za
amount of knowledge involving the different herbal
@karien.jafta
formulas. Karien further relates that she has a strong
54 | GEM SA SPECIAL REPORT 2023 | 2024
 S E C T I O N

ENTREPRENEURIAL
MOTIVES AND
OUTCOMES
56 | GEM SA SPECIAL REPORT 2023 | 2024

EXECUTIVE SUMMARY
Level A: Economies with a GDP per capita exceeding $50,000
Level B: Economies with a GDP per capita ranging from $25,000 to $50,000
Level C: Economies with a GDP per capita below $25,000

Make a difference motive (%)

Women Men
GDP PER A: 5.2 A: 6.7
CAPITA
B: 5.9 B: 7.1
C: 9.2 C: 10.6

GEM
Women Men
AVERAGE
6.6 8.0
SOUTH
Women Men
AFRICA
6.0 7.5
Make wealth motive (%)
Women Men
GDP PER A: 6.0 A: 9.0
CAPITA
B: 6.0 B: 9.0
C: 10.3 C: 12.2

GEM
Women Men
AVERAGE
7.2 9.9
Women Men
SOUTH
AFRICA
6.2 8.2
Family tradition movite (%)
Women Men
GDP PER A: 3.2 A: 4.7
CAPITA
B: 3.4 B: 5.0
C: 7.4 C: 8.8

GEM
Women Men
AVERAGE
4.5 6.0
SOUTH
Women Men
AFRICA
4.3 6.0
Earning living motive (%)
Women Men
GDP PER A: 5.8 A: 7.3
CAPITA
B: 8.5 B: 10.2
C: 14.2 C: 15.6
Women Men
GEM
AVERAGE
9.2 10.8
Women Men
SOUTH
AFRICA
6.5 8.6
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 57

SECTION 4
Leonie Greyling

ENTREPRENEURIAL
MOTIVES AND OUTCOMES
4.1 Entrepreneurial motivations especially among younger individuals who prioritise
careers driven by values that resonate with their
Entrepreneurship is a complex, multi-faceted personal ethics and convictions regarding social
endeavour that individuals pursue for a variety of obligations45.
reasons, often comprising a blend of personal,
economic, and social factors. Understanding the To continue a family tradition
motives behind why people become entrepreneurs
Continuing a family tradition is also a common
can provide deeper insights into the different
motive among entrepreneurs. Within numerous
outcomes of entrepreneurial ventures. To explore
societal contexts, enterprises run by families serve
entrepreneurial motives and outcomes, the key
as a fundamental pillar of the economic landscape,
entrepreneurial motivations are clustered into the
prompting subsequent generations to harbour a
following distinct categories: i) To build great wealth
profound sense of responsibility towards perpetuating
or a very high income, ii) to make a difference in the
and enhancing the family enterprise. This incentive
world, iii) to continue a family tradition and iv) to earn a
combines individual allegiance with societal norms,
living because jobs are scarce.
often leading to a conservative approach to business
expansion and innovation. The sentimental attachment
To build great wealth or a very high income to the family business entity can exert a significant
One primary motive for entrepreneurship is the influence on decision-making processes and the
desire to build great wealth or achieve a very high strategic trajectory of the organisation46.
income. This ambition propels individuals towards
engaging in business ventures that may carry notable To earn a living because jobs are scarce
risks while presenting the potential for considerable
Finally, in regions with limited employment
financial gains. Entrepreneurs driven by this objective
opportunities, entrepreneurship may arise due to
frequently aim to disrupt existing markets, introduce
necessity rather than opportunity. The motivation
novel products, or take advantage of unique business
for many individuals to establish a business is not
opportunities. The pursuit of wealth not only motivates
primarily driven by the aspiration for wealth or a
their commitment and persistence, but also frequently
passion for innovation, but rather by the need to
shapes their readiness to adopt new technologies
secure a livelihood. These entrepreneurs, compelled
and business strategies that can expand rapidly and
by necessity, play a significant role in their local
efficiently44.
economies through the creation of employment
opportunities and the provision of goods and services
To make a difference in the world that might otherwise be lacking. Although their
Another significant entrepreneurial motive is the enterprises are typically smaller in scope, they are
desire to make a difference in the world. Social essential for their own livelihood and the economic
entrepreneurs, in particular, are motivated by the goal well-being of the communities they serve47.
of addressing crucial societal issues through their
projects. They are distinguished by their dedication to
making meaningful contributions to society, whether 45
Stephan, U., Hart, M., Mickiewicz, T. & Drews, C. C. 2015.
through the development of sustainable energy Understanding motivations for entrepreneurship. In:
solutions, the enhancement of healthcare accessibility, Research, A. B. S. A. I. (ed.). London, UK.
or the provision of educational opportunities. This
type of entrepreneurial activity is gaining popularity, 46
Ivanycheva, D., Schulze, W. S., Lundmark, E. & Chirico, F.
2024. Lifestyle entrepreneurship: Literature review and
future research agenda. Journal of Management Studies.
44
Franck, A. K. 2012. Factors motivating women's In Press.
informal micro‐entrepreneurship: experiences from
Penang, Malaysia. International journal of gender and
47
Ibid.
entrepreneurship, 4, 65-78.
58 | GEM SA SPECIAL REPORT 2023 | 2024

Each of these motivations plays a critical role in shaping the entrepreneurial landscape. They exert an influence
on the type of business ventures pursued, the strategies implemented, and, ultimately, the impact of these
enterprises on the economy and society. Entrepreneurs motivated by wealth accumulation may give precedence
to expansion and creativity, whereas those driven by aspirations of social change may concentrate on fostering
sustainable and ethical business approaches. Individuals involved in the continuation of family enterprises
frequently strive to balance tradition with contemporary business tactics, while entrepreneurs compelled by
necessity prioritise addressing immediate market gaps to maintain their livelihoods.

This next section presents a comprehensive analysis of the factors that motivate individuals to engage in
entrepreneurial activities.

Figure 4.1: Motives to become an entrepreneur

Women Men

69,2%
To earn a living because
jobs are scares 69,4%*

47,8%
To continue a family
tradition
46,2%

64,7%
To build great wealth or
a very high income
65,3%

To make a difference in 59,6%

the world
63,3%

0 10 20 30 40 50 60 70 80

* Read as: 69.4% of South African women entrepreneurs stated that earning a living was the main motive for starting a new business.

Figure 4.1 provides an overview of South African view this as a driving force. This trend may mirror the
entrepreneurs’ primary motives and reveals several growing presence of women in spearheading social
points of interest: enterprises and purpose-driven businesses.

Gender similarities and differences: The data Family tradition: The motive of continuing a family
indicate that men and women share almost identical tradition is less strong overall, with less than half of
levels of motivation for entrepreneurship when it respondents citing it as a motive. The lesser interest
comes to earning a living because jobs are scarce in continuing a family tradition could be attributable
(69.4% for women and 69.2% for men). This implies to the economic downturn, marked by higher
that the impetus of economic necessity transcends unemployment and poverty rates, with survival being
gender boundaries. Conversely, disparities based on the driving force rather than carrying on a family
gender are evident in the remaining three categories, tradition. The marginal variance in motivation levels
signifying that men and women could be guided by between men (47.8%) and women (46.2%) could
varying priorities or encounter diverse influences indicate a societal expectation for men to inherit family
in the decision-making process of commencing a businesses, or it could reflect fewer opportunities for
business. women to do so.

Wealth and income goals: A slightly higher This analysis reveals that, although economic
percentage of women (65.3%) than men (64.7%) are necessity serves as a significant driving force for
motivated by the prospect of building great wealth entrepreneurs regardless of their gender, there are
or a very high income. This challenges conventional nuanced yet significant variations in how men and
beliefs about gender and financial ambition, women prioritise other incentives when embarking on
suggesting that women are equally or even more their entrepreneurial journeys. These differences hold
driven by financial success in entrepreneurship than immense importance for policymakers, educators, and
men. support organisations striving to foster and support
entrepreneurship.
Making a difference: The data suggests a notable
contrast in terms of impacting the world, as a larger
proportion of women (63.3%) compared to men (59.6%)
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 59

Table 4.1: Global motives to become an entrepreneur

Global motive for being an entrepreneur

Country level Country Make a difference motive Make wealth motive Family tradition motive Earn living motive
% Women % Men TEA % Women % Men TEA % Women % Men TEA % Women % Men TEA
TEA TEA TEA TEA
Canada 8,6 15,9 9,5 17,4 5,9 10,6 10,5 15,9
France 1,3 3,0 2,9 6,5 1,4 2,4 4,0 5,3
Germany 2,9 4,8 2,7 5,9 1,1 3,7 2,3 4,8
Italy 2,6 3,3 3,2 6,2 1,7 3,6 3,9 5,9
Luxembourg 4,0 5,6 3,3 5,6 2,8 3,4 4,1 4,9
Netherlands 5,5 7,3 4,9 7,4 2,8 4,2 4,6 5,7
Norway 2,0 3,1 1,5 3,2 0,9 1,8 1,5 2,0
A Qatar 7,5 6,7 10,5 11,2 4,6 5,7 7,6 9,3
Saudi Arabia 16,7 18,8 21,1 24,3 16,7 19,4 21,3 24,2
Slovenia 3,4 4,5 2,9 4,6 1,4 2,6 2,7 4,1
South Korea 0,2 0,6 5,9 10,9 0,3 0,8 2,9 2,9
Sweden 3,6 4,2 3,1 6,7 2,1 2,7 1,8 3,5
Switzerland 5,7 5,2 3,2 4,8 0,5 1,3 4,2 4,1
United Kingdom 6,7 7,1 6,3 9,4 2,4 2,4 6,9 7,5
United States 8,2 10,5 8,7 10,9 3,7 6,6 8,0 10,2
Chile 16,8 18,6 17,5 19,7 8,7 8,6 22,2 23,3
Croatia 4,1 5,2 5,4 8,7 2,1 4,3 6,7 8,8
Cyprus 3,2 5,6 6,2 12,6 2,0 4,0 5,2 9,3
Estonia 3,5 5,1 4,0 6,2 1,1 3,3 5,4 8,7
Greece 1,4 2,1 3,4 4,0 1,7 2,9 4,2 5,4
Hungary 3,6 5,5 5,6 10,2 1,6 4,4 6,5 11,3
Israel 3,6 2,9 5,5 7,6 1,3 2,6 3,5 4,6
Latvia 6,0 6,4 4,6 7,8 4,2 4,3 8,0 10,3
B Lithuania 3,0 2,4 3,2 3,6 1,5 1,4 6,0 5,1
Oman 4,0 4,3 5,2 8,0 2,8 4,4 5,3 7,8
Panama 18,8 23,0 13,8 20,4 13,1 18,6 23,1 25,6
Poland 0,4 0,7 0,8 1,3 0,2 0,4 1,5 1,8
Puerto Rico 14,1 16,8 7,5 13,5 6,7 7,1 13,8 15,1
Romania 3,1 4,6 3,8 5,2 2,2 2,0 4,6 5,7
Slovakia 2,6 5,3 3,1 4,7 1,7 3,5 6,3 8,8
Spain 2,2 2,6 2,0 2,8 1,2 1,4 3,6 3,8
Uruguay 10,0 10,6 10,4 16,4 6,0 11,3 18,1 17,9
Brazil 11,2 17,4 9,3 15,4 4,4 9,2 11,6 15,9
China 1,3 1,1 3,0 2,8 2,0 1,9 5,2 4,2
Colombia 12,4 9,8 14,0 10,4 9,5 6,8 21,4 16,1
Ecuador 13,3 14,6 12,4 13,7 13,4 13,3 30,7 28,4
Guatemala 22,9 29,3 24,2 30,6 15,2 18,8 26,9 31,2
India 7,7 12,2 7,5 11,6 7,1 10,6 8,6 12,4
C Iran 4,1 3,0 8,1 10,3 1,7 1,8 5,5 7,4
Jordan 2,8 3,5 7,6 11,0 2,5 5,5 10,3 18,7
Mexico 10,2 11,0 8,7 10,1 7,9 10,7 13,8 13,6
Morocco 0,5 1,8 1,6 4,7 0,7 2,5 3,8 6,4
South Africa 6,0 7,5 6,2 8,2 4,3 6,0 6,5 8,6
Thailand 13,1 10,5 20,1 17,0 16,0 15,4 21,1 17,6
Venezuela 14,3 16,1 11,1 12,8 11,6 12,1 18,7 22,0
Average Level A 5,3 6,7 6,0 9,0 3,2 4,7 5,8 7,3
Average Level B 5,9 7,1 6,0 9,0 3,4 5,0 8,5 10,2
Average Level C 9,2 10,6 10,3 12,2 7,4 8,8 14,2 15,6

Level A: Economic with a Gross domestic Product (GDP) per capita of more than $50 000
Level B: Economic with a GDP per capita of between $25 000 and $50 000
Level C: Economic with a GDP per capita of less than $25 000
60 | GEM SA SPECIAL REPORT 2023 | 2024

