The first SA Women Entrepreneurs Job Creators Survey report was released on 7 July 2021. It reported crucial insights into the pivotal role women entrepreneurs play as job creators.
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Topline findings indicate a deep commitment to job creation among SA’s women entrepreneurs
Bongiwe Gangeni, Deputy CE of Absa Retail and Business Bank, said the Job Creators Survey highlights the significant role women entrepreneurs play to create jobs and support the economy. “Absa is proud to be partnering with Lionesses of Africa and to play our part to support women entrepreneurs to achieve their full potential by meeting their needs holistically through our wide range of innovative products and services and enterprise development programmes,” she added.
2021 SA Women Entrepreneurs Job Creators Survey findings
Topline findings from the report indicate a deep commitment to job creation among SA’s women entrepreneurs, with 90% reporting that job creation was an important consideration in starting their business. In addition, despite all the challenges and setbacks of the past year due to the Covid-19 pandemic, the survey reveals “green shoots” of optimism in terms of future job creation.
The majority of respondents anticipate that their businesses will recover from the impact of Covid-19 within two years. They anticipate growth in revenues and are either actively recruiting new staff now or planning for new, near-term hires.
Survey data was collected online from 913 women entrepreneurs in SA between 23 November 2020 and 28 April 2021 and informed by a further 150 qualitative interviews of women entrepreneurs during the same period. Participants were recruited through the Lionesses of Africa network to represent a wide range of business types, sizes and sectors. The survey was an opportunity for SA’s women entrepreneurs to share their experiences with job creation and how Covid-19 affected it and revenue generation. Respondents also shared their post-Covid-19 outlook for their businesses and their experiences with accessing government assistance programmes and external financing during the pandemic.
The survey provides valuable insights into both solo entrepreneurs who are creating jobs for themselves and those entrepreneurs with employees. The employing women entrepreneurs who participated have on average, 29 employees, whereas the ‘typical’ or median entrepreneur employed five staff, while the top 1% had 1 000 or more employees. The majority of companies with employees hired their first employee early in the life of their business; 67% within the first year. This would indicate that women entrepreneurs are not only creating jobs but are doing so in the very early stage of their company’s life cycle.
In terms of future hiring plans, among the entrepreneurs who employ staff, over a third considered current staffing levels to be inadequate for their needs and 41% were actively recruiting. Of those who were hiring, 73% reported that they were hiring to help meet demand, 12% to bring additional skills into the business, and 12% were hiring, or rehiring, to replace employees who had left or were let go.
Founder and CEO of Lionesses of Africa, Melanie Hawken, said, “What is encouraging about our survey findings is that there is real self-belief on the part of women entrepreneurs in their ability to create jobs, and that remains one of the key drivers of their motivation to build sustainable businesses. Women entrepreneurs have job creation in their DNA. Another stand-out finding from the report was how these women fought to protect jobs during the Covid-19 pandemic – more than two-thirds have either reduced their own salaries or stopped them altogether to look after their staff first. Women entrepreneurs are committed to both creating and retaining jobs.”
Other interesting findings from the survey indicated that women-owned businesses with a digital presence demonstrated greater resilience during Covid-19. Those that made the majority of their sales through an app or online marketplace were less likely to be affected by Covid-19 and had more optimistic projections about their future revenues. Expectations surrounding future hiring also varied substantially between women leading companies with majority digital sales compared to those without. When asked what their expectations are regarding jobs in their company over the next 12 months, 35% of women leading businesses that make the majority of their sales through an app or online marketplace responded that they expected jobs to increase a lot, compared with only 22% of women who were not embracing digital sales.
While the discussion above focuses on SA’s women entrepreneurs who have employees, solo entrepreneurs and those in partnerships that do not have employees should not be overlooked; these women-led businesses also bolster the labour market in significant ways. 85% of SA’s women entrepreneurs in non-employing partnerships and 78% of solo entrepreneurs reported that they hire or work with other self-employed freelancers or independent contractors. The majority of these women have grown in their plans: 79% of those in partnerships and 69% of solo entrepreneurs plan to make full-time hires in future, while 91% and 80%, respectively, reported that they plan to grow and scale their business.
Across all business types, SA’s women entrepreneurs expressed optimism about their revenue outlook for 2021, with 76% of respondents expecting to increase their revenues. Women entrepreneurs were similarly optimistic about the timeline for their businesses to recover from the impact of the pandemic, with the vast majority expecting to recover within two years. Both of these factors indicate green shoots for recovery and job creation in both the short and medium-term.
All statistics quoted in the article can be found in the South African Women Entrepreneurs Job Creators Survey report. Download the full version at www.lionessesofafrica.com.
Featured image: Christina @ wocintechchat.com via Unsplash