The impact of Black Tax on the intention to start a business among black entrepreneurs: comparative analysis between female and male entrepreneurs in the Vhembe District Municipality, South Africa

Abstract

Black tax represents a multifaceted and sensitive issue that is frequently subjected to discourse among young black South Africans. It pertains to the financial obligations that black professionals often encounter in supporting their families and communities, including extended family members. This study undertakes a comparative analysis of the impact of black tax on the entrepreneurial intentions of black female and male entrepreneurs within the Vhembe district municipality. Employing a comparative analysis approach, this research investigates how black women and men navigate the complexities associated with black tax and its influence on their entrepreneurial aspirations. Drawing upon existing literature, empirical data, and theoretical frameworks, the study examines the differential experiences and barriers faced by black women and men in their pursuit of entrepreneurship in the context of black tax. Intersectionality theory and Kinscripts framework were used in the study. A qualitative methodology was employed, engaging entrepreneurs from the Vhembe district municipality, with purposive sampling utilized for participant selection. Data were collected through semi-structured interviews, which were subsequently transcribed and analysed using thematic analysis facilitated by ATLAS.ti software. The findings indicate that black tax exerts a significant impact on entrepreneurial intentions by restricting access to start-up capital, intensifying financial pressure, and increasing the perceived risks associated with business establishment. Male entrepreneurs were primarily influenced by culturally ingrained expectations to serve as the principal financial providers, while female entrepreneurs encountered additional pressures stemming from obligations to provide financial support, childcare responsibilities, and emotional labour. Despite these challenges, the study also identified that, for some entrepreneurs, black tax acted as a motivating factor, prompting business initiation to fulfil family obligations more sustainably. The study concluded that black tax has a complex and dual role in shaping entrepreneurial intentions, functioning simultaneously as both a barrier and a motivator. These findings underscore the necessity for context-sensitive entrepreneurship support interventions that acknowledge family financial responsibilities and address the gender-specific challenges faced by black entrepreneurs in South Africa.