South Africa boasts an extensive and evolving policy framework aimed at advancing women's participation in the economy. From preferential procurement legislation to financial inclusion strategies and national entrepreneurship development plans, government has taken steps to embed gender equity across sectors. Institutions like the Department of Trade, Industry and Competition, the National Empowerment Fund, and the Department of Small Business Development have made provisions intended to increase access to funding, markets, and entrepreneurial support for women.

In practice, these efforts are reflected in a number of targeted programmes and policies. South African government has committed to allocating 40% of public procurement opportunities to women-owned businesses. Agencies such as the National Empowerment Fund (NEF) and the Small Enterprise Finance Agency (SEFA) provide tailored financial and non-financial support to women-led SMMEs, while the Women Empowerment Fund - managed by the NEF - offers funding between R250,000 and R75 million specifically for Black women-owned enterprises. Initiatives such as the Women in Technology and Innovation Programme (led by the Technology Innovation Agency) also aim to address sector-specific barriers. Overarching all of this is the National Policy Framework for Women's Empowerment and Gender Equality, which guides the integration of gender equity across government efforts. These programmes reflect a strong policy commitment to advancing economic equity and inclusive growth.

Yet, as many entrepreneurs will tell you, the experience on the ground often tells a different story -one where good intentions collide with slow delivery, outdated systems, and power structures that keep women at the margins of opportunity.

"We must bridge the information gap between finance and SMMEs to unlock access for women entrepreneurs," says Shiphra Chisha, Director of Programmes at the Graça Machel Trust. "It's not just about access. It's about comfort, safety, and respect - these should be part of the performance metrics for how financial institutions operate."

Drawing on the Trust's recent research with DNA Economics and reflections from the G20 Financial Inclusion forum, Chisha laid out a compelling case for what must change:

• Gender-focused frameworks that move beyond grouping women into "vulnerable groups"
• Gender-disaggregated data to guide product design and monitor inclusion
• Outcome-based indicators that go beyond account numbers to track real usage and impact
• Tailored financial products that reflect the lived realities of women entrepreneurs
• Incentive structures that reward inclusive practices, not just profit targets

These issues were at the heart of the Multi-Stakeholder Policy Dialogue on Entrepreneurship Development in South Africa event held earlier this year, hosted by the Graça Machel Trust. The dialogue brought together entrepreneurs, researchers, policymakers and regional leaders to unpack how to make policy work better for women - particularly in informal, rural, and marginalised economies.

"It is crucial to understand the challenges that SMEs (especially those owned by women) face at a much granular level," says Teboho Bosiu, researcher at the Centre for Competition, Regulation and Economic Development (CCRED) at the University of Johannesburg. "The underlying causes of these challenges should also be properly understood."

Bridging the policy gap: from theory to tangible change

One of the most urgent tasks ahead is to bridge the policy-practice gap by reimagining how policy is crafted and implemented - not as a top-down process, but one that is driven by evidence, grounded in real conditions, and informed by the people most impacted.

Bosiu explains that many challenges women entrepreneurs face are not isolated; they are systemic and often interlinked. "For instance, challenges with access to markets often reinforce challenges with access to finance, and vice versa."

This was echoed by Manini Mbongwa, a construction entrepreneur, who described the compliance-heavy realities of her sector. "To scale, you need to upgrade your CIDB grading - but that means having completed a project of a certain value. Without opportunities to subcontract or access projects, you're stuck in the lowest tier." Financial constraints, mentorship gaps, and limited access to funding continue to leave women behind.

Chisha reaffirmed that the issue isn't the absence of policy - but rather its implementation. "Policy reform must come from the top," she noted, "but it must be shaped by those navigating the realities at the bottom."

She also shared GMT's broader efforts through the Women Creating Wealth (WCW) programme and Afrishela, a pioneering investment platform for early-stage, women-led businesses. "Afrishela has played a crucial role in building market access and increasing access to finance," Chisha said. "It ensures women entrepreneurs are not only visible but viable."

"Entrepreneurship skills are foundational - and agri-value chains can drive food security and market access across the region," added Caroline Komey, Senior Programme Officer of Graça Machel Trust. She emphasised the importance of building grassroots capacity through platforms like Afrishela and leveraging value chains that not only build business resilience but also improve regional food systems.