This section provides a comparative analysis of more pronounced in countries such as Ecuador,
entrepreneurship motives by gender among the Guatemala, Colombia, Thailand, and Venezuela, where
countries participating in GEM. economic imperatives may propel entrepreneurial
pursuits to a greater extent than exploration of
To understand the differences in entrepreneurial opportunities.
motives for entrepreneurs and how these compare to
other Level C countries (Gross Domestic Product (GDP) The motives driving women's entrepreneurial activities
per capita of less than $25 000), the four primary in South Africa exhibit a nuanced equilibrium, with a
motives as a percentage of Total Entrepreneurial more pronounced focus on societal impact, wealth
Activity (TEA) is analysed: generation and financial sustenance than family
tradition. These observations offer valuable insights
Making a difference: The data illustrates a moderate for understanding the entrepreneurial environment
inclination among entrepreneurs in South Africa who and customising strategies and initiatives to enhance
are driven by the aspiration to have a positive impact, support for women entrepreneurs in South Africa and
reflecting prevailing patterns in Level C nations. similar economic contexts.
Nations such as Venezuela, Ecuador, Thailand, and
Colombia exhibit a notably greater proportion of A further analysis comparing South African women
entrepreneurs propelled by this motivation, with entrepreneurs' motives with those of Level A (GDP per
Guatemala ranking highest. When considering South capita of more than $50 000) and Level B countries
African women specifically, it is evident that they are (GDP per capita of between $25 000 and $50 000) is
below the average for Level C countries, indicating provided:
potentially lower engagement in entrepreneurship
for social or community impact compared to other Making a difference: The motivation for making
similar economies. This phenomenon could be a difference in Level A and B countries varies
attributed to diverse socio-cultural influences significantly, possibly due to varying levels of access
where entrepreneurship is perceived as a vehicle for to resources that allow them to pursue socially
effecting societal transformation. impactful ventures, as well as societal values and
the perceived role of entrepreneurship in social
Wealth creation: This motive is moderately change. South African women's involvement in
strong among South African entrepreneurs, with entrepreneurship is driven by the desire to make
women showing less participation in wealth-driven a difference (6.0%), which is above the average for
entrepreneurship compared to the global average. both Level A (5.3%) and Level B (5.9%) countries. This
This suggests barriers in access to capital or markets reflects a strong community orientation or a response
that could facilitate wealth generation. Conversely, to local needs by women that might be more
Guatemala and Thailand exhibit a significantly pronounced in South Africa compared to some Level A
stronger inclination towards wealth accumulation, and B countries.
whereas nations such as Colombia, Ecuador and
Venezuela also display a notable propensity for Wealth creation: Wealth creation is a stronger motive
wealth acquisition. This considerable focus on in Level A countries, reflecting more substantial
generating wealth could be ascribed to the economic financial returns on entrepreneurial ventures and a
circumstances prevailing in these regions, where more mature investment environment. In contrast, the
entrepreneurship might be viewed as one of the motive to generate wealth varies significantly in Level
few feasible avenues to attain financial security and B countries, given the different economic conditions
advancement. Additionally, creating a conducive and entrepreneurial ecosystems. The participation of
atmosphere for entrepreneurship, inclusive of diverse South African women in entrepreneurship driven by
programs to foster a startup culture, alongside wealth creation (6.2%) is slightly above the average for
economic strategies and a pressing need to enhance women in both Level A and B countries (both 6.0%).
personal financial standing amidst economic This could suggest a favourable entrepreneurial spirit
instabilities, could contribute to the pronounced or necessity among South African women, propelling
aspiration for wealth accumulation. Intriguingly, them to pursue ventures that are potentially more
entrepreneurs from China and Morocco have a profitable.
very low inclination towards wealth accumulation,
possibly indicating different economic contexts or Family Tradition: Family tradition as a motive is less
entrepreneurial landscapes that do not emphasise pronounced overall in Level A countries, where
wealth accumulation to the same extent. entrepreneurship may be more driven by individual
initiative rather than family legacy. This motive
Family tradition: The data indicates a relatively lower varies substantially in Level B countries, reflecting
emphasis on family tradition as a driving force in the differences in cultural attitudes towards family
context of South African entrepreneurs, in contrast to business legacies. Evidently, South African women
nations such as Thailand, Guatemala, Ecuador, and (4.3%) are more driven by family traditions compared
Venezuela, where there is a heightened participation to their counterparts in Level A countries (3.2%
in family-centric businesses, likely attributable to average) and Level B countries (3.4% average), which
stronger family traditions. Again, this motive for South could reflect cultural differences in family business
African women entrepreneurs is below the average traditions and the role of women therein.
for Level C countries, suggesting cultural or societal
norms that may discourage women from continuing or Earning a Living: Necessity-driven entrepreneurship
starting a family business. is less common in Level A countries, where there are
often more employment opportunities and social
Earning a living: This factor represents a moderate safety nets. Similar to South Africa, economic necessity
motivation for entrepreneurs in South Africa for both drives a significant portion of entrepreneurship in
women and men entrepreneurs while being notably Level B countries, though often at higher rates. This
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 61

THE ART OF WALKING ON WATER

Dr Juanita Kilian is a remarkable female entrepreneur with a fascinating and
extensive background in pharmacology and research and development
and has experience working within a high-stress corporate environment.
The latter proved to be a turning point in her professional pursuits, as she
learned after many years of involvement in the high-demand corporate
world. In short, Dr Kilian, a highly driven and success-oriented professional,
experienced what is known as ‘burnout’. This was a wake-up call that
was a catalyst for her developing a passion for promoting physical and
mental wellbeing, which, in turn, led to her coming up with a biohacking
health solution. This novel solution focuses on brain, gut, and skin health,
which paved the way for her entrepreneurial journey. Her research and
development began approximately ten years ago, but her retail products
were launched in 2019 when she registered her business, DrK Dermal
Health Care (Pty) Ltd.

Her entrepreneurial journey actually began as a child, being raised in the

small rural town of Louwna, which is located in the Northwest Province
of South Africa. As a highly driven scholar, after completing high school,
she acquired her qualification as a pharmacologist with a Master’s degree
in Dermaceutical Product Development Science from the University
“Build people, of Northwest in Potchefstroom. She also completed her Doctorate in
Transdermal Delivery Technology from the University of London, School of
and they will Pharmacy. Accordingly, her extensive academic and scientific background
led her to pursue advanced research in the area of transdermal delivery
build your systems, which produced her novel formulation discoveries. This research
business! Don’t paved the way for creating the DrK cellREVERSE Dermal Health Care
product range. Dr Kilian has a passion for making a positive impact
sweat the small on people’s lives, which ultimately led to her formulating an effective
treatment protocol for developing her progressive biohacking health
stuff.” products. Moreover, her innovative products provide a holistic approach that
includes brain, gut, and brain issues and is backed by scientific research.
In fact, much of Dr Kilian’s significant success is predicated on her genuine
drive and passion for helping others cope with stressful work environments
and related pressures that negatively impact their health.

In order to actively promote her company and products, Dr Kilian believes

in participating in networking events, while also attending relevant
conferences, seminars, workshops and trade shows. She effectively utilises
these platforms to collaborate and interact with various other professionals
and potential business partners. Notwithstanding, she also maintains her
memberships in professional organisations and associations within her
particular industry. All these activities remain part of her marketing strategy,
which further includes conducting market research to expand her market
share and evaluate consumer trends. In short, Dr Kilian pursues a vast
array of marketing strategies to promote her products and establish new
distribution partnerships. A significant aspect of her entrepreneurial success
involves her ability to create a strong, harmonious corporate culture where
staff members can create a team atmosphere that fosters professional
ethics, commitment, and company vision. As part of Dr Kilian’s philosophy
regarding the workplace, she posits a belief that both men and women
are vital to an organisation as their differences instil benefits to the overall
success of the company. In short, her philosophy is “we are not designed
to do what men can do, rather embrace the attributes women bring and
make it super strong.” This ideology creates a climate of mutual respect
You can reach out to
among staff, which has facilitated further innovation and success within the
Juanita at:
company, DrK Dermal Health Care (Pty) Ltd. Overall, Dr Kilian has become
a provocative beacon for education, research, innovation, passion, and
dedication to success for women to take their unique role as entrepreneurs,
innovators, and co-leaders within the evolution of today’s business
enterprise. Her current objective is to
[email protected] open more international markets and
create biohacking wellness franchises
https://www.facebook.com/InternationalDrKDermalHealthcare/ for dedicated and high-performing
individuals.
www.drkcellreverse.com

@dr_k_dermalhealth
62 | GEM SA SPECIAL REPORT 2023 | 2024

overall trend is mirrored in South African women's involvement in necessity-driven entrepreneurship (6.5%) when
compared to Level A (5.8% average) and Level B (8.5% average) countries. This indicates that while necessity-driven
entrepreneurship is more prevalent in South Africa than in high income countries, it is less so compared to upper-
middle income economies.

In conclusion, South African women entrepreneurs show a balanced mix of motives compared to their
counterparts in Level A and B countries, likely due to economic, cultural, or systemic barriers which may be
affecting their opportunities and resources differently. The drivers of economic necessity and social impact hold
considerable importance for South African women, albeit with a lesser emphasis on wealth generation compared
to certain other countries. This suggests potential areas for enhancing support and resources to elevate the scope
and impact of women's entrepreneurship in South Africa.

4.2 Entrepreneurial outcomes

The measurement of a business's current size is fundamental for assessing its economic significance and market
position, with the number of employees serving as a critical measure of workforce magnitude48. Major corporations
typically engage a significant workforce spanning various roles and departments, demonstrating their substantial
impact on the job market and wider economy. Conversely, small and medium-sized enterprises (SMEs) may have a
smaller staff count but fulfil a crucial function in employment generation and economic advancement due to their
agility and flexibility49.

This next section considers business size and future business prospects along gender lines for South African
entrepreneurs.

4.2.1 The current size of business

Figure 4.2, which segments current business size in terms of the number of employees (including all exclusive
contractors50) for early-stage businesses across gender lines, reveals several interesting observations:

Figure 4.2: Current size of business: Early-stage entrepreneurs (TEA)

Women Men

11,8%
20+ employees 4,9%

13,7%
6-19 employees
6,1%

73,5%
1-5 employees
84,1%

1,0%
No additional employees
4,9%*
0 20 40 60 80 100

* Read as: 4.9% of South African early-stage women entrepreneurs have no additional employees.

Microbusiness dominance: The data shows that a majority of both men and women are engaged in operating
micro-businesses with one to five employees. Interestingly, women (84.1%) are more prevalent in this category
compared to men (73.5%). This particular size range appears to be the most common, which is typical for early-
stage businesses that have not yet scaled or may not require additional employees.

Small business growth: When the business size increases to between six and nineteen employees, men (13.7%)
are represented at a higher percentage compared to women (6.1%). This suggests that men may have a greater
likelihood or ability to expand their businesses to this next level of small business development. This might also
suggest that women might be more risk averse and not want to employ additional workers, which may be risky
during low sales periods51.

48
Haltiwanger, J., JarminN, R. S. & Miranda, J. 2013. Who Creates Jobs? Small vs. Large vs. Young. . Review of Economics
and Statistics, 95, 347-361.

49
Coad, A., Segarra-Blasco, A. & Teruel, M. 2014. Innovation and firm growth: Does firm age play a role? Research Policy, 43,
1544-1557.

50
Entrepreneurs were asked the following question: “Not counting the owners, how many people are currently working for
this business? Please include all exclusive subcontractors, meaning people or firms working ONLY for this business and not
working for others as well.”

51
Meyer N. 2018. South African female entrepreneurs’ intention to remain in business. (Doctoral thesis). Potchefstroom, South
Africa: North-West University.
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 63

Larger business ventures: In the category of twenty or more employees, there’s a notable gender gap, with 11.8%
of men’s businesses having reached this employee threshold, whereas only 4.9% of women-owned businesses
have done so. This indicates that men are more likely to own larger early-stage businesses.

Solo entrepreneurs: There is a small percentage of businesses without any additional employees, with more
women (4.9%) than men (1.0%) being solo entrepreneurs. This suggests that men are slightly more inclined to hire
staff even at the early stages, which could be indicative of growth intentions or sector differences between men
and women.

Gender disparities in business scaling: The data highlights gender disparities in business scaling, with men
owning larger businesses at a disproportionately higher rate than women. This could reflect various obstacles
women might encounter in business expansion, including limited access to funding, networks, and resources, or it
could suggest varying business objectives or industry preferences between genders.

This analysis suggests that, while entrepreneurship is vibrant among both genders, there are notable differences
in the scale at which men and women currently operate their early-stage businesses. These differences could be
significant for policymakers and support programs aimed at encouraging business growth and reducing gender
disparities in entrepreneurship.

Figure 4.3: Current size of business: All business

Women Men

19,8%
20+ employees
15,5%

17,9%
6-19 employees
13,4%

61,8%
1-5 employees
68,3%*

No additional employees 0,5%

2,8%
0 10 20 30 40 50 60 70 80

* Read as: 68.3% of South African early entrepreneurs (in all phases) have between 1 and 5 additional employees.

Figure 4.3 compares the current size of all stages of businesses in terms of the number of employees and
illustrates a comparable scenario, where enterprises at various stages of development have minimal staffing levels
and largely create between one to five jobs, followed by businesses that create twenty or more jobs and those
that create six to nineteen jobs. The rise in the proportion of organisations at all stages of development that hire
more than five employees, coupled with the decrease in the proportion that hire either no additional employees
or one to five individuals, signifies the expansion of businesses as they transition from early- to later stages of
development.

Figure 4.4: Future job creation prospectives: All business

Women Men
59,3%*
60%
54,0%
50%

40%

30% 26,0%
21,6%
18,9%
20%
14,9%

10%
4,1%
1,1%
0%
No additional 1-5 employees 6-9 employees 20+ employees
employees

* Read as: 59.3% of South African women entrepreneurs (in all phases) have future plans to employ an additional 1 to 5 employees in the
next 5 years.
64 | GEM SA SPECIAL REPORT 2023 | 2024

When comparing Figure 4.4 (depicting future job creation prospects for all businesses52) with Figure 4.3 (depicting
current employment levels for all businesses), there is a projected increase in businesses not planning to hire more
new employees, with a more marked increase for women (4.1%) than men (1.1%). This interesting phenomenon
could be attributable to technological advancements, which allow businesses to operate efficiently with fewer
employees, outsource certain functions, downsize due to economic uncertainty, and seek cost control by
remaining lean or making efforts to attain greater work-life balance.

The decrease in the one to five employee category suggests that both genders anticipate lower job creation in
smaller businesses, possibly due to scaling up or business consolidation.

For both the six to nineteen and twenty or more employee categories, there is an expected increase in job creation
prospects. This indicates optimism for growth among existing businesses, with a more pronounced increase
among men- than women-owned businesses.

Consequently, it is evident that, while business owners are aiming to grow their businesses, the magnitude of
growth is larger for men than it is for women. Naturally, these growth prospects could be influenced by a range of
factors, including economic forecasts, access to capital, shifts in market trends or the regulatory environment, and
personal business goals.

4.3 Innovation and entrepreneurship

Innovation and entrepreneurship are intricately connected, with entrepreneurs playing a pivotal role in
converting novel concepts into economic goods53. The innovative endeavours of entrepreneurs span from
gradual advancements, facilitating the integration of existing technologies into new markets to drive economic
advancement within specific nations54, to revolutionary innovations that lead to transformative changes capable
of reshaping entire industries55. Complementary to this, internationalisation enables entrepreneurs to access
new markets, leverage global resources, and enhance competitiveness. Technological advancements and
digitisation have revolutionised the internationalisation process, allowing even small businesses to engage in
global operations56. The provision of financial support is essential for nurturing this innovation and economic
development. Direct investments by entrepreneurs significantly contribute to the entrepreneurial environment,
with recent economic strategies spurring a rise in entrepreneurial pursuits in South Africa, motivating successful
entrepreneurs to reinvest in the local startup landscape57.

This section explores innovation, internationalisation and entrepreneurial investment among South African
entrepreneurs.

Figure 4.5: Innovation: New product

Women Men

2,5%
New to the world 1,0%

9,5%
New to people in your country
11,5%

New to people in the 26,3%

area where you live 23,9%

No, not new technologies 61,8%

or procedures 63,6%
0 10 20 30 40 50 60 70 80

52
Entrepreneurs were asked the following question: “Not counting owners, how many people, including both present
and future employees, will be working for this business five years from now? Please include all exclusive subcontractors,
meaning people or firms working ONLY for this business and not working for others as well.”

53
Schumpeter, J. A. 1983. The theory of economic development: An inquiry into profits, capital, credit, interest, and the
business cycle, New Brunswick, New Jersey, Transaction Publishers.

