Entrepreneurship In South Africa Research Articles

Motives of water and sanitation entrepreneurs in South Africa

The study aims to understand what motivates water and sanitation social entrepreneurs(SEs) in South Africa as they navigate the complex business environment of collaborating with municipalities in undertaking public service delivery. In an attempt to achieve higher sustainability in their SE business models, SE processes become risky and inevitably involve higher complexity as SE business model designers seek to also understand their business impact on the whole ecosystem. Any impact on any of the water and sanitation subsystems can stress or compromise the stability of the whole system.As such, in-depth face-to-face semi-structured interview was conducted with purposively selected social entrepreneurs in South Africa‘s Gauteng and Western Cape provinces. The study finds that SEs are motivated by compassion, religious, problem solving motives as well as the desire for self-sufficiency for sustainable business operation so as to make impact at scale. The overall mission is to change human living environments and provide sustainable alternative public services

Support factors contributing to successful start-up businesses by young entrepreneurs in South Africa.

Unemployment and restricted work opportunities for youth are enduring social challenges that affect health, well-being, and quality of life, especially in low- to middle-income countries. When considering the advantages associated with work as a determinant of health, unemployment is understood to contribute to occupational injustice. However, self-employment, hailed the solution to youth unemployment, is often necessity-driven, precarious in nature and restricted by the low success rate of business start-ups. Research was undertaken to explore factors perceived to contribute to the success of start-up businesses in an informal settlement in the Western Cape of South Africa. The importance of support in the success of business start-ups will be the focus of this article. A collective case study, using narrative interviewing and - analysis, was undertaken in South Africa. Two narrative interviews were conducted with each of the five participants who were youth entrepreneurs and founders of start-up businesses. Data analysis comprised the use of narrative analysis and paradigmatic type narrative analysis. Three themes captured factors deemed to have contributed to the success of start-up businesses. The vital role of support systems and networks in business success was demonstrated. Support systems included family, friends, role models, mentors, team members and business partners. Identification, utilization, and ongoing development of support structures available in the social networks of young entrepreneurs were perceived to have contributed to the success of start-ups.

Rural Women Entrepreneurship in South Africa: Issues and Challenges

Despite its importance in rural development, women’s entrepreneurship has faced a series of problems in South Africa. For a holistic assessment of such problems, through a literature review approach, this study aims to review prior research on women entrepreneurship, with a focus on the issues and challenges surrounding rural women entrepreneurship in South Africa. Secondary information sources, such as journal articles, theses, books, abstracts, and credible business-affiliated websites, were used to conduct the review. Among the results emerging from the study, some of the key challenges facing South African rural women entrepreneurs include a lack of adequate financing, education and training, gender bias, inadequate business skills, and difficulties in balancing between family and business. In view of these challenges, this study recommends capacity-building programmes, a robust government policy framework, and opening wider channels of funding and awareness to foster entrepreneurial activities among rural women entrepreneurs in South Africa.

A Faith-based Entrepreneurial Sensemaking Lens: Empowerment, Risk, and Agency

Starting a business is an endeavour that requires the ability to identify an opportunity, match the necessary resources and manage the uncertainty and risk associated with doing so. Using a qualitative methodology, we explore the role that faith plays in this new venture creation as regards Christian entrepreneurs in South Africa and how it affects their sensemaking process. We find that that their faith influences the entrepreneurial sensemaking process in complex ways and demonstrate the formation of a shared sense of agency between God and the entrepreneur - a paradox of agency. This agency shifts from the entrepreneur in the creation phase to a faith-aligned agency over time, which helps mitigate identity conflict and uncertainty. We demonstrate the dynamics and webs of association between the economic and the social realms both in terms of the initial decision-making process but also the entrepreneurs’ desire for both an economic and social impact.

An Exploration of the Traits Responsible for the Success of Somali Small-Scale Entrepreneurs in South Africa

