Women Entrepreneurs Lead 21% of Malaysian SMEs, Reports Strive Malaysia

• Women entrepreneurs gain ground in Malaysia making up 21 % of all SMEs, marking steady growth in female-led business activity
• Women-Owned SMEs powering progress with nearly 242,000 micro and small women-led businesses strengthening the nation’s business ecosystem
• Encouraging signs of gender equity in employment shown where female participation has increased to 56.3 percent

Strive Malaysia’s latest finding reveal that MSWEs, which meet the 51 percent ownership, management, and control threshold, now represent 21 percent of all SMEs nationwide, highlighting a steady climb in female-driven economic participation.

Strive Malaysia highlighted that round 241,767 micro and small women-led enterprises are helping power that nation’s business ecosystem. SMEs form 97.4 percent of all businesses in Malaysia, making MSWEs a meaningful contributor. Women-Owned SMEs is powering progress. Still, the firm noted that the country faces a gender disparity challenge as it works toward a 60 percent female labor force participation rate by 2033.

While women’s participation in the workforce has climbed slightly to 56.3 percent, men still lead significantly at 82.9 percent, according to recent figures. The widening awareness around this gap brings renewed attention to the structural and cultural shifts still needed to balance opportunity and access in the labor market.

With nearly MYR 470 million ($107 million) allocated for women-led entrepreneurs, the Government is reinforcing its commitment to inclusive growth. According to this, this initiative reflects a broader collaboration between public and private sectors to elevated women’s roles in business and society.

Juggling business demands with caregiving and household roles is a reality for 97 percent of women entrepreneurs in Malaysia, the study revealed. Time poverty, rooted in traditional gender expectations, remains the foremost challenge, reflecting the broader cultural context in which these women operate.

A clear gap remains between digital fluency and its strategic use in entrepreneurship. Women-led micro and small enterprises often have the skills, but not the guidance or resources, to convert digital engagement into business results. Driven by the determination and creativity, women entrepreneurs are reshaping industries across the nation. Women-led enterprises are reshaping Malaysia’s business environments.

Although a strong majority of MSWEs over 80 percent, a digitally literate and active on social media platforms, the study noted that these channels are often used more for personal connection than business development. This points to a missed opportunity for digital transformation in women-led enterprises.

“In 2024, the Ministry of Human Resources, through TalentCorp, introduced Wanita MyWira to address workforce gaps by enabling more women to participate fully in Malaysia’s economy,” “As the agency driving national talent strategies, we are committed to supporting women’s career journeys – from re-entry to leadership, and strengthening their long-term contribution to the workforce,” said Natasha Alias, Head of Wanita MyWira at TalentCorp.