An Exploration of Social and Rural Entrepreneurship and the Role of Youth Entrepreneurs: A Case of Stellenbosch Local Municipality

Socioeconomic problems are a burden both globally and for the African continent, which is characterised by poverty, unemployment, malnutrition, and inequality. These challenges also face South Africa, where poverty rates are significantly higher in rural than urban areas. Since 1990, various legislative initiatives and intervention strategies have been established to address the socioeconomic challenge of youth unemployment in South Africa. Despite these efforts, this unemployment has worsened. In this research, social and rural entrepreneurship activities are explored as a tool to address youth unemployment. This study aims to investigate innovative solutions related to youth entrepreneurship and innovative solutions for municipal support of youth entrepreneurship in social and rural contexts from four entrepreneurship hubs within Stellenbosch Local Municipality. This research study was conducted within Stellenbosch Local Municipality, where it focused on social and rural entrepreneurship and the role of youth entrepreneurs. The primary objective was to explore innovative solutions related to youth entrepreneurship in social and rural contexts within Stellenbosch Local Municipality. A qualitative method was employed in this study, involving 13 semi-structured interviews with participants identified through a purposive sampling technique. The study’s findings reveal that youth entrepreneurs’ businesses in Stellenbosch Local Municipality are labour-intensive and provide youth with employment opportunities and income. Opportunities include freelancing and business training courses, which enable young people to acquire experience and secure better employment positions later on. The study also found that youth entrepreneurs in Stellenbosch Local Municipality encounter challenges, such as lack of funding, insufficient working spaces, bureaucratic red tape of laws and regulations, and a lack of partnerships. At the time of this research, only three of the youth entrepreneurs under study were involved in incubation programs to enhance their business performances. Based on its findings, this study recommends prioritisation of partnerships with Africa-focused entrepreneurship organisations for social and rural entrepreneurship, given the significance of enabling youth entrepreneurs to act as agents of socioeconomic change in rural areas. This study’s recommendations have the potential to improve municipal governance through innovative mechanisms that foster social and rural entrepreneurship in areas with high youth unemployment. Adopting strategies, such as mentorship opportunities, startup competitions, and easier access to financial channels, could support entrepreneurship as an essential mechanism to deal with social and environmental challenges.

Grantor dc:publisher

Stellenbosch : Stellenbosch University

Year dc:date.issued

2026

Author dc:creator

• Mgweba, Luluto

Advisor dc:contributor.advisor

• Kekana, Kerotse M.

Language dc:language.iso

en

Repository record dc:identifier.uri

https://scholar.sun.ac.za/handle/10019.1/136235

OAI identifier oai:identifier

oai:scholar.sun.ac.za:10019.1/136235