54
Rogers, E. M., Singhal, A. & Quinlan, M. M. 2008. Diffusion of Innovations. An Integrated Approach to Communication
Theory and Research. New York: Routledge.

55
Christensen, C. M. 2011. The innovator's dilemma, New York, Harper Business Essentials.

56
Knight, G. A. & Liesch, P. W. 2016. Internationalization: From incremental to born global. Journal of World Business, 51, 93-
102.

57
Lekhanya, L. M. 2019. Public outlook on small businesses' impact on South African economy: An exploratory study.
Journal of Economics and Behavioral Studies, 11, 230-239.
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 65

THE SWEET JOURNEY OF OUMA ROOI

Koeksisters are a truly popular sugary pastry teatime delight in South Africa
and, as such, provided a natural avenue for an entrepreneurial venture for
Gerda Swanepoel. Gerda, a seasoned female entrepreneur in South Africa,
represents a prime example of how to utilise acquired talents to succeed in
business. In fact, she began her entrepreneurial adventure in 1985 when she
started baking koeksisters as a small home business. Gerda is also quick
to extend credit to her late mother, known as Ouma Rooi, who taught her
how to bake her renowned koeksisters according to her mother’s traditional
recipe. As an astute observer of her locale and market, Gerda realised
there was a market for these tasty treats; thus, she began to tap into this
niche. Within a short period of time, various churches took advantage of
Gerda’s talents, and she began sponsoring bazaars and offering baking
sessions to fund their various building projects. Moreover, she realised that
this newfound source of income would certainly assist the family in raising
three children and provide additional family revenue. It did not take long for
word to get out about Gerda’s delicious koeksisters; thus, she hired some
of the local women to help in the baking process. With the grace of God,
Gerda began her journey to success by grasping opportunities that were
presented and taking appropriate steps to further develop her business.

“I decided After the passing of her mother in 2006, Gerda renamed her business,
Ouma Rooi Koeksisters, as a tribute to her culinary/baking talents, as well
to brand my as her recipe and maternal influence. Thus, she continued marketing her
brand, Ouma Rooi Koeksisters, to her exclusive market. Not to be idle,
koeksisters as in 2013, Gerda participated in the Huletts National Koeksister Champion
Ouma Rooi as Competition and placed as a runner-up in the contest. However, not to
be outdone, in 2014, she won the same competition and took home R100
a tribute to my 000 in prize money, which was a catalyst to expanding her business
and resulting in her marketing koeksisters to nearby towns and cities.
mother.” In 2014, she also took part in the first Koekedoor series on KykNet 144,
which gave her exposure to a national television audience. Boosted by
her local success, television promotion, and winning a national koeksister
championship in 2016, Gerda came to the attention of a popular
supermarket, Shoprite Checkers, who invited her to deliver koeksisters to
their stores. Needless to say, this created a real boon for her business and
required that she further expand her koeksister market share.

As Gerda relates, her business went from strength to strength, ever-

expanding to other markets in South Africa. For example, Gerda noticed a
gap in the Cape Town market and encouraged her daughter and son-in-law
to return to South Africa from Australia and open the Cape Town outlet. This
proved to be a significant step towards success and fulfilled Gerda’s dream
of creating a successful family-oriented business in South Africa. Moreover,
she expresses her belief in advertising and continues to actively advertise
her brand via local radio stations, the company website, and social media
platforms; she also provides koeksisters for tastings at local food outlets,
schools, and other local events. That said, as with many entrepreneurs,
Gerda continues to value word-of-mouth advertising as the best way to
spread the word about her koeksisters’ quality and taste. Currently, Ouma
Rooi Koeksisters are marketed in the major cities of South Africa, such
as Johannesburg, Durban, and Cape Town. As a further validation of her
enormous success, her company now employs 52 women and five men
and provides training in the hand-made processing of koeksisters that
includes mixing, folding, baking, packaging, and distribution. Finally, Gerda
You can reach out to
prides herself in making “koeksisters taste like a real koeksister should,”
Gerda at:
which is a by-product of her incredible passion, commitment, vision,
integrity, and work ethic. Going forward, Gerda wants to continue building
on her present success while encouraging other women to pursue their
dreams.

[email protected]

https://www.facebook.com/oumarooi/

www.oumarooi.com

@ouma_rooi_koeksisters
66 | GEM SA SPECIAL REPORT 2023 | 2024

Figure 4.5 illustrates the novel technologies and methodologies implemented by enterprising individuals58.

The key observations from the data are:

Innovations new to the world: A very small percentage of both men (2.5%) and women (1.0%) have innovated
processes on a global scale. Men exhibit a slightly higher presence in this most groundbreaking category of
innovation. This indicates that original worldwide innovation is comparatively uncommon, which may be indicative
of the substantial obstacles to overcome, as well as the resources required to innovate at this level.

Innovations new to the country: For processes new to the country, there is a higher percentage of women (11.5%)
engaging in innovation compared to men (9.5%). South African women often exhibit a strong sense of community
and resilience, while economic challenges - which disproportionately affect women – lead to them seeking
innovative ways of income generation while introducing community-based solutions that address specific local
needs. This may account for women entrepreneurs being marginally more active in the introduction of novel
concepts on a country level than their male counterparts.

Innovations new to the local area: When looking at processes new to the local area where the entrepreneur
resides, men (26.3%) are more represented than women (23.9%). This disparity implies a potentially higher level
of engagement among men or greater access to resources for the execution of innovative processes within their
immediate surroundings. Alternatively, it may indicate a higher level of men initiating businesses in areas with more
scope for local-level innovation.

No new technologies or procedures: This significant majority mirrors the fact that numerous enterprises prioritise
traditional models and gradual enhancements over groundbreaking innovation. Additionally, it might imply that,
although there is entrepreneurial endeavour, the emphasis may not necessarily be on innovation but rather on
market penetration and the delivery of existing products or services. Women (63.6%) outnumber men (61.8%) in
this category, which could suggest potentially greater caution or a more challenging environment for women to
engage in high-risk innovation.

This analysis demonstrates that, despite the participation of both men and women in varying levels of innovation,
distinct gender disparities exist in the magnitude and scope of their innovations. Nevertheless, it is evident that the
primary emphasis of both genders appears to be on conventional processes, indicating a possible requirement
for enhanced support mechanisms and incentives to promote entrepreneurial innovation. Additionally, this may
reflect the market dynamics where incremental changes and focus on service delivery might be rewarded over
revolutionary innovation. When considering women specifically, the data collectively suggest that while South
African women may be leading in introducing broader, perhaps more abstract, national-level concepts, they
might encounter more tangible barriers at the local level that affect their capacity to innovate in their immediate
environments.

Figure 4.6: Innovation: New product

Women Men

0,7%
New to the world
2,8%

11,2%
New to people in your country
7,5%

New to people in the 21,8%

area where you live 26,2%

No, not new technologies 66,3%

or procedures 63,6%*
0 10 20 30 40 50 60 70 80

* Read as: 63.6% of South African women entrepreneurs stated that they are not supplying a product.

Although Figure 4.6 illustrates a comparable trend in product-to-process innovations, where most enterprises
have yet to implement novel product technologies or processes, a significant proportion did introduce product
innovations. Entrepreneurial innovation, however, is more incremental or adapted to local needs rather than being
globally novel. It also indicates that entrepreneurial efforts might be more focused on business models or market
strategies rather than on technological innovation. Within the domain of product innovations, women outperform
men in the introduction of new products within their specific geographical area as well as at an international scale,
although fewer women than men introduced new products within South Africa. This reflects different approaches
to innovation or market strategies for men and women entrepreneurs while also indicating a preference for lower
risk associated with local adaption over global innovation.

58
Entrepreneurs were asked the following question: “Are any of your products or services new to people in the area where
you live, new to people in your country, or new to the world?”
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 67

The policy and support implications of these findings indicate that if most women entrepreneurs are not engaging
in creating new technologies, support that specifically focuses on business scaling, market access and improving
existing products and services is required.

4.4 Exporting and entrepreneurship

Figure 4.7 represent the proportion of sales generated by entrepreneurs from customers outside South Africa59.

Figure 4.7: Internationalisation

Women Men

80 77,1%* 78,5%

70

60

50

40

30

20
12,4% 9,5%
10 6,5% 7,9%
4,1% 4,1%
0
76%-100% 26%-75% 1%-25% None

* Read as: 77.1% of women entrepreneurs stated that none of their annual sales comes from customers living outside South Africa.

76%-100% International sales: Women and men are equally represented (4.1%) in the percentage of sales that are
majorly generated from customers outside South Africa. This indicates that only a small portion of businesses have
a strong international presence or market focus.

26-75% International sales: A slight, yet discernible, gender disparity is evident within this particular category,
as indicated by the fact that 12.4% of women have successfully captured a sizable share of their sales on an
international scale, in contrast to 9.5% of men. This implies that a slightly greater percentage of women business
owners have managed to establish a notable presence in global markets, albeit not overwhelmingly so.

1%-25% International sales: In this category, men (7.9%) slightly outnumber women (6.5%) for generating a
minor share of their sales from international customers. These enterprises might be in the preliminary phases of
venturing into global markets or could possess a more varied sales approach encompassing domestic, regional,
and international sectors.

No international sales: The largest segment for both genders reveals that over three-quarters of enterprises (77.1%
of women and 78.5% of men) fail to generate revenue from international sales. This implies that most business
owners prioritise the domestic and/or regional market in South Africa, but it might also signify obstacles to
entering or broadening their presence in global markets.

This analysis demonstrates that while South African entrepreneurs have a presence in global markets, domestic
transactions remain predominant. To specifically explore the reasons behind the significant portion of women
entrepreneurs that refrain from engaging in international sales, additional insights on the obstacles encountered,
industry characteristics, and business strategies are necessary.

Figure 4.8: Market scope: Early-stage entrepreneurs (TEA)

Women Men

17,7%
International market scope
13,8%

47,3%
National market scope
41,4%

33,3%
Local market scope only
43,4%*

* Read as: 43.3% of South African women entrepreneurs stated that their business is focused on local markets.

59
Entrepreneurs were asked the following question: “What percentage of your annual sales revenues usually come from
customers living outside your country?”
68 | GEM SA SPECIAL REPORT 2023 | 2024

Figure 4.8 depicts the distribution of early-stage entrepreneurs across local, national, and international markets,
segmented by gender60.

It is evident that more men than women are exploring both national and international markets. In contrast,
women-owned businesses are mainly focused on local markets, with only a relatively small percentage venturing
into national and international markets. Factors contributing to this disparity may include greater access to
capital, mentoring and networks that facilitate expansion for men, who might be more willing to accept the risks
associated with national and international market expansion. Women, on the other hand, may choose industries
with a more local focus, while their market scope decisions may be influenced by having to balance business with
family obligations. In addition, systemic barriers or the lack of supportive policies could hinder women who wish to
expand their market reach.

This analysis indicates a clear gender imbalance in the market reach of start-up business owners, with women
being inadequately represented in global markets, albeit they are relatively well represented in national markets.
Addressing this imbalance necessitates a comprehensive strategy encompassing policy adjustments, allocation of
resources, and the creation of supportive entrepreneurial ecosystems for women.

4.5 Financing
Figure 4.9 depicts the percentage of women who have informally invested in a new business started by someone
else, excluding purchases of stocks or mutual funds61.

Figure 4.9: South African women informal funders

3,7%
yes
96,3%
no
* Read as: only 3.7% of South African women funded another entrepreneur informally.

A vast majority of South African women entrepreneurs (96.3%) have not contributed funds to a new business
launched by another individual. This might be due to women entrepreneurs more frequently encountering
obstacles in obtaining money. This could potentially restrict their capacity to invest in other startups, as they
may have to prioritise the financial stability of their own businesses. Gender disparities in professional networks
can result in women having smaller networks. This can provide challenges for women in terms of identifying
investment opportunities or establishing connections with fellow entrepreneurs who are seeking finance. Research
indicates that women may exhibit a higher degree of risk aversion compared to men in the context of investment62.
This may result in their exercising greater caution when considering investments in startups, especially in areas or
initiatives that they regard as being very risky.

Figure 4.10 depicts the relationships that women entrepreneurs have with the recipients of their most recent
informal investment in new businesses63. An analysis of the data provides the following insights:

Figure 4.10: South African women informal funders

Close family member 45,7%*

Some other relative 21,8%

A work colleague 6,5%

A friend or neighbour 14,3%

A stranger with a good relationship 11,7%

* Read as: of those women who funded someone else, 45.7% were a close family member.

60
Entrepreneurs were asked the following question: “Do you have any customers in the following locations? In the area
where you live? Elsewhere in your country?Outside your country?”

61
Entrepreneurs were asked the following question: “Have you, in the past three years, personally provided funds for a new
business started by someone else, excluding any purchases of stocks or mutual funds?”

62
Meyer N. 2018. South African female entrepreneurs’ intention to remain in business. (Doctoral thesis). Potchefstroom, South
Africa: North-West University.

63
Entrepreneurs were asked the following question: “What was your relationship with the person who received your most
recent personal investment?”
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 69

BECOME INCREDIBLE
Potchefstroom, South Africa. However, as with many
others in the beauty industry, the pandemic had an
overwhelmingly negative impact on her ability to
generate a steady flow of income, prompting her to
seek alternative work. As an intrepid, creative, and
passionate individual, she refused to allow adversity
to impede her ability to succeed. Accordingly, when
a friend suggested she start a Facebook referral for
an anti-ageing product by Nu Skin Enterprises, she
immediately recognised this as a unique opportunity.
She conveys that it was the catalyst to her success,
and she was further impressed by the fact that
other top leaders in Nu Skin had experienced
such significant success with this business model.
Moreover, Izelda, a compassionate professional,
felt she was involved in something that could build
self-esteem and entrepreneurial success in other
like-minded females. This vision was significant
during the challenging period of the COVID-19
“The only way you can fail lockdown. With the full support of her husband,
is to stop.” David, and others, Izelda focused on building her
own profitable enterprise. She further realised that
these internationally recognised Nu Skin products
were prepared using the highest quality ingredients,
As a female-owned business, ‘Incredible Time with which enhanced her own credibility and integrity as a
Izelda’, has been in operation for approximately one passionate entrepreneur.
and a half years. The owner, Izelda Spies, has achieved
substantial leadership status in the marketing of After acquiring extensive product knowledge,
Nu Skin Enterprises, which distributes beauty and management, and marketing experience, Izelda
wellness products in South Africa. She initially began began to enhance her one-on-one selling, which, in
her entrepreneurial journey by working as a brand time, let her leverage the power of word-of-mouth
affiliate with Nu Skin Enterprises; next, she progressed publicity/public relations. This marketing plan was
to the level of brand representative. Not content with supplemented by utilising various social media
this moderate success, after much hard work and platforms to disseminate the profound results of
dedication, she advanced to the level of gold partner using her products. Next, she began sponsoring other
and then achieved Lapis partner status, which allows like-minded women to use these same protocols to
her to be part of the overall compensation plan expand their income potential and build their own
associated with the company. Nu Skin Enterprises is customer base. Overall, this business model is based
a progressive American-owned multilevel marketing on direct sales and commissions and sponsoring
company specialising in innovative personal care others to market under the sponsors’ supervision,
beauty products and nutritional supplements. The thereby building significant commissions/profits.
company enables individuals to realise their dreams As a result, the multilevel business concept has
by starting their own business and introducing their unlimited potential for growth. Obviously, Izelda took
products to new markets. Izelda took the initiative to advantage of this opportunity, as there is no initial
grasp this opportunity and rose through the ranks to capital investment with substantial potential for
achieve her present level of success. Thus, she can success predicated on the individual’s ability to learn
now assist others in transforming their entrepreneurial the product line and work hard to make sales and
dreams into reality by sponsoring them in their quest build a satisfied clientele, which is the benchmark for
to use their innate skills and attain similar success. expanding the market share.

