Abstract
Since 1994, the South African Government has introduced numerous entrepreneurial policies and
support institutions aimed at developing entrepreneurship, which is viewed as a solution for the
country’s socio-economic problems of poverty, unemployment and inequality. However, because of a
limited understanding of the dynamics of rural entrepreneurship, Government efforts to uplift rural
entrepreneurs have not been effective. Challenges relating to lack of appropriate business
infrastructure, barriers to enter new markets, lack of industry mentors and networking opportunities, stiff
competition, high cost of regulatory compliance and barriers in accessing bank loans continue to
undermine business viability in rural areas. The problem that the research addresses is to understand
the factors that explain the low profitability, competitiveness and survival rates of rural micro-lodging
enterprises, as a specific category of entrepreneurial enterprise, despite the context of increasing
tourism generally in South Africa and a consequent hypothesised positive impact on business
prospects. Using a qualitative case study design; in-depth interviews with 15 lodging business owners
and officials from four government support institutions were conducted. Atlas.ti was used to analyse
data. The study found that the main users and beneficiaries of these policies and the support institutions
are urban, literate and well-established entrepreneurs, while the rural entrepreneurs most in need, and
in many cases, the actual object of policies, do not access the support due to lack of knowledge or
information, or cannot due to distance and cost. Because of policy-makers’ lack of knowledge and
information, rural entrepreneurs are subjected to a one-size-fits-all policy implementation approach
which is counter-effective. The study recommends adapting policy implementation to suit the unique
local conditions of rural communities. The paper conclude by proposing policy interventions imperative
in developing entrepreneurship in the rural areas.