Empowerment through entrepreneurship: A mixed-methods analysis of social grants and economic sufficiency

Ncanywa, Thobeka; Dyantyi, Ntsika; Asaleye, Abiola John Article Empowerment through entrepreneurship: A mixedmethods analysis of social grants and economic sufficiency Economies Provided in Cooperation with: MDPI – Multidisciplinary Digital Publishing Institute, Basel Suggested Citation: Ncanywa, Thobeka; Dyantyi, Ntsika; Asaleye, Abiola John (2025) : Empowerment through entrepreneurship: A mixed-methods analysis of social grants and economic sufficiency, Economies, ISSN 2227-7099, MDPI, Basel, Vol. 13, Iss. 4, pp. 1-27, https://doi.org/10.3390/economies13040107 This Version is available at: https://hdl.handle.net/10419/329387 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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Empowerment Through Entrepreneurship: A Mixed-Methods Analysis of Social Grants and Economic Sufficiency. Economies,13(4), 107. https:// doi.org/10.3390/economies13040107 Copyright: © 2025 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/ licenses/by/4.0/). Article Empowerment Through Entrepreneurship: A Mixed-Methods Analysis of Social Grants and Economic Sufficiency Thobeka Ncanywa 1, Ntsika Dyantyi 2and Abiola John Asaleye 3,* 1Directorate of Research Development and Innovation, Mthatha Campus, Walter Sisulu University, Mthatha 5117, South Africa; [email protected] 2Business Management Education, Faculty of Education, Queenstown Campus, Walter Sisulu University, Queenstown 5320, South Africa; [email protected] 3Department of Business Management & Economics, Faculty of Economic and Financial Sciences, Zamukulungisa Campus, Walter Sisulu University, Mthatha 5099, South Africa *Correspondence: [email protected] Abstract: Entrepreneurship is crucial in promoting innovation, job creation, and poverty alleviation, particularly in developing economies. This study adopts a mixed-methods approach, using quantitative and qualitative analysis to examine macroeconomic factors’ impact on entrepreneurial activity. The quantitative analysis utilises fully modified least squares and dynamic ordinary least squares to estimate long-run relationships, while the qualitative component applies thematic analysis to assess the role of school-based gardening initiatives in promoting students’ economic participation. Our findings indicate that government expenditure on education significantly enhances entrepreneurship, whereas access to credit remains ineffective, suggesting persistent barriers in financial intermediation. Labour force participation shows a positive relationship with entrepreneurship, supporting the idea that a more engaged labour force promotes business creation. The findings also show a negative impact of regulatory quality on entrepreneurship, stressing the need for regulatory reforms to reduce entry barriers. While technology adoption has a delayed effect, long-term investments in digital infrastructure are recommended. At the microlevel, school-based entrepreneurship programs, such as vegetable gardening, cultivate entrepreneurial skills, though sustainability depends on consistent support and resources. Based on these findings, this study suggests the need to enhance education, improve access to finance, and streamline regulatory frameworks to promote entrepreneurship. Keywords: entrepreneurship development; new business registrations; social grants and economic sufficiency; government expenditure; mixed-methods analysis 1. Introduction Entrepreneurship is one of the key drivers of economic growth and social development (Pan et al.,2024;Ncanywa,2019). Promoting entrepreneurship in developing economies like South Africa is crucial for reducing unemployment and income inequality while promoting greater economic participation (Mokofe,2024;Matlala & Ncube,2025). However, the extent to which public policies influence entrepreneurial behaviour remains debatable. While social grants provide financial relief and improve livelihoods, they may stimulate entrepreneurial activity by reducing the risk of creating a dependency that discourages business creation (Gras & Mendoza-Abarca,2014;Nzabamwita & Ndhlovu,2024). Similarly, government expenditure on education, regulatory frameworks, and technology adoption are essential in enabling an environment for entrepreneurship (George & Prabhu,2003;Pu Economies 2025,13, 107 https://doi.org/10.3390/economies13040107 Economies 2025,13, 107 2 of 27 et al.,2021). Nevertheless, the relationship between these macroeconomic determinants and entrepreneurship remains underexplored, particularly in South Africa. At the same time, promoting entrepreneurship at the micro-level, such as entrepreneurial education and school-based agricultural initiatives, has emerged as a potential mechanism for advancing entrepreneurial skills and economic participation (Mayombe,2017;Wallenborn,2010; Booi et al.,2024). School-based vegetable gardening, for example, has been increasingly promoted to enhance food security, instil entrepreneurial capabilities, and equip students with practical skills for self-sufficiency (Food and Agriculture Organization (FAO) (2009)). The National School Nutrition Programme (NSNP) was introduced to promote food security within South Africa, which was characterised by a notable initiative funded through a conditional grant delineated in the national budget (Omulo,2023;Mensah & Karriem,2021). Initially instituted as a component of the Reconstruction and Development Programmes (RDP) in 1994 under the auspices of the Department of Health, the programme witnessed a strategic transition to the Department of Education by 2004 (Department of Basic Education,2025). The NSNP assumes a cardinal role in mitigating poverty and hunger among impoverished educational institutions, mainly targeting those classified within “quintile one to three schools”, which cater to the most economically marginalised communities. It endeavours to provide nutritious meals on time to learners, teaches healthy eating habits and lifestyles among the school populace, and substantially contributes towards food security and the promotion of sustainable food production practices within schools and their surrounding communities (Oostindjer et al.,2017;Chaudhary et al.,2020). However, the extent to which such initiatives contribute to economic engagement, particularly within underprivileged communities, remains an empirical question. The relevance of this study lies in its contributions, as follows: (i) it investigates the macroeconomic determinants of entrepreneurship, including government expenditure on education, labour force participation, access to credit, and regulation and technology adoption in line with SDG 8 (decent work and economic growth) and SDG 10 (reduced inequalities); (ii) it bridges the gap between policy interventions and grassroots entrepreneurship, intending to ensure that national policies effectively translate into localised economic participation, supporting SDG 1 (no poverty); (iii) it examines the role of school-based entrepreneurial vegetable gardening in enhancing food security and skill development, contributing