Title: Micro enterprises and microfinance for business women in rural areas of South Africa - a case study of Ga-Rankuwa at the interface between first and third world

Authors: Heinz Eckart Klingelhöfer; Philip Olukayode Aiyepola; Ayodele Olatunji Adewunmi

Addresses: Department of Managerial Accounting and Finance, Tshwane University of Technology, Private Bag X680, Pretoria 0001, South Africa. ' Department of Managerial Accounting and Finance, Tshwane University of Technology, Private Bag X680, Pretoria 0001, South Africa. ' Department of Managerial Accounting and Finance, Tshwane University of Technology, Private Bag X680, Pretoria 0001, South Africa

Abstract: The majority of South Africa's rural population lives below the minimum living standard; basic amenities are lacking with low financial aid. This study, therefore, explores the nature of microfinance and micro enterprises in South Africa, the challenges, and sustainability. Choosing Ga-Rankuwa, a township near to Pretoria, the impact of microfinance on local business women is examined. Even at this interface between first and third world, micro business women face typical third world problems and microfinance service is still in a developing stage, while, in most cases, finance is the major problem for micro business. However, a survey shows that especially in such a situation, there is both the market potential and the infrastructure which allow for a successful implementation of microfinance, but the interface between first and third world demands for governmental help and community service as initial sparks. Once established, this interface situation promises good chances for microfinance sustainability.

Keywords: micro enterprises; SMMEs; townships; rural areas; business women; female entrepreneurs; microfinance institutions; entrepreneurial skills; entrepreneurial venturing; knowledge; banking; credit; markets; poverty; capital; education; training; South Africa; small and medium-sized enterprises; SMEs; governmental support; community service.

DOI: 10.1504/IJEV.2012.048598

International Journal of Entrepreneurial Venturing, 2012 Vol.4 No.3, pp.290 - 308

Received: 12 Nov 2010
Accepted: 30 Mar 2011

Published online: 17 Aug 2012 *

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