South African women are embracing entrepreneurship with growing confidence and determination, with 57% identifying as entrepreneurs—surpassing the regional average of 51% across Eastern Europe, the Middle East, and Africa (EEMEA). With 71% of women interested in starting their own business, the landscape for women-led enterprises in South Africa is evolving rapidly.
New research from Mastercard, released ahead of International Women’s Day 2025, highlights the strong entrepreneurial appetite among South African women, with many using side hustles as a launchpad into full-time business ownership. This entrepreneurial drive is particularly strong among Gen Z women (89%), indicating a generational shift towards entrepreneurship as a preferred career path.
“The entrepreneurial spirit among women is strong and growing, with younger generations leading the way. With access to the right financial tools, mentorship, and digital resources, women entrepreneurs can unlock new business opportunities, drive innovation, and contribute significantly to economic development. At Mastercard, we are committed to navigating barriers and fostering an ecosystem where women-led businesses can thrive,” said Selin Bahadirli, executive vice president, Services, Eastern Europe, Middle East and Africa, Mastercard.
While South African women are making strides in business, enhancing access to funding, business mentorship, and digital tools will further fuel their success and economic contribution.
Findings of the report include:
Entrepreneurial aspirations across generations
- Gen X women (59%) are the most likely to consider themselves entrepreneurs, followed by millennials (59%) and Gen Z (58%).
- Among South African women, side hustles are a common stepping stone to full-time entrepreneurship, with 55% currently engaged in a side hustle, rising to 58% for Gen X women.
- The top motivations for starting a side hustle include:
- Earning more money (80%)
- Gaining financial independence (52%)
- Creating a financial safety net (45%)
Top sectors for South African women entrepreneurs
Women in South Africa are pursuing diverse and high-potential industries, with the most popular sectors being:
- Online selling (18%)
- Food and drink (18%)
- Business services (15%)
Turning passion into business
South African women entrepreneurs are driven by purpose, independence, and the desire to make an impact. Their key motivations include:
- 55% wanting to pursue their dream
- 45% seeking freedom from traditional employment
- 41% believing their ideas could change lives for the better
- 41% having transitioned from a side hustle to a full-time business
Empowering women to overcome challenges
While South African women are embracing entrepreneurship, half (50%) have yet to take the leap into business ownership. Targeted support is needed to help them scale their businesses and maximize their potential. Key barriers include lack of funding (44%), followed by lack of financial resources (41%), fear of failure (35%) and lack of confidence (25%). Women are also more likely than men to cite lack of knowledge on how to set up a business (25% vs. 20%) as a key barrier.
Gabriel Swanepoel, Country Manager, Southern Africa, Mastercard shared, “South African women entrepreneurs are shaping the country’s economic future, proving that resilience and ambition can break barriers. Their drive to succeed is evident, but challenges such as financial access and business skills must be addressed to ensure they reach their full potential. At Mastercard, we are committed to supporting women entrepreneurs through impactful partnerships and tailored financial solutions that empower them to scale their businesses and make a lasting impact.”
Despite these challenges, the determination of South African women to build sustainable businesses is evident. Three in 10 (31%) women aspire to start a business but feel it’s not possible for someone like them, rising to 43% among Gen X women. Furthermore, 57% of female entrepreneurs struggled to secure funding, compared to 45% of men, underscoring the need for more inclusive financial solutions. Additionally, 43% of women entrepreneurs found it difficult to develop a business plan, while 34% lacked access to a peer network of entrepreneurs, highlighting the need for support and mentorship.
Support needed
To overcome these barriers, South African women identified key areas of support that would boost confidence and enable business success:
- More available funding options (53%)
- Better training in business skills (34%)
- Improved access to public funding schemes (31%)
Among women business owners, the most desired support includes:
- Grant funding (55%), significantly higher than men (39%)
- Government support and mentorship programs (43%)
Technology for success
South African women entrepreneurs are increasingly leveraging AI for business efficiency—47% of business owners use AI regularly, with 63% reporting cost and time savings. Additionally, 66% of women business owners are more likely to turn to AI for decision-making.
However, cybersecurity concerns remain a major challenge, with 43% of business owners being targeted by fraudsters. Women (64%) worry more than men (54%) about cyberattacks, despite fewer female business owners having been direct victims.
Mastercard has a long-standing commitment to enabling women entrepreneurs through financial inclusion, digital solutions, and knowledge-sharing initiatives. Since 2020, Mastercard has provided over 50 million small businesses including 37 million women entrepreneurs with support and solutions that can help them grow their businesses.
In South Africa, Mastercard is innovating with solutions like real-time card payments which empower merchants with faster payments and better cashflow. The company has also established technological infrastructure and regional data centers to enhance efficiency and security within the payments sector.
Supplied.
