Title: Do South African townships lack entrepreneurial spirit?

Authors: Peter Preisendörfer; Sandra Perks; Frans J. Bezuidenhout

Addresses: Institute of Sociology, Johannes Gutenberg-University of Mainz, Jakob-Welder-Weg 12, D-55128 Mainz, Germany ' Faculty of Business and Economic Sciences, Nelson Mandela Metropolitan University, Summerstrand Campus (South), P.O. Box 77000, Port Elizabeth 6031, South Africa ' School of Behavioural Science, North-West University, Vaal Triangle Campus, P.O. Box 1174, Vanderbijlpark 1900, South Africa

Abstract: It is often assumed that the black population of South Africa lack entrepreneurial spirit and an entrepreneurial culture. A survey conducted in the Walmer Township in Port Elizabeth explored the entrepreneurial spirit and culture in terms of entrepreneurial activities, perceived start-up barriers, entrepreneurship climate, and general cultural factors relating to entrepreneurship. The sample comprised of 309 black adults living in Walmer Township. The results revealed surprisingly high entrepreneurial activity in the form of informal business ventures. Furthermore, the level of entrepreneurial aspirations turned out to be higher than expected. Many of the township inhabitants regard the township as having a favourable entrepreneurial climate, and support basic pro-entrepreneurial values. On the other hand, the respondents identify considerable start-up barriers for entrepreneurs. They seem to prefer being employed than self-employed. Moreover, they have low trust in people. Additional findings confirm that the township can be qualified as a 'low trust culture'.

Keywords: entrepreneurship aspirations; informal business ventures; entrepreneurial spirit; entrepreneurship climate; entrepreneurship culture; start-up barriers; black entrepreneurship; South Africa; South African townships.

DOI: 10.1504/IJESB.2014.062499

International Journal of Entrepreneurship and Small Business, 2014 Vol.22 No.2, pp.159 - 178

Published online: 02 Jul 2014 *

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