Abstract
Based on the prevalence of necessity-motivated entrepreneurial activity in Africa, this study investigates attitudes towards enterprising and cognitive styles of this category of entrepreneurs. Although, most studies on necessity entrepreneurship tend to focus on structural obstacles to explain the systematic failure of entrepreneurs, this paper argued that enterprising determinants might be more agency-orientated. Research about attitudes and cognition requires researchers to pay strict attention to the tenants of human agency. After contextualising the study, more than 400 necessity entrepreneurs operating as informal traders in the Johannesburg area were surveyed. Statistical analyses were performed using correlation and regression analysis to understand the relationship between thecognitive styles and attitudes towards enterprising. The empirical evidence ensuing from this study finds a positive and strong relationship between the knowing, planning and creating cognitive styles and a favourable attitude towards enterprising. Based on the results it seems that policy makers that wish to encourage enterprising among necessity entrepreneurs should not only focus on external support factors but also aim to enhance cognitive styles commensurate with favourable attitudes towards enterprising. Key words: Necessity entrepreneurs, cognitive styles, attitudes.
Highlights
Economist, Amartya Sen‟s criticism of the reliance, in welfare economics, on incomes and wealth as the only indicators of human development suggests that incomes, wealth and even utility should not be entirely discounted, they cannot fully reflect human development
The empirical evidence ensuing from this study finds a positive and strong relationship between the knowing, planning and creating cognitive styles and a favourable attitude towards enterprising
Based on the results it seems that policy makers that wish to encourage enterprising among necessity entrepreneurs should focus on external support factors and aim to enhance cognitive styles commensurate with favourable attitudes towards enterprising
Summary
Amartya Sen‟s criticism of the reliance, in welfare economics, on incomes and wealth as the only indicators of human development suggests that incomes, wealth and even utility should not be entirely discounted, they cannot fully reflect human development. The relative prevalence of necessity-motivated entrepreneurial activity (that is, entrepreneurs who say they are involved in an entrepreneurial effort to take advantage of opportunity or because they have no better choices for work), provides useful insights into understanding the economic contribution of these entrepreneurs – who are alternatively termed survivalists. Their contribution is negligible and expected returns are low and intermittent, they display low expectations of growth and job creation, and their motivation is all about personal survival (Morris and Pitt, 1995; Ngiba et al, 2009). While this perspective is arguably more contentious, it does underscore the notion that necessity entrepreneurs or informal traders might be seen as innovative, opportunity-driven individuals (ILO, 2002), and that the informal sector gives rise to a „hidden‟ enterprise culture which needs to be harnessed and drawn into the formal economy (Coban and Gules, 2011; Peberdy, 2000; Williams, 2007)
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