De Lange, I., Macpherson, W. E, Cullen, M., Calitz, A. P., Boucher, S. M., van Rensburg, L.
Abstract
Disadvantaged entrepreneurs face compounding barriers when starting and growing a business. The causes for disadvantage can be economic, social and cultural, as well as an unsupportive entrepreneurial ecosystem. Numerous initiatives aim to improve entrepreneurial skills, however, they often overlook disadvantaged people interested in entrepreneurship. Economic exclusion, based on factors such as nationality, age, religion, physical disabilities or political affiliation, further compounds these challenges. To these disadvantaged people, entrepreneurship appears to be a solution for creating their own livelihood. The primary objective of this study was to identify the inhibiting factors for disadvantaged entrepreneurs who worked with the Business Chamber in the Nelson Mandela Bay in South Africa. The research approach was qualitative with semi-structured interviews conducted with 12 disadvantaged entrepreneurs. The data were thematically analysed using ATLAS.ti. The study revealed weaknesses in the entrepreneurial ecosystem in that it proves complex to disadvantaged entrepreneurs, by presenting challenges in resource access, intense competition, a lack of infrastructure and the impact of crime. Despite these challenges, entrepreneurs identified crucial enablers, such as funding opportunities, access to machinery, equipment, affordable business premises and competent human capital. Mentorship, a supportive network and continuous learning, were deemed essential. The study also highlighted personal pressures faced by disadvantaged entrepreneurs.