Ronnie Lotriet, Mpho Mosia
Abstract
Unemployment in South Africa has been a problem for many years. In combat, the South African government introduced a National Development Plan to create at least 24 million jobs and R120,000 income per capita. By 2030, 90% of these jobs will in small, medium, and micro enterprises. One key initiative was for the townships’ businesses to engage in the township economy revitalisation programs. This study aims to analyse the socio-economic challenges of business owners as potential job creators and investigate the different factors that hinder the success of businesses in their areas. A qualitative research design targeted business owners within the township of Sharpeville. The target population included very small to small businesses; no medium-sized businesses participated.
The study shows that township business owners face several challenges that need careful assessment. These challenges include factors such as lack of support and capital and competition from foreign-owned businesses, culture, and historical backgrounds. The research also showed that there is potential for township businesses to create employment and be self-sustainable, and there is a need for investment in this area. Suggested recommendations were made for relevant stakeholders but implementing policy changes for a more conducive business environment are of utmost importance for these types of businesses to grow and develop.