The impact of financial knowledge on the economic empowerment of women entrepreneurs in KwaZulu-Natal, South Africa

Abstract

Entrepreneurial activities play crucial roles in poverty alleviation, job creation, economic development and empowerment worldwide. However, women entrepreneurs face numerous challenges, including insufficient financial knowledge, gender inequality, and lack of productive assets, which limit their access to finance and economic empowerment. To address this gap, this study aims to examine the effect of financial knowledge on the economic enablement of women entrepreneurs in Durban, South Africa, and to contribute to the academic literature on women entrepreneurship by applying feminist theories. The study collected quantitative data from 400 women entrepreneurs using a Likert-scaled questionnaire and analysed it using Structural Equation Modelling Technique. The findings reveal the challenges faced by women entrepreneurs in Durban, including lack of financial knowledge and management skills, gender inequality, and limited opportunities for education and productive assets. The study suggests new feminist philosophies and a conceptual model for policymakers and women-owned businesses to promote women's economic empowerment. However, the study's limitations include a limited sample size and reliance on selfreported data. Future research should explore financial knowledge's impact on women's economic empowerment in other provinces, with larger and more diverse samples, and employ a mixed-methods approach for a comprehensive understanding of women entrepreneurs' challenges. Finally, future studies could examine the effectiveness of specific interventions aimed at increasing financial knowledge and promoting women's economic empowerment in the context of entrepreneurship