to SDG 2 (zero hunger) and SDG 4 (quality education); and (iv) it fills an important gap in the empirical literature. These are discussed below. This study examines the macroeconomic determinants of entrepreneurship, including government expenditure on education, labour force participation, access to credit, and regulation and technology adoption, which are key drivers of economic activity in developing economies. Persistent challenges such as poverty, unemployment, and inadequate resources hinder inclusive growth, making the assessment of how these factors influence entrepreneurial behaviour essential (Ncanywa & Dyantyi,2022). Additionally, evaluating the extent to which government expenditure on education and regulatory policies support or constrain entrepreneurship contributes to the discourse on SDG 8 (decent work and economic growth) by identifying ways to enhance self-employment, business creation, and economic performance. Likewise, this study bridges the gap between policy interventions and grassroots entrepreneurship, ensuring that national policies effectively translate into localised economic participation, thereby supporting SDG 1 (no poverty). While social protection, fiscal policies, and regulatory frameworks are designed to stimulate economic activity, their effectiveness is often limited by institutional inefficiencies and bureaucratic barriers (Torm & Oehme,2024;Martins et al.,2024). Studies suggest that top-down policies frequently fail to reach marginalised communities, necessitating a shift towards inclusive, Economies 2025,13, 107 3 of 27 bottom-up entrepreneurial strategies (Ahmad & Islam,2024;Viswanathan et al.,2024; Fylling et al.,2019). Therefore, this study takes a step to examine the connection between macroeconomic policies and community-driven entrepreneurship to provide insights into how policy reforms can enhance economic self-sufficiency, support small-scale enterprise development, and reduce poverty. This study looks at the role of school-based entrepreneurial vegetable gardening in enhancing food security and skill development, contributing to SDG 2 (Zero hunger) and SDG 4 (Quality Education). Food insecurity remains a pressing challenge in many developing economies due to poverty, climate change, and inadequate agricultural infrastructure (Abdullahi et al.,2024). Integrating entrepreneurial gardening programs into school curricula improves nutritional performance and equips students with essential agricultural, business, and financial literacy skills, developing long-term economic impacts (Athuman,2023; Corio,2022;Dyantyi et al.,2010). Studies indicate that hands-on agricultural education enhances students’ knowledge of food systems, promotes self-sufficiency, and encourages future entrepreneurial ventures in agribusiness (Bamiro et al.,2024;Mukembo et al.,2023). Moreover, school-based gardening programs have improved academic performance, thinking, and problem-solving abilities (Holloway et al.,2023;Williams & Dixon,2013); this initiative is a sustainable model for poverty reduction, youth empowerment, and local economic development. Despite extensive studies on the role of entrepreneurship in economic growth, a gap remains in the empirical literature on how macroeconomic determinants influence entrepreneurship, particularly in developing economies. Existing studies have focused on microanalysis, firm-level, and individual-level factors while overlooking the macroeconomic and policy-driven determinants (Dileo & García Pereiro,2019;Santoro et al.,2020; Seet et al.,2021;Razmus & Laguna,2018;Kryeziu et al.,2024). The impact of government expenditure on education, regulatory frameworks, technology adoption, and access to credit on entrepreneurship is still growing at the macro-level, especially where public interventions and welfare policies play a crucial role in influencing economic behaviour. Moreover, at the micro-level, while welfare programs such as social grants are often criticised for creating dependency (Wood & Gough,2006;Walker et al.,2024), their potential to serve as mechanisms for entrepreneurial activity and economic participation has not been adequately examined in empirical studies (Wei et al.,2025;Saoula et al.,2024); this study addresses this gap by assessing how macroeconomic policies influence entrepreneurship and whether the micro-effect of social grant strategies create an enabling or constraining environment for entrepreneurship in South Africa, and other developing countries with a similar structure can benefit from this study. Given the nature of entrepreneurship, this study adopts a mixed-methods approach to capture structural and grassroots behaviour. At the macro-level, the quantitative component utilises macroeconomic data to examine how government expenditure on education, regulatory frameworks, technology adoption, and credit accessibility influence entrepreneurial activity. However, entrepreneurship also emerges from localised, community-driven initiatives, necessitating a micro-level perspective. To this end, the qualitative component employs thematic analysis of semi-structured interviews conducted at five secondary schools, examining how school-based gardening initiatives cultivate entrepreneurial skills and promote economic participation; this dual approach will assist in understanding how top-down policies interact with bottom-up entrepreneurial engagement. The main objective of this study is to examine macroeconomic factors and social grant impact on entrepreneurial activity. Specifically, this study seeks to achieve the following: • Investigate how government expenditure on education, regulation, technology adoption, and credit access influence South Africa’s entrepreneurship. Economies 2025,13, 107 4 of 27 • Examine the impact of school-based vegetable gardening on entrepreneurial skills and economic participation among secondary school students in the O.R. Tambo Inland region, Eastern Cape. This study is structured as follows: Section 1provides the introduction. Section 2 presents the theoretical framework, methodological approaches, and hypothesis development. Section 3details the materials and methods. Section 4presents the results and discussion. Finally, Section 5concludes this study by summarising it findings and providing policy recommendations. 