Exploring Funding Options for Female Entrepreneurs in Rural Areas in South Africa

Abstract

Women entrepreneurs in rural South Africa face structural and socio-cultural barriers in accessing funding. This study investigated how existing financial structures and support programs influence the sustainability and growth of female-owned businesses in rural areas. Using bibliometric analysis and sentiment mapping with ATLAS.ti, 36 documents were analyzed from a screened pool of 613, focusing on keywords, titles, and abstracts. Results reveal that over 65% of documents reflect themes of discrimination and systemic financial exclusion. Findings show that while government initiatives and non-governmental organizations’ (NGOs) efforts (e.g., Department of Small Business Development (DSBD Women’s Development Business, (WDB) are making strides, challenges, such as collateral requirements, limited financial literacy, and infrastructure gaps, persist. The originality of this research lies in its hybrid methodological approach and the emphasis on rural-centric funding misalignments. The study contributes to policy dialogues by recommending tailored financial products co-designed with rural women, improved outreach programs, and integration of gender-sensitive financing mechanisms. It also lays a foundation for further empirical studies on institutional responses to female entrepreneurship in marginal communities. This study applied a novel hybrid method, combining bibliometric analysis with sentiment mapping using ATLAS.ti to uncover both systemic patterns and discursive trends. Its policy relevance lies in offering evidence-based recommendations that align with G20 strategies on gender equity and financial inclusion.

1. Introduction

Women in rural South Africa face a range of interconnected challenges in accessing finance, acquiring skills, and establishing the support networks necessary to run sustainable businesses. Structural barriers, such as inadequate infrastructure, entrenched gender roles, and limited access to education, continue to hinder their full participation in the economy (Gul et al., 2025). More than 40% of rural women operate informal businesses, while only 12% have access to formal credit, highlighting a significant gap in financial inclusion (FinMark Trust, 2022). Socio-cultural norms and gender stereotypes further compound these difficulties by limiting access to critical resources and excluding women from key economic networks (Azis et al., 2023; Khan & Mazhar, 2017). Most banks are in cities; therefore, these problems become worse when customers live far apart from each other. Financial exclusion is worsened by cultural barriers and the lack of secure property rights (Mukit et al., 2020).

It is very difficult for women-run businesses to grow and remain in business because there is so little money available. Many businesses are affected by bad infrastructure, such as unreliable electricity and insufficient transport. These restrictions make it difficult for them to carry out business and attract new customers. In 2015, women owned 6.2% of businesses (Tirivangasi, 2017), the lowest number ever recorded. Nowadays, women own only 19.4% of businesses in South Africa.

Some problems include not having enough money, social norms that do not change, rules that are not followed correctly, and not trusting one’s ability to start a business (Ebewo et al., 2025). Women in townships and rural areas experience even more problems, such as insufficient business training and poor infrastructure (Majola, 2024).

Interventions, such as mentorship and entrepreneurship training, provide some support, but access to tailored financial services remains the most pressing challenge. This paper explores the financial landscape for rural women entrepreneurs in South Africa, identifies the core barriers they face, and offers recommendations to enhance financial inclusion and strengthen support systems aligned with their specific needs.

2. Theoretical Framework

This study integrates three frameworks, financial inclusion, rural entrepreneurship, and sustainable rural development, to explore how structural and institutional factors influence the experiences of women entrepreneurs in rural areas. A central lens in this analysis is the conceptual understanding of financial inclusion, as discussed by Demirguc-Kunt et al. (2018), Chibba (2009), and Sarma and Pais (2011). Financial inclusion refers to equitable access to suitable financial services, such as savings, credit, insurance, and digital banking, which enable individuals to participate more fully in the economy. For rural women, such access is more than a tool for economic activity; it is a catalyst for economic independence and greater decision-making agency. The challenges in rural areas are a lack of collateral, mobility constraints, and restrictive social norms that continue to prevent many women from accessing financial services (Mahato et al., 2023).

