As we celebrate Women’s Month in South Africa under the theme “Celebrating 30 Years of Democracy Towards Women’s Development,” it is important to acknowledge the transformative power of digitisation in enabling women entrepreneurs to thrive.
In today’s advanced age, mastering digital tools is not just an advantage—it’s a game-changer. Women entrepreneurs who are driven to innovate and grow their businesses will find that embracing digitization can liberate them. It enhances their access to markets and capital, increases efficiency, and ultimately provides them more time and resources to focus on running their business.
Despite the notable progress in recent years, women still face significant barriers in the digital landscape that go far beyond just access and connectivity. These range from limited digital skills to a lack of confidence in their own capabilities to costly cybersecurity measures that increase their vulnerability to fraud.
According to the International Telecommunication Union (ITU), only about 48% of women in Africa use the internet, compared to 58% of men. This digital gender gap is even wider in rural areas and among older women. Additionally, the World Bank reports that women-owned businesses significantly lag behind their male counterparts in adopting digital tools for business operations.
This disparity significantly limits the growth potential of women entrepreneurs and hinders their progress toward gender equality and sustainable development. To better serve small businesses, particularly those owned by women, the below three digitisation strategies can be leveraged to create new growth opportunities:
- Tapping into Global Markets with E-Commerce
Digital platforms are revolutionizing market access, enabling small businesses to reach global audiences with minimal costs. E-commerce platforms operate 24/7, providing unparalleled convenience to consumers. For instance, approximately 63% of consumers prefer online shopping over visiting physical stores. Women entrepreneurs can leverage free digital platforms like Wix to establish their e-commerce websites, significantly expanding their customer base and market opportunities. This global reach can be a game-changer, allowing women-owned businesses to compete on a larger scale.
- Accessing Capital Through Digital Financial Tools
A major challenge for small businesses is accessing capital, often hindered by a lack of credit history. SMEs can access and regularly review their credit profiles for both the business and its owners through credit bureaus offering these services. Additionally, they can explore different financial services providers such as banks and fintech’s that offer digital lending solutions.
- Optimizing Operations with Digital Solutions
Various digital tools can help small businesses streamline and optimize their operations, from inventory tracking to supply chain insights. E-commerce platforms offer built-in tools for managing inventory, tracking stock levels, sales, and real-time deliveries. This not only reduces the time and effort spent on manual tracking, but also minimizes errors and helps businesses respond quicker to changes in demand—crucial for scaling up and staying competitive in a dynamic market.
For instance, Mastercard offers its business card holders exclusive discounts and special deals on e-commerce software services that can help their business with inventory management. This includes user-friendly tools like Ucraft, a website builder, and Seller App, a leading data analytics platform that helps businesses, both emerging entrepreneurs and established Fortune 500 companies, accelerate growth on Amazon, the world’s largest online marketplace.
In conclusion, women entrepreneurs are not only vital to our communities but represent a critical investment in the country’s economic future. With the adoption of digital tools, they can amplify their businesses, leading to job creation and economic development. Addressing barriers such as access to capital, networking opportunities, and gender stereotypes can lead to more successful women entrepreneurs, creating a positive ripple effect in the economy.
Mastercard is a proud National Partner of the NSBC.