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Exploring the role of the minibus-taxi industry on promoting taxi entrepreneurship in South Africa

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  • Terrance Molobela

    (University of Johannesburg)

Abstract

From the 1930s, the South African minibus-taxi industry has been playing a fundamental role in supporting the growth and development of minibus-taxi entrepreneurs. The minibus-taxi industry in South Africa is often misunderstood due to its informal nature. However, it is worth noting that the South African minibus-taxi industry has created economic opportunities for taxi entrepreneurs, and today it has an annual turnover of R38-billion to R50-billion. This study investigated the role of the South African minibus-taxi industry in promoting the development of taxi entrepreneurship in Mankweng taxi ranks, within the Limpopo Province and its limited within this area. The mixed-method research approach was used with a stratified-random sampling using a semi-structured questionnaire administered to 110 taxi entrepreneurs. In addition, the study conducted group focus interviews purposively with 12 minibus-taxi bosses. Qualitative data was analysed using descriptive analysis and quantitative data was analysed using the Statistical Package for Social Science (SPSS) software and then transported to the Microsoft Excel for further analysis where necessary. The findings reveals poor business planning; weak support from both the Mankweng Taxi Association and government; and high fuel prices affects the day-to-day business activities and causing majority of minibus-taxi entrepreneurs running their businesses at loss without realisation. The study recommend an urgency for the Mankweng minibus-taxi group and their key stakeholders to design an entrepreneurship model suitable for the industry’s development to boost the local economy. This study sought to demonstrate the importance of unlocking the full potential of minibus-taxi entrepreneurship through sufficient support from both the government and minibus-taxi associations to address structural challenges, limited access to resources and finance, and regulatory complexities to lessen the burden of running the minibus-taxi business. The study challenges policy-makers intentionally to design programs aimed at incorporating the minibus-taxi business into boosting the overall economy in a formal manner. Key Words:Small business development, Minibus taxi industry, entrepreneurship development, taxi entrepreneur, development

Suggested Citation

  • Terrance Molobela, 2024. "Exploring the role of the minibus-taxi industry on promoting taxi entrepreneurship in South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(10), pages 12-24, December.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:10:p:12-24
    DOI: 10.20525/ijrbs.v13i10.3660
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