Small, medium, and micro enterprises (SMMEs) play a crucial role in the global economy. SMMEs represent over 90% of businesses and contribute approximately 40% to the world’s GDP. Despite their significance, SMMEs often face substantial barriers to accessing supply chain financing, particularly in emerging markets. In South Africa, the historical economic marginalization of Indigenous peoples, particularly black South Africans, has further compounded these challenges for township and rural businesses. This chapter explores the potential of Indigenous financial knowledge systems (IFKSs) as a mechanism to address the financing gaps for SMMEs, focusing on the informal financial practices prevalent in South African townships. IFKS encourages a more inclusive, sustainable, and culturally appropriate approach to business and economic development. Thus, incorporating IFKS in SMMEs ensures business success and advances the financial autonomy of Indigenous communities. The chapter utilizes the systematic literature review methodology to identify Indigenous financial practices in South Africa. It is revealed that in South Africa, IFKSs include practices like stokvels, Rotation Savings and Credit Associations (ROSCAs), funeral societies, savings groups, and informal lending (Mashonisas), where individuals pool money for mutual benefit, savings, or credit. These systems provide financial support and flexibility, especially to SMMEs that have limited access to formal banking services and have long been part of the economic fabric in South African communities, particularly those historically marginalized. By integrating these Indigenous practices into the broader financial landscape, the chapter argues for a more inclusive approach to supply chain funding, promoting economic sustainability and growth for marginalized communities.

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Indigenous Financial Knowledge Systems, Financial Inclusion, and Supply Chain Funding in SMMEs

  • Godfrey Marozva,
  • Margaret Rutendo Magwedere

摘要

Small, medium, and micro enterprises (SMMEs) play a crucial role in the global economy. SMMEs represent over 90% of businesses and contribute approximately 40% to the world’s GDP. Despite their significance, SMMEs often face substantial barriers to accessing supply chain financing, particularly in emerging markets. In South Africa, the historical economic marginalization of Indigenous peoples, particularly black South Africans, has further compounded these challenges for township and rural businesses. This chapter explores the potential of Indigenous financial knowledge systems (IFKSs) as a mechanism to address the financing gaps for SMMEs, focusing on the informal financial practices prevalent in South African townships. IFKS encourages a more inclusive, sustainable, and culturally appropriate approach to business and economic development. Thus, incorporating IFKS in SMMEs ensures business success and advances the financial autonomy of Indigenous communities. The chapter utilizes the systematic literature review methodology to identify Indigenous financial practices in South Africa. It is revealed that in South Africa, IFKSs include practices like stokvels, Rotation Savings and Credit Associations (ROSCAs), funeral societies, savings groups, and informal lending (Mashonisas), where individuals pool money for mutual benefit, savings, or credit. These systems provide financial support and flexibility, especially to SMMEs that have limited access to formal banking services and have long been part of the economic fabric in South African communities, particularly those historically marginalized. By integrating these Indigenous practices into the broader financial landscape, the chapter argues for a more inclusive approach to supply chain funding, promoting economic sustainability and growth for marginalized communities.