In the South African business environment, are female entrepreneurs more suited to face disruption than men?
Lucinde Rhoodie, a Director at CDH, spoke to Jozi FM and emphasised the importance of recognising that female entrepreneurs often operated outside the mainstream business industry. Many women started businesses without fully understanding the available business and recovery options, the processes involved in business recovery, or the consequences of their business and negotiating decisions. Rhoodie stressed that access to practical and financial resources was crucial, as it enabled entrepreneurs to obtain the correct legal and business advice, both when setting up a business and throughout its operation.
Rhoodie also highlighted the necessity for business owners to thoroughly understand the contractual framework that would govern their business relationships. This understanding was vital because there was often an imbalance in negotiating contracts, regardless of whether it was a female or male entrepreneur. For example, interest or penalties are payable in the event of non-payment in terms of an agreement, or the consequences of exiting an agreement if the business relationship didn’t work out. Understanding these details upfront was crucial—never sign a contract just because it seemed short or straightforward.
