Developing women entrepreneurs: the influence of enactus networks on women- owned SMMEs in Kwa Zulu-Natal
The extent to which women entrepreneurs interact with the entrepreneurial networks in their local environment as well as the impact that entrepreneurial networks bring to bear on the growth of women-owned Small, Medium, and Micro enterprises (SMMEs) during the process of developing their enterprises from 2005 to 2015 was studied. The research explored and described the socio-economic impact of Enactus (a student organisation that works with business leaders and academics to improve the lives of communities using an entrepreneurial approach) entrepreneurial networks on women owned SMMEs in the agricultural food processing sector in KwaZulu-Natal, South Africa. The justification for the study was that despite the growing number of women-led businesses and a significant increase in the number of initiatives, policies and resources designed to promote and develop women’s entrepreneurship have been insufficient. Women that have established SMMEs in South Africa have achieved limited growth. Based on those observations, the study explored the research question: Do entrepreneurial networks empower the growth of women-owned enterprises in developing countries? The Social network theory was adopted in this study as the relevant background theory in dealing with the research problem. Three key concepts are linked to this theory: women entrepreneurship, empowerment through networks, and growth of enterprises owned by women entrepreneurs. These key concepts were critically analysed, gaps explored, and links established and discussed in order to build the theoretical ground. The study utilised a cross-sectional and causal-comparative research design from the case study of 314 respondents sampled for this study. The sample comprised 234 women entrepreneurs, 8 key informants, and 72 programme-facilitators. Engaging in the Enactus networks was the independent variable. The growth of women-owned enterprises was the outcome of interest with the following indicators as dependent variables: an increase of business returns; an increase of assets; expansion of business (vertically or horizontally); an increase of household income; and participation in trade fairs. Measurement of the growth of women-owned enterprises was along two dimensions: economic and socio-cultural arenas. The study utilised an integrated mix of research approaches (qualitative and quantitative) and data collection methods. The study found that a high proportion of women entrepreneurs engaged in Enactus networks in KwaZulu-Natal had become empowered in almost all indicators. However, the translation of this empowerment into actual growth of women-owned SMMEs, for instance from small to medium enterprises, had mixed results; with just fewer than half of the surveyed sample indicating that they had moved from small to medium enterprises. The reasons behind resistance to change from small to medium enterprises were unclear. However, the majority of surveyed women entrepreneurs in the agro-processing sector showed a shift from micro to small enterprises. The study therefore concludes that there is a need to rethink strategies of networking to include both formal and informal entrepreneurial networks, as well as networking successful and young women entrepreneurs to enhance learning for change, and the growth of women-owned SMMEs in South Africa. In this light, the study recommended amongst others, engaging formal institutional structures and processes as well as changing women’s attitudes in an attempt to make entrepreneurial networks work for women to grow
women entrepreneurs, SMMEs-small, medium and micro enterprises
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