There have been considerable government investments in financial and non-financial support for local South African small and micro-enterprises, despite this, many struggle to stay afloat compared to their counterparts, like Somali entrepreneurs. This case study, therefore, sought to explore the fundamental tenets responsible for the success of Somali entrepreneurs in South Africa, seeking valuable insights to inform policies that can enhance the competitiveness of local SMEs. Utilising a qualitative research design and an exploratory approach, an in-depth understanding and contextual knowledge of the experiences and practices of Somalian entrepreneurs were distilled. Data was collected using a semi-structured interview guide with a purposively selected sample of 23 experienced Somali entrepreneurs operating various small-scale businesses, across different sectors in Pretoria West. A thematic analysis, using Atlast-ti as a modelling tool, was utilised to identify recurring patterns and critical success factors underpinning the achievements of the entrepreneurs in the study area. Six themes emerged and in order of priority, were – preference for collaborative ventures, a sense of community, informal networks, adaptive spirit, resilience and customer-centred business orientation. By learning from the experiences of these Somali small-scale entrepreneurs, specific support measures can be developed to foster a more inclusive and robust entrepreneurial ecosystem in South Africa, ultimately, leading to greater enterprise efficacy. Keywords: Entrepreneurial Orientation, Business Efficacy, Success Attributes, Immigrants, Communal Oriented Business

An investigation into the financial challenges affecting the success of entrepreneurs in South Africa

The object of this study is the financial difficulties that impacted the success of business owners in Hatfield, Gauteng province, South Africa. Compared to a global failure rate of 50 %, five out of every seven entrepreneurs in Hatfield, South Africa fail during the first year of operation. This study aimed at looking into the relationship between entrepreneur failure and financial literacy. The methodology employed in this study is interpretive philosophy-based qualitative research. An ethnographic research technique was also used to analyze the current economic condition of business owners in Hatfield. The population was sampled using non-probability purposive sampling techniques. Semi-structured interviews were used to gather the study's leading source of data. The primary research results are thematically examined while also considering the secondary sources. Eliminating financial and liquidity constraints was listed as a goal of financial literacy. Findings garnered revealed that financial, liquidity and credit restrictions are the primary causes of business failures in Hatfield. The lack of financial resources for new businesses in Hatfield, as revealed, prompted several liquidity issues in Hatfield, and further lowers the growth rate of Hatfield businesses. It was discovered that Hatfield's entrepreneurs usually experienced premature failure due to inadequate financial education and training. Impliedly, Hatfield business owners possessed poor cash management, defaulting on loan payments due to lack of financial education. Conversely, only few entrepreneurs and business owners in Hatfield, South Africa possess financial literacy competence with the necessary skills needed to better analyze their financial statements appropriately and increase profitability of their business. The practical implication of this finding is that, most entrepreneurs have high possibility to experience premature business liquidity when they have low or no financial literacy.

BROAD-BASED BLACK ECONOMIC EMPOWERMENT POLICY AND ENTREPRENEURSHIP IN SOUTH AFRICA

This article examines the effects of the Broad-based Black Economic Empowerment (BBBEE) policy on black entrepreneurship in South Africa. The BBBEE policy is a legal framework aimed at addressing historical inequalities by promoting equal opportunities and encouraging the participation of black individuals in the economy. The policy highlights include increased access to funding for previously marginalized groups to start and grow their businesses, improved market access to encourage large businesses to partner with small businesses owned by previously marginalized groups, and increased skills and development. Using the policy as a quasi-natural experiment, the study adopts a difference-in-difference estimation technique contrasting periods before and after implementation and measuring its effectiveness on black entrepreneurial entry. Results from the analysis indicate that the policy was ineffective in improving black entrepreneurship in South Africa.

Re-imagining the complexities faced by rural entrepreneurs in South Africa: Implications for local economic development in the post COVID-19 pandemic period

Rural entrepreneurs play a critical role in generating economic activities and general development of rural economy. However, the recent COVID-19 pandemic has left extensive upheaval in rural entrepreneurship which cannot be emphasised. As a result, there is growing interest in the potential of rural entrepreneurs to recover from and adapt to the challenges stemming from COVID-19 pandemic. The significant challenges caused by pandemic pose threat to success of rural entrepreneurship initiatives. While there are various desktop studies that uncover challenges encountered by rural entrepreneurs prior to the COVID-19 pandemic crisis, surprisingly there is lull of comprehensive desktop study in respect of the complexities faced by rural entrepreneurs during and in the aftermath of COVID-19 pandemic. As such, this offers a rich ground for this study to explore challenges faced by rural entrepreneurs in the post COVID-19 period in South Africa. The study utilised literature research approach in which the researcher gathers data from journal articles, conference papers, reports and manages all the relevant research material. The results indicated various constraints faced by rural entrepreneurs during and post COVID-19 pandemic era. Information about the challenges caused by COVID-19 pandemic is useful for sound management, development of adaptation strategies for rural entrepreneurship and policy making by the government, thereby reducing costs and failure rates of the current and would-be rural entrepreneurs.

