Factors shaping the growth of women’s entrepreneurship in small and medium-sized retail enterprises in the eThekwini Municipality, Durban

Abstract

This study investigated the factors that shape the growth of women’s entrepreneurship in small and medium-sized retail enterprises in the eThekwini Municipality. Female entrepreneurs contribute significantly to the economy of eThekwini and South Africa as a whole, yet they remain underrepresented and receive inadequate research and policy making efforts to reveal their contributions. The intention of this research was to investigate the effects of global clichés on the ability of women to choose entrepreneurial careers and their ability to operate successful retail SMEs. It also explored the reasons why some women entrepreneurs seem to be trapped in unsuccessful environments that prevent the expansion of retail SMEs. This qualitative research used the purposive sampling method to select 44 participants according to the researcher’s interests. The criteria of inclusion were being (1) women entrepreneurs, (2) based in the eThekwini Metropolitan Municipality, (3) owners of retail business(es), and (4) active in SMEs. Interviews and participant observation were used to gather empirical data whilst secondary data came from published and unpublished studies, research reports, and policy documents. The NVivo software assisted to analyse primary data. The results revealed that 71 percent of female entrepreneurs have at least diplomas, 50 percent are married, whilst 41 percent are single. They have small families or no children. The majority (84 percent) of their businesses are Closed Corporations in clothing (27 percent), beauty salons (18 percent), restaurants (14 percent), and event management (11 percent), whilst the remaining businesses share 30 percent. They run these businesses as professionals. Respondents indicated mixed feelings and reactions to the equity of the South African government’s SME policies and taxes. Most respondents are aware of these policies but a critical number of individuals are still in the dark. Among those who are aware about these policies, some are happy, other are unhappy for different reasons. Start-up capital mostly came from individuals’ savings, with some respondents having used more than one source to obtain the first investment for their business. Female business owners have received financial support from existing financial institutions. Among those who did not receive any, 61 percent have not applied for any loan. They therefore rely on family members (92 percent) for different kinds of assistance. Different motives (diverse sources of income, employment creation for themselves and others, the dream of creating businesses) motivated individuals to create businesses. Access to capital (human and social capital) features prominently in these businesses, from inception to management, growth, and expansion. Gender stereotypes play different roles in the businesses depending on their natures, settings and market niches, where they occur and are applied.