Designing a Tailored Youth Enterprise Incubation Framework for Inclusive Local Economic Development in Nkangala District, South Africa
DOI:
https://doi.org/10.51137/wrp.ijsbe.579Keywords:
Business Incubation, Institutionalisation, Local Economic Development, Nkangala District, Youth EntrepreneurshipAbstract
This article examines the need for a context-specific enterprise incubation framework to support youth-led businesses in Nkangala District, South Africa. The study responds to persistent youth unemployment, weak enterprise survival rates, and limited local economic diversification. Using a structured qualitative desktop methodology, the study systematically reviews recent academic literature, policy documents, and development reports published between 2020 and 2025. The analysis identifies institutional fragmentation, limited access to finance, weak market linkages, and inadequate digital infrastructure as key constraints facing youth entrepreneurs in the district. Based on these findings, the article proposes a tailored incubation framework institutionalised within local government structures and supported through multi-stakeholder partnerships, targeted support mechanisms, and robust governance arrangements. The study contributes to local economic development scholarship by advancing a district-level incubation model grounded in place-based realities. The findings have practical implications for municipalities, development agencies, and policymakers seeking to design sustainable and inclusive youth entrepreneurship interventions in structurally constrained regions.
References
Asah, F. T. (2025). A narrative analysis of formal financial institutions’ financing of new enterprises in South Africa. South African Journal of Economic and Management Sciences, 28(1). https://sajems.org/index.php/sajems/article/view/6199
Braun, V., & Clarke, V. (2021). One size fits all? What counts as quality practice in thematic analysis. Qualitative Research in Psychology, 18(3), 328–352. https://doi.org/10.1080/14780887.2020.1769238
Bucci, A., & Marks, J. T. (2022). Social entrepreneurs’ learning experience in South African incubators. Africa Journal of Management, 8(3), 374–398. https://doi.org/10.1080/23322373.2022.2071573
Chasaya, W., & Ayandibu, A. (2025). Exploring the role of the entrepreneurial ecosystem in fostering innovation in youth entrepreneurship in South Africa: A literature review. Indonesian Journal of Business and Entrepreneurship, 11(3), 676. https://doi.org/10.17358/ijbe.11.3.676
Dantas, E. F., de Sousa, J. B., & Oliveira, L. (2024). Triple Helix dynamics and hybrid organizations: An analysis of value creation processes. Journal of the Knowledge Economy, 15(4), 20797–20822. https://doi.org/10.1007/s13132-024-01911-2
Department of Cooperative Governance and Traditional Affairs. (2023). Annual report 2023/24. Government of South Africa. https://www.gov.za/sites/default/files/gcis_document/202310/cogta-annual-report.pdf
Department of Mineral Resources and Energy. (2023). South African energy sector report 2023. Government of South Africa. https://www.dmre.gov.za/energy-resources/energy-statistics-reports/energy-sector-reports/2023-south-african-energy-sector-report/
Department of Trade, Industry and Competition. (2025). Annual performance plan 2025/26. Government of South Africa. https://www.thedtic.gov.za/wp-content/uploads/the-dtic-APP-2025-26.pdf
Dladlama, B., Motsepe, H. L., Sethu, J. M., & Sikhosana, S. (2026). Digital inclusion and reasonable accommodation: Enabling participation of employees with disabilities in contemporary workplaces. International Journal Research Publication Analysis. https://doi.org/10.1555/ijrpa.2840
Egbetokun, A. (2023). Business incubators in Africa: A review of the literature. Innovation and Development, 15(2), 233–260. https://doi.org/10.1080/2157930X.2023.2295090
GEM Consortium. (2024). Global entrepreneurship monitor: South Africa 2023/2024 report. https://www2.gemconsortium.org/economy-profiles/south-africa
