The effectiveness of development finance institutions in providing financial and nonfinancial support to women entrepreneurs

Abstract

This research study aimed to explore the impact that financial and non-financial support provided by Development Finance Institutions (DFIs) have had on the financial performance, business development and overall performance of women-owned businesses. A quantitative research methodology was adopted, and the data was collected using survey questionnaires which were distributed to women-owned businesses funded by governmentowned DFIs. Correlations test analysis was used to test the relationship between identified constructs. The Resource-Based Theory was used as a base for assessing financial and nonfinancial support as necessary resources and their impact on the performance of the business. The study revealed three key findings: First, that there is a significant relationship between financial support and financial performance. Second, that there is a significant relationship between non-financial support and business development. Third, that financial support and non-financial support do not have a significant relationship with overall business performance. This last finding suggests that DFIs might need to reassess their processes to yield improved measures that will ensure the success and sustainability of women-owned businesses. This research contributes to the literature on women entrepreneurship and government support initiatives in understudied developing economies. The findings from this research study could assist DFIs in formulating improved support initiatives to aid the growth of women entrepreneurs.