Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


The Profit Motive and the Enabling Environment for Growth of Survivalist Township Entrepreneurship: A Study at A Township in Cape Town

Author(s): Samson Nambei Asoba and Nteboheng Mefi Patricia

The paper draws attention to the profit motive in respect of survivalist entrepreneurship at a township environment in Cape Town. Survivalist entrepreneurs have received little specific focus yet they represent a significant portion of economic activities in South Africa townships. Essentially the study considers the problem of failure to grow among survivalist entrepreneurs as reported in related literature. Many survivalist entrepreneurs fail to grow beyond the survivalist phase and there is no consensus on the underlying cause for such a phenomenon. With the Covid-19 pandemic, there is an expectation that survivalist entrepreneurs are likely to multiply owing to the collapse of many small businesses as well as the loss of employment arising from the pandemic. Two specific objective were formulated for the study: (1) to inquire into the business motives of survivalist entrepreneurs and (2) to assess the perception of the survivalist entrepreneurs on the degree to which the small business environment in supportive of motive attainment. The study adopted a quantitative research design based on the selection of respondents using a convenience sampling strategy. The evidence established from this study suggest that survivalist entrepreneurs do not pursue the profit motive significantly but they faced inhibitions presented by the economic environment in which they operate. Government and other stakeholders in the national economy are recommended to develop a suitable legal and institutional framework with strong structures to ensure the growth of survivalist entrepreneurs.

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