Women entrepreneurship in South Africa: Understanding the role of competencies in business success

Abstract

Background and aim: Environmental factors alone cannot determine the success of small, medium and micro-sized enterprises (SMMEs) and female entrepreneurs; there is a need to closely examine the internal factors that also contribute to business success. This is necessary because, despite the considerable government support and support of bodies interested in promoting gender equality in all areas (business included), 20% of female-owned businesses still fail annually. Consequently, even though, according to a report from the Department of Trade and Industry in South Africa, millions of Rands have been allocated to support female-owned SMMEs by way of government funding, training, grants and consultative support services, the failure rates of these female-owned businesses remain high. The main reason for this can be that over-dependence on these incentives often weakens rather than strengthens female entrepreneurs’ ability to manage their businesses and reduces their competitiveness by laying emphasis on external, contextual factors rather than internal, competence variables for success. Researchers in the past have suggested that focusing on the internal factors, especially the ‘people issues’ facing the entrepreneurs (in this case female entrepreneurs), may give the business a better chance of success.Design/methodology/approach: A ‘mixed-method’ approach, conducted in two parts, was adopted for this study and appropriate tools and techniques were used to collect and analyse the data drawn from a sample of female entrepreneurs in South Africa. The study applies culturally instantiated facets of the debate on gender entrepreneurship as part of a detailed and empirically sophisticated consideration of the status of female entrepreneurship within South Africa. The qualitative aspect utilised semi-structured interviews and focus group discussions. The quantitative aspect utilised survey questionnaires developed from the findings of the qualitative study.Results: All participants agreed that entrepreneurial competencies are vital for business success. The study also makes a clear distinction between the traits approach and competencies approach in understanding business success. Arguably, the competency variable is viewed and appreciated differently by female entrepreneurs in South Africa. The findings also showed some cultural variations in the application of entrepreneurial competencies among the four dominant racial groups in South Africa.Conclusion: This study offers a comprehensive analysis of the competency variable in understanding the factors that influence business success in the context of South African female entrepreneurs. It provides a basis for an agenda for focus on training and development of the entrepreneurial competencies of female entrepreneurs in South Africa.

Determinants of Female Entrepreneurship Success in the Agricultural Sector: An Examination of Smes in South Africa

“…Thus, for the entrepreneur, either success factors are those unique qualities and attributes that are accustomed to or gets developed over a period, which positively affects entrepreneurial action and performance at large (Iverson and Malchow-Moller, 2016). The rise of female entrepreneurship in South Africa certainly confers on a variety of these attributes, highlighting several of them as overreaching elements present and consistent in the lives and careers of the most successful (Irene, 2017). Additionally, aspects such as experience, advanced entrepreneurial skills, access to adequate financial resources, ease in obtaining start-up capital, as well as strategically manoeuvring customer and market access as a whole; all count as critical success factors present in lives of female entrepreneurs.…”

“…Additionally, aspects such as experience, advanced entrepreneurial skills, access to adequate financial resources, ease in obtaining start-up capital, as well as strategically manoeuvring customer and market access as a whole; all count as critical success factors present in lives of female entrepreneurs. Since physical female involvement in operating agricultural businesses is still considered a relatively new trend in South Africa, it remains one that is expected to expand rapidly in the years to come (Irene, 2017). Loukil ( 2019) also states that a change in technology has brought a dynamic shift in the overall business approach of female entrepreneurs in South Africa; thus, highlighting the fact that entrepreneurial performance will continue to grow (Irene, 2017).…”

“…Since physical female involvement in operating agricultural businesses is still considered a relatively new trend in South Africa, it remains one that is expected to expand rapidly in the years to come (Irene, 2017). Loukil ( 2019) also states that a change in technology has brought a dynamic shift in the overall business approach of female entrepreneurs in South Africa; thus, highlighting the fact that entrepreneurial performance will continue to grow (Irene, 2017). Female entrepreneurs are driven to extend beyond global reach, focused on maximising profits and giving back to the less privileged (Irene, 2017).…”

“…Loukil ( 2019) also states that a change in technology has brought a dynamic shift in the overall business approach of female entrepreneurs in South Africa; thus, highlighting the fact that entrepreneurial performance will continue to grow (Irene, 2017). Female entrepreneurs are driven to extend beyond global reach, focused on maximising profits and giving back to the less privileged (Irene, 2017). Apart from female entrepreneurs, policymakers have now also come to the realization that agriculture is the new breeding ground to attract and empower females now more than ever before.…”

Female Entrepreneurs' Pre-Exposure to a Business Environment and Its Influence on Selected Entrepreneurial Factors: A South African Perspective

“…Turton and Herrington (2012) argue that men are mostly opportunity entrepreneurs and women are more necessity entrepreneurs. This implies that because females are more prone to necessity entrepreneurship, there may be a higher likelihood of them entering into entrepreneurial ventures less prepared and knowledgeable regarding their understanding of the requirements of such ventures (Bridget 2017). Given the high unemployment rate and socio-economic challenges in South Africa, a logical assumption would be that more females would embark on entrepreneurial ventures out of necessity.…”