Izelda began her entrepreneurial journey as a result of Moreover, with her extensive experience working
losing her primary source of income as a hairdresser with clientele in the beauty industry, Izelda felt very
due to the COVID-19 pandemic. Prior to the pandemic, comfortable conversing with and promoting beauty
she ran a successful hair salon serving clients in products to her customers. Thus, her self-confidence,
marketing experience, and work ethic allowed her
to pursue her new business with a high level of zeal
and excitement, which translated into profits. Izelda
You can reach out to has now reached a level of success that provides
Izelda at: her with financial freedom and the ability to conduct
her business online; as such, she can work from any
location and inspire others to follow her lead.

[email protected]

https://www.facebook.com/IncredibleTimeWithIzelda/
70 | GEM SA SPECIAL REPORT 2023 | 2024

Family as primary investment recipients: Close relatives were the recipients of the largest portion of individual
investments, accounting for 45.7% of the total. A notable 21.8% of investments were made to other relatives. This
means that over two-thirds of the investments were made within the family circle, highlighting familial networks
as a vital resource for new entrepreneurs while also emphasising the significance of family support in the
entrepreneurial journey. This suggests that trust and personal connections play a crucial role in the investment
decisions made by women entrepreneurs.

Community and social networks: Investments in acquaintances, whether they be friends or neighbours, account
for 14.3% of the total, underscoring the importance of social and community connections in securing funding
for entrepreneurial endeavours. Conversely, a smaller fraction of 6.5% was allocated to investments in work
colleagues. Although less prevalent, this highlights the potential of professional networks as a feasible avenue for
securing financial support for emerging ventures.

Openness to new opportunities: Notably, 11.7% of women entrepreneurs are willing to invest in strangers, provided
they have a good proposal. This indicates a remarkable receptiveness towards novel concepts and prospects that
extend beyond their close-knit social and occupational networks.

The data indicates that, in the context of informal investment, women entrepreneurs primarily rely on strong
personal relationships, which likely play a crucial role in their investment decisions. However, a significant
openness to investing in entrepreneurs outside their immediate social circle is also evident, demonstrating that
there is an opportunity for broadening investments into a more diverse range of entrepreneurs and business
concepts.

Figure 4.11: Gender of entrepreneur who received funds (all funders)

49,8%* WOMEN 50,2% MEN

* Read as: only 49.8% of entrepreneurs who received informal funding were women.

Figure 4.11 depicts the gender of the entrepreneur who received the most recent investment made by male or
female business owners in someone else’s business64.

As can be seen, there is a near-even split in investment preferences, with a marginal inclination towards investing
in businesses owned by men. Entrepreneurs may exhibit a greater tendency to allocate capital towards businesses
owned by men due to various socio-cultural and systemic factors. Historically, men have enjoyed greater
prominence and authority within the business realm, resulting in greater perceived trustworthiness and a robust
asset network that attracts more investment.

Furthermore, unconscious prejudices may impact investor confidence and decision-making, leading to a
preference for businesses led by males. These biases likely stem from conventional beliefs about gender roles and
the inaccurate assessment of risks associated with female-led enterprises.

This analysis reflects a balanced informal investment landscape with only a marginal inclination towards women
entrepreneurs. This nearly equal distribution might indicate that factors other than the gender of the business
proprietor are gaining more prominence in the informal investment decision-making process.

64
Entrepreneurs were asked the following question: “What was the gender of the individual who received your most recent
investment?”
 ENTREPRENEURIAL MOTIVES AND OUTCOMES | 71

TRANSFORMING WORDS INTO LITERARY

TREASURES
Haroldene Tshienda is a remarkable female entrepreneur who started her
business venture, Tshienda Publications, in 2015. She has now attracted
approximately 90 award-winning authors and has published various
authors’ literature from diverse areas around the globe, including South
Africa, the United States, and Zimbabwe. Haroldene’s entrepreneurial
drive was inspired after having a rather unpleasant experience with a
publishing house when she published her first book. In short, she came
to the realisation that she could create the set-up herself, as she is a
self-taught graphic designer and has taught creative writing and self-
publishing via various workshops. Thus, she decided to use her skills
and republish her book while assisting other authors through her first
enterprise, Tshienda Publications. However, after eight years of successful
publishing, she renamed her company Shofar Books. In our current digital
and technological environment, it is now possible to compete with the more
established publishing houses, and Haroldene harnessed this opportunity
to create an appealing platform for newly emerging authors. In this regard,
Shofar Books has been successfully furnishing a new and exciting channel
for young and established writers to offer their literary creations to a broader
and more diverse audience.

After eight years of success, Shofar Books’ goal is to continue promoting

“Do what others clients’ books in various bookstores and libraries across South Africa, which
has been accomplished by collaborating with a variety of booksellers and
are afraid to distribution companies. In order to further enhance her publishing business,
do. Work when Haroldene hosts book readings in collaboration with Poets Vannie Kaap,
which she also founded, and further inspires the purchasing of her clients’
others are books. On Saturday, 06 April 2024, she hosted the first Cape Flats Literary
Awards at the Krystal Beach Hotel in Gordon’s Bay. A total of 135 literary
sleeping. It’s artists across South Africa were crowned. It was a huge celebration with
better to try over 200 guests. Shofar Books assists authors in preparing for interviews
with media outlets and uses social media platforms to further generate
and fail instead interest in her company and the books she publishes. Through much trial
and error and garnering extensive marketing experience in the publishing
of not knowing industry, Haroldene has developed a publishing company that is now a
‘One Stop Shop’ for aspiring and established authors. For example, she has
what the spearheaded a company that includes editing, cover design, text formatting
outcome will and layout, as well as registration, printing and e-book listing. Moreover, as
an author of eight books, she has established herself as an experienced
be.” writer and publisher, which allows her to better relate to her clients.
Additionally, as part of her expanding services, she has partnered with an
editing company, graphic designers, artists, and business owners so as to
expedite the sale of her clients’ books.

In an effort to streamline the publishing of authors’ works, Shofar Books

has developed an affordable mechanism to promote their creations by
utilising available technologies. Thus, Haroldene has constructed an
integrated system whereby authors can submit their manuscripts and take
advantage of the ‘One Stop Shop’ initiative, which is both affordable and
accessible. Her philosophy is based on the ideology of making a difference
by not following the pathway of others but creating a unique and creative
methodology to promote the creative arts and cultural identity. In short,
Haroldene has a God-centred vision that has allowed her to consistently
expand her business and assist others in their pursuit of success. In short,
You can reach out to this independent and inspiring woman has developed her business and
Haroldene at: creative skills through tenacity, dedication, and a strong belief in the
unlimited power of self-realisation.

[email protected]

https://www.facebook.com/shofarbooks/

www.shofarbooks.co.za
72 | GEM SA SPECIAL REPORT 2023 | 2024
 S E C T I O N

SUSTAINABILITY
AND ADOPTION OF
TECHNOLOGY
74 | GEM SA SPECIAL REPORT 2023 | 2024

EXECUTIVE SUMMARY

WOMEN (%)

Sustainability

64.6 Strategy of Environmental Sustainability

63.3 Practice of Social Sustainability

33.3 Awareness of the 17 United Nations Sustainable

Development Goals

Digitalisation

45.0 Yes – adopted digital technologies in response

to the coronavirus pandemic

62.1 Intention to digitalisation in future

28.9 No intention to digitalisation in future

MEN (%)

Sustainability

59.7 Practice of environmental Sustainability

72.2 Strategy of Social Sustainability

64.3 Prioritize the social and/or environmental impact

of business above profitability or growth

Digitalisation

15.3 Yes –enhanced the initial plans you had with

new or improved digital technologies

15.0 No –already planned a range of digital

technologies before the coronavirus

34.5 No –business can function without digital

technologies

15.8 No –business can function without digital

technologies
 SUSTAINABILITY AND ADOPTION OF TECHNOLOGY | 75

SECTION 5
Menisha Moos and Natanya Meyer

SUSTAINABILITY AND ADOPTION

OF TECHNOLOGY
Digitalisation and sustainability are key considerations Businesses use digital marketing channels, such as
for future entrepreneurial ideation and success. social media, search engines, and email marketing,
Entrepreneurs no longer have a choice but to embrace to advertise and market their products and services3.
these important issues within their business ventures’ This phenomenon enables even tiny enterprises
daily undertakings to see how they can be used to to access potential clientele at a much-reduced
their advantage in terms of growth and prosperity. expense compared to conventional marketing
In 2023, the GEM adult population survey asked techniques. Cloud computing is becoming more and
questions regarding digitalisation intentions in future more popular among organisations as they utilise
as well as the practice and strategy of sustainability to cloud-based services for tasks such as storing data,
determine how entrepreneurs have dealt with these collaborating, and accessing software solutions68. This
matters within the South African context. trend allows firms to utilise cutting-edge technology
without requiring substantial initial investments in IT
5.1 Digitalisation and entrepreneurship infrastructure.

Currently, technology is and will be at the heart of The COVID-19 epidemic has expedited the
entrepreneurship and small business. The COVID-19 implementation of remote work techniques in
pandemic served as a catalyst for entrepreneurs to numerous developing nations. Enterprises are
consider changes in their use of digital technologies adopting digital tools and platforms to enable distant
as a matter of urgency and survival65. collaboration and enhance productivity.

The digitalisation of businesses in developing Digitalisation and entrepreneurship are measured by

countries, such as South Africa, is a dynamic and asking entrepreneurs:
continuously changing environment influenced by
multiple trends66. “In response to the coronavirus pandemic, has your
business made any changes in its use of digital
For example, the expansion of e-commerce is thriving technologies to sell your product or service69?”
due to the growing accessibility of the Internet and
access to smartphones. Companies are creating Figure 5.1 shows that more women (45%) than men
digital platforms to expand their client reach and entrepreneurs (35.2%), in response to the COVID-19
take advantage of the expanding consumer market67. pandemic, adopted digital technologies in their
Mobile payment options are becoming increasingly business. Furthermore, it shows that more women
popular. This phenomenon is transforming financial (62.1%) than men (57.9%) have the intention to adopt
transactions, simplifying the process for businesses digitalisation in future. However, it is interesting
to collect payments and for customers to make to note that even though more men (34.5%) than
purchases. women (28.4%) indicated that their business could
function without digital technologies, men (15%) had
planned a range of digital technologies before the
COVID-19 pandemic. Men (15.3%) and women (16.1%)
65
Fubah, C.N. & Moos, M. 2022. Exploring COVID-19
had similar responses to the COVID-19 pandemic
Challenges and Coping Mechanisms for SMEs in the
South African Entrepreneurial Ecosystem. Sustainability, when their businesses had to enhance their initial
14(4):1944. plans with new or improved digital technologies. In

66
Matthess, M. & Kunkel, S. 2020. Structural change and
digitalization in developing countries: Conceptually
68
Gupta, P., Seetharaman, A. & Raj, J.R., 2013. The usage
linking the two transformations. Technology in and adoption of cloud computing by small and
Society, 63:101428. medium businesses. International Journal of Information
Management, 33(5):861-874.
67
Dempster, C. and Lee, J. 2015. The Rise of the Platform
Marketer: Performance Marketing with Google, Facebook,
69
Global Entrepreneurship Monitor. (2023). Global
and Twitter, Plus the Latest High-Growth Digital Entrepreneurship Monitor 2023/2024 Global Report:
Advertising Platforms. John Wiley & Sons. 25 Years and Growing. London: GEM. https://www.
gemconsortium.org/file/open?fileId=51377
76 | GEM SA SPECIAL REPORT 2023 | 2024

summary, the result is that many of the women entrepreneurs had the intention to digitalisation and, due to the
COVID-19 pandemic began adopting digital technologies more than their male counterparts. Still, more women
entrepreneurs (28.9%) indicated that their businesses have no intention to adopt digital technologies in future.

Figure 5.1: Digitalisation

Women Men

15,8%
Might have intention to
adopt digitalisation in future 9,0%

No intention to adopt 26,3%

digitalisation in future
28,9%

Intention to adopt 57,9%

digitalisation in future
62,1%

No - your business can function 34,5%

without digital technologies 28,4%

No - you already planned a range of digital 15,0%

technologies before the COVID-19 pandemic 10,4%

Yes - you enhanced the initial plans you 15,3%

had with new or improved digital technologies
16,1%

Yes - you adopted digital technologies 35,2%

in response to the COVID-19 pandemic
45,0%
0 10 20 30 40 50 60 70 80

* Read as: 9,0% of women entrepreneurs stated that they might have the intention to digitalise their business operation in future.

Some reasons could be present concerning the disparities between men and women entrepreneurs in the
adoption of digitalisation.

These could include, but are not limited to, resource accessibility. Women entrepreneurs frequently encounter
more significant obstacles when it comes to accessing resources such as funding, education, and technology70.
This can impede their capacity to invest in digitalisation in comparison to their male colleagues.
The digital skills gap between men and women entrepreneurs may arise from gaps in educational opportunity and
societal standards. By implementing training and support programs, women entrepreneurs may effectively utilise
the potential of digitalisation.

Market access can be considered as another barrier. Women entrepreneurs may face obstacles when trying to
enter digital markets and e-commerce platforms, which might restrict their ability to expand and seize possibilities
for growth in comparison to their male counterparts71. Efforts focused on fostering digital ecosystems that
are inclusive of all genders can assist in resolving this problem. Men frequently enjoy more extensive access
to networking possibilities in the business and technological sectors, affording them significant insights and
connections pertaining to digitalisation72. Initiatives aimed at fostering networking and mentorship opportunities for
women entrepreneurs can contribute to creating a more equitable business environment.

In general, both men and women entrepreneurs are adopting digitisation to a certain degree. However, there are
notable discrepancies that must be resolved in order to guarantee equal possibilities for everyone. Efforts centred
on education, ensuring access to resources, and implementing legislation that promotes gender inclusivity are
crucial for creating a conducive atmosphere that enables all entrepreneurs to succeed in the digital economy.

