Support factors contributing to successful start-up businesses by young entrepreneurs in South Africa

Abstract

BACKGROUND: Unemployment and restricted work opportunities for youth are enduring social challenges that affect health, well-being, and quality of life, especially in low- to middle-income countries. When considering the advantages associated with work as a determinant of health, unemployment is understood to contribute to occupational injustice. However, self-employment, hailed the solution to youth unemployment, is often necessity-driven, precarious in nature and restricted by the low success rate of business start-ups. OBJECTIVE: Research was undertaken to explore factors perceived to contribute to the success of start-up businesses in an informal settlement in the Western Cape of South Africa. The importance of support in the success of business start-ups will be the focus of this article. METHODS: A collective case study, using narrative interviewing and - analysis, was undertaken in South Africa. Two narrative interviews were conducted with each of the five participants who were youth entrepreneurs and founders of start-up businesses. Data analysis comprised the use of narrative analysis and paradigmatic type narrative analysis. RESULTS: Three themes captured factors deemed to have contributed to the success of start-up businesses. The vital role of support systems and networks in business success was demonstrated. CONCLUSIONS: Support systems included family, friends, role models, mentors, team members and business partners. Identification, utilization, and ongoing development of support structures available in the social networks of young entrepreneurs were perceived to have contributed to the success of start-ups.