Examination of the Influence of Socio-cultural Factors on Youth Involvement in Entrepreneurship in a South African Local Municipality

Abstract

Youth unemployment persists in South Africa despite government efforts to build an inclusive economy. Entrepreneurship is widely recognised as a catalyst for addressing poverty, inequality, and unemployment. However, youth participation in entrepreneurship remains low in South Africa. While prior studies have explored physical, environmental, economic, and political influences, limited attention has been given to socio-cultural factors, particularly in African contexts. This study examined how cultural norms, family expectations, community attitudes, and access to resources shape youth involvement in entrepreneurship in the Greater Giyani Local Municipality. This study was grounded in the Theory of Planned Behaviour (TPB) and the social cognitive theory of entrepreneurship. These theories emphasise self-efficacy and the interaction between personal and behavioural factors in driving entrepreneurial action. The study employed an exploratory, sequential, mixed-methods approach to data collection. Data was collected in two phases: qualitative data in the first, quantitative data in the second. In the first phase, purposive and convenience sampling were used to select 55 participants. The participants included young entrepreneurs, potential entrepreneurs, municipal officials, and NYDA staff from the Greater Giyani Local Municipality. Qualitative data were analysed using the Atlas.ti software (version 8). In the second phase, a purposive sampling technique was used to collect quantitative data from 103 participants. Participants who were involved in the qualitative phase also participated in the second phase. Quantitative data were analysed using the Statistical Package for Social Sciences (SPSS) (version 29). Drawing on focus group discussions, key informant interviews, and survey questionnaires, the study reveals significant obstacles, including lack of access to finance, skills gaps, limited entrepreneurial exposure, and gaps in innovation, adaptive practice, institutional support, and policy. The findings indicate that, despite current institutional and organisational support, challenges and insufficient outreach limit young people's effectiveness at the grassroots level. Thus, it can be concluded that government entities, development organizations, and financial institutions are essential in coordinating resources and eliminating structural obstacles that hinder scalability. Considering these findings, there is a need to strengthen these networks and improve the integration of government and local stakeholders to foster sustainable entrepreneurship for young people.