Black Women Entrepreneurs Are Changing the Face of Business in South Africa

A Growing Force in the Economy
The entrepreneurial landscape in South Africa is evolving, and Black women are at the center of that transformation. As of 2021, 21.9% of all businesses in South Africa are owned by women, up from 21.1% in 2020 (Women's Report Africa). That steady growth reflects a shift in access, ambition, and opportunity.

The Global Entrepreneurship Monitor (GEM) reported that early-stage entrepreneurial activity among women jumped from 9.5% in 2022 to 13.5% in 2023. Most of these entrepreneurs are Black African women — making them the largest share of South Africa’s female business founders. A Competition Commission survey confirmed that 65% of female-owned businesses are Black women-led, demonstrating their increasing stake in the small and medium enterprise (SME) ecosystem.

Driving Job Creation and Economic Inclusion
Black women entrepreneurs are also having an outsized impact on employment and economic inclusion. SMEs — many of which are women-led — account for 80% of employment in South Africa (Women’s Report Africa). Across the continent, women contribute 13% of Africa’s GDP and represent 58% of the self-employed population.

Locally, the momentum is clear: in the 2023/24 financial year, women-owned business projects supported by government financing created over 4,000 jobs and attracted R1.7 billion in investment (DTIC). Over the last decade, more than 1,200 women-empowered business initiatives, 95% of them Black-owned, have received close to R28 billion in funding through industrial financing programs.

These numbers are more than statistics — they represent lives changed, families supported, and communities uplifted by women who are building businesses that create real value and opportunity.

Gaps in Procurement and Supply Chains
Despite this progress, Black women entrepreneurs remain significantly underrepresented in procurement opportunities — especially in corporate and government supply chains.

The South African government has committed to directing 40% of public procurement to women-owned businesses. Yet actual performance remains far below this target. One department, for example, allocated only 5.9% of its procurement budget to Black women suppliers in 2020/21 — up from just 1.86% in 2017/18 (Competition Commission).

Globally, less than 1% of corporate and government procurement spend goes to women-owned businesses (WEConnect International). And in South Africa’s private sector, Black women ownership in large companies has declined, with many industries falling short of their transformation targets (B-BBEE Commission, Webber Wentzel).

Sectors like agriculture, construction, property, and finance remain especially behind in integrating Black women entrepreneurs into supply chains — despite the clear case for doing so.

This is where the South African Supplier Diversity Council (SASDC) plays a critical role — by creating pathways into corporate supply chains, developing supplier capabilities, and ensuring that procurement policies translate into inclusive economic action.

Sector Trends: Where Black Women Are Building
Black women entrepreneurs are active across a wide range of industries, though participation varies.

Most women-led enterprises are found in service-oriented sectors such as logistics, retail, ICT, marketing, hospitality, and personal care services — accessible industries with lower startup barriers (Competition Commission).

By contrast, capital-intensive sectors like manufacturing, mining, agriculture, and energy remain more difficult to penetrate. In fields like agriculture and property, women own less than 5% of large enterprises, while industries such as ICT and construction show somewhat better representation (above 15%) (PIC.gov.za).

Encouragingly, this is beginning to shift. A new generation of Black women industrialists and tech founders is emerging, supported by targeted funding, incubators, and public-private initiatives. Women are making strides in agro-processing, clean energy, fintech, and engineering — proving that with the right backing, there is no limit to sectoral reach.

Persistent Challenges, Inspiring Achievements
Access to capital remains a primary barrier. South Africa ranks low in women’s access to funding, and many Black women entrepreneurs face rejection or underfunding — especially in formal markets. During the COVID-19 pandemic, 91% of women who started businesses did so out of necessity, not opportunity (Women’s Report Africa).

Social norms and systemic bias remain real obstacles. From work-life pressures to exclusion from networks and formal procurement systems, Black women business owners often carry more weight to reach the same goals.

Yet the success stories shine through.

From rural agripreneurs to high-growth tech CEOs, Black women are breaking through barriers, building scalable businesses, and serving as leaders in their industries. Initiatives like Visa’s “She’s Next” and others have spotlighted dozens of high-performing women-led businesses, while government programs like the Black Industrialists Scheme continue to fund and develop promising women founders.

South Africa also boasts one of the highest global rates of female representation on corporate boards — 32% as of 2023 — signaling that leadership is evolving (PIC.gov.za). Although Black women are still underrepresented in C-suites and high-value supply chains, the direction of change is clear — and it’s powerful.

Moving Forward: Inclusion as an Imperative
At SASDC, we believe that Black women-owned businesses are essential to South Africa’s inclusive growth agenda. Not only are these enterprises key job creators — they bring new thinking, resilience, and solutions to the challenges facing our economy.

By ensuring greater access to procurement, investment, and market opportunities, we can unlock the full potential of women in enterprise. That is our mission and our commitment.

As we celebrate Women’s Month, we honour the women who are building — not just businesses, but futures.