Entrepreneurship

Permanent URI for this collection

http://lhg.cput.ac.za//handle/123456789/284

Browse

Now showing 1 - 7 of 7

Assessment of the viability and potential of township economies for municipalities
(Local Government Sector Education and Training Authority (LGSETA), 2020)
This research study was commissioned by the Local Government Sector Education and Training Authority (LGSETA). The objectives of this study was twofold; (i) to examine the potential of unlocking township economies with a view to help address the crucial socio-economic conditions facing municipalities namely, high levels of unemployment, poverty and inequality and (ii) to identify the skills gaps that can propel the township economy (the researches opted to include the possible skills gaps in both township entrepreneurs and local economic development officials in municipalities) and finally to develop a concept document with a focus on local, regional and international perspectives. From the literature review it is clear that although the policy regime is intact, this is compromised by the poor implementation of local economic development (LED) policies together with a lack of leadership and political will. The socio-economic impact of LED has not addressed the triple challenge of poverty, inequality, and unemployment. This study examined the lived experience of more than 1000 township entrepreneurs. It found that the majority of township entrepreneurs regard business as both a steppingstone to something better and a means of survival during tough economic times. They are in business to make a living and to offer a service to the community. This speaks to the drive for social innovation. Thus, people are not just in business to make money, but genuinely sees this as an opportunity to meet a need in society. Thus, it is not surprising that the majority of interviewed entrepreneurs established themselves in the retail and services sector. The study found that local entrepreneurs need support to identify new opportunities and to acquire skills that will enable them to better market their goods and manage their finances. The needs in support and skills include the following: the development and improvement of effective communication structures to facilitate effective communication between municipalities and township entrepreneurs; ; municipalities to take up a facilitation role in in setting uplinks/partnerships between informal traders and formal business; the better management of the safety and security of township entrepreneurs; more infrastructure support and the allocation of more space for trading speaking to the critical role that local government should play in creating an enabling environment to propel the township economy; more financial support from the municipality. Although training is the most commonly used intervention by local government, the research found this to be the least effective. Participants requested that the format of training is re-designed to include more on the job training as opposed to the typical classroom format of training. Finally, the majority of the research participants experienced the municipality as absent rather than supportive in their entrepreneurial endeavours. Pertaining to the competence levels of LED officials, the study found an urgent need in developing a hands-on capacity building program for municipal LED officials. Such a training programme should focus on managing township economies, policy development, LED planning and implementation, research, and promotion, and promoting industrial and business development.
Entrepreneurial ecosystems and challenges of small business development in a South African township
(World Bank Group, 2020-08) Parker, Marlon
The small business sector is a critical contributor to the South African economy providing employment to more than 8 million people. Due to the high levels of unemployment, especially amongst young people,the government and many other agencies have prioritized support to develop small businesses in South Africa. Small businesses are already facing a number of challenges that impact their growth and sustainability. This has been perpetuated by the COVID-19 pandemic and lockdown strategies in South Africa. This research identified a number of key areas of support to small businesses operating in townships. Although a number of entrepreneurship ecosystems exist in South Africa, few have been setup to support township entrepreneurs. The adoption of technology has also proved to be supportive in helping small businesses succeed but its uptake has been limited in township or informal businesses.
Entrepreneurship in South Africa's townships: ecosystem challenges and recommendations for the path forward
(Aspen Network of Development Entrepreneurs (ANDE), 2024-02) Kim, SangEun; Davidson, Abigayle
South African politicians frequently refer to entrepreneurship as a potential solution to the economy’s significant unemployment problem.1 For instance, Lebogang Maile, a Member of South Africa’s Executive Council for Economic Development, shared his projection that entrepreneurship will generate 90% of all newly created jobs in the South African economy by 2030.2 The South African government provides various support to bolster small business activity, including business development support (BDS) services and funding, with the country’s Small Enterprise Development Agency (SEDA) serving as the focal point for these endeavours. In reality, many entrepreneurs need to come from townships. Out of the country’s population of 60 million, 22 million South Africans live in townships and informal settlements, accounting for 38% of the country’s working age citizens.3 Moreover, while the country’s unemployment rate remains at a staggering rate of over 30%,4 the unemployment rate in townships (60%) poses an even greater challenge to the economy.5 Numerous reports address challenges faced by South African entrepreneurs.6 A smaller set of literature focuses specifically on entrepreneurial activity in the townships. ANDE’s 2021 South Africa Township Economy Entrepreneurial Ecosystem Snapshot and the associated report contribute to this literature, illuminating some of the primary challenges and opportunities facing entrepreneurs in townships.7 This narrower investigation of the unique characteristics of entrepreneurship in the townships illuminates that while the nature of the challenges confronted by township entrepreneurs may share many similarities to those in the rest of the country, they are more pronounced and, therefore, require their own investigation. What distinguishes this report from extant studies, including the ANDE’s 2021 report, is that this report features the voices of entrepreneurs and entrepreneur support organisations (ESO) to vividly portray township entrepreneurs’ challenges through in-depth interviews. This report also aims to elucidate the factors that contributed to the success of exemplary township entrepreneurs despite existing challenges and other strategies that ESOs can employ to guide more entrepreneurs to emulate these success stories. The subsequent sections are organised as follows. The next section describes key concepts and research methodology, highlighting the definition of township businesses and interviews utilised throughout this report. Subsequently, this report scrutinises challenges faced by township entrepreneurs based on the interviews and then explores success factors that have enabled township entrepreneurs to lead profitable and sustainable businesses. Lastly, the report concludes with recommendations for different stakeholders in the township entrepreneurial ecosystem, including entrepreneurs, investors, BDS providers, and the government.
