Report Says Almost Half of Small Businesses in Nigeria are Owned by Women
- NBS says 40% of micro, small and medium-sized enterprises are led by women
- There is no significant difference in terms of revenue growth and margin growth
- Both genders opened their businesses to meet financial responsibilities and passion
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A recent report by the National Bureau of Statistics (NBS) has found that women currently control an astounding 40% of Micro, Small, and Medium-Sized Enterprises (MSMEs) or two out of every five MSMEs, in the country.
The Country Data Overview report, however, underscores the difficulties women business owners encounter, particularly when trying to get funding, technology, and business assistance. The small-scale dairy sampled participants across Lagos, Kaduna and Enugu states.
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NBS suggests industry participants, decision-makers, and financial organisations should work together to establish an environment that supports women's entrepreneurship.
This comes in the wake of a Legit.ng article that indicated that Folorunso Alakija, the richest lady in Nigeria and the second-richest person in Africa, invested N200 million in 100 female businesses.
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In another report, the World Bank also noted that women-owned small and medium-sized firms (SMEs) in emerging markets make up a small proportion of official SMEs and face numerous obstacles to success.
It was stated that women face more barriers to obtaining financing and are offered less favourable conditions. Thus, it was suggested that removing the obstacles would level the playing field and increase the number of options available to female entrepreneurs.
Men still take the lead
The study found that about half (44%) of women-owned, compared to about 30% of men-owned firms are categorized as low earners.
Women are less represented among medium earners (23%) compared to men (40%), while more women owned-firm belong to the high earners’ category than men: 27% of women compared to 18% of men.
Gender gap was seen in the operating margin as well. Even it compared only firms with positive operating margins, men-owned firms (N121,000) have a median monthly operating margin more than 2 times larger than women-owned firms (N55,725)
Meanwhile, in terms of revenue growth and margin growth, there was no significant difference across both genders.
The top two reasons for opening a business were the same across genders: the firm owners reported opening their business because they needed to earn a living and had had difficulties finding a job, and in second place people cited passion or interest in their business area.
Within these categories, however, a higher proportion of men reported opening the business to earn a living (47% vs. 36%) and a higher proportion of women reported being driven by a passion for their business area (40% vs. 19%).
FCMB, SME.NG and WFW urge women to take lead in driving business growth, development
Women in Nigeria have been asked to play a more active and frontline role to promote the growth of businesses and general development, according to a related story from Legit.ng.
The task was given by Ms Latanya Mapp Frett, President and CEO of the Global Fund for Women (GFW), who was the special guest speaker at the fourth meeting of the Women Financing Women (WFW) Group, organised by First City Monument Bank and SME.NG.
Source: Legit.ng