70
Kamberidou, I., 2020. “Distinguished” women entrepreneurs in the digital economy and the multitasking
whirlpool. Journal of Innovation and Entrepreneurship, 9(1):3.

71
Suganya, M. & Thenmozhi, R. 2020. Challenges and opportunities of women entrepreneurs in e-commerce
sector. Purakala (UGC CARE Journal), 31(19):214-219.

72
Hampton, A., McGowan, P. & Cooper, S. 2011. Developing quality in female high‐technology entrepreneurs'
networks. International Journal of Entrepreneurial Behavior and Research, 17(6):588-606.
 SUSTAINABILITY AND ADOPTION OF TECHNOLOGY | 77

FROM FARMGIRL TO BUSINESS OWNER

Stofberg Family Vineyards, trading as Belle Rebelle Estate, is a family-
owned enterprise in Rawsonvile, Western Cape, South Africa, specialising
in farming and winemaking. Mariëtte Stofberg-Coetzee and her husband,
Deon Coetzee, are co-owners of the winery, along with her father, Pieter
Stofberg, who is the senior member of the family and shares his daughter’s
passion for wines and vineyards. As a female in the winemaking industry,
Mariëtte has developed a strong background in this industry; even in early
childhood, she was surrounded by farming and winemaking activities. She
also pursued her studies in this field at the University of Stellenbosch,
receiving a BSc degree in Agriculture, Viticulture & Oenology. Along with
her husband and father, Mariëtte took tremendous pride in introducing
their maiden vintage in 2012 and moved into their current facility in 2014.
She further conveys that, in order to promote their vintage, they would
enter various related competitions, and they received a trophy for the
best blanc de blanc MCC at the Cap Classique Challenge in 2021. Other
accolades include being a National winner at the terroir award for MCC in
2020 and 2022. Moreover, they won a trophy for the best Chenin blanc
in 2019 and achieved numerous double gold acknowledgements at the
Michelangelo and Veritas awards. Mariëtte also maintains her and her
family’s commitment to hand-crafted wines by using limited interventions
“Stay positive, and pursuing sustainable farming methodologies.

work hard; aim Moreover, in addition to their current portfolio of Wine MCC and Gin, they
will soon launch their first vintage estate brandy. Their market currently
and focus on consists of products distributed via B2B, which include partners such as
quality.” Frogitt & Vonkel, renowned wine merchants in South Africa who distribute
exclusive wines throughout the nation and are now supplying Namibia.
Belle Rebelle Estate is also actively exporting its famous popular wines to
the Netherlands and Denmark, and these driven wine connoisseurs have
their eye on expanding their export market in the future. Mariëtte further
elaborates on the family’s focus on maintaining a natural balance in the
growing, processing, and fermenting of their grapes as they attempt to use
natural means, as much as possible, to create their exquisite brands. She
states that the beauty in wine is related to its terroir (unique environmental
factors shaping a wine’s character), something on which Mariëtte and her
family are clearly focused via maintaining sustainable practices. The family
is also eager to pass on some of their skills, and in order to consistently
acquire the appropriate expertise and training, some of their employees
have enrolled in formal training courses, and one employee was even
selected for an exchange programme in France.

Building and maintaining wine stocks is challenging for a small vineyard;

as such, Mariëtte relates that over the past 12 years or so, they have
consistently reinvested profits into the business. This has allowed them to
build and manage a reserve stock, which is a vital aspect of this business.
Mariëtte also confessed that being a woman in the wine industry is
somewhat novel since most consumers think of this industry as being
relevant to men. Thus, she believes that females in this industry have now
become more accepted among wineries, which was not the case when she
first entered this field. Mariëtte also significantly prides herself in meeting
the challenges of this work head-on and has proved that, as a woman, she
has absolutely achieved her status as a professional in the winemaking
industry. Therefore, she and other like-minded women have broken the
“glass ceiling” of this industry and have proven there is indeed room for
You can reach out to
females to achieve substantial success in the winemaking business. As a
Mariëtte at:
productive, inspiring, and highly skilled female entrepreneur, Mariëtte has
consistently worked with her husband and father to create an unbeatable
team that looks to the future while collectively focusing on marketing
strategies, growth, quality, and integrity within the winemaking industry. She
is, without doubt, a trendsetter.
[email protected]

https://www.facebook.com/lebellerebelle/

www.bellerebelle.co.za

@belle_rebelle_estate
78 | GEM SA SPECIAL REPORT 2023 | 2024

5.2 Sustainability and entrepreneurship

Entrepreneurs have a responsibility towards society and the environment when starting and growing their
businesses. As stated by Nyika et al.73, they have to be mindful of the sustainability agenda and goals in their
business practices and strategies. This is important for a few reasons which include long-term sustainability
Businesses can ensure the sustainability and adaptability of their operations by reducing negative effects on
the environment and society, in response to changing market conditions and regulations. Adopting social and
environmental practices aids in reducing a range of risks, such as risks to reputation, compliance risks, and
operational risks74. Companies that give priority to sustainability are more prepared to foresee and adjust to
upcoming difficulties like climate change, limited resources, and social inequity.

Consumers, investors, and other stakeholders now have higher expectations for businesses to exhibit a strong
dedication to social and environmental responsibility75. Entrepreneurs may bolster their reputation and distinguish
their brand in the market by adhering to principles such as transparency, honesty, and sustainability. Implementing
social and environmental practices in corporate operations often results in cost savings and improved efficiency.
For instance, the implementation of energy-saving technologies can lead to a decrease in power bills, trash
reduction initiatives can help limit the expenses associated with disposal, and sustainable supply chain practices
can enhance the efficient use of resources.

Businesses that adhere to rigorous ethical and environmental criteria may receive favourable treatment
in government procurement procedures and be granted entry to specific markets76. Practicing social and
environmental responsibility in a company is both a moral and strategic need for long-term success and
competitiveness. Entrepreneurs may generate value for stakeholders and promote a sustainable and inclusive
future by adopting sustainability as a fundamental principle and incorporating it into every part of their operations.

Sustainability and entrepreneurship are measured by asking entrepreneurs:

“Are you aware of the 17 United Nations Sustainable Development Goals – the 2030 agenda for sustainable
development – published in 2015?”

Figure 5.2 shows that more men (64.3%) than women entrepreneurs (58.9%) prioritise the social and/or
environmental impact of their business above profitability or growth. However, women (63.3%) practice social
sustainability more than men (55%) in their businesses, whereas men (59.7%) implement more environmentally
sustainable practices than women entrepreneurs (54.8%). Men (62.6%) and women (64.6%) entrepreneurs are
almost equally focused on strategies to support environmental sustainability, with a slight difference between
them when it comes to social sustainability strategies. In summary, both men and women entrepreneurs are
almost equally aware of the 17 United Nations Sustainable Development Goals.

Figure 5.2: Sustainability among all businesses

Women Men

Prioritise the social and/or environment impact of 64,3%

business above profitability or growth 58,9%

55,0%
Practice of social sustainability
63,3%

72,5%
Strategy of social sustainability
68,8%

59,7%
Practice of environmental sustainability 54,8%

62,6%
Strategy of environmental Sustainability
64,6%
Awareness of the 17 United Nations Sustainable 31,3%
Development Goals 33,3%*
0 10 20 30 40 50 60 70 80

* Read as: 33.3% of women entrepreneurs stated that they are aware of the 17 UN SDGs.

73
N
 yika F., Muzekenyi, M., Akbar, K., Moodley, M. & Nzimande, S. 2024. Economic inclusion of rural small businesses in policy
formulation: Strategies for sustainable development in Africa. International Journal of Development and Sustainability,
13(1):51-67.

74
Sarkis, J., Gonzalez-Torre, P. & Adenso-Diaz, B. 2010. Stakeholder pressure and the adoption of environmental practices:
The mediating effect of training. Journal of Operations Management, 28(2):163-176.

75
Alniacik, U., Alniacik, E. & Genc, N. 2011. How corporate social responsibility information influences stakeholders'
intentions. Corporate Social Responsibility and Environmental Management, 18(4);234-245.

76
Asgary, N. & Mitschow, M.C. 2002. Toward a model for international business ethics. Journal of Business Ethics, 36:239-246.
 SUSTAINABILITY AND ADOPTION OF TECHNOLOGY | 79

A COLOURFUL LIFE
Louise Volschenk is a highly passionate and creative South African make-
up artist, who has been teaching and actively involved in honing her craft
since the age of fourteen. By 2013, Louise took the plunge and set out on
her entrepreneurial journey by opening ‘Halouw Make-up Academy’, which
has proven to be a most gratifying and profitable experience. Like many
ambitious and talented women, she has used her years of experience
applying her artistry to expand her range of skills while incorporating her own
innovative methodologies that showcase her clients’ best features. A major
impetus for opening her own academy was to avoid having to adapt to a
boring work environment with set work hours, which would limit her freedom
to pursue her ultimate dream and actively pursue her passion. Louise further
conveys that, like many professionals, she is actually more committed to
her work when using her talents as a make-up artist to enhance the natural
beauty and visual essence of her clientele. Moreover, her services include
training others how to use custom make-up applications, thereby allowing
her clients to become professional make-up artists or simply enhance
their skills for personal use. The academy also offers high-quality make-up
products that meet clients’ specific needs, all of which increase profits and
customer retention. Even more impressively, in 2021, Louise launched her
own product line and began offering stocking options to market her own line
of make-up products in approved salons and beauty establishments, along
“For me, with providing support services to enhance her clients’ profits.
success is when The public relations aspect of Louise’s business relates to advertising via
you reach a social media platforms and utilising marketing consultants who are familiar
with e-commerce sales. Also, the power of having a satisfied clientele tends
point where to create a lucrative word-of-mouth marketing environment. Furthermore,
during Louise’s venture into the business world, she developed various
you work less marketing and management strategies, while enhancing her decision-
but make more making ability that served to complement her extensive experience as a
make-up artist. Louise has further enhanced her business by utilising the
money. That power of the Internet and pursuing online sales internationally. She also
posits that she has learned from experience that, since her personal line of
is when your make-up products are produced abroad and imported, she must balance the
time delay in order to accommodate her clients who market these products.
business model Essentially, all these experiences have prompted Louise to think ‘out-of-the-
is working for box’ and collaborate with various famous make-up brands to further extend
her service offerings within the beauty industry.
you.”
Another important aspect of her business that empowers and inspires her to
create a more prominent presence is that she tends to hire previous students
from her academy. Thus, Louise has developed an in-house source by
hiring creative, reliable, and talented staff who are familiar with her training
protocols, products, and company mission. In fact, over the years, she has
established a strong collaborative network that has served her exceptionally
well and continues to pay significant rewards while using much of her profits
to expand and garner a larger market share of the beauty industry. She has
also learned how to delegate some minor aspects of the business to other
personnel so she can focus on more critical issues, ultimately allowing her
more freedom. Overall, her hard work, determination, professionalism, and
vision have culminated in making her business work for her. Finally, as an
ambitious female entrepreneur intently focused on further growth, Louise
plans to expand her own make-up product line and exposure in South Africa
You can reach out to and, next, bring it to the international market via online e-commerce sales.
Louise at: There is no doubt that Louise has ‘A Colourful Life’ with an ambitious attitude
to match.

[email protected]

https://www.facebook.com/halouwprofessional/

www.halouw.co.za

@halouwmakeup
80 | GEM SA SPECIAL REPORT 2023 | 2024

The implementation of social and environmental business strategies may differ among women and men
entrepreneurs due to several reasons such as societal conventions, personal values, and resource availability.
Women entrepreneurs frequently demonstrate a heightened propensity for incorporating social and
environmental objectives into their company strategy. Studies indicate that women often prioritize social
responsibility and sustainability in their business endeavours, motivated by a desire to create a beneficial influence
on their communities and the environment77,78. Women entrepreneurs may prioritize principles such as empathy,
teamwork, and diversity while developing their business strategies. They are likely to incorporate social and
environmental factors into their business models from the beginning, seeing them as essential elements of long-
term success rather than optional additions.

Women entrepreneurs may place a high importance on achieving a balance between their work and personal
lives, as well as focusing on their overall well-being, when developing their business plans79. They understand the
interdependence of their personal, professional, and societal objectives. This comprehensive strategy can result in
the incorporation of social and environmental factors into business operations in a more fluid and enduring way.

In general, although there may be variations in the implementation of social and environmental business strategies
among women and men entrepreneurs, both genders have significant contributions in promoting sustainability
and corporate responsibility. By cultivating a welcoming and encouraging atmosphere that appreciates a range of
perspectives and teamwork, businesses may utilise the combined abilities of both women and men entrepreneurs
to create beneficial transformations for individuals and the environment.

77
Braun, P. 2010. Going green: women entrepreneurs and the environment. International Journal of Gender and
Entrepreneurship, 2(3):245-259.

78
Raman, R., Subramaniam, N., Nair, V.K., Shivdas, A., Achuthan, K. & Nedungadi, P. 2022. Women entrepreneurship and
sustainable development: bibliometric analysis and emerging research trends. Sustainability, 14(15):9160.

79
Banu, J. & Baral, R., 2022. Career choice, growth and well-being of women entrepreneurs’ community: insights on
driving factors in India. Journal of Enterprising Communities: People and Places in the Global Economy, 16(5):781-807.

GOOD PROGNOSIS – YOUR GROWTH IS OUR

BUSINESS
Sarahni Prins is a South African female entrepreneur with a vitality and
commitment to success in the healthcare management sector. While
completing her degree in Fine Arts, she was living at home with her father,
a general practitioner in Rustenburg, South Africa. During this time, she
assisted him in managing some of the administrative aspects of his practice.
In particular, Sarahni noticed some challenges involving her father’s
practice, such as staffing, administration, and finance. Thus, she set out to
help her father streamline some of the non-medical tasks, which allowed
him to focus more on patient care. This experience led Sarahni to realise
that most medical professionals have little to no training in business-
related processes; thus, they are primed to use business consultancy
services that can assist them in the daily operation of their practice using a
business perspective. Subsequently, Sarahni developed her business, Good
Prognosis, which was registered in 2009 and would focus on the concept
of creating a relevant business that specialises in assisting doctors in the
smooth operation of their practice. The company’s first client was a general
practitioner who continues to be a client of Good Prognosis, as the doctor
could easily see the benefit of having management professionals guide
his practice, which enabled him to focus solely on providing healthcare
interventions to his patients. With marginal success, in 2011, Sarahni hired
her first employee, who continues to work for the company. In 2013, the
company headquarters moved to their first corporate offices; based on their
success, the company had employed over 50 staff members by 2021, with
95% of these employees being female. Moreover, due to proficient business
practices and management strategies, the company even survived the
COVID pandemic without losing even one employee. As a further example
of the company’s phenomenal success, the firm purchased its own suite of
offices in Rustenburg, South Africa, in 2024, which is now the headquarters
and head office for the enterprise.
 SUSTAINABILITY AND ADOPTION OF TECHNOLOGY | 81

Since we live in a highly complex and technological age, businesses have

had to adapt and reconsider their previous ways of doing business in the
“Take the time ever-evolving commercial climate that pervades our current paradigm.
to carefully Thus, Sarahni recognised this gap that existed especially for physicians,
and, thus, developed a pragmatic answer to this problem. Her company
consider and offers doctors administrative services, consultations, and strategic
management experiences in order to assist with every aspect and basic
evaluate the need of their clients. Moreover, they provide services such as the following:
area in which company set-up; registration of their practice; bank registration services;
designated service provider contracts; medical coding training (based on
you believe speciality); staff placement and training; and practice-specific accounting
and billing software. Additionally, all these services can be adjusted to meet
you can build a the needs of the doctor. The company’s income stream is produced as a
business.” fixed percentage of the practice revenue and shares in any risks involving
the practice. Thus, the company is also proactive and responsible for the
recovery of costs from a variety of funders so as to create optimal cash
flow for the practice. This service niche has filled a serious gap within
the private sector involving physicians operating their private practices.
Hence, ‘Good Prognosis’, the brainchild of Sarahni, has become a primary
fixture in the administration of medical practice strategies and protocols
that enhance compliance and lead to increased revenue. The business
has also expanded to include a network of outside providers that include
accountants, legal advisors, and tax consultants.

