Financial Management Challenges: A Case of Women-owned SMMEs in Gaborone
Abstract
The research is financed by BA ISAGO University, P.Bag BR94, Gaborone, Botswana
Abstract
The study seeks to investigate the causes of financial management challenges faced by women-run SMMEs in Gaborone, Botswana; given the background that the Government has established agencies and initiatives that support this sector financially and provide advisory services. Ways of mitigating the established challenges were suggested. Women entrepreneurs contribute immensely to Botswana’s economy. The Government of Botswana, in its bid to assist economic diversification and citizen empowerment, had several programs to support SMMEs including Business Botswana and Women In Business Association (WIBA). These provide funds and business advisory services to women-run SMMEs. Research has shown that 80% of SMMEs in Botswana fail in the first 3 - 5 years of the establishment phase. Preliminary reviews of literature disclosed that poor financial knowledge proves a real obstacle to most of the small women-run business. This includes insight and skill on what to do when a payment is received, how to manage that money, and investment strategies for growth. The researchers used desktop research and questionnaire surveys. The sample was 41 women-run SMMEs in Gaborone and non-probability convenience was used to sample the women-run SMMEs. Most women entrepreneurs are not looking for external funding, which is an issue of concern to policy makers for women businesses that contribute significantly to the economy. Lack of basic financial management and record keeping skills are affecting women, hence relying on very minimal internally generated funds. Financial institutions and the government should encourage women in business.
Keywords: SMMEs, SMMEs finance providers, Financial Management challenges
DOI: 10.7176/RJFA/11-14-14
Publication date:July 31st 2020
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