Interaction between ethnicity and entrepreneurship in South Africa : Case study of Naledi Municipality

Thesis (D. Tech. (Business Administration)) -- Central University of technology, Free State, 2013This study was carried out to examine the interaction between ethnicity and entrepreneurship in a South African setting. Specifically, a survey using a questionnaire was carried out to determine the influence ethnicity has on entrepreneurial behaviour and attitudes among the Tswana, Afrikaner, Coloured and Indian entrepreneurs in the Naledi Local Municipality in the North West Province of South Africa. A literature review preceded the empirical study to fully comprehend the theoretical and conceptual underpinnings of the interaction between ethnicity and entrepreneurship among different ethnic groups. In the empirical study phase, a questionnaire was administered to 400 randomly selected entrepreneurs in order to collect data on their motives for starting business, source of start-up capital and their attitudes/behaviours regarding risk in business. Waldinger et al.'s (1996) structure, enclave, cultural and situation theories were used as the theoretical base. Out of a total of 400 questionnaires that were distributed, 338 were usable representing an 84.5% response rate. The chi-square tests found significant differences (p < 0.05) between the four ethnic groups on all the key dimensions of ethnicity on entrepreneurship and the success/performance of the four ethnic groups in business. The chi-square test shows that businesses operated/owned by Afrikaner and Indian ethic groups are more likely to perform better than those owned and operated by their Tswana and Coloured counterparts

Segregation, Entrepreneurship and Work Values: The Case of France

This paper studies the interaction between labor market integration, the evolution of “work values” and entrepreneurial capital inside minority communities. A simple model of labor market segmentation with ethnic capital and endogenous transmission of cultural values inside the minority group is presented. It emphasizes the role of entrepreneurial capital as an important driver of labor market integration and as a promoter of meritocratic work values inside the community. The case of South European and North African second generation immigrants in France is then empirically studied as an example, contrasting strongly how the differential economic and cultural integration in the labor market correlates with the differential level of entrepreneurial capital of the two communities.social capital, ethnic segmentation, work values, labor discrimination

Women's business ownership : recent research and policy developments

This report aims to provide a current assessment of recent research investigating women's business ownership. The report builds on a previous review undertaken by the authors on behalf of the Small Business Service (Carter, Anderson and Shaw, 2001). The report also explores in broad terms the role and contribution of recent policy developments in changing the landscape of women's enterprise in the UK

Diversity and SMEs : Existing Evidence and Policy Tensions : ERC White Paper No.3

The purpose of this White Paper is to present an overarching review of the evidence that currently exists with regard to diversity and SMEs. It outlines longstanding concerns that entrepreneurial activities and ambitions are restricted to a narrow range of social groups, with others, in particular some ethnic minority groups and women, characterised as having both lesser interest in enterprise and lower levels of resources necessary to participate. Attempts to increase participation rates of under-represented groups have resulted in only modest changes. This White Paper introduces the key evidence relating to ethnic minority and women-led enterprises, explaining the context of each group, and summarising research evidence relating to their relative access to finance, markets and management. Research and policy within the field of diversity and SMEs is characterised by a number of tensions, relating to perceived or real discrimination; whether to promote a volume of new businesses or focus on high growth potential firms; whether specialist business support is more effective or desirable than mainstream provision; and whether there is evidence of market failure in the support provided to diverse enterprises

Networks, [Mis]trust, and Pentecostal Conversion: narratives of divergent pathways among small Black entrepreneurs in Tshwane

This thesis is an exploration of the cultural meanings, practices, and discourse that impinge upon the workings of social capital and trust among small black entrepreneurs. Entrepreneurs need to draw on social networks to get advice and resources to launch and manage a business. The contacts that lead to successful outcomes are their social capital and they are a key component of entrepreneurial networks. Structural economic sociologists tend to emphasise 'structural holes', whereby a social actor who is in a position to bridge two actors with no direct ties to each other can parlay control over information into strategic advantage. Recent sociological literature highlights questions of meaning in networks and brings to the fore concerns with the larger cultural framework within which social networks are embedded. Relational economic sociologists contend that networks can be understood as composed of culturally constituted processes. Studies on the networks of South African entrepreneurs are few and far between, and they seem to suggest that African entrepreneurs don't mobilise social capital as well as their Indian and white counterparts. The research used qualitative approaches, relying on a combination of in-depth open-ended unstructured interviews and prolonged ethnographic immersion which generated rich understandings of entrepreneurs' lived experiences, subjective meanings, and contexts. The findings underscore the cultural contingency of social ties and network structure, suggesting that an entrepreneur's proneness to join particular types of associations and networks, and their ability to generate particular types of social ties and generalised trust has something to do with a range of cultural contingencies. The research devoted special attention to the cultural contingency of religion, bringing to light the entrepreneurial consequences of Pentecostal conversion. These intersect with, and extend far beyond, the networks of small black entrepreneurs, affecting issues at the very heart of entrepreneurship such as risk taking and proactiveness. I borrow the concept of 'cultural holes' to illustrate the contingencies of meaning that shape the networks and the entrepreneurial orientation of small black entrepreneurs and, ultimately, drive their divergent entrepreneurial trajectories. Finally, the study adumbrates a typology of small black entrepreneurs, arguing for the possibility that multiple cultural contingencies may open up alternate understandings of entrepreneurship

Women Entrepreneurs A Cross-Cultural Study of the Impact of the Commitment Competency on the Success of Female-Owned SMMEs in South Africa

Findings- Whilst all participants from the four government identified racial groups agreed that the commitment competency is important for business success, only participants from one of the racial groups considered it vital to business success. Arguably, the commitment competency is valued more highly by female entrepreneurs in this racial group (White) than participants from the other groups. The data also revealed that some female entrepreneurs could be regarded a

The challenges of operating entrepreneurial businesses in restituted land: the case of KwaZulu-Natal.

