Tweet

6.1 The informal sector: Gender Entrepreneurship and Competitiveness in Africa 2007

Guest post by: World Economic Forum

Article Overview: Entrepreneurs—male or female—constitute a very small percentage of the population, according to household survey data. Almost everywhere, less than 1 percent of all women of working age (15 to 65 years old) are “employers”—that is, women who own a business in which they employ hired labor.

6.1 The informal sector: Gender Entrepreneurship and Competitiveness in Africa 2007

Entrepreneurs—male or female—constitute a very small
percentage of the population, according to household
survey data. Almost everywhere, less than 1 percent of all
women of working age (15 to 65 years old) are
“employers”—that is, women who own a business in
which they employ hired labor. In Africa, most working
women are not “formal” entrepreneurs but are rather
self-employed and own-account workers in the informal
sector.

The informal sector is particularly important in
Africa, and is often an entry point for broadening
participation in the private sector. International Labour
Organization (ILO) data indicate that the informal
sector represents 48 percent of nonagricultural employment
in North Africa, and 72 percent of nonagricultural
employment in sub-Saharan Africa.19 Informal employment
is generally a larger source of employment for
women, though not in North Africa.

For example, the recently completed Gender and
Growth Assessment (GGA) for Tanzania confirmed the
importance of the informal sector in the economy, noting
that the vast majority of businesses in the country
are outside the formal legal system.

It is estimated that
the number of women entrepreneurs ranges from
730,000 to 1.2 million, and are particularly found in
the micro, small, and medium-sized enterprise (MSME)
sector where they make up 43 percent of the total.
Barriers to the formalization of a business—particularly
lengthy and complex business registration, incorporation,
and licensing practices—have a disproportionately
negative effect on women, in some cases making it
impossible for them to formalize their businesses.20

Women’s participation in the informal economy may
help in understanding their participation in the formal
sector. It has been argued, for example, that women
running informal enterprises value the higher flexibility
offered by the informal sector.This is confirmed by
women entrepreneurs in both Kenya and Tanzania.21

One of the important reasons that women may
prefer the flexibility of informal arrangements is that
this flexibility makes it easier for women to manage
their “double workday.” Because women usually have to
assume by far the greater burden of domestic tasks, as
revealed in time allocation data in Africa, their capacity
to engage in economic, including entrepreneurial, activity
is much more constrained.22 Moreover, the boundary
between economic and household activity is less well
drawn in Africa than in other regions,23 and conventional
labor force data capture a much more limited share of
women’s total workload than men’s.

This additional
workload means that women can essentially carry out
economic activities only in conjunction with or after
fulfilling their domestic responsibilities.This may help to
explain why, as indicated earlier, women are more likely
to be involved in family enterprises that are more compatible
with combining both domestic and economic
activity.

Related Articles
  1.0 Overview: Gender Entrepreneurship and Competitiveness in Africa, 2007
  18.0 Conclusion: Entrepreneurs and entrepreneurship in Africa
  6.0 The broader context: Gender Entrepreneurship and Competitiveness in Africa, 2007
  2.0 Gender in African economies: Gender Entrepreneurship and Competitiveness in Africa, 2007
  7.0 Conclusions: Gender Entrepreneurship and Competitiveness in Africa 2007

Article Tags: Africa, Africa, employment, informal sector, International Labour Organization ILO, nonagricultural employment, North Africa, participation, sub Saharan Africa, women entrepreneurs, working women



Related Forum Posts
Re: need advice - Africa is a pretty big place I think it is a question of where in Africa you would like to open a call centre. South Africa for example actually has plenty of call centres already operating, so it would very much depend on what part of Africa you are considering. MichelleJ
Looking for business partners and mentors. - Hello entrepreneurs, I'm new to this forum. I'm looking for partners and mentors for my new business venture. I just started the business plan. The business is related to the Securities sector. Anyone who has management skills, entrepreneurship skills or who has experience in the securities sector, feel free to contact me. I am open to any discussion/suggestion about my plan. Let’s get this business started Thank you!!!! Richard
Re: Newbie from Africa - Hello Biiyke Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa. MichelleJ
Ladies Who Launch book party - I'm only abouat 6 hours from DC... but I'm not going to be able to make the signing... I wish 'em well, however. Anyway, I check their website periodically to see what's happening, and here's the press release for it: We've written about you in our book and now are thrilled to meet you in person! Our book LADIES WHO LAUNCH: Embracing Entrepreneurship & Creativity as a Lifestyle (St. Martin's Press; May 1, 2007; $24.95) has come out and we are coming to Washington, DC to celebrate you, women who want to say "YES!" to their dreams by launching a business, project or life! We'll be at Barnes & Noble, 555 12th St. NW, Washington DC, on Wednesday, May 9, 2007 and we would be honored if you would come out and meet us and the extraordinary ladies of the Washington, DC Ladies Who Launch Incubator program. We have invited several special guests including: Priscilla Stephan: Founder of Bakana Style Kalle Diarra: Founder of Arbre De Vie Products These ladies will talk more about how to launch, and, why launching, whether for entrepreneurial reasons or just for fun, leads to a happier, more fulfilling life. Being around like-minded, inspiring women is one of the best ways to get you moving toward your goals and dreams.
Looking for business partners. - Hello Entrepreneurs, I'm new to this forum. I am from India and looking for business partners and mentors for my ongoing business venture since last five years. Now we are expanding our business with different countries. The business is related to the Software development / website designing / ecommerce solutions /online marketing sector. Anyone who has management skills, entrepreneurship skills or who has experience in the software development sector, feel free to contact me. I am open to any discussion/suggestion and about my plan. Let’s get this business started.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

WHAT IS MANAGEMENT CONSULTING

Five Daily Marketing Habits to Increase Sales

The Substance Abusing Employee

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.