Abstract:
South Africa is characterised by a very high rate of poverty and unemployment. In view of this, the Ford Resource and Engagement Centre (FREC) is a micro business incubator and mentorship programme that provides mentorship and possible funding to emerging and existing entrepreneurs in the Mamelodi and Nellmapius townships in view of making them self-sustainable.
The goal of the study was to explore the FREC programme’s contribution to mitigating poverty from the participants’ perspectives.
The study constituted applied research and adopted a qualitative research approach. It was guided by an exploratory study purpose and utilised an instrumental case study design. The study was furthermore embedded within the sustainable livelihoods theoretical framework. The study population was comprised of current and former FREC programme participants. It sampled 10 study participants using a non-probability, purposive sampling technique. Research data were collected using semi-structured one-on-one interviews and analysed through a thematic data analysis process.
The findings show that poverty encompasses a lack of access to physical, social, financial, and human capital. They furthermore reveal that the FREC programme plays an important role in equipping entrepreneurs with business management skills, mentorship, and possible funding in view of assisting them to transition from survivalist to sustainable livelihoods. The study concludes that entrepreneurship and micro businesses serve as viable livelihood strategies for meeting household needs, employment creation, and contributing to the township economy. A key recommendation is that corporate companies and the government should consider replicating the FREC model by partnering with communities and non-profit organisations in creating more business incubators and mentorship programmes that provide business skills and funding to entrepreneurs in view of mitigating poverty.
