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RESEARCH PRODUCT

Do South African townships lack entrepreneurial spirit?

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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’.