Entrepreneurial ecosystems as a driver for growth of rural startup companies

Abstract

This study examines the role of entrepreneurial ecosystems in supporting the growth and sustainability of rural startup businesses, focusing on Mpumalanga, South Africa. The study uses qualitative research methods to explore rural entrepreneurs' unique challenges, including limited access to resources, inadequate skills, and insufficient government support, while identifying key ecosystem components that could alleviate these obstacles. Findings reveal that resource accessibility, tailored mentorship, and localised training programs are essential for fostering rural entrepreneurship. Additionally, the study underscores the importance of building trust within local ecosystems to enhance collaboration and resource sharing among stakeholders. Practical recommendations are proposed to address identified challenges, advocating for strategic partnerships between government, financial institutions, and NGOs to provide financial support, skills development, and improved infrastructure. The research highlights the implications for policy and practice, suggesting that a supportive entrepreneurial ecosystem can drive the growth of rural start-up companies. By addressing these insights, stakeholders can strengthen rural ecosystems, contributing to inclusive growth and sustainable development in underserved areas.