Challenges faced by African copreneurs in the City of Cape Town, Western Cape

Abstract

The purpose of this study was to analyse the challenges that African copreneurs face, and to find ways to mitigate these challenges. The reason for the decision to undertake this study was to answer the following question: What challenges do African copreneurs face in the City of Cape Town? This study was conducted in the context of analysing challenges that African copreneurs experience in South Africa. The study adopted the mixed method research approach, which involves both quantitative and qualitative investigation techniques. The data collection instruments for this study included a questionnaire and an interview schedule, which surveyed 150 respondents. The research population comprised African copreneurs who own and operate small, micro and medium-sized businesses (SMMBs) in the City of Cape Town. It was limited to those copreneurs who are either married couples or life partners. The research population also included both registered and non-registered SMMBs that operate in various sectors. It is important to note that the respondents were selected from and also resided in the following areas: Langa, Nyanga, Khayelitsha, Dunoon, Mfuleni and Guguletu. Non-probability sampling was utilised in conjunction with snowball sampling. The collected data was captured and analysed by utilising the statistical package for social science (SPSS) software for data analysis. The study found that African copreneurs experience major challenges in relation to their businesses in the City of Cape Town. The findings suggest that a majority of African copreneurs experience the challenge of accessing financial institutions, whilst they are also negatively affected by the country's high crime rate. Hence, some SMMB owners decide to close their business ventures. while the lack of access to financial institutions creates a further bottleneck for SMMBs. Some African copreneur business ventures are created by unemployed people who may require financial support. The high crime rate in Black townships in the Western Cape limits African copreneurs' chances of growing and keeping their business ventures afloat. There have also been reports of deaths amongst copreneurs as a result of them falling prey to criminal acts. Future studies may entail a larger scope; one that extends beyond the City of Cape Town. It is also suggested that perhaps a future study should consider using a more rigorous statistical analysis, which involves regression, correlational analysis and modelling a framework for copreneurs in the Western Cape.