Gumbo, E., & Moos, M. (2024). Integrating ecosystems: The synergistic effects of digital innovation hubs on start-up growth. Southern African Journal of Entrepreneurship and Small Business Management, 16(1), a945. https://doi.org/10.4102/sajesbm.v16i1.945
International Labour Organization. (2024). Global employment trends for youth 2024: Decent work, brighter futures (GET for Youth). https://doi.org/10.54394/ZUUI5430
Mahlala, S. (2024). Linking monitoring and evaluation to performance management in the South African public service. International Journal of Research in Business and Social Science, 13(2), 136–147. https://doi.org/10.20525/ijrbs.v13i2.3167
Marindi, M. G., & Pillay, S. (2025). The impact of monitoring and evaluation systems on good governance in local government: Evidence from South Africa. Global Journal of Political Science and Administration, 13(3), 1–7. https://doi.org/10.37745/gjpsa.2013/vol13n317
Matsieli, M. (2025). The role of government in facilitating digital transformation of SMMEs in South Africa. Journal of Development and Agricultural Economics, 17(1), 12–28. https://doi.org/10.1080/0376835X.2025.2568855
Mbatha, B. (2024). Digital divide: A phenomenon of unequal adoption of technology by SMMEs in South Africa. Communicare: Journal for Communication Studies in Africa, 43(2), 65–75. https://doi.org/10.36615/vdjgg265
Mgweba, L., & Lungisa, S. (2024). Impact of entrepreneurial incubators on youth employment in South African local government. Southern African Journal of Entrepreneurship and Small Business Management, 16(1), a911. https://doi.org/10.4102/sajesbm.v16i1.911
Motsepe, H. L. (2025). Entrepreneurial illusions and the devaluation of education: How South Africa’s tender economy reshapes youth perceptions of schooling, mobility and success. International Journal Advanced Research Publications. https://doi.org/10.1555/ijrpa.2561
Motsepe, H. L., Sethu, J. M., & Sikhosana, S. (2025). The structural interplay of education, politics and entrepreneurship: A critical analysis of post-school pathways in South Africa. International Journal Advanced Research Publications. https://doi.org/10.1555/ijrpa.2380
Organisation for Economic Co-operation and Development. (2020). Broad-based innovation policy for all regions and cities. OECD Publishing. https://doi.org/10.1787/299731d2-en
Organisation for Economic Co-operation and Development. (2024). Financing SMEs and entrepreneurs 2024: An OECD scoreboard. OECD Publishing. https://doi.org/10.1787/fa521246-en
Organisation for Economic Co-operation and Development. (2025). Place-based policies for the future (OECD regional development studies). OECD Publishing. https://doi.org/10.1787/e5ff6716-en
Shillie, P. N., & Wokwen, C. (2024). Business incubator and incubatee: A thematic review of challenges and success in Africa. Unisia, 42(1), 113–126. https://doi.org/10.20885/unisia.vol42.iss1.art5
Sikhosana, S., & Motsepe, H. L. (2025). The effects of preferential procurement on youth start-up enterprises in Mpumalanga Province, South Africa. International Journal of Innovative Science and Research Technology, 10(7), 283–291. https://eprint.innovativepublication.org/id/eprint/1715/
Snyder, H. (2019). Literature review as a research methodology. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Statistics South Africa. (2025). Quarterly labour force survey: Quarter 1 2025 [Media statement]. Government of South Africa. https://www.gov.za/news/media-statements/statistics-south-africa-quarterly-labour-force-survey-qlfs-%E2%80%93-q1-2025-13-may
World Bank. (2024). South Africa economic update, edition 15: Learning-Overdue reforms and emerging priorities in basic education. World Bank Group. https://www.worldbank.org/en/country/southafrica/publication/south-africa-economic-update-edition-15
World Bank. (2025). SME finance: Expanding access to finance for small and medium enterprises. World Bank Group. https://www.worldbank.org/en/topic/smefinance
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Humphrey Motsepe, Mahlodi Joice Sethu, Hasani Elia Zitha (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.