Abstract
The role of technology in enterprise development has taken on more importance
because of what Klaus Schwab in 2017 termed, “The fourth industrial revolution.”
Whereby, computer-generated products and technology will cause transformations in
entire systems of production, governance and management. The implications are that
technology and more specifically Information Communications Technology (ICT) and ecommerce will reduce barriers between entrepreneurs and markets. In addition, with
increased ICT distribution and usage, allows for the average individual to start a
successful digital business withminimal start-up capital, no inventory on hand and little
risk. Previous studies have been done on this topic, but few have focused on the
effects of ICT on enterprise development within a South African context. Therefore, it is
the aim of this study to demonstrate that ICT can be an effective LED tool in developing
more youth enterprises.
A quantitative approach to research was implemented, using secondary data. The
Double log regression model was used to get the estimates of the coefficients using the
Ordinary Least Squared method. In addition, to validate the results: residuals
diagnostics, stability diagnostics and significance tests were performed. This was to
ensure that the results were stable or did not violate the assumptions under the OLS
estimation method.
The findings revealed that of the two ICT’s explored in this study; mobile phones were
the most likely to create employment opportunities for the youth. On the other hand,
increased internet usage was shown to result in job losses. This is because many
youths do not have the necessary skills to utilize the internet for entrepreneurship. It is
thus imperative that more focus be paid on developing the skills of youth in terms of
ICT.
M.Com. (Local Economic Development)