The implication of women entrepreneurs’ empowerment projects on poverty alleviation in South Africa : a case study of the Department of Small Business Development

Abstract

This study identified and examined the implication of women entrepreneurs’ empowerment projects on poverty alleviation in South Africa. The significance of this research study is in the contribution of its results and recommendations to the survival of women-owned projects. The target demographic consisted of thirty (30) women-led SMMEs in Durban and Johannesburg. Participants had to have been in business for five years, be a small-scale company owner, be African, be between the ages of 25 and 40, be registered with a women's business body, and be a cooperative member. Participants who met seven unique criteria were chosen. The investigation brought several critical concerns to light. For example, 100% of the selected respondents agreed that better access to loans and financial support from government institutions would help women-owned businesses succeed. The respondents stated that they frequently are unaware of government institutions that give finance and support to women in business and what they offer to entrepreneurs because this information is not readily available to them. In this study, the purposive sampling strategy was applied. The primary method of gathering data was through interviews. The study covers a fair deal of ground, with five major themes emerging from the thorough findings from the qualitative data and analyses. The emerging themes: used were staffing and impact, support, training and investment, the value of women entrepreneurs' empowerment projects and recommendations. The partnership between government and women-led projects was agreed upon by 75% of respondents as a tool for poverty alleviation and job creation. Furthermore, 80% recognise the study's strategic location; Durban and Johannesburg are accessible and convenient for new and current businesses. This suggests that Durban provides a competitive edge. Corruption (tender processes or assessments), bribery, and a lack of justice in government operations, notably to issue business, were identified as problems hindering the growth of 85% of respondents' firms. Recommendations on how women projects identified can be better empowered and managed to support their businesses and alleviate poverty in this country were provided by the selected number of women entrepreneurs interviewed. Women entrepreneurs should work together with the Department of Small Business Development (DBSA) as it is mandated by the government to assist entrepreneurs and focus on small business development. DBSA should lead by gaining insight into women's entrepreneurship using a literature study. Furthermore, the DBSA should determine the obstacles and socio-cultural constraints affecting women's entrepreneurial activities in both provinces (Gauteng and KwaZulu Natal), analyse the unique challenges women entrepreneurs face in starting and growing their businesses, and execute/implement programs such as development and support programs for women entrepreneurs and their needs. Research on entrepreneurship indicates that women launch companies more frequently than men, particularly in developing nations. These studies demonstrate the vital role that women entrepreneurs play in many economies' efforts to create jobs, generate income, and increase revenue. They also demonstrate how their business endeavours help to lessen the wealth gap that currently exists between men and women.