Sustainable micro-entrepreneurship to ensure positive economic growth in the Western Cape

Abstract

The high unemployment rate in South Africa has forced many people to think of creative ways to derive an income. This in turn has resulted in the increase of microentrepreneurs who could contribute positively to the economy if given the opportunity. According to the White Paper on National Strategy for the Development and Promotion of Small Business in South Africa (1995), the objective is to stimulate and promote small businesses by providing access to requisite resources. However, what has become apparent is the lack of resources for micro-entrepreneurs, as well as problems with accessibility to the few available resources. Popular literature often refers to money being made available by government or foreign donors to assist micro-entrepreneurs in getting businesses started. There is also much talk about empowerment of entrepreneurs via financial resources as well as through skills training. However, much of the assistance is available for opportunity entrepreneurs and not for the survivalist entrepreneurs. Although there has been a commitment by government to promote small business, it yet again focuses on the opportunist entrepreneur rather than the survivalist entrepreneur. Survivalist micro-entrepreneurs face huge challenges in accessing any type of resources. Although there is much talk about promotion of small business, there seems to be a gap in what is being advocated and what is being done. What has happened thus far is that small and medium enterprises have been branded under one label, proving detrimental to the micro-entrepreneur. The opportunist entrepreneur and the survivalist entrepreneur have vasy different needs and the resources made available should address the different needs. This study focused on micro-entrepreneurship in the Cape Flats area of the Western Cape, specifically on survivalist micro-entrepreneurs, and excluded the opportunist entrepreneur.