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South African Women Entrepreneurs: Challenges and Coping Strategies

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Book cover Challenges to African Entrepreneurship in the 21st Century

Abstract

South African women, especially Black South African women, who aspired to be entrepreneurs, faced daunting challenges during the apartheid era and formidable challenges in the post-apartheid era. This chapter analyzes the obstacles faced by South African women during both periods and evaluates government policies that mediated or created difficulties for South African women entrepreneurs. It argues that the primary challenges for aspiring women entrepreneurs are issues of race, gender, geographic location, access to finance, education and training, a supportive socio-cultural environment, the absence of networks and mentors, and the lack of business management skills for starting up new ventures.

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Notes

  1. 1.

    Madelyn Geldenhuys , “Demographics of Women in the Workplace: A South African Perspective,” in A. Bosch, The SABPP Women’s Report (Johannesburg, South Africa: SABPP, 2011), 13.

  2. 2.

    V. Naidoo , and M. Kongolo , “Has Affirmative Action Reached South Africa?” Journal of International Women’s Studies (2004): 124.

  3. 3.

    Ibid., 128.

  4. 4.

    Sisonke Msimang , “Affirmative Action in the New South Africa: The Politics of Representation, Law and Equity,” Women in Action (2001).

  5. 5.

    Debra Shepherd . “Post-Apartheid Trends in Gender Discrimination in South Africa: Analysis through Decomposition Techniques.” Stellenbosch Economic Working Papers. Department of Economics, University of Stellenbosch, Matieland, South Africa, 2008, 5.

  6. 6.

    Naidoo and Kongolo , “Affirmative Action,”128.

  7. 7.

    Msimang , “Affirmative Action.”

  8. 8.

    Department of Women, Republic of South Africa, The Report on the Status of Women in South African Economy (Pretoria, South Africa: Government Printer, 2015).

  9. 9.

    Strategic Business Partnerships, Understanding Women Entrepreneurs in South Africa (Johannesburg, South Africa: Strategic Business Partnerships, 2013), 1.

  10. 10.

    Department of Women, “Report.”

  11. 11.

    ONE (Organization for Non-profit Executives). August 26, 2015. “Africa: Policy,” 3. http://www.one.org

  12. 12.

    CHE (Council on Higher Education). January 22, 2016. “CHE: Focus Areas, 2013 Higher Education Data, Participation.” http://www.che.ac.za

  13. 13.

    Ibid.

  14. 14.

    Elizabeth Chinomona and Eugine Tafadzwa Maziriri , “Women in Action: Challenges Facing Women Entrepreneurs in the Gauteng Province of South Africa,” International Business and Economics Research Journal (2015): 835.

  15. 15.

    KPMG (Klynveld Peat Marwick Goerdeler, KMPG Women’s Leadership Study Moving Women Forward into Leadership Roles (New York: KPMG International, 2015), 7. http://www.kpmg.com

  16. 16.

    A company was considered a ‘Top Performing Company’ if 25 per cent or more of director positions and 25 per cent or more of Executive Manager positions were held by women.

  17. 17.

    Lynsey Chutel . “Women’s business/You’re a Girl, and Other Obstacles to Becoming an Entrepreneur in South Africa.” Quartz. https://qz.com/. May 27, 2016.

  18. 18.

    A.T. Agbenyegah , Challenges Facing Rural Entrepreneurship in Selected Areas in South Africa (Potchefstroom, South Africa: North-West University, 2013), 41.

  19. 19.

    Steven Gedeon , “What is Entrepreneurship?” Entrepreneurial Practical Review (2010): 30.

  20. 20.

    B. Malabie , Accessing South Africa’s Potential (Johannesburg, South Africa: ABSA, 2013), 1.

  21. 21.

    Iris Dempsey , The Entrepreneurial Dialogues, State of Entrepreneurship in South Africa (Johannesburg, South Africa: FNB, 2012), 2.

  22. 22.

    Government of South Africa. 2011. Publications: Statistical Release: Census 2011. http://www.statssa.gov.za. Accessed October 20, 2012.

  23. 23.

    Seed Academy, Seed Academy’s Startup Survey Results (Johannesburg, South Africa: Seed Academy, 2016).

  24. 24.

    Department of Trade and Industry. South African Women Entrepreneurs, A Burgeoning Force in Our Economy (Pretoria, South Africa: DTI, 2005), 10.

  25. 25.

    T.T.B. (Thembinkosi Thulani Blessing) Buthelezi , Exploring Women Entrepreneurship in the Construction Industry (Potchefstroom, South Africa: North-West University, 2011), 44.

  26. 26.

    Angel Investors usually are wealthy former entrepreneurs or executives that have business experience. They provide capital to early stage businesses usually in exchange for equity or convertible debt. Angels generally only invest in companies that they believe have an earning potential because they expect to earn their investment back with a profit.

  27. 27.

