Involvement of women in decision making in South Africa: a family business dimension

Abstract

Very little information seems to exist on the role of women in South African family owned businesses. Women in family businesses need to be recognized in order to highlight the constraints they may be facing and their contributions to the economy. The purpose of the study is to determine how human and social capital variables can empower women in family businesses to enhance their success or address their challenges. This research study follows a positivistic paradigm and a questionnaire was developed to assess the research objectives. The questionnaire was sent out to a sample of 200 females involved in family owned businesses from South Africa and 150 responses were received. The findings revealed that at lower levels of education, females were the key decision makers for business expenditure, borrowing and investment decisions. With regards to experience inside and outside of the family business, decision making was shared between males and females with the exception of business expenditure decision making at 0-5 years experience inside the family business. Furthermore, decision making was generally shared between males and females for most of the social capital variables, with the exception of using or relying on partnerships where females did not play apparent decision making roles. Practical recommendations from the findings for women in family owned businesses include shifting from operational to more strategic decision making; gaining experience outside of family owned business to strengthen decision making capabilities; which in turn, would empower them to tackle riskier elements of social capital, like relying on partnerships and conducting business on trust.