Financial exclusion challenges affecting female owned SMEs’ growth and development in Botswana

Abstract

This research investigates the possible benefits and challenges that come with financial inclusion for small and medium-sized enterprises (SMEs) in Botswana that are owned by women. It focuses on three main research questions: firstly, the challenges brought about by financial exclusion; secondly, the benefits of financial inclusion for these enterprises; and thirdly, recommendations for addressing financial exclusion challenges. The lived experiences and perspectives of female SME owners who have experienced financial exclusion were captured through the use of a phenomenological qualitative research approach. Data was collected through semi-structured interviews, and thematic and narrative analysis methods were used. The research utilised an inductive approach, making sure that the findings were obtained straight from the collected data. The results reveal insight of barriers that female business owners reported, like gender biases and exclusive banking policies. Women stated the importance to overcome these impediments in order to promote economic diversity and growth in Botswana. The results also emphasise the importance of financial inclusion to these business's existence and growth, to resolving cash flow issues, and lowering unemployment. Further interrogation of the study results led to development of a theoretical framework offering a strategic approach to addressing of women’s financial exclusion. The approach proposes tactics like purposeful hiring in government agencies, changing banking rules and gender audits. The framework seeks to inform policy makers, service providers, financiers and female business owners’ supporters in coming up with interventions advancing gender parity.