Assessing the role of entrepreneurship industry and SMEs to economic growth in South Africa

The study looked at the role and contribution of entrepreneurship industry to foster social and economic development through small, micro, and medium-sized businesses in South Africa. The conceptual research looked at the influence of small, micro, and medium-sized businesses (SMMEs) on South African development. The study's objective was to evaluate how small, medium-sized businesses (SMMEs) are now driving economic growth and solving social issues in a setting where big businesses and governments appear to be doing very little. As a result, the study examines how SMMEs might help the nation solve persistent societal evils including poverty, inequality, and social isolation. A desktop literature review research design was adopted to collect data on the role of entrepreneurship in South Africa, policies and practices of big business and government that exacerbate social issues in communities and impede socioeconomic development, as well as the specific roles that SMMEs play in achieving socioeconomic development goals. Findings from research indicate that, among other development outcomes, SMMEs are at the vanguard of creating jobs and fostering social and political justice in the nation. Future empirical studies that account for and evaluate the importance of SMME contributions to the construction of economic, social, and political justice in the nation are advised because this work lacks the empirical support necessary to substantiate its conclusions and observations.

The Critical Success Factors for Entrepreneurial Coaching in South African Business Incubators

This study examines the critical success factors for entrepreneurial coaching in South African business incubators through a qualitative method that involved interviewing 32 participants. The research aimed to identify the factors contributing to successful coaching interventions between coaches and entrepreneurs. The key findings include the importance of demographics, diversity, and cultural intelligence, coaching relational aspects, the coach’s personal attributes, the entrepreneur’s characteristics, the coach’s competence, and coaching elements. The study highlights the need for coaches to possess emotional intelligence, empathy, and a cultural understanding of their coachees. Additionally, the research underscores the significance of coaching programs and methods tailored to the unique needs and characteristics of the entrepreneurs being coached. The study’s findings have significant implications for coaching practitioners and program developers who work with entrepreneurs in South Africa, and it underscores the need for a nuanced and culturally sensitive approach to coaching and mentoring in the context of South African business incubators.

Developing women entrepreneurs through guided and funded business start-ups in South Africa

South African women own a modest share of businesses while being the majority of the population. Increasing the number of female entrepreneurs in South Africa is expected to reduce poverty and unemployment, empower women, ensure equity, and strengthen the economy. This article examined the development of women entrepreneurs in Cape Town through guided and funded business start-ups. Data were collected using a qualitative technique based on purposive sampling through semi-structured interviews with 17 participants. An interpretive paradigm and an explorative design were employed. The data was analysed using the ATLAS.ti software. According to the participants, many women-owned business start-ups are neither funded nor guided. The findings revealed that many women entrepreneurs do not support one another in business start-ups in Cape Town. Moreover, minimal effort is put into interventions by both government and the private sector to abate gender discrimination and eliminate the exclusion of women entrepreneurs. There are instances of gender bias that impede the development of women entrepreneurs. The findings confirm that the development of women entrepreneur-focused funding for start-ups has received scant attention in Cape Town. Many women entrepreneurs still do not receive developmental support. Among the proposed interventions to improve women entrepreneurship, start-up funding and guidance are platforms that encourage informal businesses to become formal and penetrate formal financial networks. This paper argues for lending models best suited for women entrepreneurs in South Africa.

How Immigrant Shopkeepers in Johannesburg Townships Succeed: A Customer's Eye View

In the face of struggling native-owned informal grocery businesses, immigrant-owned shops in Johannesburg townships have demonstrated remarkable success. While research on this topic has been primarily informed by shopkeeper data, this article explores the phenomenon from the viewpoint of customers. Given that customers play a significant role in facilitating the success of businesses, the dearth of a customer perspective of the success of immigrant shopkeepers presents a gap in knowledge. This study addresses this gap by investigating the interaction between shopkeepers and customers from the perspective of customers. Drawing on the theories of customer value and customer satisfaction, the author proposes that customers prefer to patronize immigrant shopkeepers due to the considerable value they provide. The study was conducted in the Johannesburg township of Alexandra and involved the collection of cross-sectional quantitative data from 400 households. The findings indicate that customers patronize immigrant-owned businesses due to the superior value they receive, thereby enabling their success. This research highlights the importance of providing value to attract customers and contributes to the literature on the role of customers in informal business performance. Furthermore, the study sheds light on the contribution of customer reciprocation of shopkeeper value and has important implications for policymakers, business owners, and scholars alike. It underscores the need for a more nuanced understanding of the dynamics underlying the success of immigrant entrepreneurs in South Africa's informal retail sector.