This framework is further enriched by Wortman’s (1990) theory of rural entrepreneurship, which emphasizes innovation, adaptability, and the strategic use of local knowledge to navigate resource-constrained environments. Rural entrepreneurship, as a distinct field, demands a contextualized approach that considers the unique challenges of non-urban settings, such as limited access to infrastructure and financial services (Muñoz & Kimmitt, 2019; Tabares et al., 2022). It is shaped by multiple factors, including geography, availability of natural resources, social capital, and institutional governance (Stathopoulou et al., 2004). In this context, rural women entrepreneurs often draw upon informal networks, communal trust, and micro-level innovations to compensate for the barriers highlighted in the financial inclusion literature. Evidence from India and Malaysia illustrates how self-help groups and social entrepreneurship programs have strengthened women’s financial knowledge, simultaneously challenging entrenched gender norms (Rokis et al., 2018; Yadav, 2022). These grassroots adaptations are not merely survival strategies; they are essential elements of entrepreneurial practice in settings where formal systems are either weak or exclusionary.

Sustainable rural development theory has evolved to encompass economic, social, and environmental dimensions of rural areas, emphasizing improved quality of life, economic diversification, and the preservation of natural resources (Khodakivska & Kononenko, 2020). It integrates spatial economics, inclusive growth, and eco-socio-economic sustainability (Khodakivska & Kononenko, 2020), providing a foundation for understanding how local economies can be strengthened in holistic and lasting ways. Anchoring both the financial inclusion and rural entrepreneurship frameworks, Fieldsend and Nagy (2006) position entrepreneurship as a long-term driver of rural resilience. Within this perspective, women’s entrepreneurship contributes not only to household income but also to broader development outcomes, such as employment generation, youth retention, and social cohesion. Sustainable management models for rural communities incorporate viable strategies and good practices that are sensitive to local contexts and the specific needs of rural producers (Marcelino-Aranda et al., 2017). Case studies on women-led enterprises in craft and agri-processing sectors (Kumar, 2013; Nhleko et al., 2023) further demonstrate how these ventures enhance household stability, expand educational access, and foster inclusive local economies.

By integrating these three perspectives, this study frames rural female entrepreneurship as more than an economic choice; it is a dynamic response to systemic exclusion, a means for gender empowerment, and a pillar of sustainable community development. This theoretical synergy provides a comprehensive lens for evaluating the financial, institutional, and cultural conditions necessary to enable women to succeed as entrepreneurs in rural South Africa.

3. Literature Review

This literature review explores the interconnected themes of financial inclusion, gender empowerment, and rural entrepreneurship in South Africa. It highlights how limited access to finance, socio-cultural norms, and institutional barriers continue to hinder rural women’s participation in the economy. By examining financial inclusion, empowerment initiatives, informal finance, and structural constraints, the review provides context for understanding the challenges and opportunities faced by rural female entrepreneurs in driving sustainable development.

3.1. Financial Inclusion

Financial inclusion has long been recognized as a key driver of inclusive growth and rural development. However, rural areas continue to face greater barriers to financial access than their urban counterparts. These barriers are generally divided into supply-side and demand-side eligibility factors (Pandey et al., 2022). In South Africa, the National Treasury (2020) identifies the opening of a basic bank account as a fundamental step toward full financial inclusion. Because of this, the government has prioritized improving access to banking services across the country. SME South Africa (2024) highlights several funding initiatives designed to support Black women in rural areas, such as the Isivande Women’s Fund and the Women Empowerment Fund provided by the National Empowerment Fund. Despite these efforts, CNBC Africa (2023) reports that women in sub-Saharan Africa still face a staggering USD 42 billion funding gap, reflecting the ongoing challenges in accessing finance. In response, many South African women are turning to alternative sources of capital, including government-backed loans, venture capital, and angel investors, such as Dazzle Angels, who invest specifically in women-led enterprises. As Williams et al. (2017) emphasize, financial inclusion plays a vital role in reducing inequality by ensuring that disadvantaged groups can access essential financial services. It reinforces the need for financial products that are accessible, affordable, and available to those who remain economically marginalized.

The literature indicates a positive relationship between financial literacy and financial inclusion. Financial literacy is defined as the ability to understand and apply financial concepts and risks. Added to this is the skill, motivation, and confidence to apply this knowledge when making decisions in different contexts (Grohmann et al., 2018). Financial inclusion remains a critical enabler for female entrepreneurship in rural South Africa; by addressing the historic exclusion of women from formal financial systems (Ojo, 2020).

