Abstract
This study addresses the underrepresentation of empirical research on female entrepreneurship in informal urban settlements in the Western Cape, South Africa. The objective of this research is to explore the entrepreneurial challenges and opportunities encountered by women managing businesses in the Masiphumelele informal settlement in Cape Town and to establish a context-specific multi-pillar empowerment framework that enhances the viability of their businesses. The research adopted a qualitative, interpretivist research design that entailed carrying out semi-structured interviews with 17 female entrepreneurs recruited through purposive and convenience sampling. The data were analysed using a hybrid inductive–deductive thematic analysis supported by QSR NVivo 12 Pro. Three interconnected themes emerged: entrepreneurial challenges, including financial exclusion, inadequate business space, digital literacy deficits, family responsibility, crime, and load-shedding; opportunities for business sustainability, encompassing new equipment, mentorship, digital platforms, and tourism access; and strategies for overcoming challenges, including diversification, social media marketing, and peer networking. Financial constraints are identified as the most pervasive barrier, cited by 15 of 17 participants. The study demonstrates that these barriers operate through a compounding dynamic in which each constraint intensifies the effect of others. A five-pillar framework for empowerment is advanced, clearly situated within Women´s Empowerment Theory and built on the lived experiences of participants. The study advances understanding of female entrepreneurship in sub-Saharan Africa through the concept of compounding disadvantage and the argument that a multi-dimensional and theoretically integrated intervention is necessary for meaningful empowerment in the informal settlement environment.