2. Theoretical Foundations, Hypotheses Development, and Methodological Approaches Entrepreneurship is a key driver of economic empowerment, with its success influenced by various institutional, financial, and human capital factors. Theoretically, the human capital theory shows the role of education and skill acquisition in enhancing entrepreneurial capabilities, supporting the notion that government expenditure on education raises entrepreneurship by improving knowledge and problem-solving abilities (Kucel et al., 2016;Becker,1964). Likewise, access to credit, as framed by the financial constraint theory, is essential for business formation and expansion (Evans & Jovanovic,1989;Charfeddine et al.,2024), while labour force participation enhances entrepreneurial engagement by reducing unemployment and promotion economic development (Rajsinghot et al.,2024). The institutional theory stresses the importance of a well-structured regulatory environment in lowering bureaucratic barriers and promoting business confidence (North,1990;Nazir et al., 2024). Furthermore, the technological acceptance model suggests that technology facilitates entrepreneurship by reducing entry costs and enhancing market access (Silva,2015). Regarding the social grant to finance school-based entrepreneurial initiatives, theoretically, the experiential learning theory supports the argument that hands-on programs, such as vegetable gardening, instil entrepreneurial skills, enhance food security, and promote early economic participation (Kolb et al.,2014;Sabet & Böhm,2024). Methodologically, entrepreneurship is a phenomenon influenced by macroeconomic conditions and micro-level behavioural changes (Vlados & Chatzinikolaou,2020;Rachmawati,2025). A mixed-methods approach, which integrates quantitative macro-level analysis with qualitative micro-level, will explain better how entrepreneurship contributes to economic participation and social development. The rationale for this methodological choice is rooted in the need to bridge the gap between aggregate macroeconomic behaviour and localised entrepreneurial experiences, ensuring that structural determinants and individual agencies are accounted for in the analysis (Terjesen et al.,2016). At the macro-level, quantitative techniques allow for examining large-scale economic relationships. Empirical studies have demonstrated long-run and causal effects on entrepreneurship or production driven by key socioeconomic factors (Samadi,2019;Dhahri et al.,2021;Abdulai & Hussain,2024). Government expenditure on education enhances human capital, promoting entrepreneurship or increasing production over time (Arshed et al.,2024). Technological innovation stimulates economic growth but may worsen income inequality if not inclusively managed (Bhambri & Bajdor,2025). Causal linkages indicate that access to credit, regulatory quality, and labour force participation rate influence entrepreneurial orientation and performance (Nistotskaya & Cingolani,2016). The choice of econometric analysis is motivated through the preliminary analysis. Based on the outcome of the unit root test and cointegration test, this study investigates long-run effects and causal impact to enhance policy-relevant perceptions of the drivers of entrepreneurship. However, while this statistical analysis identifies macro-behaviour, it does not fully capture Economies 2025,13, 107 5 of 27 entrepreneurs’ lived experiences, motivations, and challenges, particularly in underprivileged and marginalised communities (Cooney & Licciardi,2019). At the micro-level, qualitative inquiry is essential for uncovering specific behaviours that may not be reflected in aggregated data. Through semi-structured interviews, case studies, and thematic analysis, this study investigates how grassroots entrepreneurial initiatives, such as school-based vegetable gardening programs, enhance food security, develop entrepreneurial skills, and improve economic performance; this approach provides rich, in-depth insights into the sociocultural and institutional factors that affect entrepreneurial behaviour, with a focus on the bottom-up perspective that complements the macro-level statistical findings (Kalisz et al.,2021;Rajagopal & Davila,2021). However, a mixed-methods framework enhances the robustness and credibility of this study, making it more relevant for academic scholarship and policymaking (Hendren et al.,2023). Building on the gap identified in the empirical literature (as mentioned in Section 1) and theoretical and methodological foundations outlined earlier, we formulate testable hypotheses to empirically assess the relationship between macroeconomic factors, entrepreneurship, and grassroots initiatives. Thus, this study posits the following hypotheses: H 1 .Government expenditure on education significantly influences entrepreneurship (by improving skills, knowledge, and problem-solving capabilities). Government expenditure on education is crucial in promoting entrepreneurship by enhancing human capital. Investment in education improves skills, knowledge, and problem-solving capabilities essential for entrepreneurial ventures (Galvão et al.,2020; Jardim,2021). Education equips individuals with the technical and managerial skills necessary to identify and exploit business opportunities, stimulating entrepreneurial activity (Otache,2025). Moreover, an educated labour force contributes to innovation and economic growth, creating a conducive environment for entrepreneurial initiatives (Suguna et al., 2024;Asaleye & Ncanywa,2025). H2. Access to credit has a significant influence on entrepreneurship. Access to credit is one of the main factors in entrepreneurial development, facilitating capital accumulation and investment in business ventures (Kato & Chiloane-Tsoka,2024). Entrepreneurs often face challenges in accessing financing due to asymmetric information and collateral requirements (Ncanywa,2019). Therefore, improved access to credit through financial institutions or government initiatives can significantly enhance entrepreneurship by reducing financial constraints and enabling entrepreneurial innovation and expansion (Pu et al.,2021). H 3 .There is a positive connection between labour force participation and entrepreneurship (the participation rate may reduce unemployment in the long run). A positive connection exists between labour force participation and entrepreneurship, as higher participation rates indicate an improved labour force capable of engaging in entrepreneurial activities (Akhtar et al.,2023;Xholo et al.,2025). Entrepreneurship provides an alternative to traditional employment, potentially reducing unemployment rates and enhancing economic performance (Cie´slik & van Stel,2024). Sustainable entrepreneurial ventures contribute to job creation and economic stability, promoting long-term economic growth (Ragmoun,2023). H 4 .A well-structured regulatory environment promotes entrepreneurship (by reducing bureaucratic barriers and enhancing business confidence). A well-structured regulatory environment is vital for promoting entrepreneurship by reducing bureaucratic barriers and enhancing business confidence (Beazer,2012). Clear and Economies 2025,13, 107 6 of 27 transparent regulations encourage a business-friendly climate, inspiring entrepreneurial ventures to flourish (Matlala & Ncube,2025;Asaleye et al.,2021). Effective regulatory frameworks streamline business procedures, facilitate market entry, and protect property rights, stimulating entrepreneurial activity and economic development (Mintah et al.,2025). H5.Greater technology adoption positively influences entrepreneurial activity (by lowering entry costs and improving market access). Greater adoption of technology positively influences entrepreneurial activity by lowering entry costs, improving market access, and enabling innovative business activities (Huang & Zhou,2025). Technological advancements enhance productivity and competitiveness, offering entrepreneurs new opportunities to scale their ventures