1,720,975 research outputs found
Small business owners’ practice of effectuation in townships in relation to business growth
Full text linkThesis (PhD (Business Management))--University of Pretoria, 2021.Background: With the high unemployment and increasing levels of poverty in South Africa, especially in the townships, the start-up and growth of township-owned small businesses have been proposed as the solution to address this phenomenon. The extant causation approach, which commences with a business plan followed by seeking the means or resources to start a business, has had its challenges to develop township-owned small businesses due to resource constraints. However, the emergent effectuation approach is worth investigating since it commences with the means or resources at hand to decide what business can be started.
Aim: The study aimed to determine if the practise of effectuation and/or the effectuation constructs (experimentation, affordable loss, flexibility and pre-commitments), by a non-expert township small business owner (NTSBO) would result in business growth (assets, sales and employment growth) and if the industries the businesses are operating in are a moderating variable.
Setting: Primary research was conducted in the three Gauteng townships of Alexandra, Honeydew and Soweto in South Africa because they contribute more than 38 % towards South Africa’s Gross Domestic Product (GDP).
Methods: A quantitative study of 728 NTSBOs was conducted using an interview-administered structured questionnaire. Non-probability sampling methods were used and the data analysed using structural equation modelling (SEM).
Results: A statistically significant relationship between effectuation and business growth (assets and sales) as well as statistically significant relationships between the effectuation constructs of experimentation and flexibility with business growth (assets and sales) were found. Industry did not moderate these relationships that were found. Experimentation and flexibility probably empowered the NTSBO to adapt to the ever changing and unpredictable township business environment they operate in. Affordable loss did not have a positive relationship with business growth probably because the NTSBO would have been too risk averse and prematurely stop seeking growth where returns were not quickly realised. Pre-commitments and business growth had no positive relationship possibly because the NTSBOs had low levels of education to draw up a detailed business plan to engage with potential interested partners.
Conclusion: The findings of this study may inform policymakers that the effectuation approach can be incorporated for the training of township small business owners as an option for starting and/or growing their businesses when resources are limited. Support and funding by government and financial institutions can include effectuation by not requiring a business plan that predicts the future but is rather assessing if the township small business owner has the skills to control the future. The causation approach should not be the only theory that government utilises to support initiatives for small businesses.
Keywords: Effectuation, Business growth, Township small business, Non-expert small business ownerBusiness ManagementPhD (Business Management)Unrestricte
Evaluating the South African small business policy to determine the need for and nature of an entrepreneurship policy
Full text linkThesis (DCom)--University of Pretoria, 2014.Even the best developed policies can and do fail, without attaining their desired
outcomes. Many countries have developed small business policies directed at
supporting and creating a favourable environment for cultivating small business
and entrepreneurship. Policies specifically aimed at entrepreneurship are less
prominent but also growing (Lundström & Stevenson, 2005:53; United Nations
Conference on Trade and Development (UNCTAD), 2012:1). The existence of
entrepreneurship policies in developing nations continues to be rare, despite the
belief that entrepreneurship can spur economic growth and employment.
The literature review introduced various important elements within the field of
small business and entrepreneurship and, specifically, in the policy domain. The
context of policy monitoring and evaluation was also addressed. Furthermore, the
literature revealed clear differences between small business and entrepreneurial
ventures which were not genuinely considered when small business support was
initiated in South Africa with the introduction of the National Small Business Act
(No. 102 of 1996) as amended. Only a small business was defined by the
Department of Trade and Industry (dti) and not an entrepreneurial venture (dti,
2003:8). At present, both start-up and established businesses are operating in South Africa with the possibility of either growing into a small business or
entrepreneurial venture.
The main purpose of this study is to evaluate the national small business policy of
South Africa and to determine its shortcomings. An entrepreneurship policy was
identified as a possible alternative to address the gaps left by the small business
policy. A content analysis of entrepreneurship and small business policies
highlighted that the main differences between these two policies are the focus on
individuals versus business ventures; pre-start-up versus post-start-up support;
and a broad versus narrow definition of which institutional structures constitute the
support environment.
