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Drivers of Artificial Intelligence adoption in township small businesses in South Africa

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  • Bramwell Kundishora Gavaza

    (Walter Sisulu University, South Africa)

Abstract

This study examined the relationship between Artificial Intelligence (AI) and community structures governance in scaling sustainable township businesses in South Africa. A qualitative design was used, and 30 semi-structured interviews were held with entrepreneurs in townships in the Eastern Cape. The results indicate potential for improving business with AI tools, including mobile payment systems and digital platforms; however, this is hindered by low digital literacy, inadequate infrastructure, and a distrust of technology. The community structures, such as cooperatives and ward committees, were observed to affect the acceptance and diffusion of AI in business activities. The paper found collaborations between technology innovation and participatory governance, demonstrating that hybrid strategies can enhance inclusive development. The study concludes by proposing a policy framework that unites AI and local governance to strengthen township economies and foster resilience.

Suggested Citation

  • Bramwell Kundishora Gavaza, 2025. "Drivers of Artificial Intelligence adoption in township small businesses in South Africa," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 116-129, December.
    • Handle: RePEc:ssi:jouird:v:7:y:2025:i:4:p:116-129
    DOI: 10.70132/c9883956762
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    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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