By Ali Mamode
Head of Marketing & Communications, Bank One
The entrepreneurial landscape is undergoing a transformative shift, with women emerging as a formidable force driving innovation and economic growth. Recognising the profound impact of women-led enterprises, it becomes imperative to foster an environment that empowers and supports their aspirations.
A burgeoning body of evidence underscores the correlation between gender diversity and organisational success. By creating inclusive ecosystems that nurture women’s entrepreneurial journeys, societies can unlock untapped potential and accelerate economic development.
In recent years, there has been a growing recognition of the critical role that financial literacy plays in the success of entrepreneurs, not the least in the case of women whose professional trajectory is not always linear. To address this need, collaborative efforts between the public and private sectors in Mauritius are essential in providing women with the knowledge and tools required to navigate the complexities of the business world.
Challenges faced by women entrepreneurs
While the entrepreneurial spirit knows no gender, women entrepreneurs often encounter unique challenges. Based on interactions with local participants at the recent financial literacy workshop hosted by Bank One as part of this year’s Women Entrepreneur Awards (WEA), several key obstacles have emerged. One of the most prevalent challenges is the persistence of societal stereotypes and biases that limit women’s aspirations. The expectation for women to prioritise family over career often hinders their entrepreneurial pursuits. These challenges are not unique to Mauritius but are a common theme globally. Traditional societal expectations often confine women to supporting roles within the family, discouraging them from pursuing their own professional goals. Addressing these biases requires a concerted effort to reform societal attitudes and support women in pursuing their ambitions.
Additionally, women entrepreneurs may face discrimination in male-dominated industries, making it difficult to gain credibility and access opportunities. Many women have expressed frustration at being channelled into sectors traditionally deemed suitable for women, such as food preparation or fashion, rather than being encouraged to explore diverse fields like construction, engineering or IT. Overcoming these barriers involves not only changing societal perceptions but also ensuring equitable support across all sectors.
Access to finance remains a significant hurdle for many women entrepreneurs. Although traditional lending institutions may offer equal opportunities in theory, unconscious biases can impact the evaluation of loan applications. Implementing policies and continuous education to address unconscious bias in lending practices is crucial. Furthermore, the establishment of government-backed venture capital funds to support women entrepreneurs could provide much-needed assistance and help to level the playing field. The emergence of new credit facilities for startups also presents a promising development for women-led businesses.
Balancing work and family life is another challenge frequently cited by women entrepreneurs. The demands of starting and growing a business can be overwhelming and managing these responsibilities alongside childcare and household duties can be particularly daunting. While progress has been made in terms of social acceptance and family support for working women, finding a work-life balance remains a significant challenge for many entrepreneurs. Flexibility and understanding from the family unit are essential, especially during the early stages of a new business.
While the road to entrepreneurial success may present more obstacles for women than for their male counterparts, the growing number of women-led businesses demonstrates that these challenges are far from insurmountable. Building strong support networks and fostering connections with other female entrepreneurs can significantly enhance the entrepreneurial journey.
The role of the financial sector in driving change
The financial sector has a vital role to play in supporting women entrepreneurs. By providing access to capital, financial education and mentorship, financial institutions can empower women to achieve their business goals. While there have been several strides forward in promoting financial inclusion, there is still much room for improvement in addressing the specific needs of women entrepreneurs.
For instance, while lending institutions may offer equal opportunities on paper, the reality can be different due to unconscious biases that may affect employees’ decision-making processes. Bank One has taken proactive steps to address this issue by implementing lending policies designed to prevent gender-based discrimination. However, it is crucial for other institutions to follow suit and actively engage in continuous awareness and education to combat unconscious biases. This ongoing effort is essential to ensure that gender biases do not influence the evaluation of loan applications.
Despite the availability of schemes provided by SME Mauritius and support from the ITC SheTrades Mauritius Hub for capacity building, there is a need for more targeted support for women entrepreneurs, particularly in terms of seed capital and early-stage financing. Developing dedicated financing solutions for women entrepreneurs could serve as a form of positive discrimination, helping to level the playing field and address the gaps in access to early-stage capital.
By developing tailored financial products and services, financial institutions can help women overcome financial barriers and unlock their entrepreneurial potential. Additionally, implementing diversity and inclusion training for employees is critical in creating a more welcoming environment for women entrepreneurs. These measures can significantly enhance the support provided by the financial sector and contribute to a more equitable entrepreneurial landscape.
Women entrepreneurs: The economic engine
The economic impact of women entrepreneurship cannot be overstated. As the fastest-growing demographic in the business world, women are driving innovation, job creation, and economic growth. By harnessing the potential of women entrepreneurs, we can create a more inclusive and prosperous society.
To fully realise the economic benefits of women entrepreneurship, it is essential to challenge and overcome gender stereotypes. Men can play a vital role in this process by becoming active allies and advocates for women. By identifying and addressing their own biases, men can create a more supportive environment for women entrepreneurs to thrive.
Forging a future of inclusive prosperity
In conclusion, empowering women entrepreneurs is both a moral and strategic imperative for stimulating economic growth and creating a more equitable society. Access to capital remains a significant hurdle, particularly for women-led businesses, who face heightened challenges due to societal bias and less favourable financing options.
Financial institutions can address these issues by implementing strategies to better understand and cater to the unique needs of women entrepreneurs. Initiatives such as continuous training, advocacy programs, and innovative financing models, including those provided by Fintech players, are steps in the right direction.
As a parting thought, I would strongly advocate for establishing a venture capital fund in Mauritius, potentially listed on the Stock Exchange and initially sponsored by the Government, to provide crucial seed and early-stage capital for women entrepreneurs. Bank One remains committed to supporting these efforts through initiatives such as the WEA and financial literacy workshops, fostering an environment where women entrepreneurs can unlock their full potential and contribute to a brighter future for all.
