Gender and the knowledge of financing options by immigrant entrepreneurs in South Africa

Abstract

Access to finance is one of the major challenges faced by immigrant entrepreneurs. The study examined the knowledge of financing options by immigrant entrepreneurs. In addition, the study investigated if there is a significant gender difference in knowledge of financing options by immigrant entrepreneurs. The study used the quantitative research approach with a descriptive research design. Self-administered questionnaire was used to collect data in a survey. The study was conducted in the Johannesburg Central Business District. Convenience and the snowball sampling methods were used to identify the participants in the study. Descriptive statistics and independent samples T-test were used for data analysis. The Cronbach’s alpha was used as a measure of reliability.. The results indicated that immigrant entrepreneurs are highly knowledgeable of some financing options such as overdraft loans and trade credit. The knowledge of other sources of debt such as factoring, leasing and government debt instruments is weak. In addition, the knowledge of non-traditional equity financing options such as crowdfunding is weak. There is no significant gender difference in the knowledge of financing options by immigrant entrepreneurs. Recommendations to improve the knowledge of financing options are suggested.

Keywords: gender, knowledge, financing options, immigrant entrepreneurs, South Africa