Examination of Challenges Faced by Youth-Owned Small Medium Micro Enterprises in Limpopo Province of South Africa

Abstract

There is universal consensus that countries, South Africa included, need to develop and support more small business owners, especially youth, to grow the economy and create more jobs. The South African government have put measures in place for support and development of youth-owned small businesses. Accordingly, it becomes essential to assess if these measures are achieving their objectives. The overall purpose of this paper is to assess the status of youth-owned small businesses in Limpopo Province of South Africa as well as challenges faced by these businesses. Data were collected by semi-structured interviews. The results indicated that the challenges youth face include a combination of lack of skills, finance, business supportive infrastructure and/or technology. Most of the youth were also not aware of the training and support programmes and policies offered by government and its parastatals. Furthermore, those who were aware still did not utilise the government support programmes. There was very little growth in their businesses over time, implying that theses youth-owned small businesses contributed little towards creating employment opportunities and developing and/or boosting the economy in their area. The paper recommended education and training; encouraging partnerships and joint ventures as well as help in accessing finance.

DOI: 10.5901/mjss.2014.v5n27p1258