While South Africa has made significant progress in creating equal access for women to financial services and tertiary education, the number of women business owners are still constrained.
While South Africa has made significant progress in creating equal access for women to financial services and tertiary education, the number of women business owners are constrained due to the lack of perceived business opportunities, funding, and motivation, according to findings from the inaugural Mastercard Index of Women Entrepreneurs (MIWE).
South Africa ranks 21st (64.4) on the Index, which tracks female entrepreneurs’ ability to capitalise on opportunities granted through various supporting conditions within their local environments. The index uses three components made up of 12 indicators and 25 sub-indicators to look at how 54 economies, representing 78.6 percent of the world’s female labour force, differ in terms of the level of Women’s Advancement Outcomes, Knowledge Assets & Financial Access, and Supporting Entrepreneurial Factors.
Despite a healthy MIWE score, women account for only 19.1 percent of business owners in South Africa (rank 44), indicating that women’s progress in entrepreneurship has been disappointingly low compared to its global counterparts. Uganda (34.8 percent) and Botswana (34.6 percent) rank first and second in the world for Women Business Owners, with other developing countries such as Russia, Bangladesh, China and Vietnam also in the top 10. New Zealand (third) and Australia (fifth) are the developed countries with highest rates of female business owners.
“South Africa’s resourceful women are one of its biggest assets, yet it is evident that South African women’s full potential and value as entrepreneurs and business owners are yet to be unleashed,” says Mark Elliott, Division President, Mastercard South Africa. “We must accelerate our efforts to dismantle the structural obstacles and biases that impede female entrepreneurship so that women can play an enlarged role in South Africa’s economic growth story.”
Looking at the Indices’ three components, South Africa has an average Women’s Advancement Outcome score of 52.7 (rank 27), indicating that women’s progress and degree of marginalization economically and professionally as business leaders, professionals, entrepreneurs and labour force participants is on par with its global counterparts.
Gender inequality towards women remains in the workplace, particularly in the areas of leadership, with three women business leaders for every 10 business leaders. This is mirrored by a low labour force participation rate, with only 46.3 percent of women compared to 60.6 percent for men in South Africa’s workforce, and a low rate of women’s entrepreneurial activity, with only seven percent of working age women in the labour force engaged in early-stage entrepreneurial activities compared to 11.6 percent for men.
Mastercard’s research shows that women in South Africa excel in the Knowledge Assets & Financial Access Component (81.9, rank 3), which gauges women’s progress and degree of marginalisation as financial customers and academically in terms of tertiary education enrollment. Not only are they as well-educated as their male counterparts in tertiary education, they have good access to financial services, and Small Medium Enterprise (SME) support.
Despite this, women’s progress and growth in the business world has been severely undermined by a low perception of business opportunities, and poor self-confidence, which are further compounded by a high level of business discontinuance, effectively feeding the already high fear of failure.
“We observe that indicators such as SME support and financial inclusion are important in supporting women’s entrepreneurship in South Africa, but are not necessarily the drivers of women’s advancement as business owners. An accelerated and concerted focus on improving business skills, funding and business opportunities while reducing deterrents such as crime will be key in pushing South African women’s progress in the business world,” says Elliott.
The Supporting Entrepreneurial Conditions Component benchmarks how supportive entrepreneurial conditions are as enablers or constraints of women business ownership. Here, South Africa ranks 31st with a score of 62.7. While South Africa performs well for quality of governance and moderately for ease of doing business, it scores slightly lower for cultural perceptions of women entrepreneurs.
“While South Africa has made some solid progress in creating supportive conditions for women entrepreneurs, more must be done to ensure women fully harness these opportunities. It’s vital that the public and private sector work together with development organizations to support South African women in fulfilling their potential as business owners and innovators. When that happens, the whole of society will benefit,” says Elliott.
