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High mobile data costs hinder female entrepreneurs in developing nations

Recent research highlights that the prohibitive cost of mobile data packages is a significant barrier for female entrepreneurs in developing countries. A report by the Cherie Blair Foundation for Women reveals that many women are unable to access the internet regularly, limiting their business potential and growth.

Key takeaways

  • 45% of women in low- and middle-income countries lack regular internet access due to high costs.
  • 92% of surveyed women own smartphones, but access to broader internet services is limited.
  • 57% of women experience online harassment while selling products.
  • Closing the gender gap in mobile internet usage could boost GDP in developing countries by $1.3 trillion by 2030.

The digital divide for women

The report surveyed nearly 3,000 female entrepreneurs across 96 developing countries, revealing that while social media marketing is crucial for their businesses, many women are unable to leverage these tools effectively. The majority of respondents run businesses in sectors such as food, fashion, and agriculture, relying on their mobile phones to connect with customers, process digital payments, and promote their offerings.

Despite 92% of these women owning smartphones, 45% reported not having regular internet access, primarily due to the high costs associated with mobile data. Many women resort to using platforms like WhatsApp and Facebook, which are often included in cheaper mobile packages, but this limits their ability to engage in e-commerce.

Barriers to online business

The report highlights several barriers that female entrepreneurs face in the digital economy:

  • Privacy concerns: 36% of women do not use their real names online, and 41% avoid posting photos to protect their identities.
  • Safety issues: 57% reported experiencing harassment while selling online, leading to fears of aggressive negotiations, violence, and unwanted advances.
  • Limited e-commerce usage: Only about a quarter of the women surveyed used e-commerce platforms like Amazon or Alibaba, indicating a significant gap in online business engagement.

The economic impact of closing the gap

Research indicates that women in low- and middle-income countries are 15% less likely to use mobile internet than men, with this figure rising to a third in regions like South Asia and Africa. Addressing this disparity could unlock substantial economic potential, with estimates suggesting that closing the gender gap in mobile internet access could contribute an additional $1.3 trillion to the GDP of developing countries by the end of the decade.

Recommendations for improvement

The report calls for urgent action from both governments and technology companies to support female entrepreneurs:

  • Investment in mobile data networks: Developing countries should enhance connectivity and reduce costs associated with mobile data.
  • Robust safety measures: Technology companies need to implement stronger protections against online harassment to create a safer environment for women in business.

As the digital landscape continues to evolve, it is crucial that female entrepreneurs are not left behind. Ensuring equitable access to mobile internet and creating a safer online space will empower women to thrive in the digital economy, ultimately benefiting entire communities and economies.

Sources

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By The Business Listing
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