Analysing unemployment in a selected township economy : a business owner perspective

Abstract

Unemployment in South Africa has been a constant problem for many years. Many scholars have written about this problem, not only in South Africa, but in other areas of the world. To combat this problem, the South African government introduced a National Development Plan that aims at creating at least 24 million jobs and R120 000 income per capita. 90% of these jobs would be through the small, medium, and micro enterprises (SMMEs) by the year 2030. One of the key initiatives was for the businesses in the townships to play a role through the township economy revitalisation programmes, which will enable township businesses to play a part in combating the problem of unemployment in the country. The purpose of this study was to analyse the unemployment problem and look at different factors that hinder the success of businesses in their areas. In addition, it was essential to understand the factors that drive unemployment within townships. In consideration of the above-mentioned facts, the study was conducted with the primary objective of analysing the unemployment problem in the township of Sharpeville by discovering the views of the business owners in the area. The study followed a qualitative research approach and the key outcomes of the study came from the views and insight of the respondents who owns businesses within the township of Sharpeville. The study has shown that there are many challenges faced by township entrepreneurs that need to be carefully assessed and thoroughly dealt with. These challenges include factors such as lack of support and capital, as well as competition from foreign-owned businesses, culture and historical backgrounds. The study also showed that there is potential for township businesses to create employment and be self-sustainable and there is a need for investment in this area.