and penetrate global markets (Meygoonpoury et al.,2024;Obadiaru et al.,2018). Embracing technological innovation promotes entrepreneurial opportunities, driving economic growth and sustainable development (Awad & Martín-Rojas,2024). Entrepreneurial skills are influenced by macroeconomic factors and localised interventions that cultivate hands-on experience and economic engagement. School-based entrepreneurial programs like vegetable gardening provide a practical platform for skill development, food security, and economic self-sufficiency (Reis & Ferreira,2015). Integrating agricultural entrepreneurship into the curriculum has enhanced students’ financial literacy, business acumen, and self-sufficiency (Oyekan,2016). Moreover, such initiatives contribute to food security and local economic participation, as students learn resource management, market behaviour, and value-addition processes (Liu et al.,2023). Accordingly, this study offers the following hypothesis: H 6 .School-based vegetable gardening financed via social grants positively influences students’ entrepreneurial skills development. School-based initiatives, such as vegetable gardening programs financed via social grants, positively influence students’ entrepreneurial skills development. These programs encourage practical knowledge in agricultural practices, resource management, and entrepreneurial decision-making (Liu et al.,2023). Therefore, by promoting handson learning experiences, school-based gardening cultivates entrepreneurial mindsets from an early age, preparing students for future economic participation and innovation (Bucea-Manea-T ,onis ,et al.,2024). H 7. Participation in school-based gardening programs enhances food security (by promoting self-sufficiency and sustainable agricultural practices). Participation in school-based gardening programs enhances food security by promoting self-sufficiency and sustainable agricultural practices (Sharp et al.,2024). These programs empower communities to address nutritional needs and reduce dependence on external food sources, enhancing economic stability (Kanosvamhira,2025). So, by integrating food production into educational curricula, schools contribute to broader societal goals of promoting health, environmental stewardship, and economic development (Oyekan,2016). H 8. School-based entrepreneurial activities increase students’ economic participation, promoting early exposure to business opportunities and income generation. School-based entrepreneurial activities increase students’ economic participation by providing early exposure to business opportunities and income generation (Baxter et al., 2014). These activities promote entrepreneurial skills, such as initiative, creativity, and financial literacy, essential for future career success and economic empowerment (Burchi et al.,2021). Schools encourage entrepreneurial endeavours at a young age, leading to Economies 2025,13, 107 7 of 27 a culture of innovation and entrepreneurship, driving sustainable economic growth and social development (Zemlyak et al.,2023). 3. Materials and Methods 3.1. Empirical Models for Macroanalysis of Determinants of Entrepreneurship The human capital theory posits that education enhances cognitive and managerial skills, improving entrepreneurial capabilities (Becker,1964;Kucel et al.,2016). The relationship between human capital accumulation and entrepreneurship can be expressed as follows: HCt=δEDUt+εt(1) In Equation (1), HCt represents human capital at time, EDU denotes government expenditure on education, and δcaptures the effect of education on skill accumulation. ENPt=ϕHCt+εt(2) Equation (2) expresses entrepreneurship ( EDU ) as a function of human capital. Substituting Equation (1) into Equation (2), we have the following: ENPt=ϕ(δEDUt) + εt(3) Equation (3) suggests that increasing government expenditure on education promotes entrepreneurship by enhancing the skills necessary for business creation. Access to financial resources is another critical determinant of entrepreneurship, as emphasised by the financial constraint theory (Evans & Jovanovic,1989;Charfeddine et al.,2024). Entrepreneurs require capital to start and expand their businesses, and limited credit availability restricts business formation. The financial constraint model assumes that an individual will engage in entrepreneurship if their expected profit exceeds their opportunity cost: πE t≥πW t(4) πE t is the expected profit from entrepreneurship in Equation (4), and πW t is the expected wage from employment. Since expected entrepreneurial profit depends on capital availability, the credit constraint function can be written as follows: Kt=λACCt+εt(5) In Equation (5), Kt is the available capital for investment, ACCt represents access to credit, and λ denotes the elasticity of capital with respect to credit availability. Since entrepreneurship depends on capital, we can specify Equation (6) as follows: ENPt=θKt+εt(6) Substituting the capital constraint equation in Equation (6) into Equation (3), we have the following: ENPt=ϕ(δEDUt) + θ(λACCt) + εt(7) Equation (7) suggests that improved access to credit facilitates business creation by reducing financial constraints. The labour market entrepreneurship theory links labour force participation and entrepreneurship (Rajsinghot et al.,2024). High labour force participation (LFP) increases the pool of skilled individuals, thereby enhancing business creation: ENPt=γLFPt+εt(8) Economies 2025,13, 107 8 of 27 In Equation (8), γ represents the effect of labour force participation on entrepreneurship. Since entrepreneurship also influences the labour market, higher participation rates may reduce unemployment and drive economic expansion in the long run. Likewise, Technological advancement is crucial in enhancing entrepreneurship, as articulated in the innovation-driven growth model (Dyantyi et al.,2010). Innovation ( INO ) facilitates business formation by reducing market entry barriers and improving productivity. We express the relationship as follows: Yt=AtF(Kt,Lt)(9) In Equation (9), Yt is output, At represents technological progress (proxied by innovation), and F(Kt , Lt) is a production function dependent on capital ( K ) and ( L ). Since entrepreneurship drives technological adoption, we have At=ηINOt+εt , which, when substituted into the production function, yields the following: ENPt=βINOt+εt(10) Equation (10) suggests that greater innovation enhances entrepreneurial activity by increasing productivity and market access. Finally, institutional quality is fundamental to entrepreneurship, as emphasised by the institutional theory (North,1990;Nazir et al., 2024). A well-structured regulatory environment promotes business confidence by reducing bureaucratic barriers and ensuring stable property rights. The role of regulatory quality (RLQ) in entrepreneurial activity can be expressed as follows: ENPt=ρRLQt+εt(11) In Equation (11), ρ captures the responsiveness of entrepreneurship to changes in regulatory quality. A stable and transparent regulatory framework enhances ease of doing business, promoting business creation and economic diversification. Building on the