Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

Small-Enterprise Capital Mobilization and Marketing in Rural Areas A Review Synthesis of Stokvel Model

Author(s): Ishmael Obaeko Iwara and Vhonani Olive Netshandama

Stokvel, a traditional African model for informal saving and investment presents a significant standpoint in entrepreneurship. This paper from a desktop review reveals essential resources that can be harnessed for enterprise promotion. Urgent features for examination include capital mobilization through saving stokvel systems, rotative stokvel systems and/or stokvel loan initiatives. Furthermore, traditional stokvel systems draw members from known and trusted networks to form a community of practice. These individuals meet periodically in physical spaces to share resources, solve problems and celebrate identities, and this practice is essential in building community advantage and strong social capital. These features present important platforms for product marketing and customer mobilization for an enterprise. It is recommended that these results inform a framework for entrepreneurship capacity-building in rural areas.

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