IDEAS home Printed from https://ideas.repec.org/a/sae/jouent/v23y2014i1p95-114.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971355713513355
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0971355713513355?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    2. Garry D. Bruton & David Ahlstrom & Krzysztof Obloj, 2008. "Entrepreneurship in Emerging Economies: Where Are We Today and Where Should the Research Go in the Future," Entrepreneurship Theory and Practice, , vol. 32(1), pages 1-14, January.
    3. repec:taf:entreg:v:24:y:2012:i:5-6:p:425-456 is not listed on IDEAS
    4. Atsede Woldie & Adebimpe Adersua, 2004. "Female entrepreneurs in a transitional economy: Businesswomen in Nigeria," International Journal of Social Economics, Emerald Group Publishing, vol. 31(1/2), pages 78-93, January.
    5. Dilek Cetindamar & Vishal K. Gupta & Esra E. Karadeniz & Nilufer Egrican, 2012. "What the numbers tell: The impact of human, family and financial capital on women and men's entry into entrepreneurship in Turkey," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(1-2), pages 29-51, January.
    6. Coviello, Nicole E. & Jones, Marian V., 2004. "Methodological issues in international entrepreneurship research," Journal of Business Venturing, Elsevier, vol. 19(4), pages 485-508, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    2. Galina Shirokova & Patricia McDougall-Covin, 2012. "The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: Do they matter?," Journal of International Entrepreneurship, Springer, vol. 10(3), pages 177-199, September.
    3. Dianne H. B. Welsh & Eugene Kaciak & Caroline Minialai, 2017. "The influence of perceived management skills and perceived gender discrimination in launch decisions by women entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 1-33, March.
    4. Juan Wu & Yaokuang Li & Daru Zhang, 2019. "Identifying women’s entrepreneurial barriers and empowering female entrepreneurship worldwide: a fuzzy-set QCA approach," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 905-928, September.
    5. Abrar Ali Saiyed & Stephanie A. Fernhaber & Rakesh Basant & Karthik Dhandapani, 2021. "The internationalization of new ventures in an emerging economy: The shifting role of industry concentration," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1467-1497, December.
    6. Gjalt de Jong & Phan Anh Tu & Hans van Ees, 2012. "Which Entrepreneurs Bribe and what do they Get from It? Exploratory Evidence from Vietnam," Entrepreneurship Theory and Practice, , vol. 36(2), pages 323-345, March.
    7. Richard Harrison & William Scheela & P. C. Lai & Sivapalan Vivekarajah, 2018. "Beyond institutional voids and the middle-income trap: The emerging business angel market in Malaysia," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 965-991, December.
    8. Oliva, Fábio Lotti & Teberga, Pedro Marins Freire & Testi, Lucas Israel Oliveira & Kotabe, Masaaki & Giudice, Manlio Del & Kelle, Peter & Cunha, Miguel Pina, 2022. "Risks and critical success factors in the internationalization of born global startups of industry 4.0: A social, environmental, economic, and institutional analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    9. Rasha Nasra & M. Tina Dacin, 2010. "Institutional Arrangements and International Entrepreneurship: The State as Institutional Entrepreneur," Entrepreneurship Theory and Practice, , vol. 34(3), pages 583-609, May.
    10. Suwastika Naidu & Anand Chand, 2017. "National Culture, Gender Inequality and Women’s Success in Micro, Small and Medium Enterprises," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 647-664, January.
    11. Kim, Phillip H. & Li, Mingxiang, 2014. "Injecting demand through spillovers: Foreign direct investment, domestic socio-political conditions, and host-country entrepreneurial activity," Journal of Business Venturing, Elsevier, vol. 29(2), pages 210-231.
    12. Jamie D. Collins & Jeffery S. McMullen & Christopher R. Reutzel, 2016. "Distributive justice, corruption, and entrepreneurial behavior," Small Business Economics, Springer, vol. 47(4), pages 981-1006, December.
    13. Marina Dabić & Jane Maley & Leo-Paul Dana & Ivan Novak & Massimiliano M. Pellegrini & Andrea Caputo, 2020. "Pathways of SME internationalization: a bibliometric and systematic review," Small Business Economics, Springer, vol. 55(3), pages 705-725, October.
    14. Michael Adusei, 2016. "Does Entrepreneurship Promote Economic Growth in Africa?," African Development Review, African Development Bank, vol. 28(2), pages 201-214, June.
    15. Junyon Im & Sunny Sun, 2015. "Profits and outreach to the poor: The institutional logics of microfinance institutions," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 95-117, March.
    16. Wu Juan & Li Yaokuang, 2020. "An Exploratory Cross-Country Analysis of Female Entrepreneurial Activity: The Roles of Gendered Institutions," Entrepreneurship Research Journal, De Gruyter, vol. 10(3), pages 1-20, July.
    17. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    18. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
    19. René Díaz-Pichardo & Cecilia Cantú-González & Patricia López-Hernández & Gerard McElwee, 2012. "From Farmers to Entrepreneurs," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 21(1), pages 91-116, March.
    20. Tan, Justin & Yang, Jun & Veliyath, Rajaram, 2009. "Particularistic and system trust among small and medium enterprises: A comparative study in China's transition economy," Journal of Business Venturing, Elsevier, vol. 24(6), pages 544-557, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jouent:v:23:y:2014:i:1:p:95-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ediindia.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.