An Exploration into Barriers Facing Prospective Youth Entrepreneurs in a South African Municipality

Abstract

Entrepreneurship is regarded as the solution to poverty, inequality and unemployment. Youth are the hardest hit by unemployment. The rate of unemployment among youth sat at 63.1% in 2015. This study was conducted to find out what is stopping the youth in a South African municipality, from venturing into entrepreneurship. The study found that the majority of participants had intentions of opening up their businesses, and that they viewed entrepreneurship as important. Funding, too much work, lack of information, lack of entrepreneurial skills, market congestion, inability to write a business plan, lack of collateral, high registration costs, no right contacts, lack of savings and lack of managerial skills were found to be the barriers preventing youth from starting a business. It is suggested in the study that government should assist by ensuring adequate information reaches youth in their places of residence. This can be done through churches, schools, libraries and youth centres. Free internet connectivity should also be enhanced within the municipality to provide for ease access to information.Key words: entrepreneurship