3.2. Gender Empowerment

Gender empowerment through entrepreneurship in rural South Africa is pivotal for advancing economic independence and social equality among women (Wekwete, 2014). Gender inequality continues to be a major challenge in Africa. Although there has been progress through the ratification of international and regional conventions and commitments by African countries, gender inequality is still prevalent in all sectors of the economy, including the labor market. Most women work in the informal sector on small tracts of land or are engaged in care work, where their work is invisible and unpaid. Women’s labor force participation rates are lower than those of men (Wekwete, 2014). Empowerment funds and government schemes specifically target Black women entrepreneurs, mandating majority ownership and managerial involvement to ensure genuine empowerment (Ngubo & Mubangizi, 2020). The study highlights that empowering rural women entrepreneurs contributes to broader community development by enhancing social cohesion and challenging traditional gender norms (Ogbari et al., 2024). The Global Entrepreneurship Monitor (GEM) South Africa Special Report of 2024 recommends improved policy implementation, enhanced financial literacy, promotion of women’s networks, and media attention to empower women entrepreneurs and reduce stereotypes (Meyer et al., 2024). Even though female poverty is widespread, continuous attempts are made to combat it and advance women’s empowerment. Creative strategies must be developed to achieve the goals of sustainable development, such as eradicating poverty, attaining gender equality, promoting decent work and economic growth, and eliminating inequalities (Ogbari et al., 2024).

3.3. Rural Entrepreneurship—Sustainable Development

Rural women entrepreneurs face severe financial constraints that limit their ability to start or expand businesses. Limited access to formal credit remains a critical barrier, as banks and financial institutions often perceive women as high-risk borrowers due to a lack of collateral, low financial literacy, and unstable income streams (Ghouse et al., 2021). According to the Agenda for International Development (AID) (2023), only 18% of women in rural areas have access to institutional credit, compared to 35% of rural men. Even when loans are available, complex paperwork, stringent eligibility criteria, and gender biases in lending discourage women from applying. According to the World Bank (2022), women face systemic exclusion from financial systems despite strong repayment performance.

Rural entrepreneurship led by women plays a transformative role in sustainable development by fostering economic growth, poverty alleviation, and environmental stewardship in South African rural communities (Tshikovhi et al., 2023). Women entrepreneurs demonstrate resilience and innovation despite facing obstacles, such as financial exclusion, lack of skills, and socio-cultural constraints. Access to diverse funding sources, including microfinance, self-help groups, and government grants, enables these entrepreneurs to start and scale businesses that generate income, create jobs, and support local economies (Food and Agriculture Organization of the United Nations, 2024).

Sociocultural norms that limit females’ involvement in the workforce worsen these difficulties. Despite these obstacles, several funding sources, such as government initiatives, NGOs, and financial institutions, have surfaced to assist female entrepreneurs. With the use of funding and technical support, it is hoped that programs will empower female entrepreneurs and ultimately support rural development and poverty improvement. Government funding, which is more specifically related to greater revenue stability, may also lead to goal displacement and institutional isomorphism (Mitchell, 2018). Institutionalism is when NGOs pursue and embrace strategies, practices, processes, and structures, which have little to do with performance and efficiency maximization but react to and seek ways to accommodate pressures in response to external security and regulations (Frumkin & Kim, 2002).

In rural South Africa, government programs are a major source of funding and assistance to female entrepreneurs (Witbooi & Ukpere, 2011). The Department of Small Business Development (DSBD) has started several projects, such as the SheTradesZA Hub (Department of Small Business Development (DSBD), 2022), to improve market access for female-owned enterprises. Furthermore, women in rural regions can specifically benefit from training and funding opportunities provided by the South African Women Entrepreneurs Network (SAWEN) (Department of Small Business Development (DSBD), 2022). These initiatives tackle the difficulties experienced by female entrepreneurs in rural areas, such as restricted market access and inadequate business networks.

In rural areas, non-governmental organizations and microfinance institutions play a major role in the financial landscape for female entrepreneurs. Women can create and maintain their businesses with the help of organizations such as the Women’s Development Business (WDB) and the Small Enterprise Foundation (SEF), which offer microloans and financial education to women (Small Enterprise Foundation (SEF), 2021). By enabling females to become self-sufficient and engaged participants in their communities’ economies, these organizations not only provide financial assistance but also promote communal development (WDB Trust, 2025). The holistic strategy of combining financial assistance with programs aimed at developing capacity has worked well in encouraging sustainable business among South African rural women.

