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An appreciation of gender issues is important when
considering strategies to improve Africa’s competitiveness
in the world and ways to promote private-sector
development.There are three main reasons why gender
matters.

First, women are major players in the private
sector, particularly in agriculture and in informal businesses.
It is estimated that women-owned businesses
account for over one-third of all firms, and they are the
majority of businesses in the informal sector in African
countries.

Second, the ability of women to formalize
and grow their businesses, to create jobs, and to enhance
productivity is hampered where legal and institutional
barriers exist that affect men’s and women’s enterprises
differently.

Third, there is evidence—especially at the
micro level—to indicate that gender disparities not only
disadvantage women but also reduce the growth potential
of the region as a whole.

The existence of genderrelated
barriers can thwart the economic potential of
women as entrepreneurs and workers, and such barriers
have an adverse impact on enterprise development, productivity,
and competitiveness in Africa.

Consequently,
addressing gender-specific barriers to entrepreneurship
and leveraging the full participation of both men and
women in the development of Africa’s private sector
together represent a significant opportunity to unleash
Africa’s productive potential and to strengthen economic
growth.

This chapter aims to shed light on the nature of
men’s and women’s enterprises in Africa, to assess the
extent to which the constraints and obstacles faced by
women and men entrepreneurs may differ, and to address
whether the constraints and obstacles entrepreneurs face
affect the productivity and performance of men’s and
women’s businesses differently.We begin with a brief
overview of gender in the economy, followed by a more
detailed analysis of available Enterprise Survey data
where key characteristics of businesses can be disaggregated
by the sex of the business owner.1 This allows us
to look at various characteristics of men’s and women’s
businesses, including perceptions of obstacles and constraints,
and to assess productivity differences. After
briefly placing this analysis in a wider context, the
chapter concludes with some recommended actions to
address the gender dimensions of entrepreneurship more
systematically in policy and programs aimed at supporting
private-sector development, along with suggestions for
further data collection and analysis.

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