Empowering women in SMEs, informal sectors

As I reflect on the state of Zimbabwe's economy, I cannot help but be struck by the vibrant yet often overlooked informal sector, where small and medium enterprises (SMEs) play a crucial role in providing livelihoods and driving economic activity. However, the challenges faced by these businesses, particularly those owned and operated by women, have long been a source of concern for me. 

Having grown up witnessing the resilience and entrepreneurial spirit of women in my community with my aunts engaging in business activities from crocheting, knitting, cross border trade, grocery shops, peanut butter making and others, I have  always been acutely aware of the unique barriers they face in starting, growing, and thriving in their own respective enterprises. 

Cultural norms, limited access to resources, and gender-based discrimination have too often hindered their ability to reach their full potential.

Many of the women I know are engaged in activities such as street vending, small-scale manufacturing, and domestic services — sectors that are often characterised by low earnings, job insecurity, and limited social protection. 

The lack of access to formal financial services, business training, and market opportunities has further exacerbated the challenges they encounter. 

As I delve deeper into this issue, I am heartened to learn about the upcoming Southern Africa Association of Accountants (SAAA) SMEs & Informal Sector Convention 2024, scheduled to take place on November 26 in Harare. This timely event presents a unique opportunity to shed light on the critical role that women entrepreneurs play in Zimbabwe's dynamic SME and informal sectors, and to explore strategies for empowering them to thrive. The convention's theme, “Helping SMEs & Informal Businesses Strategise, Gain Insights and Build Capabilities” resonates with me.

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I believe that addressing systemic barriers faced by women in these spaces is crucial for unlocking their immense potential as drivers of economic growth and social transformation. I am particularly intrigued by the diverse line-up of presenters and panelists, including myself (wink wink), representatives from the Ministry of SMEs, the City of Harare, the Reserve Bank of Zimbabwe (RBZ), the Zimbabwe Revenue Authority (Zimra),the Consumer Council of Zimbabwe, and other key stakeholders. 

Their insights on topics such as the economic case for supporting SMEs and the informal sector, the creation of tax regimes that promote women's entrepreneurship, and strategies for building sustainable enterprises for future generations, will undoubtedly be invaluable.

As I reflect on the path forward, I am convinced that a multi-faceted approach is required to empower women in Zimbabwe's SMEs and informal sectors. 

This should involve addressing barriers to accessing finance, providing comprehensive business management training and mentorship, developing inclusive policies and regulations, fostering entrepreneurial ecosystems, and challenging deep-rooted social norms that limit women's economic participation. 

Access to finance is one of the most pressing challenges faced by women entrepreneurs in the SME and informal sectors.

Financial institutions often view these businesses as high-risk, and women, in particular, face additional hurdles due to gender-based discrimination and the lack of collateral. Innovative financial products and services tailored to the needs of women-led enterprises, such as microfinance, crowdfunding platforms, and specialised loan programmes, can help bridge this gap and empower women to start, grow, and sustain their businesses.

Skills development and training is critical in providing women with comprehensive business management training, financial literacy programmes, and access to mentorship.

These capacity-building initiatives should cover a wide range of topics, from marketing and financial management to legal compliance and digital skills, equipping women with the knowledge and tools they need to succeed. 

In Zimbabwe, supportive policies and regulations have a crucial role in creating an enabling environment for women entrepreneurs in the SME and informal sectors.

This involves developing inclusive policies and regulations that address specific challenges faced by women, such as simplifying registration procedures, providing tax incentives, and ensuring access to social protection schemes. 

By prioritising the needs of women-led businesses, policymakers can signal their commitment to inclusive economic growth and create a level playing field.

Fostering entrepreneurial ecosystems by encouraging the development of women-led business networks, incubators, and accelerators can create supportive environments for women entrepreneurs to thrive. 

These platforms can facilitate access to markets, technology, and collaborative opportunities, enabling women to learn from one another, share best practices, and build valuable connections within their industry. 

Challenging social norms through addressing deep-rooted societal attitudes and gender norms that limit women's economic participation is crucial. 

Awareness campaigns, community dialogues, and the promotion of positive role models can help shift mindsets and create an enabling environment for women's entrepreneurship. By challenging the perception that certain sectors or business activities are “unsuitable” for women, we can empower them to pursue their entrepreneurial aspirations with confidence and resilience.

The SAAA SMEs & Informal Sector Convention 2024 represents a pivotal moment for Zimbabwe to reaffirm its commitment to inclusive economic growth and the empowerment of women entrepreneurs. 

Through bringing together policymakers, financial institutions, business leaders, and women-led enterprises, this event has the potential to catalyse meaningful change and unlock the vast potential of women in these vital sectors. 

I envision a Zimbabwe where women entrepreneurs are celebrated and supported, where their contribution to the economy are recognised and valued, and where they have equal access to the resources and opportunities they need to thrive.

One of the key areas that excite me is the role of digital transformation and artificial intelligence (AI) in empowering women-led SMEs and informal businesses. 

The convention's focus on exploring how technological advancements can help streamline operations, access new markets, and enhance competitiveness is particularly promising. 

Harnessing the power of digital tools and AI-driven solutions, women entrepreneurs can overcome geographical barriers, optimise their business processes, and tap into new customer segments, ultimately strengthening their position in the market. 

Another aspect that resonates with me is the convention's emphasis on the well-being of informal sector workers, predominantly women. 

The pressing need for social security measures to protect and support these workers, ensuring their economic and social security, is crucial for creating a more inclusive and equitable economic landscape. 

Addressing the challenges faced by informal sector workers, results not only in improving their livelihoods but also contributes to the overall resilience and sustainability of the SME and informal sectors.

As I reflect on the potential impact of the SAAA SMEs & Informal Sector Convention 2024, I cannot help but feel a sense of pride and responsibility. 

This event represents an opportunity to amplify the voices and experiences of women entrepreneurs to showcase their resilience and innovation, and to inspire others to follow in their footsteps. 

You too can actively participate in the convention, whether as an attendee, a panelist, or a collaborator and contribute to the collective effort of empowering women in Zimbabwe's SMEs and informal sector. 

When given the right support and resources, these women have the power to transform their lives, their communities, and the entire nation. 

When you invest in their success, you are not only uplifting individual lives but also paving the way for a more equitable and prosperous Zimbabwe.

As I look towards the future, I am filled with a sense of optimism and renewed determination to be a part of this transformative journey. 

Together, we can pave the way for a more equitable and prosperous Zimbabwe, where women entrepreneurs are empowered to thrive and contribute to the nation's economic transformation. Until then, we are blessed to be a blessing (#B2BAB).

Chirenje writes in her capacity as a citizen of Zimbabwe. Follow her on social media for more Lifezone with Grace conversations on Twitter: @graceruvimbo; Facebook: Grace Ruvimbo Chirenje; Instagram: @graceruvimbo