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The Gender issues in the Society

Article in Gender Issues · January 2016

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 Authour

Backen Johannes Lefa

Faculty of Education and social sciences

Race relations in Society

Cape Peninsula University of Technology

Mowbray Campus

South Africa

Date 11th September 2015

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Contents
DECLARATION................................................................................................................................... 3

Abstract.................................................................................................................................................. 4

Introduction ........................................................................................................................................... 5

Problem .................................................................................................................................................. 6

Discussion /methods .............................................................................................................................. 7

Results .................................................................................................................................................... 8

Table 1 .................................................................................................................................................... 8

Data for women ..................................................................................................................................... 9

Data analysis ........................................................................................................................................ 11

Data interpretation ............................................................................................................................. 12

Summary and conclusion ................................................................................................................... 13

Bibliography ........................................................................................................................................ 14

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 DECLARATION
I declare that the Bank discrimination against women is my own work and that all the
sources that I have used or quoted have been indicated and acknowledged by means of
complete references.

…. ……………………….. 11 October 2015

SIGNATURE

NAME: Backen Johannes Lefa

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 Abstract
Author: Backen Johannes Lefa

Cape Peninsula University of Technology

The principal objective of this paper is to introduce the reader to the increasingly effect of

discrimination against small business women by the financial institution. This report

addresses discrimination against women in economic sector, with a focus on economic crisis.

Discriminatory legislation in a number of States continues to obstruct women’s enjoyment of

equal rights and access to economic opportunity and resources. The roles and responsibilities

assigned to women and men on the basis of stereotypes relegate women to a subordinate

status and limit their economic opportunities. A significant number of countries have adopted

anti-discrimination measures, but these have not resulted in equality of opportunity in

women’s economic and social lives. There has been little attention the negative impacts of

the business sector on women’s enjoyment of human rights. Care functions are

disproportionately allocated to women and create a major barrier to women’s full

participation in economic market activity.in this paper I will discuss the scarcity and

discrimination of women in the small business sector which is caused by the severe

discrimination of women by the financial institution such as banks .The research project that

was launched has proved that majority of the women in the small business sector are greatly

disadvantaged by the discrimination by the banks and other financial institutions, due to the

fact that the bank is considered to be the most important sector for the small business finance.

The study has proven that most of the small business women seeking the financial assistance

from either the banks or any other financial institution got rejected or either pay the high

interest rate than male business competitors.

Keywords: Discrimination, Financial institutions, Small business

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Introduction
(Keller.2009)states that many women who are the owners of the small businesses are greatly

disadvantaged by the banks and the financial institutions in terms of funding .As it is well known

that the bank is the most particularly important financial supplier to the small businesses. However

women’s are not benefiting to the function of the bank in small business compared to men.

(Kvanli.2010) The survey has proved that when most of the small business women request the loan

they got rejected more frequently than men’s request. This is due to the fact that the perception of

certain work as feminine has had a significant impact on women, both at businesses and in the

workplace. Often small businesses owned by women regulate women to positions where they earn

less profit compared to men and are less likely to become business owners than their male

counterparts.

This paper calls for an investigation into banks’ discrimination of female small business

entrepreneurs and for banks to publish their lending decisions by gender in a transparent fashion.

(Kvanli.2010)This is to ensure that women are able to fully participate in the economic recovery,

especially given the current context ,one in which cuts in the public sector have led to the highest

level of female unemployment in the many countries for 20 years, and entrepreneurship may be a

lifeline. Women and banks .Are female customers who seek the financial assistance from banks

facing discrimination? This paper examines whether banks are discriminating against female

customers. The investigation focuses on two distinct groups, small business women and male

entrepreneurs.

(Keller.2009) states that there has been little attention the negative impacts of the business sector on

women’s enjoyment of human rights. Care functions are disproportionately allocated to women and

create a major barrier to women’s full participation in economic market activity. This paper focuses

on the gender aspects of economic rights. (Keller.2009) states that these rights have particular

significance for women, who are disproportionately affected by economic marginalization and

poverty in terms of being considered in the financial institutions or either banks. Women’s right to

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equality in economic and social rights is substantive, immediate and enforceable by the financial

institution that limit the remuneration or assistance for women small business owners .In this paper

the survey that shows or prove that women have been disadvantaged by banks have shown that

majority of women are owning small businesses due to the lack of finance while majority of male

entrepreneurs owns the cooperation or partnership businesses.

