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

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  • Saphetha Appie Gwija
  • Chux Gervase Iwu

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.

Suggested Citation

  • Saphetha Appie Gwija & Chux Gervase Iwu, 2014. "Challenges and Prospects of Youth Entrepreneurship Development in a Designated Community in the Western Cape, South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 6(1), pages 10-20.
    • Handle: RePEc:rnd:arjebs:v:6:y:2014:i:1:p:10-20
    DOI: 10.22610/jebs.v6i1.465
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    References listed on IDEAS

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    1. International Labour Office., 2006. "Global employment trends for youth : 2006," Global Employment Trends Reports 994801983402676, International Labour Office, Economic and Labour Market Analysis Department.
    2. Darma Mahadea & Shaun Ramroop and Temesgen Zewotir, 2011. "Assessing entrepreneurship perceptions of high school learners in Pietermaritzburg, KwaZulu-Natal," South African Journal of Economic and Management Sciences, University of Pretoria, Faculty of Economic and Management Sciences, vol. 14(1), pages 66-79, March.
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    4. Rosemary Atieno, 2009. "Linkages, Access to Finance and the Performance of Small-Scale Enterprises in Kenya," WIDER Working Paper Series RP2009-06, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Chux Gervase Iwu & Saphetha Gwija & Robertson Tengeh & Chris Cupido & Roger B Mason, 2016. "The Unique Role of the Survivalist Retail Entrepreneur in Job Creation and Poverty Reduction Implications for Active Stakeholder Participation," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 16-37, August.
    2. Thobekani Lose & Robertson K. Tengeh, 2015. "The Sustainability and Challenges of Business Incubators in the Western Cape Province, South Africa," Sustainability, MDPI, vol. 7(10), pages 1-14, October.
    3. Ismail Sheik, 2023. "Navigating the digital divide: exploring the multifaceted 4IR challenges and technological disparities encountered by SMMEs within Kwazulu-Natal, South Africa," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 5(4(73)), pages 6-11, September.
    4. Rankhumise E M & Masilo K H, 2018. "The Effect of Government Support on the Success of Small and Medium Enterprises: A Comparative Study between South Africa and China," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 166-173.
    5. Thobile N Radebe, 2019. "The Challenges/Barriers Preventing the South African Youth in Becoming Entrepreneurs: South African Overview," Journal of Economics and Behavioral Studies, AMH International, vol. 11(4), pages 61-70.
    6. Sarah Cechvala & Brian Ganson, 2024. "Systems Perspectives on Business and Peace: The Contingent Nature of Business-Related Action with Respect to Peace Positive Impacts," Journal of Business Ethics, Springer, vol. 194(3), pages 523-544, October.

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