Women make a massive contribution to the global economy – as entrepreneurs, CEOs, and job creators – so why does the gap between promise and progress on gender equity remain?
Photo caption: Linda Buckley, Pro Dean: Teaching and Learning and Student Experience at Henley Business School, Africa
The phrase "women in business" once evoked images of diversity seminars and feel-good corporate initiatives. Today, that view is as outdated as a fax machine. The role of women has undergone a profound transformation, moving from the periphery to the very heart of the global economy. Women are entrepreneurs, CEOs, and job creators who are vital to our collective prosperity, and companies with more women in management positions outperform others.
And yet women continue to face systemic obstacles that are throttling their potential contributions to the global economy. So, what is going on and how can we fix it?
While women make up almost half of South Africa’s labour force, the Commission of Gender Equality reports that just 4.5% of CEOs and 19.3% of executive managers of the approximately 315 JSE-listed companies are women. Seventy-three of those 315 JSE-listed companies have no women on their boards of directors at all. Similarly, women are graduating at ever greater numbers, even in historically male-dominated fields like commerce, science, and technology, but these numbers are not translating into more women in the workforce. McKinsey research shows that while 48% of students in India enrolled in tertiary education are women, only 24% of managers are women. In Kenya, representation drops steadily from 41% in entry-level positions to just 27% in the C-suite.
In the US – the world’s biggest economy, women fill nearly half of all entry-level positions, but only less than a third of C-suite roles and gender parity is projected to be at least 50 years away. It’ll be longer for us. Like in the US, gender parity in South Africa will be furthest away for Black women.
For entrepreneurs, the numbers are similarly bleak. Female-founded companies received only 2% of all venture capital (VC) investment in 2022. This is most likely a result of bias, whether conscious or unconscious. A Harvard study showed that 70% of VC investors preferred pitches presented by male entrepreneurs over those presented by female entrepreneurs, even though the pitches were identical.
Persistent gender inequality is not because women are unqualified, unmotivated, or unentrepreneurial. It’s because, globally, systems are not designed to help them progress. And it’s not just one rung of the ladder that is broken. A systemic response is needed to address this systemic problem.
The Business 20 (B20), the official G20 dialogue forum with the global business community, has laid out a blueprint for how G20 nations can work to turn good intentions into real progress to support women in business, especially entrepreneurs and SMMEs who are the heart of so many economies. Three areas stand out as priorities.
First, B20 dialogues have underscored the importance of addressing the digital divide. In today’s world, a smartphone is a tool for economic participation, yet women in low- and middle-income countries are 8% less likely to own one and 20% less likely to use the internet on a mobile phone compared to men. To rectify this, governments could consider scaling access to affordable mobile devices, promoting universal digital literacy, and lowering costs for online access. Without these fundamentals, women will continue to be excluded from the digital economy.
Second, it is necessary to break down trade and finance barriers. Women-led businesses face unique challenges in global trade, from complex regulations to a lack of access to finance. The B20 recommends tailoring support specifically to the needs of these businesses, including creating digital platforms and trade navigation initiatives designed for women. It also advocates for innovative financial instruments that bypass traditional collateral requirements and provide targeted funding to women entrepreneurs. Gender-responsive financing and dedicated funding windows for women-led enterprises could be particularly powerful in addressing other gaps too like access to energy. By including more women entrepreneurs in community planning for new energy infrastructure, for instance, we can help ensure that these new initiatives also serve communities in the way they are intended to. Women entrepreneurs have been shown to be far more likely to invest their success back into their families and communities, thus ensuring they take others with them as they rise.
Third, to reduce the gender gap in labour force participation by 30% by 2030, we need to find multiple ways to support women at work from investing in scalable, affordable childcare – women in South Africa are eight times more likely to stay out of work because of homemaking responsibilities – to eliminating discrimination in the workplace. Research shows that women are more likely than men to face discrimination (personal, professional, or a result of policy or a lack thereof) in the workplace, leading to higher rates of burnout. Yet, while many organisations claim to have gender diversity policies, few have meaningful mechanisms to measure success or enforce these policies. Without data, diagnosis, and monitoring, these policies become nothing more than window dressing. Structured career acceleration pathways, active gender inclusion policies, and effective accountability mechanisms are key. There’s zero reason to not have a diverse team.
Tailored education and training also remain a crucial aspect to improve women’s confidence and success in business. Research from Henley Business School, for instance, concluded that an MBA can significantly improve women’s career capital, specifically around their motivational energy, confidence, self-efficacy, and identity. While education is not the finish line, it remains a critical foundation.
Then – finally – while there’s an influx of articles about women’s empowerment in August because it’s designated Women’s Month in South Africa, it’s not enough, either. Support must occur year-round. Women face discrimination every day, of every month, of every year – and not just in the workplace, but everywhere.
None of this is new. We’ve known for years that nations cannot achieve their full potential when half the population is at best underutilised, and, at worst, prevented from accessing what they need to be active economic citizens, but it seems few are paying attention to the plethora of research on the matter. Perhaps this year, with South Africa driving the G20 dialogue and the multitude of informed insights provided by the B20 task forces, we have an opportunity to make this point more cogently so that we can move forward and build the future we all need.
Linda Buckley is Pro Dean: Teaching and Learning and Student Experience at Henley Business School, Africa and sits on the B20 Taskforce for education and training.
New research from Henley Business School Africa points to a disconnect between corporate rhetoric and opportunities for the advancement of women.
The right job and the right attitude can help young people free themselves and their communities from the shackles of poverty, and we need to do more...
Romy Titus has at times been brutally honest about being a woman in the ‘man’s world’ of sports presenting and broadcasting. But not only has she...
Be the first to know about new our latest newsletter insights