Education And Small Business Growth: A Gender Perspective Of Two Divergent Provinces In South Africa

Abstract

The article attempts to identify whether the level of education and gender has an impact on the business growth of SMMEs in a developing economy. The study furthermore looks at the contribution made by the SMME sector from a spatial perspective. The Western Cape is seen as a more affluent province and a bigger contributor to the countrys GDP as opposed to KwaZulu-Natal, which comprises of the former province of Natal and the Zululand homelands. Entrepreneurship can be considered as one of the means of creating an enabling environment conducive to reducing poverty, stimulating economic growth, and creating employment opportunities, particularly in a South African context. Hence, activities in the SMME sector are often considered to be the bedrock of an economy and a key driver of growth and development. This holds most true for women assuming the role of entrepreneur, especially in developing countries. This study aims to explore and test this delicate relationship between women entrepreneurs and SMME sustainability, and to conduct empirical investigations into high-density SMME operations in two South African provinces. Survey data were collected from SMME owners/managers in the Western Cape and KwaZulu-Natal provinces of South Africa. In building on previous academic literature on SMME sustainability and women in business, various measures are developed and tested for reliability and validity. The study is cross-sectional in design, making use of trained fieldworkers to administer face-to-face surveys to a diverse set of SMMEs. A structured questionnaire was used to collect data from 465 owners/managers in the two provinces. The findings show (i) a positive relationship between a business owners/managers level of education and business growth, (ii) no correlation between a business owners/managers education and employment, and (iii) no relationship between gender and business growth. The findings of the study can benefit the South African Government in directing policy, SMME owners, educators and women in business by increasing awareness of the nature of sustainable SMMEs, and the effect of operational skills, gender and education on the development thereof. This study focuses on the growing sector of women in business and the impact of education in SMMEs linked toward business sustainability. A contribution is made toward theory development through empirical research.

Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support

“…The study found a very strong positive relationship with financial literacy and small firm financial growth in Bangladesh. A good number of previous studies (Smith, McArdle, and Willis 2010;Lusardi and Mitchell 2011;Ganyaupfu 2013;Peters et al 2014) also revealed the similar associations between financial literacy and financial outcomes of firms in different context. The owner-managers are the important resources for the small firm who make plan, use other resources and take all kinds of decisions including the financial and investment decision as well as carry out the functional activities of their business; all of which ultimately affect their financial growth.…”

“…However, empirical studies revealed that in most of the countries, the level of financial literacy is very low and only a few people understand the basic financial concepts (Cole, Sampson, and Zia 2009;Lusardi and Tufano 2009). Most of the studies (Watson, Stewart, and BarNir 2003;Barringer, Jones, and Neubaum 2005;Ahamad et al 2012;Peters et al 2014) indicated that the higher level of educational background expedite the growth or performance of the small firms.…”

Praktik Literasi Keuangan dalam Pengelolaan Usaha: Studi pada Pemilik UMKM di Kabupaten Bantul, Yogyakarta

“…H However, empirical studies reveal that in most countries, the level of financial literacy is very low and only a few people understand basic financial concepts (Cole et al, 2011;Lusardi & Tufano, 2009). Most studies (Barringer et al, 2005;Peters et al, 2014;Watson et al, 2003) indicate that a higher educational background accelerates the growth or performance of small businesses.…”

Women Owners Of SMMEs: Finding Their Place In The Sun

“…In a survey conducted by Peters, Van Gensen, Isaacs, Botha andNaicker (2014:1129) among SMME owners/managers in the provinces of Western Cape and KwaZulu-Natal in South Africa, the successful performance by women owner/managers could be attributed mainly to respondents having equal access to resources (for example finance), as well as diminished constraints in terms of their competencies and a social tendency to pursue higher education. These findings are aligned with the conviction expressed by Ahl (2006), Ahl and Marlow (2012:556) and Henry, Foss and Ahl (2015:19), based on liberal feminist theory, that there should be no difference in the performance of businesses, irrespective of gender, provided women experience no discrimination in access to resource s (finance and education).…”

“…Researchers have concluded that business ownership by women in South Africa should be promoted by providing support in the form of advice, training, access to finance and networks, gender-balanced mentoring in work matters and balancing emotional and work-life issues (Martin & Barnard, 2013:24, 26;Peters et al 2014Peters et al :1136. The GEM 2012 Women's Report (Global Entrepreneurship Monitor 2012 Women's Report, 2012:4) suggests that support for women business owners (which could take the form of advice and services) should take place using support networks, women mentors and local women as role models.…”