theoretical framework and combining Equations (7), (8), (10), and (11), the functional specification of the model is given as follows: ENP =f(LFP,EDU,ACC,INO,RLQ)(12) Equation (12) can be represented as an estimable log-linear model as follows: InENPt=βo+β1InLFPt+β2InEDUt+β3InACCt+β4InINOt+β5InRLQt+εt(13) In Equation (13), βo is the intercept; εt is the error term; β1 , β2 , β3 , β4 , and β5 are elasticity coefficients that capture the percentage change in entrepreneurship due to changes in each explanatory variable; and tis the period of observation. Given that the unit root test confirms the series are I (1), and Johansen’s cointegration test establishes a long-run relationship, this study employs fully modified least squares (FMOLS) and dynamic least squares (DOLS) to estimate the long-run dynamics over the period 2006Q1–2024Q4. The vector error correction model (VECM) is used to analyse the causality. We ensure robustness using Canonical Cointegrating Regression (CCR). The general form of the FMOLS estimator for a cointegrated system is given as follows: ˆ βFMOLS = T ∑ t=1 XtX′t!−1 T ∑ t=1 XtY∗ t!(14) Economies 2025,13, 107 15 of 27 Need for training and support—“Entrepreneurship can drive financial independence, but success hinges on access to training and resources” (T5). Evidence from the outcome shows that entrepreneurial education enhances financial autonomy, economic participation, and self-sufficiency by promoting financial literacy, business acumen, and innovation skills. School-based initiatives, such as vegetable gardening programs, promote early market exposure, strengthen food security, and develop entrepreneurial mindsets (Reis & Ferreira,2015;Oyekan,2016;Liu et al.,2023). Targeted training reduces psychological barriers, boosting confidence and reducing welfare dependency, while structured entrepreneurial activities cultivate creativity essential for long-term economic growth (Baxter et al.,2014;Burchi et al.,2021). Ultimately, education-driven entrepreneurship catalyses inclusive economic empowerment and sustainable development. 4.2.2. Entrepreneurial Skill Development Through the School Nutrition Programme Practical engagement in the school nutrition programme fosters essential entrepreneurial skills, reducing dependency on external grants. Hands-on participation in school gardens, food production, and business initiatives equips students and staff with self-sufficiency and economic-independence competencies. Participant Insights Responsibility and time management—“Managing daily operations instils discipline, responsibility, and adherence to schedules” (T1). Problem-solving and creativity—“Overcoming resource constraints fosters adaptability and innovative thinking” (T2). Financial management and strategy—“Budgeting and resource allocation enhance financial literacy and strategic planning” (T3). Networking and stakeholder engagement—“Building relationships with suppliers and officials strengthen business acumen” (T4). Innovation and efficiency—“Optimising programme operations nurture problemsolving and entrepreneurial efficiency” (T5). The findings show that the school nutrition programme promotes essential entrepreneurial competencies, including financial literacy, discipline, and strategic decisionmaking, while enhancing soft skills for leadership and adaptability. Aligning with prior findings on school-based entrepreneurial programs, such initiatives provide a foundation for financial autonomy, self-sufficiency, and business acumen (Reis & Ferreira,2015; Oyekan,2016). Integrating agricultural entrepreneurship, such as vegetable gardening, into educational curricula strengthens resource management skills and market awareness, contributing to food security and local economic participation (Liu et al.,2023;Sharp et al.,2024). Early exposure to entrepreneurial activities advances a culture of innovation, equipping students with the necessary skills to navigate economic challenges and pursue sustainable business ventures (Baxter et al.,2014;Burchi et al.,2021). Embedding entrepreneurial training into school nutrition programs can promote long-term economic empowerment and sustainable development. 4.2.3. Entrepreneurial Mindset as a Tool for Socioeconomic Development Reducing reliance on nutrition grants through entrepreneurship fosters sustainable solutions, addressing nutritional needs and driving community development. Participant Insights Path to self-sufficiency—“Entrepreneurship creates jobs, reducing unemployment and poverty” (T1). Economies 2025,13, 107 16 of 27 Economic upliftment—“Skills and confidence in business empower individuals to generate income and support communities” (T2). Innovation and local solutions—“Creative problem-solving helps address poverty through self-driven opportunities” (T3). Need for policy support—“Entrepreneurship requires policies and resources to maximise its impact” (T4). Role of training and mentorship—“Access to training and funding determines entrepreneurial success” (T5). It can be understood from the results that entrepreneurship promotes self-sufficiency, income generation, and economic improvement but thrives with structural support, including education, funding, and mentorship. Studies have documented that financial management, networking, and creative problem-solving are key entrepreneurial competencies that can be cultivated through interventions (Reis & Ferreira,2015;Oyekan,2016). School-based initiatives, such as vegetable-gardening programs financed via social grants, provide a practical platform for developing entrepreneurial skills, enhancing financial literacy, and encouraging business activities (Liu et al.,2023;Bucea-ManeaT , oni s , et al., 2024). These programs promote food security and resource management, equipping students with the skills necessary for economic participation and innovation (Sharp et al., 2024;Kanosvamhira,2025). Early exposure to entrepreneurship through hands-on learning promotes a culture of self-reliance, creativity, and economic empowerment, enhancing sustainable development and poverty reduction (Baxter et al.,2014;Zemlyak et al.,2023). 