In this research, constructs drawn from the literature study were used to formulate
the conceptual framework, research questions and hypotheses. Quantifiable data
were obtained from three groups of respondents – namely, start-up business
owners, established business owners and government officials involved in small
business development and entrepreneurship. The sample consisted of
23 government officials and 340 start-up and established business owners from
five metropolitan municipalities in the Gauteng, KwaZulu-Natal and Western Cape
provinces of South Africa. The empirical research was undertaken between
01 November 2011 and 30 April 2012. The One-Way ANOVA Test, Kruskal-Wallis
One-Way ANOVA Test, Friedman Two-Way ANOVA Test, Mann-Whitney U Test
and Chi-square Test were executed to present the statistical significant differences
between the three groups of respondents. The statistical tests were also executed
to illustrate the statistical significant differences within the different groups as well
as within different metropolitan municipalities in selected provinces. Pearson’s
correlation coefficient was conducted to determine whether there was a significant
relationship between the different small business policy evaluation factors and the
needs factors of business owners. The findings of this empirical study prove that
the small business policy does not address the needs of both start-up and
established business owners which may support their development into small
business and entrepreneurial ventures. Even though there is a mismatch between
the supply and demand of support services, this study did not find evidence to
support the need for an entrepreneurship policy in South Africa to supplement the existing small business policy. Businesses will continue to operate irrespective of
an additional policy. The results of the study can be utilised by government to
formulate and design adequate policies that focus on the specific needs of start-up
and established business owners.
The contribution of this study to the body of knowledge, and the possible
limitations of the study, are discussed. Areas of future research are outlined and
various recommendations are made to guide current and prospective small
business and entrepreneurship policy makers regarding the choice of policy
instruments, monitoring and evaluation. In conclusion, this study demonstrates the
importance and value of policies to business owners and entrepreneurs that can
effectively assist business venture survival, growth and success.tm2015Business ManagementDComUnrestricte
A stakeholder approach towards a consolidated framework for measuring business incubator efficacy
Full text linkThesis (PhD (Entrepreneurship))--University of Pretoria, 2023.Business incubators (BIs) are considered enablers of the entrepreneurial ecosystem, encouraging knowledge flows between institutions and business, and promoting new venture creation. Although incubators continue to proliferate, there remains a lack of consensus as to whether incubators are effective or even as to how incubator efficacy should be measured. This study seeks to address the latter of the two. Exploratory qualitative research methodology underpins this study. A sample of nine incubator managers were interviewed, representing a variety of incubator types, models, and contexts, demonstrating the breadth of the incubator industry in South Africa. Stakeholder theory is the underlying theoretical basis for understanding incubator efficacy used in this study. Considering incubator stakeholders, a framework comprising of two distinct but related perspectives on incubator efficacy – the business growth and economic development perspectives – is proposed. The source of incubator funding is suggested as having a moderating effect on the extent to which incubators focused on one perspective over the other. The study found an overwhelming reliance on government-linked funding to sustain incubator operations in South Africa. This, in addition to the substantial prevalence of metrics linked to the economic development perspective on incubator efficacy proposed in this study, supports the source of funding as a moderator of this relationship and helps explain the significant focus on economic development as a perspective on incubator efficacy. This study’s contribution lies in the development of a comprehensive stakeholder-based framework proposed for measuring incubator efficacy, applicable across incubator contexts.Business ManagementPhD (Entrepreneurship)Unrestricte
Exploring networks in the entrepreneurial ecosystem for the business development of immigrant entrepreneurs
Full text linkThesis (PhD Entrepreneurship)--University of Pretoria, 2023.Research indicates that networks play a critical role in business development. However, there is a paucity of research on networks, particularly from the perspectives of immigrant entrepreneurs in emerging markets. The main aim of this study was, therefore, to explore how networks play a role in the entrepreneurial ecosystem for the business development of immigrant entrepreneurs. Specifically, the study explored the types of networks used by immigrant entrepreneurs, how the networks are developed, and the functions and benefits of networks in the business development of immigrant entrepreneurs in the South African entrepreneurial ecosystem. The study followed the interpretivist philosophy, using a qualitative research method. Data for the study were collected through semi-structured interviews with 25 immigrant entrepreneurs, selected using a purposive sampling method.
Findings from the study indicated that immigrant entrepreneurs in the South African entrepreneurial ecosystem use eight types of networks in their business development, with social networks being the most frequently used and international business networks being the least used. In addition, the study found that immigrant entrepreneurs develop their networks using several methods, with trust being the most frequently used mechanism and idea pitching, outsourcing and subcontracting being the least used mechanisms. The study stressed the importance of reciprocity of trust in the network development process. Furthermore, referrals emerged as the most important function of networks in the business development of immigrant entrepreneurs. While resource provision also emerged as another major function of networks for immigrant entrepreneurs, finance stood out as the most important resource provided by networks. Finally, the study identified financial growth as the most important benefit of networking by immigrant entrepreneurs.
