The impact of funding and innovation on the performance of women entrepreneurs

Abstract

The purpose of this study is to draw from the theory of Entrepreneurship to test the factors influencing the performance of women entrepreneurs. In the past decade the level of entrepreneurial activity among women has increased, however studies suggest that the performance of women entrepreneurs is low as compared to their male counterparts. Women continue to face a wide variety of challenges such as limited access to resources such as funding and low levels of innovation. This study seeks to examine the experience of women in South Africa and measure the extent to which funding and innovation influence the performance of women entrepreneurs. A descriptive quantitative study was conducted to collect primary information from South African women entrepreneurs through an online questionnaire. The sample that was achieved comprised 112 respondents and was deemed satisfactory to complete the statistical analysis to test three hypotheses. Validity and Reliability of the data collection instrument was performed the Spearman’s rank order correlation test was used to test each hypothesis. Majority of the respondents indicated that access to funding is a challenge, however this study found that access to funding was statistically significant in influencing the performance of women entrepreneurs. Furthermore, results for hypothesis 2 indicated innovation was positively correlated to the performance of women entrepreneurs. A further positive relationship was established between funding and innovation. The findings suggest that institutions within South Africa are required to re-assess policies associated with the supply of funding to women and its relevance. It is further recommended that women increase their human and social capital to access alternate sources of funding and stimulate innovation.