Keyword

Female-owned business, informal trade, cooperative relationships, social capital, business sustainability

Abstract

Even though the number of female-owned businesses is rising at a fast rate, in emerging and developing markets they tend to operate in the informal sector concentrated in less attractive survivalist businesses. This study investigates the use of cooperative relationships (CRs) to improve the sustainability of female-owned informal retail businesses. It is important because women account for about 70% of the world’s poor and yet are more likely to use a higher proportion of their income on the wellbeing of their families. To investigate the use of and the factors that influence CRs amongst female informal traders, a convenience sample of 173 informal female traders was surveyed. Data analysis was done using Pearson Product-moment correlation. The findings show that CRs of most female informal traders focused on financial security, social and spiritual wellbeing of the respondents and their families. CRs with family and other traders were common but the latter were more widespread and perceived to be more beneficial to the business than the former in facilitating access to diverse business resources. The study concluded that the implementation of formal support for traders’ CRs could contribute to business sustainability through improved access to resources.


Full Text : PDF
References
  1. Aldrich, P. D. and Meyer, A. M. (2015). Social Capital and Community Resilience. American Behavioral Scientist. 59, 2:254–269.
  2. African Response. (2012). Stokvels – a hidden economy. Available: 
  3. https://www.africanresponse.co.za/assets/press/2012StokvelHiddenEconomy.pdf. [2017, November 1].
  4. Baruah, B. (2004). Earning their keep and keeping what they earn: A critique of organizing strategies for South Asian women in the informal sector. Gender, Work & Organization. 11, 6:605-626.
  5. Brehm, J., and Rahn, W. (1997). Individual-level evidence for the causes and consequences of social capital. American Journal of Political Science. 41:999–1023.
  6. Brush, G., C., de Bruin, A. and Welter, F. (2009). A gender-aware framework for women’s entrepreneurship. International Journal of Gender and Entrepreneurship. 1, 1: 8-24. 
  7. Chant, S. and Pedwell, C. (2008). Women, gender and the informal economy: an assessment of ILO research and suggested ways forward. International Labour Office Geneva. 
  8. Charman, A., Petersen, L. and Piper, P. (2012). From local survivalism to foreign entrepreneurship: the transformation of the spaza sector in Delft, Cape Town. Transformation. 78.
  9. Chebelyon-Dalizu, L., Garbowitz, G., Hause, A.and Thomas, D. (2010). Strengthening Spaza Shops in Monwabisi Park, Cape Town. BSc. Project. Worcester Polytechnic Institute.
  10. Chen, W., Tan, J. and Tu, F. (2015). Minding the gender gap: social network and internet correlates of business performance among Chinese immigrant entrepreneurs. American Behavioral Scientist. 2015, Vol. 59(8) 977–991. 
  11. Clark, J. (2015). Khayelitsha briefing document 1: The township – an overview. Schools improvement initiative. University of Cape Town. Available: http://www.sii.uct.ac.za/siipii-symposium-held-cosat-khayelitsha-22-august-2015. [2017, November 3].
  12. Cohen, J. (1988). Set correlation and contingency tables. Applied psychological measurement. 12, 4:425-434.
  13. Covin, G., J. and Slevin, P., D. (1989).  Strategic Management of Small Firms in Hostile and Benign Environments. Strategic Management Journal. 10, 1:75-87.
  14. Dickson, P., H and Weaver, K., M. (1997). Environmental Determinants and Individual-Level Moderators of Alliance Use. The Academy of Management Journal. 40, 2:404-425.
  15. Fafchamps, M. and Minten, B. (2001). Social Capital and Agricultural Trade. American
  16. Journal of Agricultural Economics. 83, 3:680-685.
  17. Fafchamps, M. and Minten, B. (2002). Returns to social network capital among traders. Oxford Economic Papers. 54, 2:173-206.
  18. Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York: The Free Press.
  19. Ghani, T. and Reed, T. (2015). Competing for Relationships: Markets and Informal Institutions in Sierra Leone. London. International Growth Centre.
