Developing a framework to address the challenges faced by taxi operators as entrepreneurs in the North West Province, South Africa

Abstract

The minibus taxi (MBT) industry remains the most preferred mode of public transport in South Africa because it provides door-to-door service. Despite their massive contribution to the public transport service in the county, MBT industry remains largely fragmented. It is characterised by fierce competition over lucrative routes, leading to taxi-related conflict and violence. Several scholars have addressed the plethora of issues plaguing the industry by identifying the causes of MBT industry failures but have yet to provide plausible solutions on what needs to be done for the industry to become both successful and sustainable. Therefore, this study aimed to develop a framework to address the challenges taxi operators face as entrepreneurs in the North West province of South Africa. To accomplish the purpose of the study, the following objectives were identified, (i) to identify the challenges faced by taxi operators as entrepreneurs, (ii) to identify the challenges faced by taxi drivers as employees, (iii) to interrogate the skills gaps in the leadership structures within the taxi operations, and (iv) to establish the role of Government in addressing the challenges, were set to construct the proposed framework. Entrepreneurial theory, Conflict theory, Wage determination theory and Job satisfaction theory was used to attain the objectives set for the study. The study adopted the pragmatist research paradigm, underpinning the sequential exploratory mixed-method approach for collecting and analysing qualitative and quantitative data. The qualitative phase focused on the minibus taxi operators/ owners. The target population regarding taxi operators was 6110. Data was collected through interviews. Of the 6110 taxi operators in the North West province, non-probability sampling was used to sample 12 taxi operators (owners) for the qualitative phase, with seven interviews conducted where saturation was achieved at interview number 5. The thematic method was used to analyse the qualitative data. The quantitative phase focused on the minibus taxi drivers (as employees). The target population of drivers was 5158. A total of 360 questionnaires were issued to the minibus taxi drivers, and all were fully completed and returned. The Statistical Package for Social Science (SPSS) version 28 was used to analyse the quantitative data. vii The qualitative findings in relation to the minibus taxi operators indicated that the lack of formalisation contributed towards the low-profit margins, working capital, fierce competition over lucrative routes, lack of innovation and poor business management and low levels of education and skills. The quantitative findings illustrated the lack of compliance by minibus operators in the employment of minibus taxi drivers, with no compliance in the labour requirements (e.g., no medical aid, irregular working hours, non-compliance with the Unemployed Insurance Fund and Compensation). Poor working conditions leading to low job satisfaction levels. It was recommended that the minibus taxi industry should be formalised in order to generate improved profit and working capital. The operational framework proposes that the minibus taxi industry should be converted into taxi co-operatives or companies. Once successfully concerted into taxi co-operatives or companies, it would be easy for them to attract funding and support from Government and other stakeholders. As minibus taxi cooperatives or companies, they will be able to pool their vehicles together and work towards one goal and for one taxi co-operative or company. In this way, the issues of competition that often lead to conflict and violence will be removed. Minibus taxi drivers will get their wages from the taxi co-operative or company irrespective of how much money they make per day. This approach will further ease the reckless driving because drivers are chasing a target set by the owner or operator. Job satisfaction levels will improve, and the taxi co-operatives or companies will become profitable and competent