Not to be idle, Sarahni is in the process of expanding the business model

by opening its first Good Prognosis Medical Centre that will focus on
newly-trained and energetic doctors. This and other expansions will
undoubtedly allow this business to grow and thrive in the future. At present,
it is servicing doctors across the country and has now attracted about
350 multi-disciplinary clients. Much of this expansion is predicated on
widespread word-of-mouth ascertained from satisfied clients. She does,
however, caution that corporates and entrepreneurs do not easily merge,
a lesson she learned the hard way when she sold 30% of her business to
a corporation. Fortunately, she was able to regain control after three years,
but she wants to warn future entrepreneurs not to make the same mistake.
Sarahni also reflects that she does not believe she has suffered from any
biases related to being a female but has built her service business primarily
You can reach out to through extreme dedication, education, integrity, and knowledge. In short,
Sarahni at: she believes businesses are built upon establishing a good reputation and
results in growth.

[email protected]

www.goodprognosis.co.za

https://www.linkedin.com/in/sarahni-prins
82 | GEM SA SPECIAL REPORT 2023 | 2024
NURTURING GROWTH: THE VITAL ROLE OF ENTREPRENEURIAL ECOSYSTEMS IN EMPOWERING WOMEN ENTREPRENEURS | 83

S E C T I O N

06
NURTURING GROWTH: THE VITAL
ROLE OF ENTREPRENEURIAL
ECOSYSTEMS IN EMPOWERING
WOMEN ENTREPRENEURS
84 | GEM SA SPECIAL REPORT 2023 | 2024

EXECUTIVE SUMMARY
Level A: Economies with a GDP per capita exceeding $50,000
Level B: Economies with a GDP per capita ranging from $25,000 to $50,000
Level C: Economies with a GDP per capita below $25,000

Level of support for Women entrepreneurship in

terms of services, regualtions and cultural (%)
A: 4.73
GDP PER
CAPITA B: 3.70
C: 3.56

GEM
AVERAGE 4.04
SOUTH
AFRICA 3.87
Income levels per the World Bank income level
categories.

Low-income less than $1 135

Lower middle-income between $1 135 and $ 4 465
Upper middle-income between $4 466 and $13 845
High-income above $13 846

Women

2.78 Human resource development

2.72 Environmental and spatial development actions

2.75 Poverty alleviation and social development

Men

2.76 Partnership formation

2.74 Leadership

2.76 Economic development actions

2.72 Access to opportunities

2.75 Safe and secure environment

 NURTURING GROWTH: THE VITAL ROLE OF ENTREPRENEURIAL ECOSYSTEMS IN EMPOWERING WOMEN ENTREPRENEURS | 85

SECTION 6
Natanya Meyer, Daniel Meyer and Angus Bowmaker-Falconer

NURTURING GROWTH:
THE VITAL ROLE OF ENTREPRENEURIAL
ECOSYSTEMS IN EMPOWERING WOMEN
ENTREPRENEURS
Entrepreneurship is a source of innovation and entrepreneurial endeavours. These obstacles vary
economic strength in the ever-changing world of from restricted availability of funds and marketplaces
global business. Entrepreneurship is far more than to cultural prejudices and institutionalised
simply initiating a business. It encompasses a mindset discrimination. Therefore, it is crucial to develop
and a transformative path of converting ideas into entrepreneurial ecosystems that not only address
tangible actions, ultimately generating societal value. gender disparities but also actively empower and
Nevertheless, in order for this enterprising mindset promote women entrepreneurs.
to thrive, it necessitates a favourable setting—a
prosperous ecosystem that offers essential assistance, This section explores the significance of
resources, and connections80. entrepreneurial ecosystems in promoting the success
of all entrepreneurs. By conducting a thorough
Recently, there has been an increasing examination of the fundamental elements of these
acknowledgement of the crucial role that ecosystems and their influence on business, the
entrepreneurial ecosystems play in promoting emphasis is the crucial importance of nurturing
innovation and economic growth81. These ecosystems environments to unleash the complete potential
consist of various interwoven components, such of women in entrepreneurship. Data can offer
as government legislation, educational institutions, valuable knowledge to guide stakeholders, including
funding methods, mentorship networks, and cultural policymakers, investors, educators, and community
attitudes towards risk-taking and failure. Amidst leaders, in developing inclusive and prosperous
this complex network of circumstances, one crucial entrepreneurial ecosystems. The ultimate goal is to
element that requires focus is the involvement and help create a fair and successful future where women
achievements of female entrepreneurs. entrepreneurs are empowered to lead innovation,
generate wealth, and make great changes in their
Empowering women in entrepreneurship is not communities and beyond.
only about inclusivity; it is a necessity for achieving
sustainable economic growth and social change82. 6.1 National Expert Survey
Although progress has been achieved in achieving
gender equality, women still encounter distinct The National Expert Survey (NES) conducted by
obstacles and limitations when embarking on the Global Entrepreneurship Monitor provides data
on nine (9) entrepreneurial framework conditions,
across thirteen (13) key factors that influence
80
Nieuwenhuizen, C., Krüger, N.A., Meyer, D.F. & Meyer, N. entrepreneurship. The GEM NES focuses on analysing
2022. A thematic analysis of essential entrepreneurial the national environment in which individuals
ecosystem factors: An economic growth and begin entrepreneurial endeavours. Experts in each
development perspective. Journal of Contemporary participating GEM economy provide data and
Management, 19(2):609-653. insights on the context in which entrepreneurship
takes place. The NES sample consists of at least 36
81
Opute, A.P., Kalu, K.I., Adeola, O. & Iwu, C.G. 2021. national experts across expertise categories (finance,
Steering sustainable economic growth: entrepreneurial
government policies, government entrepreneurship
ecosystem approach. Journal of Entrepreneurship and
programs, education and training, R & D transfer,
Innovation in Emerging Economies, 7(2):216-245.
commercial infrastructure, internal market openness,
physical infrastructure, social and cultural norms). The
82
Datta, P.B. & Gailey, R. 2012. Empowering women
through social entrepreneurship: Case study of a Entrepreneurship Framework Conditions (EFCs) are
women's cooperative in India. Entrepreneurship theory described in Table 6.1.
and Practice, 36(3):569-587.
86 | GEM SA SPECIAL REPORT 2023 | 2024

Table 6.1: Entrepreneurial Framework Conditions (EFCs) 83

Entrepreneurial framework condition Description

A1 Entrepreneurial Finance Are there sufficient funds for new startups?
A2 Ease of Access to Entrepreneurial Finance And are those funds easy to access?
B1 Government Policy: Support and Relevance Do they promote and support startups?
B2 Government Policy: Taxes and Bureaucracy Or are new businesses burdened?
C Government Entrepreneurial Programmes Are quality support programmes available?
D1 Entrepreneurial Education at School Do schools introduce entrepreneurship ideas?
D2 Entrepreneurial Education Post-School Do colleges offer courses in starting a business?
E Research and Development Transfers Can research be translated into new businesses?
F Commercial and Professional Infrastructure Are these sufficient and affordable?
G1 Ease of Entry: Market Dynamics Are markets free, open and growing?
G2 Ease of Entry: Burdens and Regulation Do regulations encourage or restrict entry?
H Physical Infrastructure Is this sufficient and affordable?
I Social and Cultural Norms Does culture encourage and celebrate entrepreneurship?

Experts at the national level are requested to assess various aspects of each EFC and award a score84 to each
statement. The assessments carried out by experts are aggregated to compute ratings for each EFC. It is crucial to
acknowledge that the assessments may differ depending on the context. The 2023 NES sought evaluations from
experts on other domains pertaining to entrepreneurial aspirations, one being the specific emphasis on support for
women entrepreneurs (Figure 6.2). Figure 6.1 presents the data for 2021 to 2023 and the GEM average based on
the NES results.

83
Bowmaker-Falconer, A., Meyer, N. & Samsami, M. 2023. Entrepreneurial Resilience during Economic Turbulence
2022/2023. Stellenbosch University: Stellenbosch, South Africa.

84
11-point scale (ranging from 0 – untrue or not in agreement, 5 – neutral, 10 – true, total agreement with the statement).
Final score calculated out of a maximum of 10.

CHANGING THE AFRICAN NARRATIVE

THROUGH ANIMATION, VISUAL EFFECTS AND
CONTENT DEVELOPMENT
In 2014, Nosipho Maketo-van den Bragt began her creative entrepreneurial
journey by opening her business, ‘Chocolate Tribe’, as a means to establish
an exceptional space where artistic individuals can be validated and,
at the same time, provide them with hope for the future. As a black
female business owner in South Africa, Nosipho has a profound desire to
change the narrative and image of Africa through a thriving business and
by creating mesmerising ways in which stories are presented through
animation. Chocolate Tribe’s studio, located in Johannesburg and Cape
Town, South Africa, is known for high end productions and collaborating
in unique feature films, television series, and commercials, which include
technically sophisticated visual effects and animations. This highly
artistically technical process allows Nosipho and her creative team to
work with other well-known professionals in the streaming industry, such
as Netflix, the BBC and Disney, which has provided new and exciting
opportunities for expressing the African narrative.

“Keep positive; it’s a slow

burn, and keep people who
will allow you to flourish in
your journey and vision.”
 NURTURING GROWTH: THE VITAL ROLE OF ENTREPRENEURIAL ECOSYSTEMS IN EMPOWERING WOMEN ENTREPRENEURS | 87

Nosipho states that her business model is twofold in that it provides service
work in productions for partners such as BBC, Disney, Amazon and Netflix
while also developing the company’s own IP for sale and distribution.
Moreover, as a means of expansion, much of the profits are reinvested
in the enterprise in order to enlist talent and technical improvements.
The company’s goal is to leverage on untold stories, untapped talent,
innovation, enhance their focus on exciting production projects, and garner
a greater market share by allowing their “work to speak the loudest” and
gain more recognition within the global industry. This pioneering and strong
leadership spirit has enabled Nosipho and her team to be one of the first in
Africa to create a full CGI supporting creature character (Jonga in Netflix’s
INumber Number), which has cemented Chocolate Tribe’s raft of award-
winning shows. The African cultural narrative should not just be about
superficial vibrancy, but imbued in technical excellence and innovation.
Overall, her company has truly put the African narrative on the international
map. All of which has been predicated on hard work, a strong team,
constant innovation and an indomitable spirit.

The tremendous success generated by ‘Chocolate Tribe’, the brainchild

of Nosipho, has also contributed to a new generation of passionate,
creative individuals through mentoring and attending various national
and international festivals. In short, Nosipho has consistently contributed
to uplifting the African narrative and participating in mentoring activities
associated with Women In Animation (WIA), which is a leading international
platform promoting the economic development and support of African
women entrepreneurs. Nosipho is also the founder of AVIJOZI, which is
a free interactive media platform designed to connect creative talent:
technicians, software developers, AI researchers, artists, writers, directors,
producers, students, and industry enthusiasts from South Africa and the
international community leading to career opportunities and collaborations.
As an astute creative entrepreneur, she has parlayed her business across
the African continent and used her thought leadership to enter the global
market. Moreover, Nosipho studied law so as to become an advocate
for people and utilises her legal training to act as a legal consultant
representing her company, thereby alleviating extensive overhead
costs. This was particularly important while growing the business and
indispensable when evaluating contracts for the company’s projects.

Nosipho also believes that women contribute a different type of thought

leadership to the creative industry and, thus, positively add to the
collaborative process that’s crucial in this industry. Therefore, it appears
that the landscape of the industry is evolving across all boundaries, which
has offered new and exciting opportunities for women to play a major
role in the creative arts. Furthermore, with the economic challenges that
are currently inhibiting much of the creative process, Nosipho has sought
out international and private partners in order to produce the quality of
work they are capable of delivering. Over the past ten years; Nosipho has
consistently expanded her business by being true to herself, applying a
people-centric and purpose-driven business model that has led to the
growth of Chocolate Tribe from two to forty employees, an additional
studio in Cape Town and opening up opportunities for underrepresented
communities keen to join the creative industry. Ultimately, she has placed
South Africa on the map as an equal and respectable global industry
partner who can produce high-end animation and visual effects. This, in
itself, is a tremendous feat and, without a doubt, a feather in her cap.
You can reach out to
Nosipho at:

[email protected]

https://www.facebook.com/ChocolateTribe/

https://chocolatetribe.co.za

https://www.instagram.com/chocolatetribe/

https://za.linkedin.com/company/chocolate-tribe
88 | GEM SA SPECIAL REPORT 2023 | 2024

Figure 6.1: South African Entrepreneurial Framework Conditions 2021 to 2023 and GEM Average

2021 2022 2023 GEM Average 2023

3.68
Entrepreneurial finance 3.95
A1 4.09
sufficiency 4.47

3.37
Ease of access to 3.76
A2 3.54
entrepreneurial finance 4.24

3.43
Government policy: 4.14
B1 3.30
Support and relevance 4.18

3.51
Government policy: 3.90
B2 3.70
Taxes and bureaucracy 4.60

3.11
Government entrepreneurial 3.81
C 3.01
programmes 4.64

2.68
Entrepreneurial education 3.57
D1 2.76
at school 3.39

3.61
Entrepreneurial education 4.46
D2 3.68
post-school 4.94

3.37
Research and 3.31
E 2.71
development transfers
4.05

4.88
Commercial and professional 4.56
F 4.35
infrastructure
5.26

4.46
Internal market 4.84
G1 5.20
dynamics
5.38

3.63
Internal market burdens 3.64
G2 3.23
and regulation
4.38

4.83
Physical 4.87
H 4.45
infrastructure
6.40

3.96
Social and 4.52
I 3.28
cultural norms
5.25

0 1 2 3 4 5 6 7 8

Data from Figure 6.1 reveals that entrepreneurial funding in emerging economies has seen a significant decrease
from 4.80 in 2016 to 3.68 in 2021, with a slight rise to 3.95 in 2022 and further growth to 4.09 in 2023. This level of
financial resources is generally insufficient compared to other nations in the GEM study. Accessibility of funding for
entrepreneurs has shown improvement, reaching 3.76 in 2022 but falling below the GEM global average of 4.24.

