Youth entrepreneurship challenges and opportunities: a case of Klaarwater Township.

Abstract

The informal sector plays a significant role in South Africa’s economy accounting for an estimated 20% of the country’s Gross Domestic Product (GDP). The informal sector not only contributes on a bigger scale with the mainstream economy but also serves as a means for survival for unemployed persons. The study aimed to identify the challenges and opportunities experienced by entrepreneurs in their youth in a township setting. The research objectives of this study were, firstly, to identify the economic and social challenges experienced by young entrepreneurs in townships; secondly, to ascertain the supply chain operational challenges that young entrepreneurs face in townships; thirdly, to examine the extent to which sociodemographic factors influence propensity towards entrepreneurial practices amongst the youth in South African townships; and finally, to establish the role of existing government interventions in increasing trade and propensity towards entrepreneurial activities amongst the youth in South Africa’s townships. The study was carried out during the Covid-19 pandemic and efforts were made to ensure that social distancing laws were upheld. The study sampled seven (7) shops owned by young entrepreneurs and included a total of forty-two (42) customers who frequent the respective shops. A total of seven (7) semi-structured interviews and seven (7) focus group discussions were conducted. Thematic analysis was employed to categorise the data collected using the abovementioned research instruments. The study revealed the challenges faced by entrepreneurs in their youth, there are opportunities and/ or gaps in trade in townships and, consumer perceptions of the ability of shops to service the community needs were disclosed. The concluding chapter discusses the key contributions that this research adds to the existing body of knowledge. The study noted that the government should increase efforts to communicate and educate young and aspiring entrepreneurs on existing opportunities to enhance trade in South Africa’s townships.