Despite the popular allure of entrepreneurs having the freedom to set their own hours, tackle projects that interest them and the promise of achieving the ever elusive work-life balance, it does not come without challenges - especially for women.
A recent study by Dr Natanya Meyer and Dr Rita Klonaridis from the North-West University’s (NWU’s) School of Business Management, saw them looking into business growth factors from a female entrepreneur’s perspective and in the context of a developing country.
According to these experts the importance of this study was twofold. Firstly, it added a female perspective on the most important business growth factors, and secondly, it is from a developing country perspective as this may differ when compared to developed countries.
The researchers shed light on the fact that female-owned businesses are smaller in size, slower growing and less lucrative than their male counterparts. And, although fempreneurs are proven to be enthusiastic about owning their own businesses, they are confronted by multiple growth barriers.
Important growth factors for fempreneurs
The outcome of their study indicated internal factors as most important for sustained business growth and success when it comes to women in business. This includes aspects such support from family and friends, being hard working, having good customer care and relations and previous business experience.
The second most important growth factor they identified was skills and market opportunities. These include aspects such as social and managerial skills, human resource management, having a good reputation and product or service, having competitive prices and being able to successfully promote one’s product or service.
Entrepreneurial opportunities were ranked the third most important factor for growth. Aspects such as access to finance, government support, entrepreneurial training and education made up this factor.
Finally, political involvement and community status was listed as the least important growth factor for female entrepreneurs in developing countries.
Into the future
The two experts’ study added additional proof of how female entrepreneurs perceive success factors.
“Female entrepreneurs are definitely more compelled by internal motivation,” says Dr Meyer and Dr Klonaridis. “This once again proves that female entrepreneurs have a high internally driven business nuance. In developing countries such as South Africa, entrepreneurial activity is encouraged to promote economic growth and wealth creation. Therefore, it is crucial to develop entrepreneurial skills.”
Through their research these two experts hope to provide some insight on future policy direction regarding fempreneurs.
“South Africa is currently experiencing issues in the socio-economic, political and macro-economic areas, which have a relatively large and adverse effect on the economic growth of the country. As a solution for the problems facing South Africa, it is recommended that the government promote the expansion of business activities and create an enabling environment that allows businesses to grow and flourish.”
Dr Natanya Meyer. Dr Rita Klonaridis.
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