KZN Women Entrepreneurs Drive Innovation in Informal Sector, HSRC Finds

•  Human Sciences Research Council highlights resilience and innovation among female-led informal firms
• HSRC introduces MyBIP App to boost innovation planning and ease
• With right tools and opportunities, these businesses can drive localised economic advancements and innovation

A recent study by the Human Sciences Research Council (HSRC) has found that women-led informal enterprises in Sweetwaters, Pietermaritzburg, demonstrate strong resilience and innovation, despite operating under more constrained conditions than their male peers.

HSRC’s latest study on innovation within the informal economy reveals a high rate of innovation activity, 92% among participating businesses. Despite this, female-led ventures continue to face disproportionate challenges stemming from socio-economic disadvantages and restricted access to critical resources.

To help bridge resource gaps and empower informal business owners, the HSRC has launched MyBIP, a free digital solution designed to facilitate innovation planning. Women entrepreneurs are proving to be a catalyst for community-level innovation, with 57% of their product developments identified as novel within their regions. Yet, their broader impact is curtailed by restricted access to capital, networks, and distribution channels necessary for expansion.

Despite their dominance in key informal sectors like food services, women entrepreneurs in Sweetwaters, experience a persistent gap in earnings and access to innovation-enabling resources. The report findings show a gender disparity in the application of scientific and technical expertise, with only 9.9% of women utilizing such methods, versus 18.1% of their male counterparts.

“Women-owned businesses tend to innovate in more organic and reactive ways, often driven by immediate customer needs or chance, rather than structured planning,” said Dr Il-haam Petersen, project lead at the HSRC. “This is largely because of the socio-economic constraints they face, including lower access to education, technology, and financing.” “Our findings point to a clear need for gender-conscious policy support that recognises the different innovation journeys between men and women.” “There is an urgent need to invest in support systems tailored for women-owned informal businesses, including microfinance, mentorship, training, and networking opportunities,” Dr Il-haam said.

She emphasized that investing in such innovation is essential for advancing rural and township economies, particularly in regions like KwaZulu-Natal. With right tools and opportunities, it will help to recognize the untapped potential of women-led enterprises.