4.2.4. Skill Development Successes and Engagement Challenges Entrepreneurial activities foster confidence, responsibility, and financial literacy among learners and meal servers. However, sustaining engagement is hindered by low interest, resource constraints, and the need for continuous support. Participant Insights Confidence and responsibility—“Some learners thrive in small business ventures, but not all are interested or motivated” (T1). Practical skill development—“School gardens teach valuable skills, but educator time and resources limit sustainability” (T2). Financial literacy—“Managing mini-businesses fosters responsibility, yet inconsistent follow-up weakens long-term success” (T3). Resource management—“Meal servers gain budgeting skills but lack training in marketing and strategic planning” (T4). Market participation—“Students engage enthusiastically in community markets, but interest fades without guidance” (T5). Entrepreneurial initiatives promote self-efficacy and practical skills, yet challenges such as student motivation and resource constraints threaten long-term sustainability. Studies have shown the effectiveness of school-based entrepreneurial programs, particularly vegetable gardening, in enhancing financial literacy, business acumen, and self-sufficiency (Reis & Ferreira,2015;Oyekan,2016). These initiatives contribute to food security, resource management, and local economic participation, equipping students with market-oriented skills (Liu et al.,2023;Bucea-ManeaT , oni s , et al.,2024). However, educator support and continuous mentorship are crucial for sustaining engagement and integrating entrepreneurial learning into community markets (Sharp et al.,2024;Kanosvamhira,2025). With early exposure to entrepreneurship, schools cultivate an innovation-driven mindset, promoting economic empowerment and long-term sustainable development (Baxter et al.,2014; Zemlyak et al.,2023). Economies 2025,13, 107 17 of 27 4.2.5. Practical Entrepreneurship in School-Based Initiatives Educators, meal servers, and learners gain hands-on entrepreneurial experience through school gardens, mini-enterprises, after-school clubs, and community markets, fostering budgeting, sales, and financial management skills. Participant Insights Educators as facilitators—“Teachers can lead small projects like school gardens, teaching basic business skills” (T1). Financial literacy for meal servers—“Meal servers learn budgeting by managing food orders and selling surplus produce” (T2). Student-led enterprises—“Learners engage in mini-businesses like craft or food sales, gaining business experience” (T3). Entrepreneurship clubs—“After-school clubs help students develop business ideas, market products, and manage finances” (T4). Community market participation—“Selling goods in community markets builds financial and customer service skills” (T5). Evidence from the findings shows that school-based entrepreneurship promotes financial literacy and business penetration by engaging learners in real-world economic activities. Empirical studies affirm that entrepreneurial initiatives, such as vegetable gardening, provide students with practical exposure to financial decision-making, resource management, and market behaviour (Reis & Ferreira,2015;Oyekan,2016;Liu et al.,2023). These programs enhance self-sufficiency and economic participation, encouraging early exposure to business opportunities and income generation (Baxter et al.,2014;Burchi et al.,2021). Furthermore, school-based entrepreneurial activities contribute to food security and economic empowerment by integrating sustainable agricultural practices and the development of innovation-driven mindsets (Sharp et al.,2024;Kanosvamhira,2025). However, sustained support, mentorship, and resources remain crucial for long-term success, ensuring these initiatives translate into lasting economic and social benefits (Zemlyak et al.,2023). 4.2.6. Entrepreneurship Education for Student Development and Community Engagement Entrepreneurship education equips students with essential life skills, enhances career prospects, and strengthens school–community ties through real-world business experiences. Participant Insights Building life and career skills—“Students gain problem-solving, financial management, and creativity skills, preparing them for future careers” (T1). Enhancing learning through practical application—“Entrepreneurship makes learning engaging by providing real-world, applicable skills” (T2). Strengthening school-community ties—“Business projects foster relationships with local businesses, benefiting both students and schools” (T4). Boosting career prospects—“Entrepreneurial skills improve job readiness and create opportunities for internships and business partnerships” (T5). The findings show that entrepreneurship education plays a role in equipping students with essential skills for economic participation. Empirical evidence reported that schoolbased entrepreneurial initiatives, such as vegetable gardening, enhance financial literacy, business acumen, and self-sufficiency by integrating real-world economic activities into the curriculum (Reis & Ferreira,2015;Oyekan,2016;Liu et al.,2023). Additionally, schoolbusiness partnerships are essential for industry exposure and mentorship, impacting community development (Baxter et al.,2014;Burchi et al.,2021). These programs cultivate entrepreneurial mindsets and contribute to socioeconomic goals, including food security and local economic empowerment (Sharp et al.,2024;Kanosvamhira,2025). Economies 2025,13, 107 18 of 27 4.2.7. Enhancing Entrepreneurship Education: Key Areas for Improvement Schools must invest in resources, teacher training, business partnerships, curriculum enhancement, and student support to promote an entrepreneurial mindset and long-term economic self-sufficiency. Participant Insights Investing in resources—“More materials like textbooks, software, and practical tools would improve entrepreneurship lessons” (T1). Training educators—“Teachers need training in modern business practices and teaching methods to deliver effective entrepreneurship education” (T2). Building business partnerships—“Collaborations with local businesses can provide students with mentorship, real-world experience, and internships” (T3). Enhancing the curriculum—“Entrepreneurship courses should include hands-on projects and case studies to bridge theory and practice” (T4). Providing structural support—“Students need funding, space, and mentorship to turn business ideas into successful ventures” (T5). The findings show that strengthening entrepreneurship education requires updated learning materials, continuous teacher development, and industry collaborations to enhance career readiness. Empirical studies have reported on the effectiveness of hands-on curricula, such as school-based vegetable gardening, in equipping students with business problem-solving skills, financial literacy, and self-sufficiency (Reis & Ferreira,2015;Oyekan, 2016;Liu et al.,2023). These initiatives cultivate entrepreneurial mindsets early on and contribute to socioeconomic factors, including food security and economic participation (Sharp et al.,2024;Kanosvamhira,2025). Moreover, access to funding and mentorship remains crucial for sustaining student-led ventures, strengthening the need for structured support systems within educational institutions (Baxter et al.,2014;Burchi et al.,2021). Therefore, schools must integrate experiential learning, industry linkages, and financial resources to maximise impact, ensuring a well-supported entrepreneurial learning environment that promotes long-term economic empowerment (Zemlyak et al.,2023). 