Master Degree, University of KwaZulu-Natal, Durban.In KwaZulu-Natal, public and private sectors need to increase support for sustainability of Small Medium and Micro Enterprises and or Entrepreneurial businesses. Many SMMEs struggle to overcome failure due to lack of strategic interventions from both government and the private sector. This study focuses on the Land Restitution programme as one of the vehicles that should be used by government to boost SMME development and their business performance. In previous studies, individuals who have received their land back, within the Land Redistribution Programme in KZN have failed to either continue or start viable businesses using the land newly acquired. A total of 76% of the land redistributed has claimants who have not engaged with any business activity using land newly acquired. Attributed to this high level of inactivity is a lack of programmes to assist claimants. Most claimants end up opting for cash instead of land due to fear of failure. Socio-cultural factors, infrastructure and education found to be important elements that add value to small businesses’ behaviour and the way society welcomes them. Methods and strategies employed by the two major sectors in enhancing entrepreneurial businesses were evaluated. Conducted interview sessions with business owners in restituted land contributed to the results of the study. The qualitative research methodology was used and the NVivo programme using thematic analysis was employed for data analyses.Only available in English

A development training support model for entrepreneurs in South Africa

Recent years have seen the decline of entrepreneurial activity in South Africa. This is especially concerning in that, officially, 27.7% of South Africans are unemployed. The unofficial unemployment figures are closer to 50%. The South African economy is battling to recover from the world economic crisis of 2009/10, putting pressure on government to alleviate growing unemployment and curtail social unrest. Furthermore, a South African economy which thrives on entrepreneurial activity will become more competitive from a global perspective. The purpose of this study is to contribute to the promotion and development of entrepreneurship in South Africa, in an effort to combat the problems listed above. In order to achieve this purpose, the objective was to develop and test a model which could be used in the development of entrepreneurs. The rationale is that, if the factors which affect entrepreneurship could be identified and tested, then recommendations could be made which could promote the development of entrepreneurs in South Africa. The approach was as follows: Perform a literature review which would cover both global and local (South African) approaches to developmental training for entrepreneurs; Develop a theoretical model comprising of identified factors which formed the base for the data collection; Develop a measuring instrument to test the relationships described in the theoretical model empirically; • Empirically test the proposed model and suggested hypotheses by means of sourcing data from entrepreneurs in South Africa and statistically analyse the sourced data; Formulate the final theoretical model to support the research objectives; and Propose recommendations based on the results of the statistical analysis. The focus of the literature study was on two main areas: trends in global developmental training, and South African initiatives to stimulate developmental training of entrepreneurs. The literature on global entrepreneurial development highlights two distinct categories for entrepreneurial development: 1) entrepreneurial education and 2) entrepreneurial training. The literature study concerning South African methodologies for developmental training for entrepreneurs, focused on current methods employed and highlighted areas on which improvements should be concentrated. From the literature study on both global and South African developmental training methods, ten independent variables (entrepreneurial culture; socio-emotional attributes; acquiring business skills; industry experience; opportunity identification; regulatory barriers; economic barriers; outside advice; formal training and informal training were identified as factors affecting entrepreneurial developmental training. All the variables were hypothesised as they were perceived to influence significantly the dependent variables: perceived global success as an entrepreneur and perceived individual success as an entrepreneur. These factors, clearly defined and operationalised, were structured in a questionnaire which was sent randomly to South African business owners. Data were collected from 332 respondents and subjected to various statistical analysis techniques. Firstly, Exploratory Factor Analysis (EFA) was conducted to assess the discriminant validity of the research instrument. Secondly, Cronbach’s alpha coefficients were calculated for each of the identified factors to confirm the reliability of the research instrument. The significance of the hypothesised relationships in the revised model were then tested by using the statistical technique known as Structural Equation Modelling (SEM) This study contributed to this specific field of knowledge

Segregation, entrepreneurship and work values: the case of France

This paper studies the interaction between labor market integration, the evolution of "work values" and entrepreneurial capital inside minority communities. A simple model of labor market segmentation with ethnic capital and endogenous transmission of cultural values inside minority groups is presented. It emphasizes the role of entrepreneurial capital as an important driver of labor market integration and as a promoter of meritocratic work values inside the community. Using a new French survey rich in attitudinal variables, it then proposes an empirical illustration, focusing on the dissimilarity between the labor market integration of South European versus North African second generation immigrants in France. It shows that the contrasted economic and cultural integration of these minorities can be explained away by their different levels of entrepreneurial capital.social capital ; ethnic segmentation ; work values ; labor discrimination