3.4. Informal Finance and Microcredit

Female rural entrepreneurship is widely recognized as a crucial tool for rural development, prompting questions about the most effective public programs to support rural entrepreneurs (Dabson, 2001). According to Dinis (2006), rural entrepreneurship refers to the creation of new organizations that introduce innovative products, services, markets, or technologies within rural settings. It is important to recognize that diversity exists in rural areas and plays a critical role in shaping rural development strategies. For instance, Meccheri and Pelloni (2006) note that peripheral rural areas often struggle with issues such as isolation from major markets, decreasing populations, and poor infrastructure, while more central rural areas tend to benefit from higher population densities and more diversified economies. Petrick and Buchenrieder (2007) argue that sustainable rural development should aim to preserve or enhance the wealth-generating capacity of these communities while maintaining the conditions necessary to support long-term growth. Rural entrepreneurship serves as a vital development strategy by creating employment, increasing household income, and supporting more equitable income distribution. As Deng et al. (2024) observed, recent research continues to affirm that promoting entrepreneurship in rural areas yields substantial socio-economic benefits, including job creation, income generation, and enhanced sustainability of rural livelihoods.

3.5. Barriers and Cultural Norms

Many financial obstacles prevent South African rural female entrepreneurs from growing and developing their businesses. Lack of access to official financial services is one major obstacle. It is difficult for females in rural areas to obtain loans from traditional banks because they frequently have low credit scores, little assurance, and limited financial knowledge (Mago & Toro, 2022). In addition, these obstacles are made worse by gender discrimination and cultural norms that limit women’s ability to make decisions and engage in the economy. Due to their lack of access to formal financial networks, female entrepreneurs frequently rely on unofficial finance sources, which are frequently insufficient and unstable (Mukwarami et al., 2020).

The lack of specialized financial products and support services for female entrepreneurs in rural locations is another significant obstacle. There is a mismatch between the financial products that are accessible and the actual needs of the entrepreneurs because many financial institutions do not have the requisite awareness of the special needs and situations of these women (Agbenyegah, 2013).

4. Materials and Methods

This study employed a qualitative bibliometric approach, which is increasingly used in entrepreneurship research to analyze publication trends, thematic patterns, and research gaps. A highly relevant methodological reference is Topimin et al.’s (2024) bibliometric analysis on women’s entrepreneurship, which examined 314 Scopus-indexed articles using tools like Harzing’s Publish or Perish and VOSviewer. Similarly, Kumari and Kumar (2024) conducted a bibliometric review of the women entrepreneurship literature from 2012 to 2022, exploring authorship patterns, collaboration networks, and thematic evolution. Together, these studies reinforce the applicability of qualitative bibliometric techniques in systematically mapping scholarly discourse, including in rural and gendered entrepreneurship contexts.

In alignment with these methodologies, this study initiated its analysis by searching for the academic and grey literature using Google Scholar, guided by keywords such as “rural female entrepreneurship”, “funding”, “financial inclusion”, and “South Africa”. From an initial pool of 613 articles, a subset of 100 documents was shortlisted based on thematic relevance, clarity of argument, and geographic or contextual focus on Southern Africa. Of these, 36 documents were selected for in-depth analysis after screening for conceptual richness and data utility.

The selected documents were uploaded into ATLAS.ti, a qualitative data analysis software. Using both inductive and deductive coding methods, the authors applied a set of 10 core thematic codes, including access to finance, government support, NGO interventions, collateral requirements, and social norms. A total of over 20,000 quotations were analyzed using ATLAS.ti’s code co-occurrence tools and network visualization functions. Sentiments were categorized into positive, negative or neutral, depending on contextual framing. For instance, statements describing empowerment, successful access to funding, or effective institutional support were coded as positive, while references to bureaucratic delays, discrimination, or exclusion were coded as negative. Neutral sentiments often involved policy summaries or generalized statements without evaluative content.

Intercoder reliability checks supported the coding process. In addition, network and Sankey diagrams (Figure 1 and Figure 2) were generated to explore the relationships between themes and sentiment distribution. This method enabled the identification of how specific themes, such as government support or discrimination, interacted with the broader discourse on financial inclusion and rural entrepreneurship.