Kenya tool to help companies prepare for emergencies
After its team members survived last week’s Nairobi terror attack, Ushahidi decided to release a new preparedness tool for free, writes its CEO, NAT MANNING
On Tuesday I woke up a bit before 7am in Berkeley, California where I live. I made some coffee and went over to my computer to start my work day. I checked my Slack and the news and quickly found out that there was an ongoing terrorist attack at 14 Riverside Complex in Nairobi, Kenya. The Ushahidi office is in Nairobi and about a third of our team is based there (the rest of us are spread across 10 other countries).
As I read the news, my heart plummeted, and I immediately asked the question, “is everyone on my team okay?”
Five years ago Al-Shabaab committed a similar attack at the Westgate Mall. We spent several tense hours figuring out if any of our team had been in the mall, and verifying that everyone was safe. We found out that one of our team member’s family was caught up in the attack. Luckily they made it out.
At Ushahidi we make software for crisis response, including tools to map disasters and election violence, and yet we felt helpless in the face of this attack. In the days following the Westgate attack, our team huddled and thought about what we could build that would help our team — and other teams — if we found ourselves in a similar situation to this attack again. We identified that when we first learned of the attack, nearly everyone at Ushahidi had spent that first precious few hours trying to answer the basic questions, “Is everyone okay?”, and if not, “Who needs help?”
People had ad-hoc used multiple channels such as WhatsApp, called, emailed, or texted. We had done this for each person at Ushahidi (their job), in our families, and important people in our community. Our process was unorganised, inefficient, repetitive, and frustrating.
And from this problem we created TenFour, a check in tool that makes it easier for teams to reach one another during times of crisis. It is a simple application that lets people send a message to their team via SMS, Slack, Voice, email, and in-app, and get a response. It also works for educational institutions, companies with distributed staff, as well as part of neighbourhood networks like neighbourhood watches.
This week when I woke up to the news of the attack at Riverside, I immediately opened up the TenFour app.
Click here to read how Nat quickly confirmed the safety of his team.
Kia multi-collision airbags
The world’s first multi-collision airbag system has been unveiled by Hyundai Motor Group subsidiary KIA Motors, with the aim of improving airbag performance in multi-collision accidents.
Multi-collision accidents are those in which the primary impact is followed by collisions with secondary objects, such as other vehicles, trees, or electrical posts, which occur in three out of every 10 accidents. Current airbag systems do not offer secondary protection when the initial impact is insufficient to cause them to deploy.
However, the multi-collision airbag system allows airbags to deploy effectively upon a secondary impact, by calibrating the status of the vehicle and the occupants.
The new technology detects occupants’ positions in the cabin following an initial collision. When occupants are forced into unusual positions, the effectiveness of existing safety technology may be compromised. Multi-collision airbag systems are designed to deploy even faster when initial safety systems may not be effective, providing additional safety when drivers and passengers are most vulnerable. By recalibrating the collision intensity required for deployment, the airbag system responds more promptly during the secondary impact, thereby improving the safety of multi-collision vehicle occupants.
“By improving airbag performance in multi-collision scenarios, we expect to significantly improve the safety of our drivers and passengers,” said Taesoo Chi, head of the Hyundai Motor Group’s Chassis Technology Centre. “We will continue our research on more diverse crash situations as part of our commitment to producing even safer vehicles that protect occupants and prevent injuries.”
According to statistics by the National Automotive Sampling System Crashworthiness Data System (NASS-CDS), an office of the National Highway Traffic Safety Administration (NHTSA) in USA, about 30% of 56,000 vehicle accidents from 2000 to 2012 in the North American region involved multi-collisions. The leading type of multi-collision accidents involved cars crossing over the centre line (30.8%), followed by collisions caused by a sudden stop at highway tollgates (13.5%), highway median strip collisions (8.0%), and sideswiping and collision with trees and electric poles (4.0%).
These multi-collision scenarios were analysed in multilateral ways to improve airbag performance and precision in secondary collisions. Once commercialised, the system will be implemented in future new KIA vehicles.