An investigation into challenges of women entrepreneurship development in Soweto, South Africa

Abstract

The study was conducted in Soweto, South Africa. The objective of the study was to determine the development and challenges of women entrepreneurs in Soweto, South Africa and to identify possible opportunities and improvement of women's businesses. In this study, the variables that were looked at were the motivational factors that influence women entrepreneurs to establish their own ventures, the contribution of women in the economic force of the country, the challenges that women entrepreneurs are facing in businesses, the support and developmental needs; and the possible opportunities for improvement. The key findings indicate that women were motivated by pull and push factors to start up a business. The need for flexible schedules appeared to be the factors to start up a business, followed by need for independence. The other factor is that these women had a desire for wealth. Annual turnover was also a factor, whilst difficult to ascertain with accuracy, provided a useful alternative indicator of business size and sophistication, and possibly of potential for growth. The challenges facing women in South Africa have been identified in this research as limited access to obtain funding; high corruption in procurement offices; high interest rates from banks, insufficient education and training, and difficulty to access market as well as cash flow problem. The above-mentioned challenges have priority over the women's businesses. The developmental needs and support for women entrepreneurs were found to be clear policies, organizations established in assisting women in businesses and the training needs that are supporting women entrepreneurship. Early payments by customers including Government should be facilitated and proper plans for enhancing entrepreneurial women together with education and training should be continuous.