Abstract:

The majority of townships in South African are confronted with numerous challenges that affect the expansion of entrepreneurship activity and establishment of small, medium and micro enterprises (SMMEs). The majority of these challenges relate back to the past policies of spatial arrangements and exclusion of black business in the development agenda of the then apartheid government. The effect of past neglect, lack of investment, overpopulation and isolation from urban centers is still evident today. A majority of townships are largely characterized by the lack of resources and infrastructure crucial for business development.  The development and support of township small businesses could be a panacea for the socio-economic challenges such as unemployment apparent in the majority of South African townships. There is a latent potential for township businesses to contribute meaningfully to the country’s economic growth.  Both the public and the public sector are expected to work together to enhance initiatives and SMME support programes that can unlock this potential in order to generate broader economic benefits.