When I think about the future of South Africa’s economy, it’s clear that the country’s townships hold immense untapped potential. According to the South African National Development Plan, 90% of new jobs need to come from entrepreneurship by 2030. And where better to focus this entrepreneurial energy than in our townships, where innovative ideas and resilient spirits are already creating real change?
The recent research from The Gordon Institute of Business Science (GIBS) Entrepreneurship Development Academy, titled Township Entrepreneurial Ecosystem: The Entrepreneurs’ Lived Experiences, shines a spotlight on the unique characteristics of township entrepreneurs. This study is a game-changer because it dives deep into the overlooked yet vibrant world of township entrepreneurship. Here are the five key takeaways that showcase why our townships are ripe for innovation.
- Resilience in the Face of Scarcity
Township entrepreneurs are masters of improvisation. The research highlights their ability to overcome both acute and chronic resource shortages through sheer ingenuity and adaptability. Unlike their counterparts in the formal economy, these entrepreneurs rely heavily on informal networks, community support, and innovative problem-solving to keep their businesses afloat. It’s this resilience that makes them a powerful force in our economy. - Creating Their Own Ecosystems
One of the most inspiring findings from the study is how township entrepreneurs have built their own ‘shadow entrepreneurial ecosystems.’ In the absence of formal support structures, these entrepreneurs have taken matters into their own hands, creating networks that provide the resources they need. From borrowing equipment to sharing stock, these entrepreneurs have turned their community ties into a vital business resource. - Collaboration Over Competition
In the townships, competition often takes a back seat to collaboration. The research reveals that entrepreneurs in these communities frequently support each other, even lending out equipment or sharing stock with direct competitors. This level of cooperation is virtually unheard of in the formal economy, where the emphasis is typically on outpacing the competition. In townships, it’s all about lifting each other up. - Opportunities for Tailored Support
The study points out that township entrepreneurs face extraordinary challenges, from accessing workspaces and equipment to finding new markets. Yet, within these challenges lies immense potential. There’s a growing need for entrepreneurial funding, training, and digital innovation tailored specifically for township businesses. With the right support, these entrepreneurs could scale new heights and significantly contribute to the economy. - A Call for Stronger Collaboration
Finally, the research suggests that stronger collaboration among Enterprise and Supplier Development practitioners could unlock even more potential. Currently, many support systems operate in silos, often helping the same group of entrepreneurs repeatedly. The report advocates for more integrated, bottom-up initiatives that enhance the capabilities of township entrepreneurs, enabling them to access local manufacturing infrastructure, compete effectively, and scale their businesses.
As I reflect on these findings, it’s clear that township entrepreneurs are not just surviving—they’re thriving. Their ability to innovate, collaborate, and create opportunities from limited resources is truly remarkable. Now, it’s time for the government, ecosystem actors, and innovators to step up and meet these entrepreneurs on their own terms. The future of South Africa’s economy may very well be shaped by the entrepreneurial spirit thriving in our townships.