Exploring youth entrepreneurship
(Department of Economic and Social Affairs (DESA), 2020) Holt, Diane
This report explores aspects of youth entrepreneurship as a mechanism to achieve the Sustainable Development Goals. It sets out the position and challenges of youth in Cambodia, Lao PDR, the Philippines, the Gambia, and Fiji, and investigates the dynamics of youth entrepreneurship through an overview of key debates, including the importance of context and the role of the informal economy. The report presents good practices to promote youth entrepreneurship as a way to maintain global employment rates and provide sustained livelihood opportunities to vulnerable groups. This paper was prepared under the project ‘Enhancing National Capacities for Unleashing Full Potentials of Micro-, Small and Medium-sized Enterprises (MSMEs) in Achieving the Sustainable Development Goals in Developing Countries’, supported by the 2030 Agenda for Sustainable Development Sub-Fund of the UN Peace and Development Fund (UNPDF), of which the People’s Republic of China is a major contributor.
Promoting youth entrepreneurship in Africa: a policy brief - 2020
(African Union Commission, 2020)
Youth unemployment is one of the major challenges faced by the African Union (AU) Member States. The problem is exacerbated by limited alternate opportunities to earn decent livelihoods. Since the youth form the backbone of the African population - over 60% - the continent’s sustainable development hinges on harnessing the demographic dividend. That entails going beyond the limited formal employment opportunities for youth and creating and availing opportunities to make a decent living and contribute to the realisation of Agenda 2063. Acknowledging the importance of investing in and creating space and opportunities for young people for them to realise their full potential, the African Union has pioneered several initiatives geared towards youth empowerment. The AU Agenda 2063 recognises the need to do this as a prerequisite for achieving the socio-economic transformation of Africa. Through its African Plan of Action for Youth Empowerment (APAYE), the AU places a premium on five key priority areas, among them youth employment and entrepreneurship. The African Union Commission (AUC) has rolled out an initiative “1 Million By 2021” which is aimed at reaching millions of youth from across the continent with opportunities and interventions in key areas of employment, entrepreneurship, education and engagement. Youth entrepreneurship is projected to be increasingly relevant in the current contexts of rising unemployment and underemployment, as well as insecure, low-paying, hazardous employment that does not result in liveable wages. However, Covid-19 outbreak has shown that pandemics and disasters have the potential to subject young entrepreneurs or businesses to a great deal of uncertainty and exposure to high risk of unproductivity. Covid-19 has led to a global health emergency and economic slowdown with trade, investments and employment being seriously affected. This has left many vulnerable youth-led enterprises struggling to carry on business in the face of unexpected economic shockwaves. Response to the Covid-19 crisis should entail cushioning young entrepreneurs against the shockwaves, assisting them to develop long-term growth plans, finding innovative ways to survive the economic slowdown and searching for novel market opportunities.
Research on the limited success of entrepreneurial activity by locals in townships and rural areas : seven dialogue locations: townships, rural and informal settlement
(Department: Planning, Monitoring and Evaluation, 2017-10)
Research on the limited success of entrepreneurial activity by locals in townships and rural areas was undertaken as part of the National Planning Commission’s (NPC’s) economy work-stream’s task of prioritising township and rural economies as vehicles for achieving nationwide objectives of transforming and growing the economy, as well as addressing youth unemployment. The purpose of the research was to enable the NPC and its stakeholders to:  Gain deeper insights into the context of and challenges faced by township and rural economies;  Inform the processes for reviewing and assessing existing strategies for developing and supporting these economies; and  Formulate new and/or refine existing strategies aimed at addressing these challenges as envisioned in the NDP. A multi-method approach was undertaken to collect a range of qualitative and quantitative data. Emphasis was placed on the qualitative data emanating from six of the seven dialogue sessions conducted. Evidence was obtained from various sources including:  a literature review; and  mini-survey conducted at six of the dialogue sessions in Khayelitsha, Diepsloot, Mamelodi, Uitenhage, Hluhluwe and Thohoyandou.
Skills and youth entrepreneurship in Africa: analysis with evidence from Swaziland
(African Development Bank, 2014-07) Brixiová, Zuzana; Ncube, Mthuli; Bicaba, Zorobabel
The shortages of entrepreneurial skills have lowered search effectiveness of potential young entrepreneurs and the rate of youth start-ups. Our paper contributes to closing a gap in the entrepreneurship and development literature with a model of costly firm creation and skill differences between young and adult entrepreneurs. The model shows that for young entrepreneurs facing high cost of searching for business opportunities, support for training is more effective in stimulating productive start-ups than subsidies. Further, the case for interventions targeted at youth rises in societies with high cost of youth unemployment. We test the role of skills and training for productive youth entrepreneurship on data from a recent survey of entrepreneurs in Swaziland.

Browse

Browsing Entrepreneurship by Subject "Small business"

Results Per Page

Sort Options