In the United States, we hear a lot about the emergence of women in business. Although we sometimes argue that there is a glass ceiling to overcome, many of us are still finding success.
South African women entrepreneurs feel differently. According to Business Report, many women feel that they are simply not receiving any benefits from government policies aimed at them.
“The research showed that women don’t believe that government policy supports their entrepreneurial efforts in any way,†FNB said of its study on the state of female entrepreneurship in South Africa.
The majority of the respondents – almost 80 percent – used their own savings to start their businesses, rather than external funding.
“One of the discoveries is that women often start their business out of their savings and only approach the bank for financing options once they’re ready to grow to the next level,†said Kirsty Davis, FNB CEO for business banking.
“This leads to depletion of collateral or capital, which is the essential basis for most funding partnerships.â€
The research found about four percent of women get funding from government grants, while just over 20 percent had formal sector bank loans.
Photo by DrStarbuck