Investigating the entrepreneurial intentions of social grant recipients in the cities of Johannesburg and Tshwane

Abstract

Purpose: The primary aim of this study was to investigate the entrepreneurial intentions of social grant recipients in the cities of Johannesburg and Tshwane. This study further investigated the extent to which social grants influence the entrepreneurial behaviour of social grant recipients.

Design/methodology/approach: A descriptive cross-sectional survey design was adopted. Primary data were collected using a structured questionnaire randomly targeting social grant recipients at various SAPO branches and SASSA pay-points. To test the hypotheses, the data collected from 401 respondents in the cities of Johannesburg and Tshwane was analysed on the SPSS statistics software (version 25).

Findings/results: It was discovered that most of the respondents intended to start a business in the absence of a social grant income. Although SASSA grant holders indicated that they intended to start businesses, 70% of the respondents had no knowledge of any public or private business support initiatives and had not been to any entrepreneurial training sessions offered by the public or private sector. The respondents within the youth age group who indicated interest to start a business also expressed their desire for immediate gratification. Given that an entrepreneurial career requires a long-term vision, persistence and perseverance, this is indicative of a lack of entrepreneurial intensity.

Practical implications: In order to increase social grant recipients’ entrepreneurial intentions and possibly reduce the number of youth social grant recipients currently in the system, government stakeholders should include the existing public and private entrepreneurship support initiatives within South African Social Security Agency (SASSA) policies.

Originality/value: With the application of quantitative methodologies, this research contributes to an evidence-based debate on the extent to which social grants influence the entrepreneurial behaviour of social grant recipients within the Republic of South Africa.