5. Results

5.1. Thematic Sentiment Co-Occurrence Overview

A total of 10 codes were applied to 36 documents, encompassing core themes related to rural female entrepreneurship. Using ATLAS.ti’s code co-occurrence tool, we analyzed the frequency with which thematic codes aligned with sentiments (positive, negative, neutral). This approach allowed for quantifying how different barriers and supports were perceived concerning access to funding.

5.2. Insights from Sentiment-Theme Co-Occurrence Patterns

An in-depth review of the co-occurrence analysis highlights three critical intersections.

5.2.1. Access to Finance and Sentiment Diversity

The theme of access to finance revealed the most sentimental diversity. While 294 instances were positive, primarily tied to NGO grants and informal savings mechanisms, 278 negative quotes also emerged, often citing long processing times, rejection, or bureaucratic hurdles. The 255 neutral mentions typically referenced generic statements or policy intentions without personal reflection. This split reflects both the ongoing challenges and emerging successes of financial inclusion.

5.2.2. NGO Support vs. Government Support

NGO interventions (n = 430) exhibit a high level of positive sentiment (216) and relatively balanced representation across other categories, indicating both visibility and perceived value. In contrast, government support (n = 444), though more frequent than expected, reflects inconsistency, with only 226 positive quotes and over 210 that are either negative or neutral. This suggests the presence of state programs in discourse but also an uneven experience among beneficiaries. Notably, documents D10, D30, and D35 had the highest density of “policy intervention” codes, signaling their influence in shaping discourse around government-led financial support. Document D10, for example, criticized the bureaucratic inefficiencies and top-down approach of national funding initiatives, while document D30 emphasized gaps between policy intentions and on-the-ground implementation. Document D35 presented a more nuanced narrative, balancing praise for formal interventions with criticism of their limited reach in remote regions. The prominence of these documents highlights the varied and complex experiences of rural women with policy-driven financial mechanisms and underscores the need for more inclusive and localized funding models.

5.2.3. Social Norms and Cultural Limitations

The theme of social norms received fewer overall quotes (n = 126) but leaned toward negative (33) or neutral (49) sentiment. This suggests that while not always explicitly discussed, cultural expectations and gender barriers remain underlying forces that shape access to entrepreneurship and funding opportunities.

The prevalence of discrimination-related references supports the theoretical framing of structural exclusion. These codes were often embedded in narratives referencing land ownership, inheritance laws, or financial gatekeeping, reaffirming that financial exclusion is not only a market failure but a socio-institutional one.

Table 1. Co-occurrence between themes and sentiment categories.

Theme	Negative	Neutral	Positive	Total Quotes
Access to Finance	278	255	294	829
Collateral Requirement	65	37	54	157
Financial Literacy	269	201	213	684
Government Support	110	106	226	444
NGO Interventions	112	101	216	430
Social Norms	33	49	43	126

is a summary of the number of quotes associated with each sentiment type across the seven most prominent themes.

A Sankey diagram (see Figure 1) further visualizes the distribution and flow of sentiments per theme.

5.3. Document-Level Density of the “Policy Intervention”

To complement the co-occurrence analysis, a document-level frequency count was conducted to identify texts with the highest emphasis on policy-related content. As shown in

Table 2. Document-level density of the “policy intervention”.

Document ID	Mentions of Policy Intervention
D10	56
D30	62
D35	28
D2	13
D3	11
D7	11

Note: Counts represent the number of quotations tagged with the “policy intervention” code in each document.

, documents D10, D30, and D35 featured the highest density of the “policy intervention” code, indicating that these sources are particularly influential in shaping narratives related to government-led support, policy critiques, or stakeholder expectations.

These texts may reflect either a policy-centric focus or stronger engagement with public sector discourse. For this reason, they serve as potential anchor documents for future empirical follow-up or policy analysis.

The next section expands on the “discrimination” code, which was frequently co-embedded with policy and finance themes, providing insight into structural barriers faced by rural women.

5.4. Discrimination as a Code

In addition to financial and policy-related challenges, many of the reviewed documents highlighted systemic discrimination as a persistent barrier to rural women’s entrepreneurial participation. The “discrimination” code was applied to quotations referencing structural exclusions, unequal access, biased lending practices, and cultural or gendered norms that limit female agency.

