Measures to Facilitate Necessity Entrepreneurship : Western Cape South Africa

Abstract: Problem- In the townships and rural areas of the Western Cape province of South Africa unemployment can be as high as 60%. For many, starting a business is the only viable option to survive. There are many organizations seeking to help entrepreneurs to successfully start and manage a business, but services are significantly lacking. We therefore wish to determine what business service providers in the Western Cape are doing today to help necessity entrepreneurs succeed, and what can be done better in the future to facilitate entrepreneurship in the region. Purpose- The purpose of our research is to identify measures necessary to facilitate successful entrepreneurial start-up activities in the Western Cape province of South Africa for necessity entrepreneurs. Method- To address our purpose we have used snowball sampling to conduct six in-depth interviews with necessity entrepreneurs and eight with Business Service Providers using semistructured interviews. In addition, we have utilized convenience sampling to interview 27 necessity entrepreneurs with whom we conducted brief interviews. Results- From our research it can be concluded that the most important measure necessary to facilitate entrepreneurship for necessity entrepreneurs in the Western Cape is to increase the entrepreneurial capacity of the people. People must be provided with the resources to develop the skills and mindsets necessary to succeed as an entrepreneur and see entrepreneurship as a way of making a career. Secondly, resources must be diverted so that those necessity entrepreneurs with a viable business plan and necessary capacities are provided financial assistance to establish their business. Thirdly, the provincial government must make significant improvements in the abilities of entrepreneurs to access markets. Currently entrepreneurs cannot efficiently access markets and are thereby withheld from valuable business opportunities. Fourthly, the services offered by business service providers must be made more effective and achieve a much greater standard of quality in order to help those most in need better. We are optimistic with regards to development of entrepreneurship in the Western Cape, but must emphasize the fact that there is a significant need for change with regards to services offered to necessity entrepreneurs.