    Tendai Chimucheka , The Impact of Entrepreneurship Education on the Performance of Small, Micro and Medium Enterprises in the Buffalo City Metropolitan Municipality (Alice, South Africa: University of Fort Hare, 2012), 27.

  28. 28.

    Mike Herrington and Penny Kew, South African Report 2015/16. Is South Africa Heading for an Economic Meltdown? (Cape Town, South Africa: GEM (Global Entrepreneurship Monitor), 2015/2016).

  29. 29.

    Ibid., 36.

  30. 30.

    Buthelezi , Exploring Women, 44.

  31. 31.

    Herrington and Kew , South African Report, 36.

  32. 32.

    Buthelezi , Exploring Women, 47.

  33. 33.

    R.C. O’Neill and Laetitia Viljoen , “Support for Female Entrepreneurs in South Africa: Improvement or Decline?” Journal of Family Ecology and Consumer Sciences (2001): 37–44.

  34. 34.

    Joan Winn , “Entrepreneurship: Not an Easy Path to Top Management for Women,” Women in Management Review (2004): 143–153.

  35. 35.

    Susanne E. Jalbert . March 17, 2000. “Women Entrepreneurs in the Global Economy.” Retrieved from Word Press Web site. https://wordpress.com. numerons.files.wordpress.com/2012/04/17women-entrepreneurs-in-the-global-economy.pdf

  36. 36.

    Strategic Business Partnerships, Understanding Women, 9.

  37. 37.

    Penny Kew , Natasha Turton , Mike Herrington , and Jens Dyring Christensen , The State of Youth Entrepreneurship in the Free State: A Baseline Study of Entrepreneurial Intentions and Activity Amongst Young Men and Women (Geneva, Switzerland: International Labour Organisation, 2013).

  38. 38.

    Buthelezi , Exploring Women, 47.

  39. 39.

    Sunita Valla , Barriers Facing Female Entrepreneurs: A Study in the Gauteng Province, South Africa (Cardiff, Wales: University of Wales, 2001), 42.

  40. 40.

    Seed Academy (2016).

  41. 41.

    Megan Witbooi , and Wilfred Ukpere , “Indigenous Female Entrepreneurship: Analytical Study on Access to Finance for Women Entrepreneurs in South Africa,” African Journal of Business Management (2011): 5651.

  42. 42.

    Ewere Deborah Agholor , Wilhelmina Smith , Adewala Oyelana Akeem , and Idowu Ibrahim Seriki , “Challenges Faced by Women Entrepreneurs and Strategies Adopted by Women Entrepreneurs to Ensure Small Business Success in Nkonkobe Municipality, South Africa,” Journal of Economics (2015): 37–49.

  43. 43.

    E. Chiloane-Tsoka and D.M. Mello , “Government Mentorship Programmes for Women Entrepreneurs in Tshwane, South Africa,” Journal of Public Administration (2011): 1451.

  44. 44.

    Agholor et al., “Challenges,” 47.

  45. 45.

    Buthelezi , Exploring Women, 52.

  46. 46.

    Department of Trade and Industry. National Strategy for the Development and Promotion of Small Business in South Africa (Pretoria, South Africa: Government Printer, 1995), 12.

  47. 47.

    Ibid., 32.

  48. 48.

    Ibid., 32.

  49. 49.

    Ibid., 38.

  50. 50.

    Ibid., 48.

  51. 51.

    Shared Interest. November 9, 2016. “Shared Interest: Impact. Impact stories.” Shared Interest Web site http://www.sharedinterest.org/impact-stories

  52. 52.

    Thembani International Guarantee Fund (TIGF) uses loan and grant capital raised from individuals and organizations in the United States and Europe as security for guarantees to cover loans from South African banks . They build economically self-sufficient and healthy communities in South Africa through the guarantees it places and manages. Enclude Solutions delivers advisory services, connects clients with financial resources that drive real, sustainable growth in emerging economies, delivers meaningful returns, and strengthens businesses and institutions and the entrepreneurs, enterprises, and communities they serve.

  53. 53.

    Donna Katzin . March 8, 2016. Home Gender Lenses Shared Interest: Loan Guarantees—and System-Change—for Women in South Africa. Retrieved from Impact and Alpha Investment News for a Sustainable Edge. http://impactalpha.com/shared-interest-loan-guarantees-and-system-change-for-women-in-south-africa/

  54. 54.

    Shared Interest. 2015 Annual Report (New York: Shared Interest, 2015). Shared Interest Web site. http://www.sharedinterest.org/annual report

  55. 55.

    Shared Interest, 2016.

  56. 56.

    Shared Interest, 2015: 5.

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Sekatane, M.B. (2018). South African Women Entrepreneurs: Challenges and Coping Strategies. In: Opoku, D., Sandberg, E. (eds) Challenges to African Entrepreneurship in the 21st Century. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-61000-9_4

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