This study, therefore, makes a significant contribution and adds to the academic literature by revealing the various but specific ways in which immigrant entrepreneurs develop the networks that they use in their business development in the South African entrepreneurial ecosystem, an area that has received little to no attention from scholars. Another significant contribution of the study is that it uncovered the specific types of networks which immigrant entrepreneurs used in their business developments in the host country's entrepreneurial ecosystem. Implications of the study were discussed, and recommendations were made.Business ManagementPhD (Entrepreneurship)Unrestricte
Narrating the role of socio-cultural factors in entrepreneurial success : a study of township entrepreneurs
Full text linkThesis (PhD (Entrepreneurship))--University of Pretoria, 2023.Entrepreneurship is regarded as one of the strategic pillars for revitalising South African township economies. This is especially important in the post COVID-19 pandemic era, whereby many businesses face immense hardship. The goal of this research is to explore how Gauteng township entrepreneurs interpret the impact of socio-cultural factors on their entrepreneurial success journeys and the meaning they attach to their success within specific township contexts. A qualitative case study approach using narrative enquiry anchors the study. It involved interviews with six entrepreneurs who have lived in and own Gauteng township-based businesses.
Social network theory is the main theory I used for understanding this phenomenon. Socio-cultural factors identified, which were equated to social networks, comprised families, friends, reference groups, social media, culture, religion, political history and other social factors. The findings indicate that socio-cultural factors are effective social networks when they facilitate entrepreneurs’ access to information, skills, networks, finance and markets. However, they negatively impact entrepreneurial success when they engender social exclusion, decay in the social moral fibre, crime and corruption. Surprising findings reveal that some entrepreneurs attach greater value to the role of African culture and religion than was originally assumed.
The uniqueness of the study is in its methodological approach of using storytelling as a tool to unravel the impact of socio-cultural factors on each participant’s entrepreneurial success journey. Applying social network analysis tools also uncovered additional benefits of social networks, including legacy creation, the formation of identity and the practical application of Ubuntu kinship values and indigenous knowledge systems (IKS). The research contributes to the body of research on entrepreneurship theoretically, methodologically and practically. This is done by establishing the relationship between socio-cultural factors and entrepreneurial success using the qualitative methodology and multiple case and narrative design. Practical lessons are also drawn about achieving entrepreneurial success in township settings that can be shared with stakeholders such as other entrepreneurs, entrepreneurship scholars, entrepreneurship development practitioners and policy makers.Business ManagementPhD (Entrepreneurship)UnrestrictedFaculty of Economic And Management Science
A contextual study of the relationships between entrepreneurial orientation dimensions and employment growth of small businesses
Full text linkThesis (PhD)--University of Pretoria, 2019.The business environment in South Africa (SA) is characterised by limited resources, high uncertainty and stiff competition which have contributed to the high level of unemployment in the country. The economy is generating few jobs. Across different spheres of society – academia, industry and government – emphasis is being placed on entrepreneurship and small businesses as drivers of economic growth and employment creation. Scholars of entrepreneurship have used entrepreneurial orientation (EO) widely to delineate firm-level entrepreneurial behaviour and intensity using the uni-dimensional and multi-dimensional conceptualisation. EO as a consolidated construct is confirmed to have a relationship with the performance of businesses. However, business performance does not translate into business growth nor is it the same as employment growth. It appears that the association between EO and employment growth has attracted less attention in research despite its importance to theory and practice. In addition, studies on the antecedents of EO – such as its relationship with task environment variables and its consequences on employment growth – are limited in SA.
Hence this study examines the nexus between the environment, the sub-dimensions of EO and employment growth. It hypothesises relationships between two environmental variables: dynamism and hostility and five dimensions of EO: innovativeness, pro-activeness, risk-taking, competitive aggressiveness and autonomy. Similarly, it tests the relationships between these dimensions and employment growth; directly and as moderated by environmental dynamism and hostility. To a greater extent, it considers established SMMEs that have transited through the survival phase into the growth phase of business operation. Using a survey method, data is collected from small business across SA from which 1031 SMMEs were considered for statistical analysis and this entailed the use of descriptive techniques that measures central tendencies and inferential techniques such as correlation analysis factor analysis, regression analysis and partial-least-square structural equation modelling and graphical illustration with use of pie charts and bar charts.
