Mastercard: Gen Z women lead entrepreneurial surge

Mastercard's latest research highlights a growing entrepreneurial spirit among women, with 51% worldwide considering starting their own business.

This trend is particularly strong in Southeast Asia, where nearly half of women in Singapore (48%), a majority in Indonesia (79%), and a striking 81% in Thailand have explored entrepreneurship.

In Singapore and Indonesia, these numbers increase significantly among women in younger generations, with 64% of Gen Z women in Singapore and an even higher 87% in Indonesia considering business ownership. The data alludes to a generational shift in who is embracing entrepreneurship.

For women in Singapore, Thailand and Indonesia, entrepreneurship is driven by the desire for greater control over their careers and personal aspirations. In Singapore, the top motivations include the desire for more flexible hours (63%), the ability to pursue their dreams (55%), and a need for more flexibility in general in their working lives (53%). Similarly, in Thailand, many women are motivated by the ability to pursue their dream (50%), along with recognising a gap in the market (54%) and feeling that the timing is right in their lives (42%).

In Indonesia, the top three motivators are the desire for a better work/life balance (55%), the ability to pursue their dreams (55%), and the need for more work-life flexibility (49%).

Alongside formal business ventures, women globally show increased interest in starting a side hustle, with four in 10 (42%) women wanting to do so to make money outside of their main job, with the numbers again rising among Gen Z women (61%). In Singapore, over a third (35%) of women already have a side hustle, rising to 44% among female millennials. In Thailand, nearly six in 10 (59%) women currently run a side business, primarily to increase their earnings (67%), create a financial safety net (49%), and build new skills (47%). Similarly, in Indonesia, six in 10 (60%) women have a side hustle, with the figure rising to 69% among female millennials. Their top motivations include earning more money (65%), gaining financial independence (52%), and saving towards a specific goal (51%).

Purpose-led Gen Z

•  Gen Z women are also most likely to want to start a business to do ‘something good for the world’ (20% vs. 16% millennials, 15% Gen X and 17% Baby Boomers).
• Of those who have already started their own business, Gen Z women are significantly more likely to say they did so to pursue their dream (49%) than Gen X (36%) or Baby Boomers (35%).
• Gen Z women founders are also more likely to say they were motivated by the belief their idea can change lives for the better (25% vs. 20% global women average).

In this vein, education and childcare are among the top sectors that Gen Z women would like to start a business in. The most popular industry is cosmetics and beauty – potentially driven by rise in beauty influencers on social media, with a 22% rise in beauty content on TikTok year-over-year.

Top sectors Gen Z women would like to start a business in:

1. Cosmetics (25% vs. 7% global average among women)
2. Food and drink (18% vs. 16% global average among women)
3. Online seller (17% vs. 16% global average among women)
4. Education e.g. tutor (14% vs. 8% global average among women)
5. Childcare (11% vs. 9% global average among women)

Top sectors women in Southeast Asia would like to start a business in:
Women in Singapore, Thailand, and Indonesia are most interested in starting businesses in the following industries:

1. Food and drink
a. 26% of women in Singapore
b. 31% of women in Thailand
c. 52% of women in Indonesia

2. Online seller
a. 20% of women in Singapore
b. 28% of women in Thailand
c. 33% of women in Indonesia

3. Education
a. 15% of women in Singapore
b. 20% of women in Indonesia

4. Wholesale, retail and franchising
a. 25% of women in Thailand

5. Cosmetics
a. 22% of Gen Z women in Indonesia (vs. 7% average across all generations)

Barriers facing women entrepreneurs

Despite evident appetite for entrepreneurship, the research shows that for many women, including those who have already started a business, there are still barriers in place preventing them from fully thriving in the
ecosystem.

Women are less likely to say they feel confident in general business-related skills – particularly financial decision making (30% vs. 41% for men), public speaking (26% vs. 34%), networking (23% vs. 34%) and identifying new business opportunities (13% vs. 24%). This low confidence extends into running their own business. While lack of funding (34%) or financial resource (33%) are reported as the biggest challenges to women starting a business, women are more likely than men to say lack of confidence is a hurdle (26% vs. 22% of men).

