Gender war: Why businessmen use smartphones, internet more than businesswomen
- An IFC-World Bank research has found that women in small businesses are less likely than men to adopt digital technology
- Data used for the report was extracted from a survey of over 3,000 microenterprises from seven African countries
- The research also showed that only about 7% of microenterprises use smartphones and computers for business
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Women working in small businesses are less likely to use digital technologies in Africa. Digital technologies include smartphones, computers, the Internet, online banking, etc.
This is according to research by the International Finance Corporation (IFC) in collaboration with the World Bank titled, "Digital Technologies Are a Useful Yet Underutilized Tool for African Microenterprises."
Source: UGC
According to the report, men in small businesses were 3.3 times more likely to use computers than women. Men are also 2.4 times more likely to use the internet to find suppliers.
By comparison, the gender gap exceeds the generational gap in digital tech use, with younger employees 1.6 times more likely to use a smartphone than older colleagues.
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The research also showed that only about 7% of microenterprises use smartphones and computers for business, while 71% of responders insist they do not necessarily need them.
A PricewaterhouseCoopers (PwC) report titled Impact of Women on Nigeria's Economy stated that Nigerian women account for 41% of micro-business ownership in Nigeria, with 23 million female entrepreneurs operating within this segment.
The use of digital technology has been linked to the elevated performance of businesses in increasing productivity, improving sales and accelerating profits and wages. It is powerful enough to drive economic growth and expand social opportunities.
Uses of digital technology by gender and age groups
Data used for the report was extracted from a survey of 3,325 microenterprises from Nigeria, Tanzania, Mozambique, Ghana, South Africa, Kenya and Senegal.
Participants in the survey were picked from different sectors, including agribusiness, trade, manufacturing, etc.
Seventy-three per cent of businesses surveyed were from the informal sector, while the remaining 27% were from the formal sector (legally registered entities).
In establishing the integrity of its findings, the report divided the genders into groups - older men, older women, younger men and younger women.
For 2G/2.5G mobile phones, only 69% of young women used them for their business. At the same time, 71% of older women, 71% of younger men and 76% of older men used it for business.
Meanwhile, 6% of younger women, 3% of older women, 13% of younger men and 8% of older men working in small businesses use smartphones.
Also, 5% of younger women, 3% of older women, 11% of younger men and 6% of older men working in small businesses used the Internet to understand customers.
Furthermore, 1% of younger women, 2% of older women, 5% of younger men and 3% of older men working in small businesses used the Internet to find customers.
Six per cent of younger women, 3% of older women, 13% of younger men and 8% of older men working in small businesses used the Internet to find suppliers.
Conclusively, 1% of younger women, 2% of older women, 3% of younger men and 2.5% of older men working in small businesses used the Internet for online banking.
Why are small businesses not adopting enough digital technology
Even though the report showed that a large percentage of small businesses claim to have little need for digital technology, there are, however, several factors responsible for the low adoption of digital technology.
These factors include a lack of proper infrastructure, access to high-speed Internet connectivity, access to microfinancing, and a lack of stable electricity.
African countries with the highest number of women entrepreneurs
In an earlier story, Legit.ng reported that the 2021 Mastercard Index of Women Entrepreneurs ranked Botswana, Uganda and Ghana as the countries with the highest number of female entrepreneurs for the third consecutive year.
Botswana came tops with a 38.5% increase in women who run businesses in the country, followed by Uganda at 38.4% and Ghana at 37.2%.
The report states that Nigeria, Angola and Ghana ranked first in the world in the women’s Entrepreneurial Activity Rate in the MasterCard Index of Women Entrepreneurs, 2021.
Source: Legit.ng
