Bootstrapping financing strategies adopted by Zimbabwe an women entrepreneurs to enhance growth

Author: 
Dr. Kudakwashe Zvitambo, Munyaradzi Chagwesha, Dr. Zvitambo, Mufaro Dzingirai and Takwana J. Musariri

This study sought to evaluate bootstrapping financing strategies adopted by women entrepreneurs to enhance growth in their entrepreneurial careers. The objectives of this study were to determine the direction of relationship between loans from friends and family, and growth; to establish the strength of relationship between personal savings and growth, and to determine the direction of association between delaying payments to suppliers and growth of female firms. Literature review focused mainly on bootstrapping strategy and its elements which include personal savings, delaying payments to suppliers and loans from friends and family. Other studies which looked at bootstrapping strategy were also reviewed. This research adopted an explanatory research design and a total of 82 women entrepreneurs owning boutique and saloon registered firms in Gweru participated in the study. SPSS version 24 was used to determine the strength and direction of relationship between the strategies adopted and growth of their firms as measured by sales. The findings of this study are that women face a plethora of challenges in their entrepreneurial journey. Major challenges which are terrorising women entrepreneurs’ fortunes are lack of financial resources, failure to balance home and work roles, and lack of training. Also, there was a strong positive relationship between personal savings and growth. Loans from friends and family were positively correlated to growth in sales in women firms in Zimbabwe. However, delaying payments to suppliers was negatively correlated with sales in women firms in Zimbabwe. The study recommended that personal savings and loans from friends and family should be encouraged among women as these had a positive relationship with growth. However, female entrepreneurs must avoid delaying paying their supplies as this is inversely related to growth of their firms.

Paper No: 
2902