Empowering Change from the Ground Up: Women’s Entrepreneurship in Sub-Saharan Africa’s Informal Sector

Abstract

Women’s entrepreneurship in Sub-Saharan Africa (SSA) is a critical driver of socio-economic development, within the informal sector where women enterprises are concentrated. Despite substantial contributions, structural and institutional barriers impede the formalization of these businesses, curbing their economic impact. This study examines how women entrepreneurs in Ghana and SSA navigate informal practices to achieve economic mobility. Employing a systematic literature review - PRISMA framework, the research synthesizes key themes including entrepreneurial capacity, sustainability, intellectual property, and institutional support. A comparative lens incorporating Rwanda and South Africa reveals Ghana’s high rate of female entrepreneurship, predominance of informal trade, and socio-cultural dynamics that shape entrepreneurial trajectories. The study advances discourse on informal entrepreneurship by highlighting its necessity-driven nature and underscoring the pivotal role of policy environments in facilitating formalization. The findings offer actionable insights for policymakers and development practitioners aiming to strengthen support systems and promote inclusive economic growth across the region.