Determinants of sustainability of youth-owned small retail businesses in rural areas of Makhado Local Municipality

Abstract

Youth-owned small retail businesses in rural areas are perceived as a potential panacea for poverty, unemployment and agents of socio-economic integration. However, most of them often fail to reach their full potential. The businesses face several challenges, including lack of finance and entrepreneurial skills. Consequently, they fail to survive and grow. The current study examined the factors that influence the sustainability of youth-owned small retail (Spaza) businesses in Ha-Mulima village, in Makhado Local Municipality. An exploratory sequential mixed methods research design was used. The results of the first phase of the study, which was qualitative, were used to design and collect data during the second phase. The respondents were selected following the purposive sampling procedure. Data were collected using both open-ended and closed-ended questions in a face to face interviews. Qualitative data were analyzed using the Atlas.ti version 8.0 software. Quantitative data collected from phase 2 were analyzed using the IBM Statistical Package for Social Sciences version 25.0. Descrptive statistics such as means and standard deviations were calculated. Non-parametric data analysis was conducted. Specifically, the Kruskal Wallis and Mann Whitney tests were conducted. Results showed that most youth who owned businesses were 31-35 years old, male, educated, single and had no children. A considerable number of factors enabled and constrained the sustainability of youth-owned small business. The need for introducing programmes aimed at raising awareness regarding funding agencies and criteria used to determine eligibility for youth intending to start small businesses was revealed. Further more the findings revealed that It is crucial to adopt local level policies and strategic interventions that enhance the attainment of the desired sustainable youth-owned small retail businesses in the rural areas.