4.3. Evaluation of Hypotheses and Implications The hypotheses were evaluated using both quantitative and qualitative approaches. The quantitative analysis employed FMOLS and DOLS estimators, and hypothesis testing was conducted at a 5% significance level. The qualitative component used thematic analysis of semistructured interviews with findings triangulated to provide a comprehensive understanding of the relationship between macroeconomic policies and grassroots entrepreneurship. The evaluation of the hypotheses and their implications are given as follows: H1.Government expenditure on education significantly influences entrepreneurship. Education positively impacts entrepreneurship, with findings confirming that investment in human capital enhances skills, knowledge, problem-solving abilities, and the development of business creation and innovation (Galvão et al.,2020); this shows the importance of sustained public spending on education to drive entrepreneurial growth and economic development. H2.Access to credit significantly influences entrepreneurship. Contrary to expectations, credit access does not significantly affect entrepreneurship, suggesting that financial barriers such as asymmetric information and collateral constraints may restrict entrepreneurial financing (Pu et al.,2021). Therefore, addressing inefficiencies in credit allocation is essential to enhance financial accessibility for business formation. Economies 2025,13, 107 19 of 27 H3.Labour force participation positively connects to entrepreneurship. Labour force participation strongly drives entrepreneurship, supporting the view that higher labour engagement promotes business creation and reduces unemployment in the long run (Akhtar et al.,2023;Cie´slik & van Stel,2024); this stresses the need for policies that enhance labour market efficiency and skill development to sustain entrepreneurial activity. H4. A well-structured regulatory environment promotes entrepreneurship. The negative impact of regulatory quality suggests that excessive bureaucratic constraints hinder entrepreneurship rather than support it. While effective regulations should enhance business confidence, restrictive policies may instead act as barriers to entry (Beazer, 2012;Matlala & Ncube,2025). Regulatory reforms are necessary to streamline business procedures and promote an enabling environment. H5. Greater technology adoption positively influences entrepreneurial activity. Technology adoption does not immediately impact entrepreneurship, implying that its benefits, such as lower entry costs and expanded market access, may take time to materialise (Awad & Martín-Rojas,2024). Long-term investment in digital infrastructure and capacity-building is essential to unlock its full entrepreneurial potential. H 6 .School-based vegetable gardening positively influences students’ entrepreneurial skills development. Findings indicate that school gardens promote entrepreneurial skills, particularly in financial management, resource allocation, and sales. Learners gain hands-on business experience through growing, managing, and selling produce. However, sustainability depends on consistent educator support and resources. Integrating structured entrepreneurship training into gardening programs can enhance long-term skill development and ensure student engagement. H 7 .Participation in school-based gardening programs enhances food security (by promoting self-sufficiency and sustainable agricultural practices). While school gardens contribute to food production and provide opportunities for students to engage in agriculture, challenges such as inconsistent participation and limited resources hinder long-term sustainability. Some schools successfully use gardens for nutritional support, but the widespread food security impact is limited. Strengthening institutional support, training, and funding for school-based gardening can improve its role in enhancing self-sufficiency and food security. H 8 .School-based entrepreneurial activities increase students’ economic participation, promoting early exposure to business opportunities and income generation. Evidence supports that entrepreneurship education through school-based initiatives, such as mini-businesses and community markets, enhances students’ economic participation. However, engagement levels vary, and projects risk losing momentum without sustained mentorship. Embedding structured business incubation programs and mentorship opportunities into school curricula can maximise students’ long-term economic participation and career prospects. 5. Conclusions and Policy Recommendations The expansion of entrepreneurial activity is widely recognised for its ability to spur economic transformation and inclusive development. This study adopted a mixed-methods approach, combining quantitative analysis with qualitative exploration, to examine the impact of macroeconomic determinants such as government expenditure on education, access to credit, labour force participation, regulatory environment, and technology adoption Economies 2025,13, 107 20 of 27 on entrepreneurial activity. The quantitative component employed fully modified least squares and dynamic ordinary least squares to estimate long-run relationships, while the qualitative part utilised thematic analysis to examine the role of school-based gardening initiatives in enhancing students’ economic participation. Evidence from the findings confirms that government expenditure on education significantly influences entrepreneurship by enhancing human capital, improving skills, and promoting innovation. These findings emphasise the importance of sustained public investment in education as a central pillar of entrepreneurial development and economic growth. Conversely, while access to credit was expected to play a role, this study found it to have a negligible impact on entrepreneurship; this suggests that financial barriers, such as asymmetric information and stringent collateral requirements, persistently limit entrepreneurs’ access to funding, thus hindering business formation. The result calls for policies that address inefficiencies in financial intermediation. Also, this study revealed that higher labour force participation positively correlates with entrepreneurship, strengthening the notion that a more engaged labour force can facilitate business creation and reduce unemployment in the long run. In contrast, the negative impact of regulatory quality on entrepreneurship shows the challenge posed by excessive or complex regulatory frameworks. Stricter regulations can stifle business creation by increasing entry costs and causing an unfavourable business climate. Thus, streamlining regulatory processes and improving transparency and efficiency in regulatory enforcement are essential to creating a more conducive entrepreneurial environment. Although technology adoption was found to have a delayed impact on entrepreneurship, this study suggests that its role in reducing entry costs and improving market access may require long-term investment in digital infrastructure and capacity-building. In addition to these macroeconomic factors, this study found that school-based entrepreneurial initiatives, such as vegetable gardening programs, provide valuable platforms for promoting entrepreneurial skills among students. These initiatives enhance financial literacy and contribute to developing a hands-on understanding of business operations. However, the sustainability of these programs depends on consistent educator support, sufficient resources, and structured mentorship. Based on our findings, this study suggests the following recommendations: Policymakers should prioritise increased investment