Digital transformation as an engine for growth for women-owned enterprises 

The COVID-19 pandemic has ushered in a new era of digitalisation. Lockdowns and social distancing have drastically changed how business is done. From the rise of video conferencing among employees to the creation of virtual product and service offerings, embracing technology and using it to adapt, even transform, a business has been critical to survival during these pandemic times. 

Many of these changes are likely here to stay with evidence pointing to the ongoing use of digital tools as necessary, beneficial and soon to be “not optional”.

Around the world, digital transformation has had a growing impact on small and medium enterprises (SMEs) offering new ways to participate in the global economy.

But for many women-owned SMEs in Sri Lanka, there is tremendous need for advice, support and guidance from credible sources to help them with the transition. There is an even greater number whose inability to access and use the latest technology to grow and transform their businesses is a huge barrier to success.

Even though digital transformation is vital to their ability to stay in business, it is not an equitable option for women. Yet it should be. Women-owned businesses are the engines of economic growth in their communities and across the nation—and opportunities extend beyond Sri Lankan borders. Expanding internet access and increasing smartphone use has opened up avenues for SMEs to connect with the global marketplace. Their success—and the necessary digital transformation—are, therefore, critical to the long-term economic health of Sri Lanka.

While the digital industry is one of Sri Lanka’s fastest-growing sectors and a thriving, fast-growing tech start-up ecosystem exists, these advances have not yet brought about inclusive economic growth at scale. This is why it is necessary for policymakers to engage in building a more inclusive ecosystem for local SMEs. 

The Government’s “Building a Technology-based Society” as a key national initiative adopted in 2019 was timely as it began to create the environment necessary for a country-wide digital transformation. [Digital Economy of Sri Lanka: National Goals and Lessons from the South (unctad.org)] Yet it is essential to ensure that women business owners are not left behind by addressing the existing gaps in infrastructure, access to markets, access to finance and business skills.

One of these gaps is the need for broader penetration of high-speed broadband extending into rural areas to reach all enterprises, particularly women-owned SMEs. According to the Sri Lankan Department of Census and Statistics, 25% of SMEs are run by women with a higher percentage of these enterprises operating in rural areas. [Sri Lanka businesses; 90% sole ownership, 25% run by females: Census and Statistics Dept. – Lanka Business Online] Much like in other South Asian developing nations, there is a larger digital divide between women in metropolitan centres versus villages, as compared to men.

But the digital infrastructure is just the first step. Women-owned SMEs need access to new markets for revenue and may need access to external finance to build their technology infrastructure and know-how, including intangible digital assets. 

The skills gap must be addressed as well. According to the Sri Lanka Department of Census and Statistics, the 2020 Sri Lanka digital literacy rate was 53% for males and 46.2% for females and the computer literacy rate was 33.9% for males and 30.4% for females. [http://www.statistics.gov.lk/PressReleases/ComputerLiteracystatistics-2020-Firstsixmonths]

Digital literacy today is a launching pad for women business owners to capitalise on the innovations in information and communication technology (ICT) that have transformed business. Such literacy will enable them to use the internet to communicate with buyers and sellers instantaneously, at a relatively low cost without geographic boundaries. Digitalisation will offer these businesses the opportunity to gain new insights into clients, materials and processes and apply the learnings to grow and expand their businesses. 

Public-private partnerships can help to accelerate the closing of this skills gap by providing women business owners relevant business education, training and upskilling. For example, the WEConnect International “Women’s Empowerment Through Economic Inclusion”, funded by the U.S. Department of State’s Bureau of South and Central Asian Affairs, provides training to women-owned SMEs on access to markets. Topics such as cybersecurity and leveraging technology for business development and brand building are providing women business owners with new tools for success. 

Digitalisation also offers something else that is extremely important to these women business owners: the opportunity to streamline their businesses, creating efficiencies that will enable them to better balance their family and caregiving roles—truly transforming their lives.

As a woman who has dedicated her professional life to helping other women succeed, I’m excited about the opportunities in Sri Lanka. I look forward to the day when Sri Lankan women business owners are better able to leverage digitalisation at scale to grow and expand their businesses and, in doing so, spur economic growth across the country. I hope for the day when more women learn computing and digital skills, and by doing so will improve their revenue—perhaps being hired by a woman-owned enterprise. I anticipate that with these new skills, some of these women will start and grow their own businesses, delivering innovative solutions, creating quality jobs and investing their profits back into their businesses, families and communities. 

I am confident this can happen in Sri Lanka because I have witnessed such resolve and resilience in women business owners around the world as they leverage technology to catapult themselves and their businesses and communities forward. 

Sri Lanka has much to gain from enabling a fast and fair digital transformation that reaches across the entire country with a specific focus on women-owned enterprises as a powerful channel for measurable impact because of the unique way women build their businesses and reinvest in others.

(The writer is the CEO and Co-Founder, WEConnect International and a world leader in women’s economic empowerment and global supplier diversity and inclusion. She is the co-author of the book, “Buying for Impact: How to Buy from Women and Change Our World.”)