Many women-led SMEs end up trading in the informal sector out of necessity, operating as traders and entering the world of entrepreneurship through retail, says Diariétou Gaye, World Bank director of strategy and operations for the Africa region.
“It is vital to create business structures and embrace best practice from the start of a business journey. Networking within the community, financial literacy and especially business literacy is key in unlocking funding opportunities,” says Louw. Louw says it is important for women to learn about the financial elements that make their business a success. “While learning about these financial metrics can be daunting, it is vital that they familiarise themselves with business levers for growth and scale which includes financing and other forms of credit.”
“Building a financial record starts with creating a separate account. This will go a long way to help women entrepreneurs understand their own business’ cash flows and financial obligations. It will directly impact their ability to receive financing,” says Louw.Female solopreneurs do not have to struggle alone. Louw says it is important to have a network to tap into.