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The Impact of Gender on Start-up Capital: A Case of Women Entrepreneurs in South Africa

Author

Listed:
  • Evelyn Derera

    (Evelyn Derera is a PhD candidate at School of Management, IT & Governance, University of KwaZulu-Natal, Scottsville, Pietermaritzburg, South Africa.)

  • Pepukayi Chitakunye

    (Pepukayi Chitakunye is a senior lecturer at School of Management, IT & Governance, University of KwaZulu-Natal, Scottsville, Pietermaritzburg, South Africa.)

  • Charles O’Neill

    (Charles O’Neill is a research fellow at School of Management, IT & Governance, University of KwaZulu-Natal, Scottsville, Pietermaritzburg, South Africa.)

Abstract

In South Africa, women entrepreneurs do not enjoy the same opportunities as men in accessing start-up capital due to a number of discriminatory practices embedded in lending models. This study seeks to understand the gender-specific barriers to raising start-up capital, and adopts a mixed methods approach that includes semi-structured interviews with experts and a survey of women entrepreneurs. All participants were from the small business sector in Pietermaritzburg, KwaZulu-Natal, South Africa. The findings revealed the gendered nature of start-up capital for women entrepreneurs in South Africa, and the difficulty women face in venturing into non-traditional industries. The findings build on previous research by focusing on the intersection between women’s contribution to the economy and their production activities in the informal and domestic context. This study calls for the activities of women entrepreneurs in these sectors of the economy to be recognised within lending models, and as constituting a valuable area of economic growth.

Suggested Citation

  • Evelyn Derera & Pepukayi Chitakunye & Charles O’Neill, 2014. "The Impact of Gender on Start-up Capital: A Case of Women Entrepreneurs in South Africa," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 23(1), pages 95-114, March.
    • Handle: RePEc:sae:jouent:v:23:y:2014:i:1:p:95-114
    DOI: 10.1177/0971355713513355
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    References listed on IDEAS

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    1. Beck, Thorsten & Demirguc-Kunt, Asli & Soledad Martinez Peria, Maria, 2008. "Bank Financing for SMEs around the World: Drivers, Obstacles, Business Models, and Lending Practices," Policy Research Working Paper Series 4785, The World Bank.
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    Cited by:

    1. Aurora A. C. Teixeira & Halima Abdi Sharifu, 2017. "Female Entrepreneurship And Access To Bank Loans In Tanzania: A Double-Hurdle Model Approach," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-29, September.
    2. Kimbu, Albert Nsom & Ngoasong, Michael Zisuh, 2016. "Women as vectors of social entrepreneurship," Annals of Tourism Research, Elsevier, vol. 60(C), pages 63-79.
    3. Brixiova, Zuzana & Kangoye, Thierry, 2016. "Start-Up Capital and Women's Entrepreneurship: Evidence from Swaziland," IZA Discussion Papers 10279, Institute of Labor Economics (IZA).
    4. Zuzana Brixiová & Thierry Kangoye & Fiona Tregenna, 2020. "Enterprising Women in Southern Africa: When Does Land Ownership Matter?," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 37-51, March.

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