Women-Led Enterprises and the role of Gender Equality in Innovation
Written by: Emmanuel Atogwe
While innovation and business ventures are key drivers of economic growth, this progress is not equally distributed. Gender inequality remains a significant barrier, preventing many women from accessing entrepreneurial opportunities globally. Despite these challenges, women in business are flourishing across sectors and industries, contributing to economic growth and innovation. Understanding the importance of gender equality in entrepreneurship is essential, as inclusive approaches to business development lead to more comprehensive and effective solutions.
THE RISE OF WOMEN ENTREPRENEURS
There has been a steady rise in the number of women engaging in entrepreneurship, although their overall numbers remain small. According to the Global Entrepreneurship Monitor (GEM), women currently account for 30% of the world’s entrepreneurs, with the highest growth occurring in sub-Saharan Africa. Countries like Ghana, Nigeria, and Uganda are seeing increasing numbers of women-led businesses, driven by the growing demand and supply in industries such as agriculture, telecommunications, and clothing. Women are also entering traditionally male-dominated sectors, such as oil and gas, particularly in logistical roles.
Prominent examples of successful women-led initiatives include She Leads Africa, which supports African women entrepreneurs, and Nigeria’s Farmcrowdy, an agritech company connecting investors with farmers. Despite these successes, challenges persist, including gender-specific barriers such as limited access to capital and professional networks.
ADVERSE CONDITIONS FOR FEMALE ENTREPRENEURS
Access to capital remains one of the most significant hurdles for women entrepreneurs. According to PitchBook, women-owned startups receive only 2.3% of venture capital funding, largely due to biases within investment circles and the lack of access to influential networks that support business growth and mentorship.
Cultural practices in certain regions also limit women’s participation in entrepreneurship, particularly where societal roles are rigid. Many women lack the necessary education or skills, especially in STEM fields, which further restricts their access to high-growth industries like technology.
GENDER INCLUSIVITY: A SOURCE OF INNOVATION
Bridging the gender gap is not only about equity—it fosters innovation. A 2017 study showed that teams led by women were more active in the market and more likely to introduce new products. Research by McKinsey & Company found that organizations with higher female representation on their boards saw a 21% increase in profitability.
Women entrepreneurs often target neglected markets, addressing gaps left by male-dominated businesses. For instance, they have led advancements in maternal health, children’s care, and wellbeing products. Furthermore, women tend to reinvest profits into their families and communities, contributing to broader societal development.
TOWARDS A MORE BALANCED AND SUPPORTIVE ENTREPRENEURIAL ECOSYSTEM
To foster the growth of women-led businesses, targeted actions are needed to remove the barriers they face. Improving access to finance through microfinance options, gender-sensitive investment tools, and venture funds for women-led startups is crucial. Governments should also consider offering tax incentives and education programs tailored to women entrepreneurs.
Building strong networks and mentorship programs is equally important. Women entrepreneurs need platforms for knowledge sharing and collaboration to create sustainable and thriving businesses.
CONCLUSION
Women entrepreneurs have the potential to transform economies with their creativity and drive for growth. However, gender barriers continue to limit their opportunities in the business world. Addressing these challenges—such as improving access to capital, dismantling cultural barriers, and expanding professional networks—will unlock the potential of women entrepreneurs and create a more inclusive and innovative business environment. In turn, this will lead to greater economic development and a more equitable future for all.