in education, particularly in areas that enhance entrepreneurial skills, such as vocational training, business management, and innovation. Government expenditure should focus on integrating entrepreneurship into the curriculum, equipping students with the skills to drive business creation and innovation. Furthermore, experiential learning initiatives like business simulations and school-based entrepreneurship programs should be expanded. Secondly, policymakers should focus on reducing barriers to credit access by facilitating more inclusive financing options, such as microfinance and venture capital, and implementing measures to minimise collateral requirements. Thirdly, policies should improve labour market conditions by providing training programs that enhance skills relevant to entrepreneurship. Government initiatives that support self-employment, such as tax incentives or access to start-up capital, can encourage business creation and provide the necessary support for individuals transitioning from unemployment to entrepreneurship. Finally, the government should provide funding and technical support to expand the scope and impact of local programs, ensuring that schools have the necessary tools, training, and infrastructure to maintain successful initiatives. Strengthening partnerships with local agricultural cooperatives could also enhance market access and sustainability. Limitations of This Study and Suggestions for Further Studies This study’s qualitative component shows the role of school-based entrepreneurship initiatives through in-depth interviews conducted at five secondary schools. The sample Economies 2025,13, 107 21 of 27 selection was intentional, allowing for a detailed, specific investigation of how localised, hands-on projects influence entrepreneurial skills and economic participation. However, this limited sample size may affect the generalizability of the findings beyond the studied schools and regions. Also, this study primarily captures perceptions and experiences rather than quantifiable entrepreneurial performance, which future research could address through longitudinal tracking of student entrepreneurial activities. While macroeconomic factors were rigorously analysed, potential unobserved variables, such as sociocultural influences or the informal sector, may also affect entrepreneurship and should be examined in future studies. Finally, expanding this study to include a comparative analysis across diverse regions, income levels, and types of enterprises would provide a better understanding of entrepreneurship drivers and policy interventions’ effectiveness. Author Contributions: Conceptualization, T.N. and N.D.; Data curation, T.N. and N.D.; Formal analysis, T.N.; Funding acquisition, T.N. and A.J.A.; Investigation, T.N., N.D. and A.J.A.; Methodology, T.N., N.D. and A.J.A.; Project administration, T.N.; Resources, T.N., N.D. and A.J.A.; Software, T.N.; Validation, T.N.; Visualization, T.N.; Writing—original draft, T.N. and N.D.; Writing—review & editing, T.N. and A.J.A. All authors have read and agreed to the published version of the manuscript. Funding: This research received no external funding. Institutional Review Board Statement: The study was conducted in accordance with the guidelines of the Declaration of Helsinki and approved by the Walter Sisulu University Research Ethics Committee (WSU-UREC) on 15 June 2023 with Protocol Number FEDREC15-06-23-3. Informed Consent Statement: Informed consent was obtained from all subjects involved in the study. Data Availability Statement: The data can be provided on request from the authors, information about the data is provided in the article. Conflicts of Interest: The authors declare no conflict of interest. Appendix A Table A1. Descriptive statistics and correlation analyses. Descriptive Statistics ENP ACC EDU INO LFP RLQ Mean 5.5199 2.0696 0.7377 1.2852 1.7327 1.8369 Median 5.5568 2.0916 0.7399 1.281 1.734 1.8464 Maximum 5.6971 2.1591 0.8258 1.825 1.7648 1.8831 Minimum 5.2398 1.9545 0.6377 0.4904 1.7001 1.7697 Std. Dev. 0.1314 0.0578 0.0511 0.3568 0.015 0.0328 Sum 419.5154 157.2942 56.0706 97.681 131.6872 139.6094 Sum Sq. Dev. 1.2955 0.2513 0.1965 9.5481 0.01703 0.0811 Observations 76 76 76 76 76 76 Correlation Analysis ENP ACC EDU INO LFP RLQ ENP 1 ACC −0.6258 1 EDU 0.6582 −0.7895 1 INO 0.4062 −0.4314 0.616 1 LFP 0.0152 0.4286 −0.5679 −0.3285 1 RLQ −0.8418 0.6098 −0.6627 −0.4012 0.1002 1 Source: authors’ computation. Economies 2025,13, 107 22 of 27 Table A2. Stationarity test at level. Augmented Dickey–Fuller Test Result Series Intercept Trend and Intercept None Value Prob Value Prob Value Prob Outcome ENP −1.0558 0.7290 −2.4514 0.3509 0.6489 0.8542 NS ACC −1.8531 0.3524 −2.4425 0.3552 −0.8857 0.3291 NS EDU −0.6645 0.8486 −3.3852 0.0613 1.6777 0.9766 NS INO −3.1341 0.0283 −4.1617 0.0081 −0.5505 0.4754 Mix LFP −2.6452 0.0887 −3.2094 0.0907 −0.8746 0.3338 NS RLQ −0.8417 0.8010 −2.8492 0.1851 −0.8612 0.3396 NS Phillips–Perron Test Result Series Intercept Trend and Intercept None Value Prob Value Prob Value Prob Outcome ENP −0.8340 0.8034 −1.8978 0.6458 0.9605 0.9093 NS ACC −1.0065 0.7472 −1.8996 0.6448 −0.9807 0.2898 NS EDU −0.6819 0.8444 −2.2886 0.4346 2.2205 0.9934 NS INO −2.4121 0.1419 −3.1333 0.1063 −0.3205 0.5668 NS LFP −2.2616 0.1870 −2.3013 0.4278 −0.9336 0.3091 NS RLQ −0.6997 0.8400 −1.9015 0.6439 −1.1004 0.2437 NS NS is “not stationary” source: authors’ computation. Table A3. Stationarity test at first difference. Augmented Dickey–Fuller Test Result Series Intercept Trend and Intercept None Value Prob Value Prob Value Prob Outcome ENP −4.3233 0.0008 −4.3195 0.0051 −4.2878 0.0000 I (1) ACC −4.0036 0.0024 −3.9421 0.0150 −3.9239 0.0002 I (1) EDU −4.2291 0.0011 −4.1953 0.0073 −3.8104 0.0002 I (1) INO −5.5313 0.0000 −5.4961 0.0001 −5.5626 0.0000 I (1) LFP −3.9036 0.0032 −3.8417 0.0197 −3.8289 0.0002 I (1) RLQ −4.3312 0.0008 −4.4143 0.0038 −4.2573 0.0000 I (1) Phillips–Perron Test Result Series Intercept Trend and Intercept None Value Prob Value Prob Value Prob Outcome ENP −4.3685 0.0007 −4.3573 0.0045 −4.3253 0.0000 I (1) ACC −4.0515 0.0020 −3.9521 0.0146 −3.9729 0.0001 I (1) EDU −4.2866 0.0010 −4.2542 0.0062 −3.8314 0.0002 I (1) INO −5.5313 0.0000 −5.4961 0.0001 −5.5626 0.0000 I (1) LFP −3.9589 0.0027 −3.8977 0.0169 −3.8282 0.0002 I (1) RLQ −4.3682 0.0007 −4.4206 0.0037 −4.2876 0.0000 I (1) Source: authors’ computation. Economies 2025,13, 107 23 of 27 Table A4. Johansen cointegration test. Summarise All Five Sets of Assumption Sample: 2006Q1 2024Q4 Included observations: 73 Series: ENP ACC EDU INO LFP RLQ Lags interval: 1 to 2 Selected (0.05 level) number of cointegrating relations by model Data Trend: None None Linear Linear Quadratic Test type No intercept Intercept Intercept Intercept Intercept No trend No trend No trend Trend Trend Trace 0 1 1 2 6 Max-Eig 0 0 0 1 1 Critical values based on MacKinnon et al. (1999) Source: authors’ computation. Table A5. Robustness check results (Canonical Cointegrating Regression). Canonical Cointegrating Regression (CCR) Dependent variable: ENP Variable Coefficient Std. Error t-Statistic Prob. 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