Examining the Role of Rural Entrepreneurship in Enhancing Economic Resilience in Mnquma Local Municipality, Eastern Cape

Abstract

Rural entrepreneurship is increasingly recognised as a critical driver of economic resilience and regional development, particularly in developing regions such as the Eastern Cape, South Africa. This exploratory study examines how entrepreneurial activities stimulate local economic growth, job creation, innovation, and community empowerment in Mnquma Local Municipality, where persistent unemployment and poverty remain significant challenges. Adopting an exploratory research design underpinned by a positivist philosophy, the study synthesises existing literature on the relationships among employment generation, economic contribution, innovation, diversification, community engagement, supply chain development, and economic resilience. Data were collected from 349 respondents drawn from a population of 3,750 formally registered rural entrepreneurs. The data were analysed using descriptive statistics, reliability and validity tests, correlation analysis, and Partial Least Squares Structural Equation Modeling (PLS-SEM) in SPSS and SmartPLS to examine the relationships among employment generation, economic contribution, innovation, diversification, community engagement, supply chain development, and economic resilience. The findings suggest that strong rural entrepreneurship enhances local adaptability and supports sustainable economic performance in the face of external shocks. The study emphasises the importance of inclusive, evidence-based policies that promote rural enterprise development through improved financial mechanisms, infrastructure investment, and strengthened stakeholder networks, thereby providing localised insights to inform policy and sustainable development in South Africa.