By Nthami Mametja
Entrepreneurship is a powerful force for economic development, particularly in underrepresented communities where innovation and resilience thrive despite limited resources.
As the world embraces the Fourth Industrial Revolution (4IR), the need for township-based entrepreneurs to adapt and harness digital tools becomes even more essential.
The 4IR brings transformative technologies that can increase reach, improve access to markets, and create sustainable growth opportunities for small and medium enterprises (SMMEs).
In South Africa, township economies play a pivotal role in local development.
The rise of digital platforms and e-commerce is opening new pathways for these businesses, allowing them to expand their customer base and boost economic activity.
This journey into the digital age is not just about survival, it’s about thriving in a world where technology reshapes how we work, connect, and grow.
Having recently attended a launch of a groundbreaking initiative designed to empower small and medium enterprises in various townships across Gauteng, this event was a reminder of the South African notion of ‘Ubuntu” where we all are able to come together to make a difference in a joint course and just how important the key stakeholders in the ecosystem are in terms of nurturing an idea into reality.
This initiative seeks to advance the cause of developing entrepreneurs and SMMEs in the townships through the transformative journey in this 4IR of thriving in the digital marketplace to promote both the sustainability and growth of the economy.
The introduction of the 4IR in previously disadvantaged communities represents the fundamental change not only in the way businesses operate but also in how people relate to one another.
Studies have shown that township SMMEs need to harness the power of technology through digital marketplaces to extend their customer reach. To successfully navigate this journey, they must employ learner-led methodologies that promote critical thinking, computational skills, and collaboration.
For instance, Mpho Theofista Tau’s 2022 study on township-based entrepreneurs highlights that digital technology adoption is crucial for SMMEs in maintaining competitive advantage and ensuring sustainable growth in the digital economy.
The research indicates that while township SMMEs and their customers are already using digital channels, there remain significant gaps in utilisation, offering opportunities for more comprehensive digital transformation.
The talent and creativity found in township entrepreneurs as well as the support structure that they receive from customers around them is motivation enough for these entrepreneurs to tap into the world of trading not only in a traditional manner but also onboarding their products to online platforms that would offer them an opportunity to showcase their talent to other potential customers outside of their radius.
For many years, the identified challenges of businesses in remote areas using e-commerce and last mile delivery platform to reach customers from afar has been the reported high rates of crime in those areas, the insufficient mapping for navigation as well as the lack of resources and infrastructure.
Introducing these business owners to such online platforms should be accompanied by clear advisory regarding the associated platform costs and cybersecurity risks inherent in operating online. Thus, it is important to also offer digital skills advancement training to educate them.
SMMEs play a vital role in the growth of our economy and contribute to the job creation that directly impacts the community development and prosperity. With the township businesses venturing into various industries such as food, fashion and technology, operating online will also assist as a tool providing access to market and other opportunities for these growth entrepreneurs.
There is no denying the convenience from a customer’s point of view when using digital platforms to order products from the comfort of their homes and for a business operator thus bringing the ease of doing and ultimately growing their business. For entrepreneurs, it is important to understand the digital platform ecosystem and how they can leverage these platforms to generate more revenue and better serve their communities.
Nthami Mametja is the Programme Officer at 22 On Sloane.
BUSINESS REPORT