Investigating the self-employed: the South African perspective

Purpose In a country that is marred by an excessively high unemployment rate, there is a need for policymakers to prioritise entrepreneurship in South Africa. The study aims to explore the determinants of self-employment among the youth in South Africa and in the process answer the following question: Who are the self-employed youths in South Africa? Design/methodology/approach Different potential predictors of self-employment empirically used in the literature were used in this study. A probit regression model was used with the binary self-employment variable as the dependent variable and a host of independent variables. A nationally representative survey consisting of youths was used in the analysis. Findings The findings show that financial literacy increases the odds of being self-employed. Secondly, the odds of being self-employed increase with age as mature people are expected to have gathered enough networks and wisdom over the years. Thirdly, being male decreases the odds of being self-employed. When it comes to education, the only category that statistically increases the odds of being self-employed compared with no schooling is the tertiary level of education. The other educational levels are all statistically insignificant. From a policy perspective, the government should promote self-employment by investing in financial literacy as well as increasing access to tertiary education among disadvantaged groups. Originality/value The study is one of the first, to the best of the authors’ knowledge, to examine the characteristics of the self-employed using a nationally representative survey in South Africa.

Applying social marketing strategies in entrepreneurship training to turn unemployed adults into entrepreneurs in South Africa

ABSTRACT The purpose of this article was to examine social marketing strategies Adult Education and Training (AET) centres in South Africa use during entrepreneurship training programmes. The sample was drawn from AET centres of the KwaZulu-Natal (KZN) province. The study used the qualitative approach (semi-structured interviews) to collect data from adult trainees and centre managers. However, the broader study upon which this article is based utilised mixed research methods, that is, quantitative and qualitative approaches. The main findings of the study reveal that the social marketing strategies that the AET centres apply to turn unemployed adults into entrepreneurs entails mobilising external stakeholders to create opportunities for trainees to access financial and non-financial support for the start-up and growth of micro-enterprises. The study tentatively concludes that social marketing strategies are effective tools AET centres can use to turn unemployed adults into entrepreneurs and facilitate socio-economic transformation in impoverished communities. As a practical implication for policy, there is need for policymakers at local and national levels to embrace social marketing to enhance the effectiveness of entrepreneurship training for poverty reduction among unemployed and vulnerable population groups.

A Phenomenological Study on Entrepreneurial Identity of Female Entrepreneurs in South Africa

Objective: To understand the entrepreneurial identity, through the lived experience of female entrepreneurs who are familiar with the phenomenon. This objective was premised on understanding that entrepreneurial identity is a product of context which shapes the social-cultural norms and environment within which individuals, operate and construct their identity. This is captured in entrepreneurship scholarship where the discipline is still struggling to build a reliable definition of female entrepreneurship applicable to both developed and developing countries and its effect on their respective economies. Research Design & Methods: This study used a qualitative research design that followed a phenomenological approach with thirty five female entrepreneurs, utilising semi structured in depth individual meetings. Findings: Female entrepreneurs build, balance, and manage a wide range of entrepreneurial ventures of varying sizes across sectors while maintain both role and social identities. Female entrepreneurs also express strong views on earning returns and income to not only grow their business but support their employees, communities, themselves, and their families. Implications & Recommendations: This study generated five themes that should be researched quantitatively to determine further understanding of entrepreneurship and developing other entrepreneurs in developing countries. Contribution & Value Added: The study contributes to the existing body of knowledge on entrepreneurship in entrepreneurial identity, by exploring the female entrepreneur as both a role and identity. It examines this through the perspective of role identity and learn how female entrepreneurs consider their role as an entrepreneur.

Entrepreneurial intention and the three stages of entrepreneurial action: a process approach.

The relationship between entrepreneurial intention (EI) and entrepreneurial action (EA) is a popular topic in entrepreneurship research, owing to the contribution of these constructs in the process leading to the entrepreneurial activity taking place. There are still countries that are recording high entrepreneurial intention levels in comparison to their corresponding entrepreneurial action levels that are low. This is a global concern to which South Africa (SA) is also not immune. Most of the research tests the relationship between two single constructs: EI and EA. Our study follows a process approach and investigates the effect of this relationship between EI and the three stages of EA. A quantitative method was employed and a survey utilized whereby data was collected among 597 entrepreneurs in South Africa. The data was analyzed through Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The EI construct is supported through the Theory of Planned Behavior, in conjunction with the Motivation Opportunity Ability theory. The Discovery Theory, together with the Creative Theory, supports each of the stages of EA, namely: entrepreneurial opportunity discovery (EODI); entrepreneurial opportunity evaluation (EOEV); and entrepreneurial opportunity exploitation (EOEX). Previous research regarding the relationship between EI and EA measured this relationship from a binary point of view. This study contributes to the entrepreneurship field by employing the process approach to determine the impact of EI on the stages of EA. This study reveals that EI is statistically significant in all three stages of EA. However, the strength of this relationship is found to be strong between EI and the EODI and EOEV stages and moderate between EI and the EOEX stage. Therefore, this study reveals that effective training interventions and development are necessary between EI and the EOEX stage of EA.

