Youth Entrepreneurship as a Strategy for Household Poverty Reduction in Umjindi Trust Village, Mpumalanga Province

Abstract

This paper explores the contribution of youth entrepreneurship to poverty reduction in households of Umjindi Trust Village, Mpumalanga Province, South Africa. This paper deems youth entrepreneurship as one of the strategies contributing to household poverty reduction in rural areas. This research adopted a qualitative approach to explore the contribution of youth entrepreneurship to household poverty reduction. Thus, face-to-face, semi-structured interviews were conducted with youth entrepreneurs to elicit data. In addition, focus group discussions, consisting of family members of youth entrepreneurs, were conducted to supplement data from interviews. The results suggest that youth entrepreneurship is a survival strategy in Umjindi Trust Village’s job-scarce environment. It is evident that youth entrepreneurship strategy positively contributes to poverty reduction at household level, mainly through job creation for youth entrepreneurs themselves and community members. However, the potential of youth entrepreneurship is undermined by several challenges, including lack of start-up funding, unfavourable government regulations, lack of skills, and poor marketing. Therefore, this paper recommends the active participation of youth centres and organisations in decentralised entrepreneurial training and entrepreneurship support to promote youth entrepreneurship in remote areas.