  20. Granovetter, M.S. (1973). The Strength of Weak Ties. American Journal of Sociology, 78, 6:1360-1380.
  21. Green, K., M., Covin, J., G. and Slevin, D., P. (2008). Exploring the relationship between strategic reactiveness and entrepreneurial orientation: The role of structure–style fit. Journal of Business Venturing. 23, 3:356-383.
  22. Hadjielias, E. and Poutziouris, P. (2015). On the conditions for the cooperative relations between family businesses: the role of trust. International Journal of Entrepreneurial Behavior & Research. 21, 6:867-897.
  23. Hanson, S. (2009). Changing places through women’s entrepreneurship. Economic geography. 85, 3:245-267.
  24. Jere, A. (2014). Investigating the Sustainability of women-Owned Informal Trading Enterprises in Cape Town: Research Proposition. Paper presented at the 15th International Academy of African Business and Development Conference. 26-29 May 2014. University of the West Indies.
  25. Kim, M. S. and Sherraden, M. (2014). The impact of gender and social networks on microenterprise business performance. Journal of Sociology and Social Welfare. 41, 3:49-70.
  26. Loscocco, K.  and Bird, R., S. (2012). Gendered Paths: why women lag behind men in small business success. Work and Occupations. 39, 2:183–219.
  27. Lumpkin, G., T. and Dess, G., G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of management Review. 21, 1:135-172.
  28. Macchiavello, R.  and Morjaria, A. (2012). The Value of Relationships: Evidence from a Supply Shock to Kenyan Flower Exports, Warwick University working paper. 
  29. Magidimisha, H, H. and Gordon, S. (2015). Profiling South African gender inequality in informal self-employment. Journal of gender studies. 24, 3:275-292.
  30. Mayer, R., C., Davis, J., H. and Schoorman, F., D. (1995). An integrative model of organizational trust. Academy of management review. 20, 3:709-734.
  31. McGowan, P., Cooper, S., Durkin, M. and O'Kane, C. (2015). The influence of social and human capital in developing young women as entrepreneurial business leaders. Journal of Small Business Management. 53, 3:645-661.
  32. Pfeffer, J. and Salancik, G., R. (1978). The external control of organisations: A resource dependence perspective. New York. Harper & Row.
  33. Putnam, R. (1996). The strange disappearance of civic America. Policy. 12, 1:3-15.
  34. Putnam, R. D. (2000). Bowling Alone. New York: Simon & Schuster.
  35. Quintana-García, C. and Benavides-Velasco, A., C. (2004). Cooperation, competition, and innovative capability: a panel data of European dedicated biotechnology firms. Technovation. 24:927–938.
  36. Rooks, G., Klyver, K. & Sserwanga, A. (2016). The Context of Social Capital: A comparison of rural and urban entrepreneurs in Uganda. Entrepreneurship Theory and Practice. 111-130.
  37. Seekings, J., (2013). Economy, society and municipal services in Khayelitsha. Centre for Social Science Research, University of Cape Town.
  38. Sheng, H., H. and Mendes‐Da‐Silva, W. (2014). The Big Family: Informal Financing of Small‐and Medium‐Sized Businesses by Guanxi. Thunderbird International Business Review. 56, 2:157-171.
  39. Siqwana-Ndulo, S. (2013). The informal sector in South Africa: Women street traders in Durban – Part 1. Available: http://www.polity.org.za.  [2016, July 12].
  40. South African History Online. (2016). Khayelitsha Township. Available:
  41.  http://www.sahistory.org.za/place/khayelitsha-township [2017, March 15].
  42. Statistics South Africa. (2011). Census 2011 Statistical release – P0301.4. Available: 
  43. https://www.statssa.gov.za/publications/P03014/P030142011.pdf. [2016, June 7].
  44. Wiklund, J. and Shepherd, D. (2005). Entrepreneurial orientation and small business performance: a configurational approach. Journal of business venturing. 20, 1:71-91. 
  45. World Bank. (2017). In Africa, ‘poverty has a female face’. Available:  
  46. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/0,,contentMDK:22182932~menuPK:258657~pagePK:2865106~piPK:2865128~theSitePK:258644,00.html. [2017, August 15].
  47. Wrigley-Asante, C. (2013). Survival or escaping poverty: the perspectives of poverty and well- being among Ghanaian women in cross-border trading. Journal of Gender Studies. 22, 3:320-334.