Problem
Due to the fact that more women are becoming the owners of the small businesses. The major

concern on this paper is based on how the financial institutions and the banks .Banks are well

known and particularly the important financial supplier to small businesses, the survey shows that

women were been discriminated against by the bank in terms of financing them. The survey also

included the fact that most of the women have been requesting the financial loans from the banks

but they were rejected more frequently than men’s request or either research stated that sometimes

women pay the higher interest rate charges compared to male entrepreneurs. Researchers examined

the issue of women discrimination in the financial institutions and banks was launched .The data

for this research was collected or surveyed in total of 1165 business owners both men and women

entrepreneurs.

The attached Small Business Survey shows that there are no statistically significant differences in

the proportion of male and female owning the small businesses reporting difficulties in accessing

finance .A survey of 1165 of growth-oriented entrepreneurs found no meaningful difference in

experiences of being rejected for finance between women and men. (Keller.2009) states that the

number of women-led businesses is increasing despite the increase, women are less likely than men

to either set up or head up a small business. (Kvanli.2010) Women are half as likely to be involved

in setting up a business as men. Women’s businesses also tend to be different to men’s. They are

more likely to be: in the health, social work or professional activities sectors; sole traders; and, to

have lower turnovers. So there is clearly scope for greater involvement in business by women.

(Keller.2009) states that there is also potential for women’s businesses to grow. We want more

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women to feel confident about setting up and running their own businesses and about approaching

banks to access the finance to support and expand their businesses. Women in small business have

a different approach to accessing finance. This includes lower confidence about being successful

prior to applying for finance, even though there is evidence that they are more likely to have an

application approved. Women also have a greater tendency to be well prepared before applying for

finance, and, on average seeking smaller loans.

Additionally, other research suggests that women have a distinctive approach to business, and may

have different motivations and objectives compared to men.

Discussion /methods
 The survey to research the matter of this topic that women are facing the discrimination by the

banks.

 The data was collected through the interview of owners of the business who own different forms

of the business.

 The data was recorded accordingly and the different business owners were asked on whether

they attempted to request the loan from any financial institution.

 Their gender and forms of their business were taken into account and recorded.

 The researchers also asked on the questionnaire on whether the owners earn a lot of turn over or

small turn over.

 The owners were also asked the duration or the period they have been in the business sector.

 Both women business owners and the men entrepreneurs were interviewed accordingly.

 The discovery showed that when the women request the loans from the bank and financial

institution are severely rejected.

 Different banks were interviewed regarding the statistics or number of the business owners who

were approved and the number of those who were rejected for the loan.

 The statistics were then divided according to gender, and that fact that women are rejected more

frequently than men’s request was visible according to the statistics from the banks.

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 The interest rate between men and women were compared between two gender and the

deduction shows that women who were approved for the loan wer charged more interest rate

than men ,because they wanted them to finish paying the loan as quick as possible before they

face challenges in the business sector

Results

Table 1
The table below shows the number of women in business sector compared to men

Form of Business Number of women Number of men

Proprietorship 31 162
Partnership 10 76
Corporation 60 714
others 14 98

Total 115 1050

Diagram 1 : The graph to compare the number of women and men in different forms of business.

800

700

600
number of people

500

400
Number of women

300 Number of men

200

100

0
Proprietorship Partnership Corporation others
type of business form

Diagram 1: The graph to compare the number of women and men in different forms of business

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 714
Mean of men in cooperation= = 178.5
4

Mean of men in Proprietorship = = 40.5

Mean of men in Partnership = =19

Mean average =

= = 317.3

Mode of gender = 2

Mode of business form =

Minimum number of me in business form = 76

Maximum of men in business forms = 714

The average of men in business forms compared to women =388,33

Data for women

Mean of women in cooperation =

= = = 18.3

Mean of men in Proprietorship = = 10.3

Mean of men in Partnership = = = 3.33

The above data or results reveals that the majority of gender competing in different forms of

business is men compared to women. The graph and the table revealed that most the people who do

not own or who are rejected by banks while requesting for financial support in the form of a loan

are women. Majority of the people who own all the forms of business are men, that is because

women are facing the strict market forces that cause the not to spend the long time or that cause

them to quit the business sector. In this case the graph shows that most of the women owns the

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proprietorship which is the small business. That is because their businesses remain small due to the

fact that their request to financial request are being rejected and again as we can see that the

majority of the corporation owners are men, that is due to the obvious issue that men business

owners are more likely to be approved for the financial support or loan from the bank or any other

financial institution. Because men are regarded as people who can cope with the strict market

competition and they can grow rapidly due to their patient

Women and men who were approved for loan and their interest rate

Form of business No of women approved No of men approved

Proprietorship 31 162
Partnership 10 76
Corporation 60 714
Not approved 14 98
Table 2: number of people approved for a loan between women and men

Diagram 2: The graph above shows the number of individuals approved for bank loan
800

700

600

500

400
No of women approved
300 No of men approved

200

100

0
Proprietorship Partnership Corporation Not approved
type of business approved

Median of the data of recipients approved for the loan: 68.

