The influence of culture on the development of youth entrepreneurs in a selected suburb in Cape Town

Abstract

The entrepreneurial efforts of ethnic minorities such as Coloured people in South Africa are mostly done on a survivalist scale. Although there are seemingly high levels of entrepreneurial intention as seen within this thesis, the rate of successful, well-established youth entrepreneurs within the selected suburb in Cape Town remains limited. The aim of this thesis is to understand why this is so. Inadequate entrepreneurial education and training, a heavily skewed distribution of resources, a lack of mentorship, minimal support from parents and a cultural upbringing in opposition to an entrepreneurial culture have been highlighted as plausible hindrances to the development of youth entrepreneurs in the selected suburb. Not only do these factors play a debilitating role in the development and sustainability of youth entrepreneurs, but historic events – such as the apartheid policies like the Bantu Education Act of 1953 and the Group Areas Act of 1950 – have also altered the mindset and behaviour of Coloured communities. Although the apartheid regime collapsed more than 25 years ago, there are still certain behaviours embodied by Coloured people that conflict with entrepreneurial behaviour. These behaviours have been passed on and exist intergenerationally. Being schooled as labourers, due to economic requirements presented during the apartheid regime, has resulted in many Coloured parents not being entrepreneurial and this is seen in the quantitative findings of this paper. Furthermore, Cape Flats communities are plagued with drugs, gangsterism and poverty which serve as additional hindrances. This research employed both quantitative and qualitative research methodologies so that the qualitative findings may further elaborate on the quantitative findings. The main objective was to investigate why there is a limited number of youth entrepreneurs in the selected suburb by attempting to understand their cultural background and the hindrances that frustrate entrepreneurial development. The findings displayed a low level of tertiary education within the suburb, a high level of entrepreneurial intention and a family-oriented culture. The findings further revealed that a high percentage of parents (89.8%) do not run their own business which indicated that most of the youth do not stem from entrepreneurially oriented households. The researcher recommends that business incubators be established within the suburb. In addition to this, schools within the community should form partnerships with the private sector and governmental structures such as the Department of Trade and Industry (DTI), the National Youth Development Agency (NYDA) and the Small Enterprise Finance Agency (SEFA) in order to expose youth to the practical applications of entrepreneurship.