Denis Opudo
Do you know that the 2016/2017 Global Entrepreneurship Monitor report revealed that more women from Africa keep venturing in entrepreneurship? Despite the small pool of business, women have more exits than men. Additionally, the report revealed that over 50% of Africa’s women desire to invest in a business in the next three years. However, only half of these women as we speak run a venture.
Besides, the report revealed that Sub-Saharan Africa recorded the highest number of female entrepreneurs. Currently, the number of established businesses in Sub-Saharan Africa stands at 11%. Furthermore, the report showed that two women begin a venture for every woman who operates a mature business.
However, Sub-Saharan Africa has a low number of entrepreneurs. The report showed that the gender ratio increased by approximately 9% while business rates grew by 8%.
Some startups were closed due to numerous reasons in Sub-Saharan Africa. Moreover, the region recorded the highest number of venture closures. Some of the reasons that lead to the closure included unprofitability of business which accounted for 42% of the closures. Other reasons for closure accounted for 44% while inadequate finance contributed to 14% closure.
From the report, one could clearly see that most women in Sub-Saharan Africa experience financial constraints. Consequently, these female entrepreneurs encounter hard time in filling the existing market gaps. Despite the challenges, Africa still leads for having the largest percentage of women running startups as compared to existing ventures.
It also emerged that entrepreneurship plays a vital role in income generation to many people in the region. The fact remains that available alternatives for income generation in Sub-Saharan Africa are few.
Notably, during the first three levels of startup development, more women experienced business closure than men although the variation stands at 10%. Lastly, the report reveals that men stand a better chance of beginning a business compared to their female counterparts.
