Profiling and identifying challenges facing women in small business in Capricorn District Municipality

Abstract

Governments worldwide have acknowledged the impact of Small, Micro and Medium (SMME) organisations on job creation, improvement of people’s standards of living and hence an overall impact on the economy. Women are playing an important role in contributing to countries’ economic development and better governance, and the well-being of their communities and households. In March 2007, about 45% of women were owning and managing a business. In a country like South Africa with a high unemployment rate a provision of better opportunities for women could lead to improvements in poverty reduction and accelerated economic growth. However in South Africa women involvement in entrepreneurship has remained constant despite a number of initiatives by the government. The existence of gender-related barriers thwarts the economic potential of women as entrepreneurs and workers. Such barriers have an adverse impact on enterprise development, productivity, and competitiveness in the economy. Consequently, addressing gender-specific barriers and other challenges to entrepreneurship and leveraging the full participation of women in the development of South Africa together represents a significant opportunity to unleash productive potential and to strengthen economic growth. It is therefore important to understand the environment in which these women operate and the challenges they face. The literature indicates that despite significant progress in creating an enabling environment for SMMEs, much work remains, with a majority of enterprises remaining in the nascent and 'baby business' phases (less than 3.5 years in existence). Research by the Global Entrepreneurship Monitor (GEM) suggests that the survival rate for start-ups in South Africa is low and that the opportunity forentrepreneurial activity is the lowest of all the reviewed developing countries (Allen et al, 2007:8; the DTI, 2008:48) A quantitative study design was employed for this project. A closed-ended questionnaire was sent out, focusing on women in small business in Capricorn District Municipality as a unit of analysis. Capricorn District Municipality has one thousand four hundred 1400 registered women business. One-hundred-and-fifty (150) questionnaires were sent out to the respondents and fifty two (52) questionnaires were returned. The research findings indicated that 29% of the women sought advice from business development services and from local business support centre respectively. While 23% of the women sought advice from business women association and 17% sought advice from other sources. 27% of the women indicated lack of business skills as the main stumbling block in the establishment of business while 23% indicated that they encountered inadequate access to finance and credit facility as the main problem of starting business. Most of the women consulted were from small and micro-enterprise, the writer could not get their views of the experiences in other sectors. The other challenges were that the sample was relatively small due to difficulties experienced in getting the number of women in small business in the Capricorn District Municipality.