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| Content Provider | ACM Digital Library |
|---|---|
| Author | Kariuki, Paul Ofusori, Lizzy Oluwatoyin |
| Abstract | At a time when global economic climate is becoming harsher for the majority of people worldwide, accessing credit for entrepreneurship is becoming challenging for most people, especially young people. By their very nature, young people lack the necessary collateral that financial institutions require in order to grant credit. This situation calls for innovative ways to raise the necessary capital for any business venture. A developing country like South Africa, with a high unemployment rate, young people are pressed to explore alternative ways to create their own jobs. Stokvels are known to provide credit with less strict conditions compared to mainstream banks. WhatsApp has significantly altered the stokvel landscape. Young people have discovered alternative means of accessing soft credit to enhance their own economic power. This new trend offers an exciting field of investigation for development practitioners, researchers and policy makers. This research project explored mobile phone practices amongst 'young entrepreneurs from townships' in the informal business sector in Durban, South Africa. It relied on in-depth interviews with selected young entrepreneurs in order to understand better this emerging trend of accessing credit via WhatsApp. From this research, the study found out that young people preferred WhatsApp-operated Stokvels because they were easily accessible, the money needed was available on the same day within hours of request and no strings attached to the lending because lending was done on the basis of mutual trust and commitment to the stokvel. From this study, it is evident that mobile technology is a catalyst for youth entrepreneurship. Mobile platforms such as WhatsApp are instrumental in enabling financing of young entrepreneurs to realize their dreams whilst at the sametime addressing the chronic challenge of youth unemployment in the country. |
| Starting Page | 253 |
| Ending Page | 259 |
| Page Count | 7 |
| File Format | |
| ISBN | 9781450348256 |
| DOI | 10.1145/3047273.3047397 |
| Language | English |
| Publisher | Association for Computing Machinery (ACM) |
| Publisher Date | 2017-03-07 |
| Publisher Place | New York |
| Access Restriction | Subscribed |
| Subject Keyword | South africa Entrepreneurship Mobile phones Youth Whatsapp |
| Content Type | Text |
| Resource Type | Article |
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