Editor’s note: This article is from the Insights archive and some of the statistics listed may have changed since publication.
The Heavy Chef E-commerce Entrepreneur Education Report revealed that the growth of e-commerce in South Africa accelerated by five years as a result of the COVID-19 pandemic. Interestingly, it was women leading the charge.
This shouldn’t be at all surprising. According to the World Economic Forum, women account for 58% of self-employment across Africa, accounting for 13% of the continent’s GDP. Closer to home, the Mastercard Index of Women Entrepreneurs (MIWE) for South Africa reports that 21.9% of all businesses in South Africa are owned by women. (Source: Women’s Report)
The Heavy Chef Foundation’s report shows that 63% of all e-commerce companies in South Africa are started by women. But like all South African entrepreneurs, they too need support to keep growing.
In this article, we unpack some of the key facts from the report, which outlines the learning needs of South African e-commerce entrepreneurs.
40 years ago, the idea of women managing their own businesses seemed ambitious. Today, this is no longer the case — rising equality, technology, and e-commerce are making it possible for women entrepreneurs to start their businesses.
E-commerce works well for first-time entrepreneurs
E-commerce presents fewer barriers to entry, making it a viable option for entrepreneurs starting out. It’s also fairly easy (and more affordable) to set up an e-commerce website, compared to a physical store. These cost-savings can be passed on, meaning products can be offered at lower prices. It is also possible to connect with – and find new – customers via digital channels.
South Africa provides a unique e-commerce opportunity
According to the report, since the pandemic, 68% of South African consumers are shopping more online. It’s projected that Africa’s e-commerce value will quadruple by 2030. This presents a unique and exciting opportunity for women in e-commerce to capitalise on this growth. Payment specialist Payfast reports registering more than 25, 000 new merchants between March and October last year, far surpassing any previous peak periods.
For this potential to be fully realised in South Africa, women must be able to access the necessary skills, knowledge, and technology they need to build online businesses.
Heavy Chef E-commerce Entrepreneur Education report
There is no question that women are influential in the e-commerce marketplace. According to Forbes, women drive 80% of consumer purchases and these online purchases, in turn, have a positive impact on the economy. But we need to make it easier for women to sell online as well. One way to do this is to support initiatives that recruit and equip women with the skills they need to use online tools for e-commerce.
Entrepreneurs need a unique set of skills
According to the report, only 18% of e-commerce entrepreneurs know of or have attended a training programme about building an online business. To rectify this, Heavy Chef and xneelo have identified three ways to support the development of women e-commerce entrepreneurs in South Africa (the 3 M’s):
1. Mentorship
Provide e-commerce entrepreneurs with more opportunities to interact with and learn from early e-commerce innovators.
2. Money
Develop tailored learning programmes for e-commerce entrepreneurs – focusing on the unique needs of online sales and operations.
3. Measurement
Track the effectiveness of e-commerce learning programmes and communicate these insights back to the industry through a central data hub.
“If we can include more women in the ecosystem, we’ll see a much broader range of solutions coming out of it, that address issues at all levels of our economy.”
Aisha Pandor, CEO and Co-Founder of SweepSouth
It is an exciting time for women entrepreneurs to leverage the current growth of e-commerce in South Africa. With the right amount of support and education, anything is possible, as evidenced by these trailblazers.
As a brand that’s passionate about empowering entrepreneurs, xneelo is excited about the story of emerging women in e-commerce – and how we can support them as they grow.
The Heavy Chef E-Commerce Entrepreneur Education report was created by the Heavy Chef Foundation and xneelo to map out the learning needs of e-commerce entrepreneurs in South Africa.
“Xneelo is passionate about enabling South African entrepreneurs with the tools and knowledge they need to create and grow their businesses. We’re proud to be associated with Heavy Chef and their community of entrepreneurs. We believe that every successful business creates a multiplier effect for society to thrive,” says xneelo CEO, Philip Delport.
To download a copy of the report visit https://heavychef.org/2021-ecommerce-report
