Entrepreneurship, which is the process of setting up a business to make a profit, is essential for the economic growth of a country. In Nigeria, the entrepreneurial field has created many opportunities like career growth, innovation, and increased national income. 

However, as promising as this field sounds, there is a noticeable gap in the ratio of male-to-female entrepreneurship success in Nigeria. 

According to data from the Small and Medium Enterprise Development Agency of Nigeria, women participate primarily in the informal sector at 42.1%. 

With a staggering representation of just 13.57% in the formal business sector as opposed to their male counterparts of 86.43%, some factors hinder the success of women's entrepreneurship in Nigeria. 

From limited funding opportunities to a lack of networking opportunities, etc, let's explore some challenges women entrepreneurs face in Nigeria and how they can overcome them. 

Key Takeaways

• The 2024 International Women's Day Theme is "Invest in Women: Accelerate Progress."

• "Nigeria ranks low on the gender gap parity, ranking 123 (with a score of 0.639) out of 146 countries. Women continue to experience deficits in decent work related to the business and regulatory environment and access to financial and business development services critical in formalising and growing their businesses" (National Gender Policy, 2021).

• "According to the results from the Women Entrepreneurs Survey (WES) undertaken under this research study and supported by evidence from the National MSME survey 2021, women have a high level of interest in becoming entrepreneurs but face challenges related to the business and regulatory environment, including access to financial and business development services critical to formalising and growing their businesses."

• Networking can aid women entrepreneurs in accessing funding, valuable knowledge, and partnerships, which are crucial for the growth and success of their businesses.

• Digital solutions like Moniepoint MFB's business banking app can ease banking processes, allowing women entrepreneurs to manage their finances and strike a work-family balance efficiently.

• By leveraging digital marketing tools, women entrepreneurs can combat the challenges of limited market access and create a strong foothold in the market.

Challenges Women Entrepreneurs Face in Nigeria

Women entrepreneurs in Nigeria often face challenges when setting up and growing their businesses. Some of them include;

#1. Limited Access to Finance

Limited access to finances to fuel their business is a significant limitation women face when growing their businesses. Most women rely heavily on personal finances when starting, which can ultimately become insufficient in the long run. 

In addition to the limited funds, some women face obstacles like financial illiteracy and ignorance, which limit their chances of accessing funds for their business ventures. 

The National Bureau of Statistics in Nigeria states that about 80% of women-owned enterprises fund their businesses from their finances due to difficulties accessing external funding. 

Women can combat this challenge by exploring alternative funding opportunities such as business loans, business savings accounts, financial awareness training, etc. 

(Source) 

#2. Insufficient Access to Networking Opportunities

A strong professional network is vital for success in entrepreneurship; however, most women only sometimes access such networks. As a result of these limited networks, they often get limited access to capital expansion, mentors, etc., which can boost their business growth. 

Women in today's age can overcome this limitation by attending business seminars and industry events and connecting to industry experts on platforms like LinkedIn. The rise in technological advancement also gives women an edge in business. 

This is where they can leverage tech upskilling internships like the Women in Tech internship by Moniepoint MFB. 

#3. Balancing Business and Family Responsibilities

A major challenge facing women entrepreneurs in Nigeria is the need to balance household responsibilities as caretakers and businesses. To overcome this, women can hire household helpers, seek support from friends and families, delegate business tasks, and prioritise tasks. 

Digital financial institutions like Moniepoint MFB make it easy for women to handle their financial needs by providing convenient personal and business banking solutions. This way, women entrepreneurs can run their e-commerce businesses, for instance, without the stress of physical visits to banking institutions. 

#4. Limited Access to Customers and Markets

Due to limited access to markets and clients, some women entrepreneurs face challenges in growing and profiting from their businesses.

Limiting access to profitable markets, national or local, comes from insufficient market information and the inability to scale up and enhance their competitiveness (often due to scarce resources). 

Other factors include limited capacity building, poor product quality, limited access to Information and communication technologies (ICT) tools or skills, or inadequate market integration.

Ultimately, the small size of employees in women-owned businesses creates a barrier to their participation in international markets where volume is a major requirement. 

The limited market access can further hinder businesswomen from achieving a broader customer base and boosting their businesses efficiently. Women can overcome this challenge by leveraging digital marketing tools, websites, and social media platforms to target specific audiences and increase their online presence.

(Source)

#5. Social and Cultural Barriers

Societal and traditional practices in some tribes of the country restrict women's access to economic opportunities, property rights, land inheritance, and use. For example, the Land Use Act offers equal access to land ownership; however, some social customs or regions present contrary practices. 

These factors pose a challenge to women entrepreneurs, thereby impacting their business growth potential. To overcome these barriers, women can advocate for gender equality by actively participating in movements that promote women's empowerment. 

Innovating Trends and Opportunities for Women Entrepreneurs

• The Emergence of Technology-driven Businesses: Women entrepreneurs are making a mark in launching innovative startups and digital platforms. For example, Damilola Olokesusi, the co-founder and CEO of a Nigerian transportation startup, Shuttlers, Oyindamola Honey Ogundeyi, the founder of Fashpa.com, a Nigerian e-commerce site, etc

• Growth of Social Enterprises: Women entrepreneurs like Sandra Chukwudozie, a Nigerian female entrepreneur and clean energy activist, are addressing societal challenges through social enterprises. 

• The Power of Collaboration and Networking: Women-focused networks and mentorship programs empower entrepreneurs.

• Access to Financial Inclusion and Funding: Financial institutions like Moniepoint MFB are developing tailored digital banking products to support women-owned businesses.

• Upcoming Opportunities in Agribusiness: Agribusinesses offer many opportunities for women entrepreneurs in Nigeria.

• Retail and e-Commerce Growth: The retail industry, specifically e-commerce, is booming in Nigeria thanks to technological innovation. This provides women with a fairer competing ground to execute their business operations.

• Wellness and Health Entrepreneurship: Women are delving into fitness, healthcare products and services, wellness coaching, etc.

Final Words

Once viewed as a man's field in Nigeria, entrepreneurship has since evolved to include women, thus embracing the 2024 International Women's Day theme "Invest in Women: Accelerate Progress." 

At Moniepoint, we believe in financial inclusivity for everyone, regardless of gender. By leveraging our digital banking solutions, more Nigerian women can access convenient and reliable business and personal banking solutions to boost their ventures.