The sample consists of service and non-service sector businesses but professional and consulting services constitute close to a third of the sample. Findings from this study reveal that SMMEs in SA display a moderate to high EO and only four of its dimensions (proactive-innovation, risk-taking, competitive aggressiveness and autonomy) were visible statistically. Statistically significant relationships were found between environmental hostility and dynamism and the dimensions of EO for the entire sample. The relationships between the dimensions of EO and employment growth were statistically insignificant except for medium-sized businesses (MSBs) in which proactive-innovation and competitive aggressiveness indicated a statistically significant negative relationship with employment growth.
In conclusion, this study contributes to the understanding of EO as a construct given that it considers the environment as its antecedent. It lays emphasis on the multi-variate relationships between environmental hostility, environmental dynamism, and each of the dimensions of EO. From a methodological perspective, this study employs an objective approach to measuring employment growth using Gibrat’s law. It demystifies the complex relationships between the business environment and the dimensions of EO and concomitantly sheds light on employment growth. It amplifies the role of the environment in small business development and identifies the dimensions of EO that could deemed relevant to employment generation. Finally, it advocates the need for context-specific entrepreneurial strategies to develop components of the SMME cohort and effective promotion of job creation.Business ManagementPhDUnrestricte
Integrating ecosystems : the synergistic effects of digital innovation hubs on start-up growth
Full text linkDATA AVAILABILITY : The data that support the findings of this study are
openly available at the University of Pretoria research data
management platform at: https://doi.org/10.25403/UP
researchdata.26190611.v1.BACKGROUND : South Africa faces significant socio-economic challenges, with unemployment
rate. This highlights the need for economic strategies to generate employment, and start-ups
are crucial in this context, as they foster innovation, create jobs and increase competitiveness.
AIM : The study aims to investigate how digital innovation hubs (DIHs) influence start-up
growth, focusing on their roles and functions.
SETTING : The research is set within the context of DIHs in Africa, specifically examining
the 12 DIHs established under the AEDIBNET programme.
METHODS : A qualitative methodology was employed, using semi-structured interviews
with six DIH managers and 28 entrepreneurs or start-up founders.
RESULTS : Supporting start-up growth, holistic development support and integrated
ecosystem enhancement by DIHs emerged as key themes. These factors foster a conducive
environment for innovation and sustained growth.
CONCLUSION : Digital innovation hubs play a crucial role in supporting start-up growth
by providing comprehensive and integrated support systems. Their functions collectively
enhance start-up growth.
CONTRIBUTION : This study fills a critical gap in the existing literature on DIHs, offering empirical
insights into their impact on start-up growth within the African context. The findings
provide valuable implications for policymakers, practitioners and researchers aiming to
foster the growth of start-ups. Additionally, the study integrates and expands upon
knowledge spillover theory, institutional theory and cluster theory. It demonstrates how DIHs
facilitate knowledge sharing, provide formal support structures, foster informal networks,
and create and sustain entrepreneurial clusters.http://www.sajesbm.co.zaam2024Business ManagementSDG-01:No povertySDG-08:Decent work and economic growthSDG-17:Partnerships for the goal
An exploratory study of challenges faced by small automotive businesses in townships : the case of Garankuwa, South Africa
Full text linkSmall, Medium and Micro Enterprises (SMMEs) are seen as an engine for economic growth and development in
South Africa (SA), contributing about 36% of the total Gross Domestic Product (GDP) to the South African
economy. Despite this positive contribution, the failure rate of small businesses in SA is worrying and estimated
to be between 70 and 80% across all sectors of the economy.
With this in mind, this article aims at identifying challenges facing SMMEs in the automotive sector within
townships. Since this study is exploratory in nature, it was based on a qualitative approach. Eleven participants
were selected to participate in this study, consisting of one manager from the Automotive Industry Development
Centre (AIDC), one project manager and the centre manager from Seda Automotive Technology Centre (Satec),
and also eight small businesses owners operating within the automotive industry in Garankuwa.
Findings revealed that lack of access to funding, poor management skills, lack of space and proper infrastructure
together with a lack of government support are among the challenges that contribute to a high failure rate of
automotive SMMEs in townships such as Garankuwa. Findings of this article will contribute to the body of
knowledge and assist in the development of SMMEs in the automotive sector in Garankuwa and the rest of the
South African townships. The article also provides recommendations on how these challenges can be addressed
to assist SMMEs in the automotive industry.http://www.journals.co.za/content/journal/jcmanam2019Business Managemen
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
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