Challenges and Prospects of Youth Entrepreneurship Development in a Designated Community in the Western Cape, South Africa

Abstract

In a job-scarce environment, where unemployment is rife the need for fostering entrepreneurship especially among youth is a prime concern. This is arguably the case in South Africa, where despite a number of government-pioneered interventions, the level of youth entrepreneurship, particularly in township areas remains unsatisfactory. This study takes a two-pronged approach to establish specific factors that are inhibiting youth entrepreneurship development, and determine the prospects of youth entrepreneurship development in Khayelitsha in the Western Cape, South Africa. The data was collected via self-administered questionnaires that were distributed to 132 respondents, which were randomly drawn from a population of 200 youth entrepreneurs registered on the database of a local organisation which promotes and develops entrepreneurship in the Western Cape. The findings revealed, among others, that a major inhibiting factor to entrepreneurship development is the lack of awareness and inaccessibility of youth entrepreneurship support structures and initiatives in this community. Interestingly though, this hindrance does not appear to have a negative bearing on the identified growing enthusiasm of the youth to engage in entrepreneurial activities. Overall, on the basis of the challenges and prospects revealed, recommendations to improve the current situation are made. This study is an applied research effort and its relevance is linked to the fact that it provides rare insight into the state of youth entrepreneurship in a large but under-researched township community in the Western Cape. The findings and recommendations therefore bear far-reaching ramifications for all stakeholders who are concerned about developing youth entrepreneurship in this society.

The Challenges/Barriers Preventing the South African Youth in Becoming Entrepreneurs: South African Overview

“…It is also found that parents and society have the belief that the white-collar jobs are superior to entrepreneurship which gives the youth the mindset that in order for them to survive and become successful they have to work for other people. In Zambia, Masanta (2017) found that there was great potential for the youth to participate in entrepreneurial activities, the study conducted by Gwija, Eresia-Eke & Iwu (2014) revealed that South African youth faces wide range of challenges which are: lack of start-up and development capital, absence of government support, red tape, labour laws and harsh business regulation and inappropriate entrepreneurship education.…”

Role of Business Incubation in Sustaining Small and Medium Enterprises in the Kingdom of Eswatini

“…To cope with sudden business changes, new firms need to have the necessary management and entrepreneurial skills to start and sustain their business, unfortunately, the opposite is the case in most developing countries in general and the Kingdom of Eswatini in particular. Gwija et al (2014) in their study, noted that education and training in entrepreneurship could positively contribute to the success of any business. The developed routine through experiential practice reshapes the operation of a start-up venture.…”

“…Acquiring business funding is a challenge to most SMEs, not just in Eswatini but in many emerging countries. Aspiring entrepreneurs in Khayelitsha, South Africa, who cannot afford to raise capital, due to a lack of funding, opt for paid jobs (Gwija et al, 2014). Unfortunately, this includes graduates who have acquired entrepreneurship education from the university.…”

“…In the Kingdom of Eswatini, SMEs are faced with numerous challenges in helping to contribute to the socio-economic development of the nation, nevertheless, BIs have been able to come to the rescue through their assistance in nurturing SME sustainability. The literature further iterates the importance of SMEs in economic development (Abor & Quartey, 2010) and job creation (Gwija, Eresia-Eke & Iwu, 2014).…”

Inkubator ''Entrepreneur Passion'' Sebagai Wahana Generator Semangat dan Ketrampilan Berwirausaha Pelajar Menengah

“…Selain itu, adanya keterampilan berwirausaha dapat memperbaiki pengembangan dan keberlanjutan usaha (Lose & Tengeh, 2015). Dengan demikian, sudah selayaknya bila keterampilan berwirausaha dapat diajarkan mulai dari sekolah menengah hingga perguruan tinggi agar lebih dapat menciptakan pekerjaan sendiri daripada menjadi pencari pekerjaan (Gwija, Eke, & Iwu, 2014).…”