Mean of recipients approved for loan =µ = =175.5

Women approved for loan in Partnership = = =3.33

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Men approved for loan in Partnership = = 25.33

Mean of Men approved for loan in Corporation =

Mean average = = = = 317.3

Mean average = = = = 33.67

Mode of gender approved for loan =2

Mode of business form approved for loan = 3

Mean of the men approved (μ) = 317.33333

Variance of the men approved (σ2) = 145804.22222222

Range of men approved= highest value – lowest value

Range: 638

Range of women approved: 50

Data analysis
The data in the forms of business owned by women shows the issue that most of the corporation

businesses are greatly owned by the men and women only own little corporation business. In this

data is simply shows that most of the women owns the small business that only have the small

turnover .the statistics shows the disadvantages that women faces in terms of business ownership

more especially the big business such as partnership and corporation. In the above data we noticed

that most of the business sector is greatly occupied by men. I discovered from the survey that most

of the male business men are well assisted by the bank by approving their financial request through

but when coming to notice the women side the women are greatly disadvantaged by the financial

institute for the survival of their business.

According to the data given most of the women, if it happens for them to be approved for the loan

they pay more interest rate compared to men. The data and the graph showed above shows the

scarcity of women in the business sector and the majority of men in the sector. the provided data

shows that women are not taking long period of time owning the business compared to man and the

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remuneration or the support from the banks is very limited for the business women who want to

expand while the fund are obvious for men. The figures shown by the graph and the table above

prove the fact that women are being under the discrimination by the bank in terms of the financial

support by rejecting most of the loan request by the woman.

The data also shows a large number of men rejected from the financial assistance from the bank or

other financial institution. The number of men in this case among a large number of men is not

approved, while the small number of women among the small number of women is not approved.

In my figures most of the business ownership is ruled or dominated by men in this case I can say

men are dominant in the economic and business sector.

Data interpretation
The figures shown above shows the way of discriminating against women in the business sector,

due to the fact that most of the businesses or the big businesses are owned by the men because of

the issue that women are not getting financial assistance from the banks easily compared to men.

This cause of the matter is that most of the women do not spend a long period of time in the

business sector. According to my own opinion I can say most of the financial institution sees

women as weak people or either people who are not enough developed to cope in the market

forces. Most of the women are greatly disadvantaged by the banks because of the short period of

time they spend in the business sector.

Most of the studies find that women do not get sufficient access to loans compared to men. Women

account for only small percent of conventional small business loans and even though they represent

30 percent of all small companies as shown on the data. Of conventional small business loans,

women only account for small percent of total value of loans from all financial institutions.

Majority of the women in the small business sector are greatly disadvantaged by the discrimination

by the banks and other financial institutions, due to the fact that the bank is considered to be the

most important sector for the small business finance.in the business sector men are always the first

preference when coming to the funding of the business or seeking for a loan for the banks.

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Women in this matter are not surviving in the business sector due to the lack of finance and the

small turnover they make per year compared to men entrepreneur. The banks or loans reject most

of the women loan request due to the fact it is obviously women are making small amount of profit,

so in this case women are few and are mostly in the corporation business compared to men who

own proprietorship business.

Summary and conclusion

(Keller.2009)states that It is vital that the financial sector not only fully implements these actions,

but also – in conjunction with Government and trade associations - sustains them over time so that

fair access to finance for women is demonstrably an integral part of their day-to-day business, and

perceptions of discrimination are actively addressed. (Keller.2009) states that the Government also

recognizes its role in encouraging women in business, the need to promote the range of finance

options that exist and not just that from banks. According to (Keller.2009) there is also a need for

the broad business groups to also recognize and support women-led businesses. According to my

own recommendations I suggest that the financial sectors could do more to demonstrate how they

take women into account; and implementation of the action plan is a critical first step in doing this.

There is merit in the financial industry considering whether in their approach to business lending

and mortgage products they have actively taken into account women’s needs and experiences.

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Bibliography

Keller, G, 2009. Managerial statistics. 5th ed. United Kingdom: Cengage learning.

Kvanli, A, 2010. Concise Managerial Statistics. 1st ed. Canada: Thompson learning.

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