Report reveals barriers holding back women entrepreneurs from accessing digital market

Dares Salaam. Limited access to capital, lack of marketing skills, high business registration costs and inadequate distribution tools are among the key challenges preventing women entrepreneurs from reaching their full potential in business, a new report has revealed.

The findings were shared by executive director of Her Initiative, Ms Lydia Moyo, during the Panda Event 2024, a forum that brought together entrepreneurs, government officials and stakeholders to discuss issues affecting women entrepreneurs.

Ms Moyo said that research conducted by Her Initiative showed that many women entrepreneurs also struggle to achieve their business objectives due to insufficient knowledge on effective strategies to reach the market.

"Our research indicates that 75 percent of women entrepreneurs require training and professional guidance on how to run efficient online marketing campaigns, allowing them to reach more customers and grow their business revenue," she said.

She noted that more than 60 percent of young women entrepreneurs currently use social media platforms like Instagram and Facebook to market their products.

However, despite the benefits of social media, many entrepreneurs face challenges in fully leveraging the platforms due to factors such as lack of suitable devices like quality smartphones or computers, limited digital marketing skills, and the high costs of advertising and internet packages.

Ms Moyo explained that such obstacles hinder women entrepreneurs from effectively reaching a broader customer base and expanding their businesses through digital platforms.

"This emphasises the need for financial and technical support to help these women improve their use of social media. Providing digital marketing training and access to grants for essential equipment could significantly enhance their competitiveness in today’s market," she added.

Ms Moyo also highlighted the challenges associated with formalising businesses.

According to the report, more than 50 percent of women entrepreneurs have not registered their businesses formally due to barriers such as registration costs, lack of information on the registration process and limited time.

"This situation prevents the women from accessing critical opportunities. Without formal registration, they are unable to participate in formal markets or access loans to expand their businesses," she said.

"Business formalisation could open doors to growth opportunities and access to financing, which is essential for sustainable development. Programmes that offer education and technical support on business registration are needed to help them overcome the challenges," she added.

The minister of State in the Prime Minister's Office responsible for Labour, Youth, Employment, and People with Disabilities, Mr Ridhiwani Kikwete, affirmed the government’s commitment to supporting entrepreneurs in building their businesses.

Among the initiatives, he said, is facilitating access to affordable loans for entrepreneurs, citing examples of loan facilities provided by local councils across Tanzania.

In collaboration with various stakeholders, the government also offers training to help entrepreneurs meet their business objectives.

"Empowering young women economically is fundamental to Tanzania’s development. Working with organisations like TRA, Brela, and TBS, we are ensuring that these entrepreneurs receive vital information on taxation, business registration and quality standards, which are essential to formalising their operations," he said.

Amina Mazengo, an entrepreneur, expressed optimism about the impact of digital marketing training for women entrepreneurs, saying it would help them develop online marketing skills and use digital platforms such as social media more effectively to reach a wider audience.