African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4194

Full Length Research Paper

Rural entrepreneurship in the Western Cape: Challenges and opportunities

Virimai Victor Mugobo1 and Wilfred I. Ukpere2*
1Faculty of Business, Engineering Building, Cape Peninsula University of Technology (CPUT), Cape Town Campus,  P. O. Box 652 Cape Town, 8000, South Africa. 2Department of Industrial Psychology and People Management, Faculty of Management, University of Johannesburg, South Africa.
Email: [email protected], [email protected].

  •  Accepted: 08 August 2011
  •  Published: 25 January 2012

Abstract

Rural entrepreneurs in the Western Cape Province of South Africa were surveyed in order to explore the challenges and opportunities that they are facing. The methodology used in this study involved a combination of quantitative and descriptive research. The study consisted of a sample of 160 rural entrepreneurs. Based on the results of the study, rural entrepreneurs in the Western Cape still face challenges such as lack of technical and business skills, shortage and high cost of raw materials, inaccessible and unreliable communication and transport services, and limited access to finance and sustainable markets. Rural entrepreneurs have various opportunities in the form of increasing government commitment to land reform and rural development, support from small business development institutions and the creation of networks and partnerships with other rural and urban entrepreneurs. The study recommends that the government needs to come up with comprehensive legislation and policies to spearhead and support rural development through rural entrepreneurship.

 

Key words: Rural, entrepreneurship, sustainabilitydevelopment.