Endogenous attributes of successful youth entrepreneurs in selected wards of Thulamela Local Municipality

Abstract

Given that successful enterprises globally, play pivotal roles in job creation, income generation, and sustainable livelihood, they can contribute to the economic development of South Africa if such activities are supported. Unfortunately, many youth-run enterprises fail in the first year of operation. This study distilled inherent success driving attributes which could provide learning points for future youth entrepreneurs. A mixed design was applied in which qualitative and quantitative data was gathered. Yamane’s (1973) formula was used to identify a sample of 140 youth entrepreneurs from Dididi, Dumasi, Hasane, and Botsoleni villages in Thulamela Local Municipality. Simple random sampling techniques were used to select the respondents. Open-ended and closed-ended questionnaires were used to collect data through one-on-one interviews. The analysis was done using Statistical Package for the Social Sciences (SPSS) software version 25, where descriptive statistics and other related inferential statistics were performed. Atlas-ti software version 8 was used to analyse the qualitative data. Five major factors, namely: survey, entrepreneurs’ standards, advertisements, clients, and employees and several attributes linked to each factor were identified. Entrepreneurs’ ability to explore existing markets, follow-up trends of innovation, and evaluate ideas were core attributes of survey. Youths’ potential to set goals and targets, make savings for reinvestments, and introduce new businesses were linked to entrepreneurs’ standards. Advertisements, skills to use social media, communicate with clients, and relate with other entrepreneurs were mentioned. Ability to follow up with clients, and give quality services at competitive price were the main attributes associated to clients, while the ability to define task and allocate duties, make timely and healthy payments were identified under employee factor. These attributes informed a model for the enhancement of success endogenous attributes of entrepreneurs. The study recommends the implementation of the model to enhance improved entrepreneurship capacity building through formal and informal education.