1. By: Zinzi Magoda and Prof. Chux Gervase Iwu
Partnership between commercial banks and government in facilitating funding opportunities for female entrepreneurs in South Africa
By: Zinzi Magoda and Prof. Chux Gervase Iwu
The 6th World Sustainability Forum
27-28 January 2017,Cape Town, South Africa

2. INTRODUCTION
The Global Entrepreneurship Monitor (GEM) found that the South African financial system has traditionally catered to large corporate clients and has neglected small enterprises.
Many of these small enterprises are now set up by females and they face the challenge of securing finance.
It is a problem common to many countries in the GEM scope of analysis, with the evidence suggesting that female entrepreneurs find it difficult to secure financing for a business venture unless they have assets to be used as security.

3. CLASSIFICATION OF SMMEs
A Small Medium Micro Enterprise (SMME) is a separate and distinctive business in any sector managed by one or more individuals.
Defined according to ownership, employment size and formality.
(Source: Statistics South Africa (StatsSA), 2104).

4. COMMERCIAL BANKS IN SOUTH AFRICA
As of 2011, the top four biggest banks in the African continent were from South Africa (Fatoki, 2014:95) ,and they are:
Standard Bank Group;
Absa group,
FirstRand bank group;
Nedbank group and Investec group, but currently Capitec Bank Group is overtaking Nedbank group.
Locally controlled commercial banks in South Africa:
African Bank Limited;
Bidvest Bank Limited;
Capitec Bank Limited;
FirstRand Bank – A subsidiary of First Rand Limited;
Grindrod Limited;
Imperial Bank South Africa; and
Investec Bank Limited.

5. PROBLEM STATEMENT
There are strong indications that women have begun participating in mainstream entrepreneurship activities in South Africa. However, finance is viewed as one of the core challenges for SMME development as a whole in South Africa.
“This challenge can be tackled by collaborative intervention of government and commercial banks. More importantly, a government driven agenda to focus on female entrepreneurship challenges to enable the leveling of playing fields will most likely result in a less complex, less bureaucratic business start-up process significantly targeted at women” (Fatoki, 2014:98).

6. RESEARCH OBJECTIVES
To investigate the challenges of female entrepreneurs when it comes to accessing funding.
To identify the role of government in empowering female entrepreneurs and assisting them with funding opportunities.
To identify a possible solution for female entrepreneurs in terms of funding opportunities.

7. SIGNIFICANCE OF THE STUDY
This study has value not simply because it is gender biased, but it also highlights the role of government and commercial banks in empowering female entrepreneurs and assisting them in accessing finance.
It also highlights possible solutions that can be implemented to eradicate the challenge.

8. RESEARCH METHODOLOGY
This study used the qualitative approach, using in-depth semi-structured interviews.
The population comprised of business owner-managers.
A self administered questionnaire was sent to 200 SMMEs and a total of 50 usable responses were received.
The data was also analysed qualitatively.

9. KEY FINDINGS
The results indicate that easier access to funding from all financial institutions and government organisations is necessary, and the lack of such provisions is a barrier to success for a business venture.

10. KEY FINDINGS
(Source: Own compilation).

11. SPECIFIC FACTORS THAT BANKS LOOK AT:
According to Berg and Fuchs (2013:8) lending or awarding depends on the following:
Macroeconomic environment;
Legal and regulatory framework;
State of the financial sector;
Bank-internal limitations(capacity and technology); and
SMME specific factors (e.g. business plan or proposal ,size, operation as well as knowledge and skills).

12. SPECIFIC FACTORS IN OTHER COUNTRIES
(Source: Berg and Fuchs, 2013:8).

13. CONCLUSION
Financial institutions and government should meet on a regular basis to identify challenges faced by female entrepreneurs concerning access to funding.
For instance, banks can learn about the unique challenges that these female entrepreneurs face daily.
Government has a duty to also provide an enabling business environment, which should include easier access to financial assistance, without disempowering red tape that creates unnecessary restrictions concerning assets as security to obtain financial assistance.

14. LIMITATIONS AND FUTURE RESEARCH
The study was limited to female SMME owners-managers in the Tourism Industry.
Another study could look at a strategy the government and commercial banks could implement to assist the entrepreneurs with funding.
Other sectors could also be examined other than the Tourism Industry.
Industry Industry.

15. Thank You