�COME TO OUR TOWNSHIP TO OVERCOME POVERTY�: ENTREPRENEURSHIP IN SOUTH AFRICAN TOWNSHIP TOURISM, A MULTIPLE CASE STUDY

Abstract

ABSTRACT This study empirically analyzes the issues and challenges of local entrepreneurship in the industry of South African township tourism in Cape Town. Economic, political and social issues have been identified in this industry, harming entrepreneurship activities in this sector, but also all the stakeholders, namely the communities. Indeed, this is a highly competitive saturated market dominated by large tour operators leaving little room for small local companies. Moreover, entrepreneurs, who are internal to townships, often have few financial and material resources to run their business with efficiency, in addition to gaps in entrepreneurship skills. Benefit sharing is also challenged with a disputed contribution from the companies to the communities. Finally, the climate in this sector remains uncertain and complex with very limited support from the government and persistent disparities between black, white and colored entrepreneurs. All of these problems led us to question about the point of view of local entrepreneurs, often missing in the literature review. The aim of this study is to understand how the tourism chain is organized and how the business model is adapted to this thorny context. The study used qualitative research through semi-structured individual interviews from 11 entrepreneurs running their business in townships in Cape Town city. This research is particular because it makes a distinction, among the respondents, between internal status (if they come from the township) and external status (if they don't come from the township) in the township. The goal was to know if the results would reveal similarities or differences between the two status. The research focused on 5 external entrepreneurs, living out of townships, and 6 internal entrepreneurs living inside the townships. The study population is characterized by small firms mostly managed by men, the majority being mature men with a higher education level than the country's general average. This sample selected by reasoned choice is subject to the principles of replication and saturation. The questionnaires were analyzed using a classification method with a typological analysis. The results show that both internal and external entrepreneurs in townships have quite the same motivations and challenges as each other, and even similar as those faced by entrepreneurs in developed countries. These incentives include the desire to work for oneself, seizing an opportunity, low financial and administrative constraints to enter the market, and the desire to make the township known. The mentioned difficulties are the constant need for funding, the intense competition, the insufficient level of skills to run a business, and the lack of support from the South African government. However, a distinction is observed between the two status in the way of contributing to the communities. Whereas the contribution is more economic for the external entrepreneurs through job creation, the contribution is both economic and social for the internal entrepreneurs through training, education, mentoring and donation. These results have enabled to identify new research avenues and implications for both internal and external entrepreneurs to improve the local entrepreneurship situation in South African township tourism. Keywords Township Tourism, Entrepreneurship, Poverty Reduction, Emerging Countries, Case Study