Approximately 65% of the documents contained references to discrimination. These references were often embedded in discussions of collateral requirements, institutional distrust, or patriarchal community structures. The sentiment mapping showed that most of these quotations were negative, pointing to lived experiences of exclusion or marginalization.

This trend supports the argument that financial exclusion is not only about limited access to capital but also about institutional attitudes and social norms that frame women as high-risk borrowers. The presence of this theme across a wide range of documents affirms the need for gender-responsive financial systems and policies that challenge embedded biases.

The network diagram in Figure 2 visualizes the co-occurrence of the “discrimination” code with other themes, such as access to finance, government support, and social norms. To improve visual clarity, irrelevant or redundant quotations were removed during network refinement. Only contextually meaningful quotations across a diverse range of documents were retained for network visualization.

To enhance the clarity of the thematic network map (Figure 2), we applied a filtering process to prevent overrepresentation of densely clustered or redundant quotations from a single document or theme. Quotations were randomly removed in instances where their repetition within a code clouded the overall visual interpretability. This approach was not intended to bias the thematic structure but to ensure that the network remained legible and balanced in representing the broader discourse. The removal was limited to duplicative or closely similar quotations, and the final selection prioritized thematic coverage, document diversity, and clarity of linkage across nodes. The complete dataset, including all codes and quotations, remains accessible in the ATLAS.ti archive for transparency and reproducibility. The network was created by extracting quotations from the code. To improve visualization, some quotations were randomly removed. Once the network was visualized, additional irrelevant quotations, such as those from titles, tables of contents, or repeated codes within the same document, were further eliminated. This ensured that quotations came from a diverse range of documents, preventing overrepresentation of any single source.

6. Discussion

This study set out to explore the financing experiences of rural female entrepreneurs in South Africa, revealing both systemic constraints and emerging opportunities. The co-occurrence sentiment analysis provided a nuanced view of how different funding themes are perceived and experienced across 36 relevant documents.

The results underscore the complex relationship between access to finance and gendered experiences in rural areas. Notably, the most sentimentally diverse theme was access to finance, with a nearly equal distribution of positive, negative, and neutral sentiments. This suggests that while some women have successfully accessed funding, particularly through NGOs and community-based financial structures, many still face barriers related to bureaucracy, eligibility criteria, and rigid lending requirements. These findings support the existing study by Agbenyegah (2013), emphasizing that rural women often operate in informal markets without the documentation or collateral required by traditional institutions.

The dominance of positive sentiments surrounding NGO interventions, especially SEF and WDB, highlights the pivotal role of community-based microfinance in financial inclusion. These institutions were consistently associated with support mechanisms that did not rely on collateral, paired financial assistance with capacity-building, and adapted their offerings to the realities of rural life. This mirrors earlier findings by Witbooi and Ukpere (2011) and WDB Trust (2025), who emphasized the strength of microfinance models that go beyond capital provision to include mentorship and literacy support.

Conversely, government support, while frequently mentioned, presented mixed sentiments, indicating uneven visibility, effectiveness, or relevance at the grassroots level. Although initiatives like SAWEN and SheTradesZA have commendable goals, their perceived disconnect from rural realities echoes criticism in Fieldsend and Nagy’s (2006) sustainable development framework, which stresses that top-down approaches often fail without local adaptation.

The findings on collateral requirements and financial literacy reaffirm the structural barriers documented in the rural finance literature. Women’s lack of asset ownership, a direct result of historical and cultural norms, renders them ineligible for mainstream loans (Mago & Toro, 2022). Moreover, low financial literacy limits their ability to navigate existing programs or make strategic use of funding. This supports the call by Mukwarami et al. (2020) for integrative models that embed training, mentoring, and simplified access procedures.

Finally, social norms emerged as a subtle but powerful constraint. Although the frequency of this theme was less compared to others, its sentiment leaned strongly negatively. This finding echoes previous work (Fletschner & Kenney, 2014; Hoy, 1996) showing that cultural expectations around women’s roles continue to shape business ownership, autonomy, and access to external networks in rural economies. Recent studies highlight the significant impact of gender roles and sociocultural factors on women’s entrepreneurship in rural areas. Traditional expectations often limit women’s access to economic opportunities and decision-making power (Arceño & Sarino, 2024). Cultural norms, particularly gender role ideology, shape entrepreneurial attitudes and behaviors, with family support emerging as crucial for business survival (Banu et al., 2021). Women entrepreneurs seek female-only business networks to harmonize their identities and mitigate social isolation in rural contexts (Saavedra, 2024). These networks act as catalysts for shifting social paradigms and fostering inclusivity. The interplay between gender and culture in entrepreneurship remains complex, influencing gender role expectations, identities, and the entrepreneurial environment (Bullough et al., 2022). While women’s entrepreneurship contributes significantly to economic growth, persistent cultural barriers underscore the need for gender-sensitive policies and support systems to promote equitable access to resources and opportunities in rural economies.

