Integrating stokvel investment into local economic development policy: Strengthening rural women-owned SMMEs in South Africa

This study examines the role of stokvel investment in enhancing the sustainability of rural women-owned small, medium, and micro enterprises (SMMEs) within the context of local economic development (LED) in South Africa. Despite the importance of SMMEs in promoting inclusive growth, rural women entrepreneurs continue to face persistent financial exclusion and limited institutional support. A qualitative research design was employed, drawing on semi-structured interviews with rural women entrepreneurs, stokvel leaders, municipal officials, and financial institution representatives in the Raymond Mhlaba Local Municipality. Thematic analysis was used to identify patterns relating to financial access, governance, and structural constraints. The findings show that stokvels function as critical community-based financial and social institutions that enhance enterprise viability through accessible capital, collective governance, and social capital. The study proposes a Municipal Stokvel-LED Integration Framework that positions informal financial systems as strategic partners in inclusive local economic development.