Women-led enterprises in Zimbabwe play a vital role in economic growth, job creation, and poverty alleviation. Nowhere is this more evident than at Makoni Business Center, a thriving commercial hub where women dominate the business landscape in sectors such as retail, agriculture, and services. However, despite their significant presence, these businesses face numerous challenges, with one of the most critical being the lack of insurance coverage.
The Insurance Gap Among Women Entrepreneurs
A recent survey conducted in Makoni Business Center revealed a concerning trend: while women-owned enterprises are a driving force in the local economy, only 15% have some form of insurance, leaving a staggering 85% uninsured. This lack of coverage exposes these businesses to risks such as theft, fire, supply chain disruptions, and workplace accidents.
Some specific cases illustrate the impact of this issue:
Zara’s Boutique, a small clothing store, remains without property insurance, leaving it vulnerable to losses from theft or fire.
Green Harvest Produce, an agricultural vendor, lacks business interruption insurance, making it susceptible to financial strain from supply chain disruptions.
Luxe Hair Studio operates without liability insurance, which means any workplace accident could result in costly legal or medical expenses.
Barriers to Insurance Coverage
When asked why they had not insured their businesses, many women entrepreneurs cited multiple barriers, including:
1. High Insurance Premiums – Many small business owners, including Linda of Luxe Hair Studio, found the cost of premiums unaffordable, making insurance seem like a luxury rather than a necessity.
2. Lack of Accessible Insurance Services – Tariro of Green Harvest Produce pointed out the absence of nearby insurance agents, making it difficult for business owners to access information and purchase suitable coverage.
3. Complex and Incomprehensible Policies – Zara, the owner of Zara’s Boutique, expressed frustration over the complicated nature of insurance policies, which discouraged her from seeking coverage.
These challenges have forced women entrepreneurs to rely on informal risk management strategies, such as savings clubs and family support. While these methods offer some financial cushion, they do not provide adequate protection against major financial shocks.
The Need for Innovative Solutions
The glaring insurance gap at Makoni Business Center highlights the urgent need for innovative and accessible solutions to protect women-led enterprises. Some potential interventions include:
Affordable Micro-Insurance Products – Insurance companies should design policies with lower premiums tailored to the needs and financial capabilities of small businesses.
Simplified and Transparent Policies – Providing clear, easy-to-understand insurance options would encourage more business owners to seek coverage.
Improved Access to Insurance Services – Expanding outreach programs and establishing local insurance agents would make it easier for women entrepreneurs to access insurance products.
Financial Literacy and Awareness Campaigns – Educating business owners about the importance of insurance and how it works could help them make informed decisions about risk management.
Conclusion
Women entrepreneurs in Makoni Business Center are key contributors to the local economy, yet they remain vulnerable due to a lack of insurance coverage. Addressing this issue requires a collaborative effort from policymakers, financial institutions, and insurance providers to develop accessible, affordable, and well-communicated insurance solutions. By closing the protection gap, Zimbabwe can empower women-led businesses to thrive, ensuring long-term economic resilience and stability.