Power, exclusion, and the "old boys clubs"

Of course, policy misalignment is only part of the story. The other side is structural: women are often locked out of the very industries where opportunity lies - not just due to lack of access, but because of entrenched monopolies, power asymmetries, and informal gatekeeping mechanisms that function outside formal policy.

"It is mainly our competition law and policy that seek to prevent abuse of power by dominant firms and promote inclusion of SMEs," says Bosiu. "However, these processes tend to be quite legalistic and are based on post-harm conduct that only gets investigated if there is a formal complaint from the affected SME."

But many SMEs are hesitant to lodge complaints for fear of retaliation - especially when they are dependent on large firms for resources, inputs, or market access. "Large and powerful firms typically have control/influence over the value chains, and SMEs rely on them," he explains. "Hence SMEs tend to tread cautiously to avoid being seen as troublesome."

Bosiu also pointed to the pervasive influence of exclusive informal networks. "Competition law and policy cannot police and dictate who the 'old boys' should associate with, due to the obvious freedom of association enshrined in our constitution. That means other policies need to be explored - perhaps through innovative regulation leveraging on the power of the state."

Among his proposed reforms:

• Use licensing and other regulatory levers to incentivise inclusion in private sector supply chains, beyond those contracted by government
• Improve access to finance to enable SMEs to build productive capabilities and reduce dependence
• Rethink cooperative models that fail to support meaningful aggregation and bargaining power
• Place direct business relationships (e.g. contract farming, manufacturing, ESDs) under regulatory scrutiny to prevent exploitative terms. "Ordinary contract law isn't enough," he warns. "Other jurisdictions have introduced regulatory mechanisms to ensure fairness in these arrangements."

Mbongwa echoed this sentiment, calling for more equitable structures and peer support: "When women organise and speak as a collective, it's harder to ignore us. A united voice makes it easier to push for change and get traction with policymakers."

Building capacity and catalysing investment

In addition to Afrishela and WCW, Chisha highlighted how the Trust has leveraged its networks - like New Faces New Voices South Africa (NFNV SA) - to push for gender transformation in the financial sector. "We are building a community of practice to make financial policy accessible and relevant to women at all levels," she said.

NFNV, established in 2009 by Mrs. Machel, works to:

• Increase access to finance for women entrepreneurs
• Build their capacity within the financial industry
• Promote more women into leadership positions in the financial sector

"We believe that women are an under-utilised resource, and investing in them can accelerate economic growth across the continent," Chisha said.

This reflects the broader goals of the Trust to not only support individual entrepreneurs but also reform the operating environment in which they work.

Data, visibility, and grounded policy

Another theme that emerged from the dialogue was the importance of data--not just in volume, but in value. "There is a need for data presented in a comprehensible and accessible manner," Bosiu explained, "especially to understand power dynamics in supply chains."

Christine Muyama, Advocacy Officer of Graça Machel Trust, noted how policy gaps become wider for rural women navigating informal land tenure, weak access to justice, and limited access to development finance. "We must break structural barriers," she said. And to do so, we need to ensure these women are not invisible to policy and financing instruments.

Localising the vision for change

"The first step is opening real communication with entrepreneurs in rural areas and townships," Mbongwa added. "Otherwise, these discussions remain high-level and out of reach."

She also pointed out that many women in construction don't even know where to begin. "Start-ups often don't understand what needs to be done to stay compliant, and hiring consultants costs money," she said. "Funding requirements make it almost impossible for women to be considered. We need training, mentorship, and gender-sensitive financing models that actually reflect how women do business."

Conclusion: a ground-up vision

What emerges from these insights is a clear imperative: entrepreneurship development policies must be radically re-centred around the lived realities of women entrepreneurs. This demands investment in ground-up research, the rethinking of regulatory levers, and the democratisation of data and opportunity.

As Mbongwa reflects, "It's only when policy is implemented and monitored that we'll see real change on the ground."

If we want to unlock the full potential of women entrepreneurs in South Africa, we must build from the ground up - not just in rhetoric, but in every system designed to support them.