Entrepreneurial financing can have a substantial influence on women entrepreneurs85. Women entrepreneurs
frequently encounter greater difficulty in accessing finance than men. This is for multiple reasons, including biases
in investment decisions, insufficient networks, or minimal collateral. Access to financial resources and related
support would provide women entrepreneurs with the means to take control of their businesses and increase their
confidence, thereby motivating them to actively pursue their entrepreneurial goals86.

Government policies have also been criticised for their lack of support and significance for entrepreneurs. The
country's taxation and bureaucracy levels have increased, and their rating has declined in 2023. The country's
government entrepreneurship programs have also been criticised for their lack of quality and accessibility. All

85
Carter, N., Brush, C., Greene, P., Gatewood, E. & Hart, M. 2003. Women entrepreneurs who break through to equity
financing: the influence of human, social and financial capital. Venture Capital: an international journal of entrepreneurial
finance, 5(1):1-28.

86
Amatucci, F.M. & Crawley, D.C. 2011. Financial self‐efficacy among women entrepreneurs. International Journal of Gender
and Entrepreneurship, 3(1):23-37.
 NURTURING GROWTH: THE VITAL ROLE OF ENTREPRENEURIAL ECOSYSTEMS IN EMPOWERING WOMEN ENTREPRENEURS | 89

three of these government-related EFCs declined relationships. Networking with other aspiring
in 2023 (Support and relevance: 3.30, taxes and entrepreneurs, mentors, industry experts and potential
bureaucracy: 3.70 and entrepreneurial programmes: investors is critical to enable women to establish
3.01). mutually beneficial connections, share insights, solicit
guidance, and tap into fresh entrepreneurial prospects.
Taxes, bureaucracy, and training programmes have
a substantial impact on women entrepreneurs in School and post-school entrepreneurship training
diverse ways. Taxation regulations have varying programmes would equip women with the skills
effects on women entrepreneurs, such as their and knowledge necessary to assume leadership
business structures, industries, and income levels87. roles in their businesses and communities90. Such
Targeted tax incentives aimed at small businesses or programmes empower women to assume control of
certain industries might be advantageous for women their entrepreneurial endeavours, make well-informed
entrepreneurs by alleviating their tax obligations choices, and effect beneficial transformations in
and offering financial incentives for expansion and their own lives and the lives of others by offering
investment. skill development, networking, and mentorship
opportunities.
Bureaucratic hurdles, such as intricate regulatory
procedures, license prerequisites, and administrative The country's research and development transfers
burdens, can have a disproportionate impact on have also declined, with the average remaining
women entrepreneurs, particularly those operating in far below the global average of 4.05. Commercial
informal or emergent sectors88. and professional infrastructure has seen a steady
decrease, with the South African score markedly
Customised training and development programmes below the GEM global average of 5.26. The analysis of
designed specifically for women entrepreneurs could internal forces driving market dynamics has also seen
potentially offer important expertise, abilities, and a decline, with the score slightly below the GEM global
assistance to enhance their chances of achieving average of 5.38.
success in the business world. Taxes, bureaucracy, and
training programmes can greatly impact the capacity Challenges and regulations in the internal market
of women entrepreneurs to initiate, maintain, and have also been criticised, with the South African score
expand their businesses. falling below the GEM global average of 4.38. Physical
infrastructure, including the management and upkeep
The rating of entrepreneurial education into school of local municipal infrastructure, has also experienced
curricula has seen a decline, with the lowest overall a decline, with the South African rate declining from
score worldwide (2.76). Although performing slightly 6.60 in 2015 to 4.45 in 2023.
better, entrepreneurial education at the post-school
level also declined sharply in 2023 to 3.68. Finally, cultural and social norms show a lack of
support for entrepreneurship, with a decline from 4.90
Women entrepreneurs can derive numerous in 2017 to 3.28 in 2023.
advantages from participating in school and post-
school entrepreneurial training programmes89. These Cultural and societal norms significantly impact
could potentially equip women with the vital skills women entrepreneurs, leading to disparities in
and information necessary for the effective initiation access to resources, family responsibilities, and
and management of a business. Programmes should networks91. Traditional gender norms often prioritise
include as a minimum subjects such as strategy women's household duties over their entrepreneurial
and business planning, raising finance and financial aspirations, limiting their access to education, training,
management, marketing, sales, leadership, and talent and financial resources92. Women entrepreneurs often
management. Through building these capabilities, face difficulties in juggling their family and business
women entrepreneurs can bolster their self- obligations, which can hinder their professional
assurance and proficiency in handling the obstacles advancement.
of entrepreneurship. Educational institutions and
post-education entrepreneurial training programmes Cultural norms also influence women's access
could also provide excellent chances for women to networks and support systems crucial for
entrepreneurs to connect and build professional entrepreneurship. Men generally dominate corporate
networks and decision-making processes, creating
obstacles for women in obtaining mentorship,
87
Terjesen, S., Bosma, N. & Stam, E., 2016. Advancing
public policy for high‐growth, female, and social
entrepreneurs. Public Administration Review, 76(2):230- 90
 ullough, A., De Luque, M.S., Abdelzaher, D. &
B
239. Heim, W. 2015. Developing women leaders through
entrepreneurship education and training. Academy of
88
Langevang, T., Hansen, M.W. & Rutashobya, Management Perspectives, 29(2):250-270.
L.K. 2018. Navigating institutional complexities:
The response strategies of Tanzanian female Venotha, A.S. & Alex, K. 2023. A review of the social
91

entrepreneurs. International Journal of Gender and factors influencing women entrepreneurs. Journal of
Entrepreneurship, 10(3):224-242. Research Administration, 5(2):5880-5892.

89
Westhead, P. & Solesvik, M.Z. 2016. Entrepreneurship 92
Rehman, S. & Azam Roomi, M. 2012. Gender and work‐
education and entrepreneurial intention: Do female life balance: a phenomenological study of women
students benefit?. International small business entrepreneurs in Pakistan. Journal of small business and
journal, 34(8):979-1003. enterprise development, 19(2):209-228.
90 | GEM SA SPECIAL REPORT 2023 | 2024

guidance, and funding opportunities93. Gender norms that enforce segregation or restrict women's mobility may
also hinder their participation in networking events, conferences, and business gatherings, intensifying their
isolation and marginalisation within entrepreneurial ecosystems.

Stigma and discrimination against women entrepreneurs can be perpetuated by cultural and social norms,
resulting in biased, stereotypical, and unequal treatment in business settings94. Women entrepreneurs often
struggle to establish credibility, earn respect, and receive acknowledgement for their accomplishments, especially
in fields dominated by men or conservative communities with deeply ingrained gender prejudices.

Cultural norms also shape women's entrepreneurial identities and aspirations, which affect their views on
entrepreneurship as a feasible career choice. Women in societies where entrepreneurship is linked to masculinity,
risk-taking, and competitiveness may adopt cultural expectations and self-imposed beliefs that hinder their
confidence in achieving success as entrepreneurs95.

Figure 6.2: Perceived support and access for women entrepreneurs: South African comparison to
GEM and country income levels96

South Africa >$20k<$40k (19 Countries)

GEM average 2023 >$40k (16 Countries)

<$20k (12 Countries)

3.87

Level of support for women's 4.04

entrepreneurship in terms of services, 3.56
regulations, and cultural norms
3.70

4.73

4.85

4.99
Accessibility of resources for women (such
as financing and markets) compared to men 5.14
in developing entrepreneurial activities
4.62

5.40

0 1 2 3 4 5 6

In Figure 6.2, South African experts rated accessibility to resources (4.85) higher than the amount of support received
(3.87). Additionally, all other categories prioritise resources. Among middle-upper-income countries97, there was a
significant disparity, with a support level of only 3.30 and a resource accessibility level of 5.15. Women entrepreneurs
could greatly benefit from the provision of affordable and easily accessible daycare, after-school programmes, and
eldercare services. Moreover, it would be beneficial to introduce rules that create an equivalent level of attractiveness
between self-employment and conventional employment. Access to resources encompasses various elements,
such as the presence of markets, the discrepancy in public procurement chances across genders, and inequitable
access to finance98.

93
Barkhuizen, E.N., Masakane, G. & van der Sluis, L., 2022. In search of factors that hinder the career advancement of
women to senior leadership positions. SA Journal of Industrial Psychology, 48(1):1-15.

94
Keplinger, K. & Smith, A. 2022. Stigmatization of women in the workplace: Sources of stigma and its consequences at
the individual, organizational and societal level. In Diversity in action (pp. 23-38). Emerald Publishing Limited.

95
Baldwin, A., 2022. The Barriers Women Face to Succeed as Entrepreneurs in Alabama: An Exploratory Case Study (Doctoral
dissertation, Northcentral University).

96
Income levels per the World Bank income level categories. Four classifications are used based on the GNI per capita
within a country. These are 1) low-income less than $1 135, 2) lower middle-income between $1 135 and $ 4 465, 3)
upper middle-income between $4 466 and $13 845 and 4) high-income above $13 846.

97
World Bank. 2024. World Bank Country and Lending Groups – World Bank Data Help Desk. https://datahelpdesk.
worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups

98
GEM. 2023. Global Entrepreneurship Monitor 2023/2024 Global Report: 25 Years and Growing. GEM.
 NURTURING GROWTH: THE VITAL ROLE OF ENTREPRENEURIAL ECOSYSTEMS IN EMPOWERING WOMEN ENTREPRENEURS | 91

6.2 Enabling Environment Factors

The aforementioned examined entrepreneurial ecosystems from a macro perspective, including data gathered
through the NES. This next section transitions to a more local level. The data utilised was based on the APS
and examines individuals' assessment of the government's role and contribution in establishing a conducive
environment. An enabling environment is defined as a set of interconnected factors that impact the capacity of
development actors to actively and consistently engage in the process of development transformation99. These
factors include bureaucratic, budgetary, legal, informational, cultural, and political features, among others. Table
6.2 reflects the 12 factors included in the GEM APS.

Table 6.2: Enabling Environment Factors100, 101

Short term Original statement

The local municipality (government) is creating partnership

Partnership formation
formation for businesses to grow.

The local municipality (government) is providing leadership for

Leadership
businesses to grow.

Economic development The local municipality (government) creates economic

actions (LED) development actions (LED) for businesses to grow.

Infrastructure The local municipality (government) provides sufficient

development infrastructure development for businesses to grow.

Entrepreneurial The local municipality (government) provides sufficient

opportunities entrepreneurial opportunities for businesses to grow.

The local municipality (government) provides sufficient access to

Access to opportunities
opportunities for businesses to grow.

Safe and secure The local municipality (government) promotes a safe and secure
environment environment for businesses to grow.

Structures, capacity, The local municipality (government) creates structures, capacity,

policies and initiatives policies and initiatives for businesses to grow.

Poverty alleviation and The local municipality (government) assists in poverty alleviation
social development and social development, which may contribute to business growth.

The local municipality (government) ensures sound environmental

Environmental and spatial
and spatial development actions that contribute to business
development actions
growth.

Human resource The local municipality (government) is improving human resource

development development to improve skills levels for business growth.

The local municipality (government) promotes agricultural

Agricultural development
development to ensure business growth.

99
Thindwa, J. 2001. Enabling environment for Civil Society in CDD Projects [CDD Learning Module]. World Bank, Social
Development Family. http://www.worldbank.org/participation/enablingenvironment/EnablingenvironmentCECDD.pdf

100
Bowmaker-Falconer, A., Meyer, N. & Samsami, M. 2023. Entrepreneurial Resilience during Economic Turbulence
2022/2023. Stellenbosch University: Stellenbosch, South Africa.

101
Meyer, D.F. 2014. Local government’s role in the creation of an enablingdevelopmental environment. Administratio
Publica, 22(1):24–46.
92 | GEM SA SPECIAL REPORT 2023 | 2024

The Likert scale used to score each factor/statement ranged from 1 (strongly disagree) to 5 (strongly agree). A
score of 2.5 is the median, and any result higher than this can be regarded as sufficient. Figure 6.3 depicts the
enabling environment factors split between men and women and compares them to national rates.

Figure 6.3: Enabling environment factors: Gender comparison

Men Women Total

2.76
Partnership formation 2.73
2.74

2.74
Leadership 2.71
2.73

2.76
Economic development actions (LED) 2.73
2.74

2.71
Infrastructure development 2.71
2.71

2.77
Entrepreneurial opportunities 2.69
2.73

2.72
Access to opportunities 2.70
2.71

2.75
Safe and secure environment 2.73
2.74

2.73
Structures, capacity, policies and initiatives 2.73
2.73

2.70
Poverty alleviation and social development 2.75
2.72

2.70
Environmental and spatial development actions 2.72
2.71

2.73
Human resource development 2.78
2.75

2.77
Agricultural development 2.77
2.77

0.0 0.5 1.0 1.5 2 2.5 3

The sample consists of 1316 men, and 1415 women respondents, providing important insights into the complex
perceptions across the 12 development parameters. The data reveals that men place higher importance on
partnership creation (2.76), leadership (2.74), local economic development efforts (2.76), entrepreneurial prospects
(2.77), and access to opportunities (2.72) compared to women. They also prioritise the establishment of a safe and
secure environment (2.75). These findings suggest gender-related disparities in ambitions and concerns. Society
norms and expectations impact traditional gender roles, with men perceiving greater autonomy and freedom in
certain domains.

Women's perspectives on the government's role in poverty reduction and social development (2.75),
environmental and spatial planning (2.72), and human resource development (2.78) indicate their focus on public
and social assistance. Despite gender disparities, both men and women exhibit similar opinions regarding crucial
aspects of development, such as infrastructure, institutional capacity, policy frameworks, and agricultural success.
This convergence signifies a mutual recognition of fundamental development prerequisites and priorities that
transcend gender limitations.

