Microfinance and women's entrepreneurship In South African townships

In emerging economies, women entrepreneurs play a critical role in job creation and social and economic progress, particularly in townships. However, the specific context of women's township entrepreneurship has mainly been overlooked in South African research, which remains fragmented and lacks cohesive insights. This study explores the role of microfinance in fostering women's township entrepreneurship within a South African context. Research has repeatedly demonstrated that microfinance institutions hold a vital position in the economic advancement of women, resulting in elevated female participation in business activities and ultimately fostering their overall empowerment. The investigation focused on women entrepreneurs within the marginalised township of Mdantsane, located in the Eastern Cape Province of South Africa. Using a qualitative approach, the study involved in-depth interviews with 15 women entrepreneurs selected through purposive sampling. The data was analysed using thematic analysis, revealing five key themes: empowerment through financial independence, building entrepreneurial skills and networks, increased business volume and turnover, overcoming socioeconomic barriers, and reduction in gender inequalities. The findings suggest that an intervention mapping approach is crucial for policymakers to design tailored microfinance programs for women entrepreneurs in township economies. This approach involves a systematic process that begins with a thorough assessment of the specific financial needs and challenges faced by women in these communities, followed by the development of targeted interventions that address those needs. Key Words:Microfinance; Women entrepreneurship; Township economy; South Africa.