The role of local government in the empowerment of youth-owned small, medium, and micro enterprises in Cape Town

Abstract

The main focus of this study was to explore the role played by local government in the empowerment of youth-owned small, medium and micro enterprises (SMMEs) in Cape Town. Youth empowerment is critical for small businesses because it holds the key to economic growth, hence this study advocates that youth empowerment should be broadened and promoted by City of Cape Town officials to enhance economic growth. An investigation of the role played by local government in facilitating youth empowerment is imperative as it allows the critical evaluation of the efficacy of the strategies that the local authorities are implementing in order to support the empowerment of the youth. Using an exploratory research design the sought to establish the role of local government in the development of the SMME sector. The study therefore used a qualitative research approach that collected data through in-depth interviews. The sample of this study consisted of 11 participants drawn from all the SMMEs owned by youths in the City of Cape Town as well as the authorities in the local government (City of Cape Town). The sample was obtained using a non-probability technique of purposive sampling. The data for the study was collected using interviews using open-ended questions to allow participants to express what they were actually experiencing. From this study, the local government does not offer any funding to any business. What they do at the local government level is to support SMMEs in general, in terms of facilitation and skills development capacity. Most participants confirmed this as they acknowledged that they were not aware of any funding opportunities offered by the local government. The participants identified the factors that hinder the growth and development of youth owned SMMEs with the lack of financial resources being the most mentioned hindrance. The participants also suggested strategies that could be implemented to empower SMMES by the local government. This study provides pertinent information that may assist local governments to formulate policies and strategies to support and grow youth owned SMMEs. Findings and recommendations emanating from this study, if implemented, have the potential of supporting the growth and development of youth-owned enterprises in Cape Town, leading to economic growth of the city and the reduction in youth unemployment, inequality and poverty.