The difference in how men and women view local government assistance emphasises the importance of
implementing a gender-responsive approach when designing and implementing government development
initiatives. Such considerations would enhance inclusivity and the effectiveness of interventions that drive, gender
equality in entrepreneurship development.
 NURTURING GROWTH: THE VITAL ROLE OF ENTREPRENEURIAL ECOSYSTEMS IN EMPOWERING WOMEN ENTREPRENEURS | 93

RISING IN THE MIDST OF ADVERSITY

Morojane Maduna, a black female South African entrepreneur, started
her beauty and wellness enterprise in the year 2020 at the height of the
COVID-19 pandemic. As an intrepid and self-confident woman, she forged
ahead and opened her business, registered as ‘Bontlenomics’, which was
an outgrowth of her hobby and fascination with creating innovative nail
designs. Morojane initially developed her skills after receiving requests
from friends and family, which enabled her to experiment with diverse nail
polish textures, colours, and artistic design applications. With her creative
mindset, she came up with the most appropriate name for her business, as
‘Bontlenomics’ roughly translates into the ‘economy of beauty’, which was
a reflection of the restrictive and repressive environment during the COVID
pandemic. Moreover, women perceive nail beautification as somewhat of
a luxury; thus, Morojane offered her services at an affordable rate so as
to further accommodate her clients. While immersed in this challenging
economic and social environment, she still persevered, even though many
businesses were closing during this period. Nonetheless, the company
gradually grew as Morojane made sure she used the highest quality
products that extended the life of the nail treatment, which became a
popular selling point. After completing a microblading training programme,
she expanded her services in 2021 by offering eyelash and brow
“My focus treatments, which further increased her client base and revenue.

is giving my While consistently pursuing new clients, she began using the vast power
of the Internet to reach others beyond her existing market area. Thus,
clients an she began utilising social platforms such as Facebook and Instagram
experience to to promote her business, which added to word-of-mouth referrals.
Post-COVID, Morojane also complemented her services by providing a
remember.” comfortable and relaxing home studio and began accepting appointments
for different treatments. Her one-on-one sessions also allow her clients to
relax and converse while enjoying a cup of coffee or other refreshments.
Hence, Morojane has become the most prolific advertiser for her services,
as she operates her business by projecting a sense of style, professionalism
and skill, while keeping abreast of current trends in her industry. She
also gives full credit to her mom and other family members, who have
provided a solid support system that encourages her to focus on different
approaches and strategies to enhance her business. In fact, her mom
sponsored her microblading course, which was a tremendous boon to her
company, and reflects her determination to enhance her skill set.

The overall growth of Morojane’s business is predicated on her ability to

provide a variety of specialised beauty treatments that require advanced
training. Therefore, with her indomitable spirit, she completed a makeup
workshop last year and is currently attending an eight-month fully
accredited Entrepreneur Academy Programme that is hosted by Seriti. In
other words, as a highly motivated business owner, Morojane is constantly
seeking avenues to build her skill set, so as to offer extensive and
professional services to her clientele. She also submits that South Africa’s
economic environment poses numerous challenges for small business
owners and, as such, she must be able to develop innovative marketing
methodologies and services to succeed in this highly competitive market.
One major challenge is that of load shedding, which required her to
purchase a generator in order to operate her business without interruption.
As a mother, wife, and entrepreneur, Morojane has become quite flexible
in balancing her time between work, household duties, and spending
You can reach out to
quality time with her family and friends. Finally, even though she has had to
Hester at:
deal with financial limitations and work responsibilities, she has presented
herself as a shining example for other women to pursue their dreams and
carve out a place for them to succeed even in a challenging economic
environment.

[email protected]

https://www.facebook.com/bontlenomics

www.bontlenomics.co.za

@Bontlenomics
94 | GEM SA SPECIAL REPORT 2023 | 2024
 CONCLUSIONS AND IMPLICATIONS FOR RESEARCH POLICY AND PRACTICE | 95

S E C T I O N

07 CONCLUSIONS AND
IMPLICATIONS FOR RESEARCH
POLICY AND PRACTICE
96 | GEM SA SPECIAL REPORT 2023 | 2024
 CONCLUSIONS AND IMPLICATIONS FOR RESEARCH POLICY AND PRACTICE | 97

CONCLUSIONS AND
IMPLICATIONS FOR
RESEARCH POLICY AND
PRACTICE
Natanya Meyer data, and women reported that making a difference
in the world is important. In addition, to be positive
Entrepreneurship has gained significant recognition about your business, you must perceive that you have
from national and international researchers and the necessary skill set, and what is interesting from
policymakers, who view it as the key factor for the GEM data is that women entrepreneurs perceive
achieving long-term economic development their skills and capabilities much higher than the
and growth. This statement is especially true for general women population. This highlights the positive
developing nations characterised by widespread social impact entrepreneurship can have on women. This
challenges and significant levels of unemployment. empowerment through entrepreneurship can lead
However, it also applies to advanced economies, to increased confidence and a sense of fulfilment,
where entrepreneurship is recognised as a catalyst ultimately contributing to a more positive attitude
for rapid economic expansion. In the current dynamic towards business endeavours. It is clear that women
corporate landscape, there is a growing belief that entrepreneurs are not only driven by financial success
entrepreneurship has the potential to stimulate but also by the desire to make a meaningful impact in
sluggish global economic growth. Some argue that their communities and beyond.
this holds especially true for women, who make up
half of the global population, and their position as 7.1 I mplications for research, policy and
entrepreneurs. Investing in the development and practice
support of women entrepreneurship has the potential
to be one of the most effective methods for promoting Research, policy, and practice implications for
sustainable economic growth. women entrepreneurs in South Africa are crucial
for promoting economic growth, gender equality,
Moreover, supporting this particular sort of and social development. The consequences should
entrepreneurship might potentially have a significant prioritise facilitating access to resources, mentorship
impact on development. Women entrepreneurs tend opportunities, and nurturing a culture that fosters
to allocate more funds towards the improvement of innovation and expansion, thus leading to a supportive
health, education, and overall welfare of their families ecosystem. To foster the success and impactful
and communities. Nevertheless, numerous studies involvement of women entrepreneurs in South Africa,
have repeatedly shown that males exhibit a higher it is crucial to focus on several essential aspects.
propensity to initiate entrepreneurial ventures, and
this pattern is similarly observed within the context 7.2 Developing a greater understanding of
of South Africa. Nevertheless, a portion of women
do venture into entrepreneurship; yet, a significant
the women entrepreneurship phenomenon
number of their businesses tend to be modest in scale through research
and lack substantial prospects for expansion.
In order to enhance the economic influence of
In 2018, I completed my PhD on women’s
102 women entrepreneurship, policymakers need to
entrepreneurship, and the main findings from have a more comprehensive understanding of the
this study suggested that South African women elements that contribute to the development of
entrepreneurs have strong intentions to remain in their women entrepreneurship. One way to enhance the
businesses, grow them, and have a positive attitude current understanding of women entrepreneurs and
towards their businesses. These three variables their distinct characteristics is to conduct research
were further found to be strongly correlated with initiatives specifically targeting this group. This could
each other, thus implying that if an entrepreneur be initiated by government and academic institutions.
has a good attitude towards the business, they may Academics who have access to special grants and
potentially want to remain in it and ultimately grow financing could provide better findings through bigger
that business. Having a good attitude toward one’s sample sizes and geographic scope of their research.
business will be stronger if you feel the business has Promoting longitudinal studies would be beneficial
worth, not just financially but making a difference in as patterns derived from such studies could be more
the community. This was also seen from the GEM valuable than those obtained from single-cross-
sectional sample studies.

In addition to this suggestion, establishing a

102
Meyer N. 2018. South African female entrepreneurs’
intention to remain in business. (Doctoral thesis). centralised department or task team to gather data
Potchefstroom, South Africa: North-West University. from independent researchers and consolidate
98 | GEM SA SPECIAL REPORT 2023 | 2024

their findings and recommendations could be this stereotype. One suggestion is to increase
advantageous, considering the abundance of media attention to women entrepreneurship, their
existing studies. Still, no consolidation of findings capabilities, and successful women in the industry,
and recommendations is available. The GEM is which could positively impact society and boost
distinguished and significant due to its comprehensive confidence in women entrepreneurs.
collection of data on entrepreneurship in over 120
economies. An emphasis on the participation of 7.6 E
 xposing women to the business
women in entrepreneurial endeavours has consistently environment from a young age
been a central focus and will continue to be of
growing importance in future investigations. However, Mentorship and exposure to business environments
special reports such as this one are crucial to placing early in life can contribute to future entrepreneurial
focus on women entrepreneurship. intention. Women may not naturally choose
entrepreneurship as their first career choice,
7.3 Better implementation of policies and but exposure to business environments can be
awareness thereof beneficial. Recommendations include visiting local
entrepreneurs, hosting school market days, and
South Africa has the potential to become a leader promoting gender equality initiatives. These projects
in gender equality policies, but the effectiveness should be focused on rural areas with limited
of these efforts is often questionable. The lack resources for education and entrepreneurial initiatives.
of proper advertising of these policies and Providing more readily available information and
programmes, coupled with a lack of awareness practical guidance to women from an early age may
among entrepreneurs about mentorship and financial increase their entrepreneurial intentions.
support, contributes to their lessor impact. To improve
the effectiveness of these policies, the government 7.7 Greater representation of females in the
could enforce rigorous protocols for evaluating their business world
impact. Special roadshows or campaigns could be
organised to raise awareness about government Female inequality persists in top management
support. Government policies promoting women positions, particularly in South Africa, with women
entrepreneurship should prioritise a gender-neutral earning less per comparable waged hour than
legal framework, reduce bureaucratic obstacles, and men. Their success can inspire younger women to
increase access to finance for women entrepreneurs. work hard, obtain education, and pursue success,
Financial literacy and business management skills potentially leading to new business start-ups. This
training should be enhanced for young women, could also motivate women entrepreneurs struggling
especially in rural areas. Family-friendly policies with business difficulties. More aggressive strategies
should be promoted through stronger stakeholder like quotas, gender-balanced boards, and equity
collaboration, public-private partnerships, and scoring could be implemented to increase women
exemplary case studies. Developing specific laws representation, although some may view this as too
exclusively for women-owned small enterprises could forceful.
significantly impact their success.
7.8 Digitalisation and social and
7.4 Promotion of women networks and environmental sustainability impacts of
associations women-led businesses
Strong networks are crucial for entrepreneurship, As indicated in the 2022/2023 Women’s
especially for women entrepreneurs. Women Entrepreneurship Report (Global),103 the pandemic
entrepreneurs may however have different has prompted many entrepreneurs to adopt
expectations and needs and may have smaller digital tools, benefiting sales and employment.
networks than men. To support women Women entrepreneurs have benefited from this,
entrepreneurship development, it is recommended but digitalisation presents challenges, especially in
that more women-oriented business networks be developing economies and rural areas. Policymakers
developed through local government initiatives, could adopt a comprehensive strategy to empower
business incubators, or private sector support. women entrepreneurs, focusing on improving
Smaller, similar network opportunities, such as regulations, legislation, and infrastructure and
industry networks and business size, can be more increasing access to digital financial services.
successful than large, nationally driven networks.
Establishing small, women entrepreneurial groups led Sustainability is crucial for entrepreneurs but may
by successful women business owners can promote be more costly for small businesses in regulated
confidence and increase business growth. industries. Impact investing and government
incentives can encourage sustainability practices.
7.5 Greater media attention on the importance Research shows that women entrepreneurs prioritise
of women entrepreneurship sustainability goals over profit and focus on health,
education, and social services. This evidence can
Stereotyping is a significant issue in the development guide policymakers and programme leaders towards
of women entrepreneurs, with research showing effective solutions for women entrepreneurs.
gender differences are linked to perceptions of
responsibilities and capabilities. Although this
perception has improved, society still perceives 103
GEM (Global Entrepreneurship Monitor). 2023.
entrepreneurship as a male-dominated field. Global Entrepreneurship Monitor 2022/23 Women’s
Reducing this stigma and recognising that women can Entrepreneurship Report
manage successful businesses could help eliminate
 CONCLUSIONS AND IMPLICATIONS FOR RESEARCH POLICY AND PRACTICE | 99

BEHIND THE GLAM – A SPOTLIGHT ON THE

TALENTED TOUCH OF A MAKEUP MAGICIAN
Vanessa Motloung, a highly energetic and creative entrepreneur, has
managed to make her mark as a young and successful black female role
model for other aspiring South African women. She began developing her
road to entrepreneurial success at the start of 2021 when she embarked on
establishing her firm, VSassy Makeup. With an indomitable and passionate
desire to succeed in the beauty industry, she began building on previous and
relevant experiences garnered from providing beauty treatments (makeup)
for her colleagues and supervisor. Moreover, Vanessa began reviewing
various YouTube videos in order to enhance her skills and knowledge, which
would later yield tremendous results. In fact, she became extremely focused
on improving her makeup skills and would allot several hours a day watching,
learning, and experimenting with diverse methods. Accordingly, she
perfected her skills by learning how to select the appropriate foundations,
concealers, blush, and colours, as well as eye shadow, eyeliner, and lip gloss.
During this extensive self-learning experience, she began to elevate her
talents to that of a professional makeup artist.

After acquiring the aforementioned professional skills, Vanessa established

VSassy Makeup and was astonished when she realized how her talents
translated into making her first clients exquisitely beautiful. Needless to
“The beauty say, this initial experience only prompted her to fine-tune her skills as she
continued to build a satisfied clientele of women who obviously spread
industry is all the word to others. In other words, her clients became a walking billboard,
providing Vanessa with free public relations benefits. Additionally, she
about women, decided to showcase her portfolio, which included before-and-after photos
and I find that produced by her husband, along with testimonials describing her superior
services. Moreover, as a consummate and tenacious professional, she also
women have created a company website and used various social media platforms to
further generate recognition for her business. To add further convenience
a problem to her clients, Vanessa offers on-site makeup services and bridal packages,
which she offsets by charging an additional fee to cover her transportation
trusting men in costs. This additional service has also allowed her to attract group
this field.” bookings, which further enhanced her exposure and profits. However, with
a focus on providing more exceptional services, she generally invests a
portion of her profits to finally acquire a salon studio since she is currently
working from her home-based salon. Overall, Vanessa has learned how to
successfully utilize strategic, yet flexible, marketing concepts so as to align
with changing trends within the beauty industry.

Over the past three years, VSassy Makeup has steadily grown into a highly
recognized and accomplished competitor within her area, which has
been built from the ground up based on Vanessa’s can-do, indomitable
attitude. Thus, she has developed a business that promotes extraordinarily
professional makeup services with a proud commitment towards satisfying
her clients, which obviously translates into ever-increasing profits. Vanessa’s
next step in acquiring a larger service market share includes hiring potential
talent from her upcoming MasterClass, which will enable her to build
a strong, capable team that will help expand her service business and
acquire a larger portion of the current market share of the beauty industry.
Essentially, her savvy approach to building her business is analogous to
the way in which she began her initial entry into this field. For example, she
started from scratch by first building her makeup kit and adding additional
kits as she attended beauty expos and consistently networked with fellow
You can reach out to artists in her industry to enhance her knowledge and skillset. Vanessa
Hester at: is also quite self-assured that she can effectively meet the competition
and believes there is always room for other viable competitors within
her industry. In short, she has developed a very positive but competitive
attitude that helps promote and push the beauty industry towards new and
innovative horizons.
[email protected]

www.vsassy.co.za

@vsassymakeup
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2023 | 2024 Special Report