An Assessment of University in Entrepreneurship Training as a Means of Reducing Youth Unemployment in South Africa: A Case of Durban University of Technology

Youth entrepreneurship is considered an important factor in economic growth, job creation, and poverty alleviation. Although youth entrepreneurship is considered a key to addressing unemployment, the youth unemployment rate remains worrisome in developing countries. This paper assessed the entrepreneurship training in universities as a means of reducing youth unemployment. Youth unemployment is an impediment to inclusive economic development, limits the earning potential and future prospects of a new generation of South Africans, stymies business growth, threatens social cohesion, and puts pressure on government resources. Data was collected from the Durban University of Technology students in Durban. A qualitative approach was adopted in which semi structured interviews were used to obtain an understanding of the importance of universities in reducing the rate of unemployment in South Africa. In addition, nonprobability sampling, specifically purposive was used in the study to select the Durban University of Technology’s benefiting students from the Durban Entrepreneurship Centre. The data collected was coded and analysed using thematic analysis. The findings revealed that universities play a crucial role in supporting youth entrepreneurship in South Africa, which has led to a reduction in the rate of unemployment in South Africa. Findings were categorised into themes. Universities’ effort to reduce unemployment has yielded positive results, however, both the students and the universities are faced with a number of challenges. It is recommended that universities work together with the government to design strategies that help to reduce unemployment in South Africa.

The interoperability of mobile phone technology as a way to improve immigrant entrepreneurship in South Africa

The paper seeks to illustrate the propinquity between mobile phone technology and the profitability of immigrant entrepreneurs’ businesses and whether there is a positive effect. The outcome should ascertain if mobile technology could be propounded as a credible source of competitive advantage. The paper uses a qualitative approach, using content analysis as the research design tool. Data analysis was done through the conceptual content analysis approach. Various online databases such as EBSCOhost, Google scholar, JSTOR, and Science Direct were accessed for literature. Different terms (keywords) such as; “Mobile phone technology”, “mobile marketing”, and “mobile payment” were searched. The data collected through a systematic literature review were compiled, analysed, and generated conclusions. This paper deduces that immigrant entrepreneurs stand to gain a competitive edge by using mobile phone technology, thereby improving business performance. Future researchers need to expand the scope of their study to other sectors and industries globally. The paper exhibits the significance of apps and websites as mobile technology tools that can positively impact business performance. This paper outlines how mobile technology is now an essential catalyst in the performance of various business sectors. Results are essential to app and website developers, entrepreneurs and the business society.

The role of government in promoting innovation-led entrepreneurial ecosystems

Background: The Fourth Industrial Revolution (4IR) presents a number of implications for both the public and private sectors. An important feature of the 4IR is enhancing the sustainability of businesses through innovation.Aim: This article examines the government’s entrepreneurial role in promoting innovation-led entrepreneurial ecosystems (EEs).Setting: Through a comparative approach, the research presented in this article investigates the role of government in promoting innovation-led EEs, in a top-performing EE, namely Silicon Valley and South Africa.Methods: A qualitative research design is adopted, and unobtrusive research methods are used for the conceptual, contextual and comparative analysis of authoritative literature and secondary data. A best practice case of Silicon Valley is used to analyse factors influencing innovation-led EE development in South Africa.Results: Challenges currently influencing the growth and sustainability of entrepreneurship in South Africa are identified. These challenges include 4IR readiness, policy implementation and the impact of the coronavirus disease 2019 (COVID-19) pandemic. The findings suggest that governments should play an important role in shaping innovation-led EE policy implementation.Conclusion: The article concludes by proposing a conceptual framework to aid managerial and policy guidance for the development of innovation-led EEs.Contribution: The findings of this article will be useful to guide managerial and policy guidance on the role of government in shaping innovation-led EE policy implementation.

Literature review on digital entrepreneurship in South Africa: a human capital perspective

Literature review on digital entrepreneurship in South Africa: a human capital perspective