While the need to achieve gender equality in the digital economy has been much discussed, our assessment of where we are today shows that we can do a better job.
The exclusion of women has cost developing economies a staggering US$1 trillion loss over the last decade — a figure set to balloon by 50 per cent by 2025 if we don’t act. The urgent need for gender equality in the digital realm isn’t just about abstract figures. It’s about women who dream of building businesses but lack the capital and digital access to make them a reality.
We’ve seen how women entrepreneurs bring unique perspectives, creativity, and problem-solving skills while investing back into their communities, creating jobs and driving social impact. UN’s report on entrepreneurs in Thailand, the Philippines, and Malaysia illustrates these positive ripple effects – where women founders hire 17 per cent more women than their male counterparts. They also use their incomes differently, spending 90 cents of every dollar they earn on their families, including on their children’s education, health and nutrition, compared to 30-40 cents devoted by men.
We must recognise that despite these benefits, only a third of small and medium businesses in Southeast Asia are women-owned, despite micro, small and medium businesses making up over 90 per cent of total establishments in this region. Women entrepreneurs still face significant challenges, including limited access to capital, networks, and relevant business skills.
This aligns with the significance of this year’s International Women’s Day UN theme, “Invest in Women: Accelerate Progress.”
The digital economy can boost the growth of women-led businesses
The digital economy presents a transformative catalyst for the growth of women-led businesses in Southeast Asia. Beyond a simple shift to “going online,” it offers strategic and operational advantages that empower women entrepreneurs to thrive.
For many women, the digital landscape redefines the conventional workplace. Automation and digital workflow tools can streamline everyday operations while offering the possibility of remote work environments. This newfound flexibility enables women to harmoniously manage household responsibilities and career aspirations — a balance often elusive in traditional business models.
Going online also means that women entrepreneurs can start their businesses with lower startup costs too, and without the need for a physical storefront, which is a significant advantage. They can even reach customers worldwide to grow their businesses beyond local markets.
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The figures speak for themselves: four in five enterprises report sales increases and cost reductions directly attributed to the adoption of digital technologies. This is especially compelling within Southeast Asia, where the digital economy sectors continue to be on a growth trajectory despite global macroeconomic headwinds, according to the e-Conomy SEA 2023 report. The signs are clear that digital participation by these women entrepreneurs can reap benefits as they engage some of the most digitally engaged consumers in the world.
Empowering women-led businesses to come online in Southeast Asia
With these benefits in mind, we believe that private organisations in the region can play a greater part in empowering these women entrepreneurs. Three areas of support come to mind:
Tailored digital training for entrepreneurs at every level is helpful in uplifting the community
In the region’s rapidly evolving digital landscape, tailored digital training for entrepreneurs is not simply beneficial – it’s essential for an equitable and thriving future. The International Telecommunication Union‘s analysis reveals a comparable gender gap in digital skills and STEM access. Left unaddressed, this divide threatens to exclude women from the very economic opportunities the digital economy promises.
While the digital economy teems with potential, women entrepreneurs must possess the skills to fully harness those opportunities for business growth. This is the driving force behind impactful initiatives like The Asia Foundation’s Go Digital ASEAN program, supported by Google’s philanthropy Google.org, in training over 140,000 entrepreneurs to date, with 60 per cent of women from underserved communities.
It recognises that digital literacy isn’t one-size-fits-all. By offering tailored training in business, finance, marketing, cybersecurity, and sustainability, women at all stages of their entrepreneurial journey gain the tools for sustained growth.
The impact is undeniable. Over 90 per cent of participants report a surge in confidence and skill when leveraging digital tools for their economic advancement. Success stories like Ms Sunu Asri of Indonesia provide a glimpse of the impact of such programs.
After learning about design apps, targeted marketing, and effective use of digital tools through the program, her fruit salad venture tripled in sales. This newfound knowledge fuels sustainable growth and inspires further digital applications within her business. We see many more stories like Ms Sunu’s through initiatives like this, and we want to keep growing this pool of entrepreneurs.
Also Read: Breaking barriers: Hidden hurdles faced by women entrepreneurs
By investing in tailored digital training for women, we don’t simply empower individuals; we ignite a ripple effect of economic and social progress that strengthens entire communities.
Better access to capital and digital tools can help entrepreneurs grow businesses sustainably
Access to capital remains a cornerstone of entrepreneurial success, empowering businesses to scale, generate greater income, and reinvest in their communities. Yet, per the International Finance Corporation’s (IFC) estimation, approximately 70 per cent of women-owned SMEs globally lack adequate access to financial services. Compounding this, a mere seven per cent of private equity and venture capital flows to female-led businesses.
To bridge this divide, organisations must prioritise innovative funding solutions tailored to women-led businesses. These can encompass targeted grants, low-interest loans, and subsidised technology designed to dismantle barriers and drive accelerated growth.
Initiatives such as Standard Chartered Bank’s WOWnita program in Malaysia serve as powerful models. It offers not only lower interest rates, collateral-free applications, and flexible repayment plans for women entrepreneurs but also a streamlined, user-centric application process.
Similarly, Google for Startups Women Founders Fund provides financial access to our suite of products free of charge while providing hands-on mentorship and product support on cloud solutions, AI, and machine learning, among others, to help founders build and grow their businesses.
By providing ready access to capital and technology to women entrepreneurs it can give them greater confidence in growing their business sustainably.
Hands-on mentorship helps to build entrepreneurial attributes
Entrepreneurial success hinges on far more than just technical skills, funding, and the latest tools. The cultivation of a resilient, forward-thinking mindset proves equally vital. Hands-on mentorship plays a pivotal role in fostering this mindset, empowering entrepreneurs to embrace their potential and confidently champion their initiatives.
Nurturing an entrepreneurial spirit requires a multifaceted approach. Programs like SheDisrupts in Indonesia demonstrate the transformative power of dedicated mentorship. By connecting women entrepreneurs with seasoned investors, advisors, and fellow innovators, they create a dynamic support network that fosters growth and unlocks innovation.
Such guidance proves invaluable as entrepreneurs navigate complex social and environmental challenges through their ventures. The program’s success speaks for itself, prompting it to return for a third year in 2023.
By cultivating entrepreneurial attributes through mentorship, we are planting the seeds for a more resilient, innovative, and equitable business landscape. The hope is for these beneficiaries to pay it forward and continue helping even more female entrepreneurs seeking such support.
Collective action can level the digital playing field
The transformation of women-led businesses within Southeast Asia’s digital economy is a shared responsibility. By empowering women entrepreneurs with resources and access, we unlock their ambition and ingenuity.
This doesn’t simply benefit individuals; it builds stronger communities and, ultimately, a more prosperous region for all. In the face of global challenges, let’s seize the potential of the digital landscape to create a future where equality and opportunity are not just ideals but realities.
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