4 Hot Township Business Ideas and Opportunities
This article forms part of SME South Africa’s Township Entrepreneurship series. In the month of October we will explore the complexities, challenges and success stories of the township entrepreneurship ecosystem.
South Africa’s townships have always been a hive for entrepreneurial activity, however the over-saturation of certain sectors has affected the chances of their success. These are typically sectors with low barriers to entry and low capital requirements.
This is beginning to change as more entrepreneurs look to launch businesses in previously under explored sectors which could give rise to the next million-rand enterprises.
Kabelo Selebalo, founder at Menzion Digital, a Ekhurhuleni-based design and development agency that services township-based businesses, says that many of these trends are being driven by young upwardly mobile black professionals who are seeking greater convenience and service.
Starting a business is always a risk, but pursuing one of these promising sectors can improve your odds. Selebalo shares “promising sectors” township entrepreneurs should consider stepping into.
Social events have moved outdoors with food markets being the leading contender in this market.
The market trend has caught on in many townships across the country, with many entrepreneurs launching their own food markets or cookouts catering for that market.
These entrepreneurs are catering to a young and trendy crowd that is increasingly looking for authentic experiences – think food, fashion and music.
The growth of this trend has also meant that major brands are looking to partner with such events.
The township market is beginning to see the emergence of new players in the towing service business. While still in its infancy, if you have expertise in the space now is the perfect time to jump in before the market becomes oversaturated.
Rental accommodation in the township is evolving to the accommodate the young, working class looking for the privacy and amentities that complexes in urban areas offer, without leaving the township.
These complexes typically take the form of simple bachelor or one bedroom apartments (usually no more than 20 units) in a gated property, and some are even equipped with Wifi.
The demand is being driven by cheaper rent prices (as compared to urban areas), as well as convenience. We are likely to see more growth in Kasi mini complex mostly around townships not far from areas such as Soweto and Tembisa.
On demand services continue to be a rising trend. The township marketing is embracing this trend in the form of laundry services.
Just like the kasi complexes trend, the laundry service trend is being driven by the quest for greater convenience, mostly by millennials.
This market has grown significantly in the past few months with companies in this space growing their offering and are starting to add a delivery option with branded vehicles.