In Singapore, 37% of women feel business ownership isn't achievable, with the sentiment rising among Gen Z (46%) and Baby Boomers (49%). Similarly, in Thailand, 31% of women feel starting a business isn’t possible, which increases to 43% among Gen Z. In Indonesia, nearly four in 10 (38%) women also feel entrepreneurship isn't attainable for someone like them. Additionally, 58% of Indonesian women cite a lack of money as a key deterrent.

For all three countries, lack of confidence is a key barrier, with 40% of women in Thailand citing it compared to 25% of men, and confidence also being an obstacle in Singapore. In Indonesia, 27% of women also say a lack of confidence prevents them from starting a business, compared to 17% of men. Women in Thailand and Singapore are also more risk-averse, with 45% of women in Thailand and 47% of women in citing fear of failure as a major barrier to entrepreneurship.

Women who have already founded a business also say they struggle disproportionately with caring responsibilities and work-life balance, with women founders twice as likely as men to say childcare arrangements were a challenge when starting their business (12% vs. 6%).

In both Singapore and Thailand, women are twice as likely as men to face challenges in balancing caregiving responsibilities with running their business (31% of women in Thailand vs. 14% of men; 45% of women in Singapore vs. 17% of men). In Indonesia, managing childcare arrangements is a key challenge for 24% of women, compared to just 6% of men. Other obstacles for women in all three countries include difficulty securing funding (42% in Thailand, 40% in Singapore, 58% in Indonesia), lack of experience (43% in Thailand, 37% in Singapore), and a lack of peer networks (31% in Thailand). Additionally, women in Indonesia face barriers like being too busy with their job (34%) and not knowing how to start a business (25%).

Support needed

In Singapore and Thailand, women identified several forms of support that would help them overcome barriers and feel more confident in starting a business.

In Singapore, the most common suggestions include training on developing a business plan (31%), access to amentor (29%), and having a business partner (28%). The top responses in Thailand include having dedicated time for business development (36%), more accessible grants for small businesses (37%), and training on using AI tools to address business challenges (37%), with AI training being especially valued by millennials (42%). Similarly, in Indonesia, the most common response among women was having dedicated training on how to develop a business plan (40% vs. 43% of men).

Younger women are also more likely than older generations to feel they’d benefit from a support network, with 31% of Gen Z women saying having a business partner would make them more confident, and a similar proportion (29%) saying access to a mentor. Interestingly, these factors score even higher than access to grants (25%) for this generation.

This sentiment is also reflected in Southeast Asia. Young women in Singapore, particularly Gen Z, are especially keen on joining networks of other entrepreneurs, with 36% valuing this support compared to 23% of women overall. Among Thai women as well, mentorship is seen as crucial for business development, with 33% of women (compared to 37% of men) emphasising its importance. In Indonesia, a third of women (33%) express interest in becoming part of a network of other entrepreneurs, with this rising to 39% among millennial women.

Deborah Heng, country manager, Singapore at Mastercard, said: “This research highlights the remarkable entrepreneurial spirit among women worldwide, particularly within younger generations. It’s inspiring to see so many women in Singapore driven by the ambition and determination to start their own businesses. Despite the progress made by women entrepreneurs, the findings also underscore the challenges that still exist. These barriers emphasise the need for fast and meaningful change to create an environment where all entrepreneurs can thrive. Whether its supporting women entrepreneurs through the Strive Indonesia initiative with
digitalisation and access to credit, or partnering with the Asian Development Bank through the Mastercard Impact Fund to establish a $1 billion credit facility for small businesses across Asia Pacific (including Indonesia and Thailand), Mastercard is committed to building an inclusive digital economy where small businesses are empowered with the solutions and support they need to grow and succeed.”

Across the world, Mastercard is spearheading numerous initiatives that support entrepreneurs. Since 2020, Mastercard has provided over 50 million small businesses including 37 million women entrepreneurs with support and solutions that can help them grow their businesses.

Re-disseminated by  Wealth and Society