Policy and Practice Implications

To align financial inclusion strategies with the lived realities of rural women, policymakers and practitioners should carry out the following:

• Co-design financial products with input from rural women entrepreneurs and all the stakeholders who play a role in this sector, such as financial institutions, other private institutions, civil society organizations, and academics. For example, financial institutions are, in most cases, the ones who interact directly with these women when attempting to open business accounts or apply for business loans. The financial institutions can provide data about the challenges faced when offering services to entrepreneurial women who reside in rural areas. These would be useful for stakeholders as well as policymakers.
• Expand microfinance models that include education and mentorship, especially continuous education. Several programs offered in rural areas tend to be one-off initiatives without proper monitoring and evaluation tools to ensure the education is well received and implemented. Funding will go a long way for beneficiaries if accompanied by education to ensure they are well-equipped with relevant information. This will help ensure that the funding sustains the business. The same applies to the design of such programs, which should also consider other models, such as understanding the cultural norms that tend to be barriers for women in rural areas. Programs that integrate traditional leadership into their model can challenge the current state, where women and girl children are often denied the right to inherit land or property.
• Decentralize access to government programs through rural community hubs. Many rural women entrepreneurs face physical and logistical barriers in accessing government funding programs and support services, often located in urban centers. To address this gap, government interventions should be brought closer to rural communities through localized access points, such as community halls, libraries, mobile service units, and digital kiosks. These hubs can serve as one-stop centers where women receive guidance on funding applications, business registration, financial literacy training, and mentorship opportunities. By decentralizing access, these hubs reduce transport costs, save time, and build trust between rural entrepreneurs and institutions, ultimately increasing participation and impact at the grassroots level.
• Embed gender-responsive finance training into rural development efforts. Financial training programs must go beyond generic content to address the specific realities and constraints faced by rural women. Embedding gender-responsive finance training into rural development ensures that women are not only aware of available financial instruments but also empowered to use them confidently. This includes understanding loan terms, building credit profiles, managing cash flow, and navigating financial institutions. The training should be offered in local languages, use culturally appropriate examples, and be delivered in ways that accommodate women’s time constraints (e.g., flexible schedules, childcare support). Embedding this training in broader rural development plans also helps reinforce long-term economic inclusion and shifts local perceptions of women’s roles in financial decision-making.

7. Future Research Directions

While this study was document-based, future research could complement these insights through empirical fieldwork with rural entrepreneurs, policy implementers, and funding institutions. Comparative studies across provinces or the Southern African Development Community (SADC) countries would also strengthen the regional relevance of these findings. This study is limited by its reliance on secondary documents, which may overrepresent institutional perspectives and underrepresent grassroots voices. Future studies should triangulate findings with field-based interviews or participatory rural appraisals.

8. Conclusions

Financial exclusion remains a pressing issue for rural female entrepreneurs in South Africa. Despite some institutional efforts, access to appropriate funding remains constrained by structural and social barriers. This study recommends co-created funding instruments, expansion of microfinance outreach, and integration of financial literacy in rural development programs. Further research should assess regional disparities and test pilot interventions designed around rural women’s lived experiences.

In particular, the ATLAS.ti sentiment analysis revealed that collateral requirements, limited financial knowledge, and underperforming formal structures contribute to systemic exclusion. Meanwhile, NGOs offering non-collateralized, community-based lending models emerged as key enablers. These findings support the need for government–NGO partnerships and flexible finance models that respond directly to rural contexts.

This study contributes not only to academic discourse but also to the ongoing G20 financial inclusion agenda by proposing scalable, evidence-based strategies rooted in both discourse and practice. Future efforts should prioritize localization of support, participatory policy design, and gender-transformative approaches to rural development finance.