Institutionalised Business Incubation: A Frontier for Accelerating Entrepreneurship in African Countries

Africa is a growing hub for small, medium and large enterprise. This paper attempts to cement the need to create business incubation institutions in South Africa (as well as in other African countries) so as to promote a superior entrepreneurial ecosystem for economic growth. The Africa of tomorrow needs solutions that last and one key component is the progress of entrepreneurship as an employment strategy, an innovation and creativity platform, and a key economic factor. This study employs a narrative overview of literature to explore an institutionalised business incubation concept as a frontier for accelerating entrepreneurship in African countries. The study found that the need for institutionalised business incubation has become pervasive for superior entrepreneurial ecosystems across economies. The study recommends that central governments need to promote the development of local, regional and national institutions for the strong development of incubation as well as entrepreneurship. Keywords: Incubation, Entrepreneurship, Economic Growth, Africa, Innovation

Virtual small business entrepreneurship opportunities

For small business entrepreneurs in rural areas to survive in the digital contexts, research is essential on the challenges they face and how these challenges can become opportunities for other entrepreneurs. In this study, small business entrepreneurship opportunities at a township in the Eastern Cape were explored. The basis of the study was that entrepreneurship opportunities are embedded in business challenges and entrepreneurs who can provide services or products that address identified challenges can have viable entrepreneurship ventures. The study used two-phased sequential interviews to collect data to address the purpose of the study, which was: to explore the small business entrepreneurship opportunities in the Eastern Cape in the context of digitalisation. In the first interview challenges, faced by 60 entrepreneurs at an identified small business Mall, were recorded, and the most common challenges were noted. After noting the most common challenges and suggestions for possible business opportunities, associated with addressing the challenges, interviews with eight entrepreneurs in the Mall were then undertaken to gather more information. The study found evidence that small business entrepreneurship opportunities existed in areas related to providing essential support services, such as small business education and training, infopreneurship, and digital infrastructure retailing including providing alternative power options, such as solar power for the enterprises. With the high unemployment and high rate of small business failure, the study recommends the effective exploitation of the identified business opportunities to ensure that existing enterprises survive and new ventures also arise

Entrepreneurial Barriers that are Confronted by Entrepreneurs Living with Physical Disabilities: A Thematic Analysis

Living with a physical disability can interfere with an individual’s ability to participate actively in economic and social life. It is imperative to comprehensively understand the entrepreneurial barriers hindering the development of entrepreneurs living with physical disabilities. In spite of the increasing research on entrepreneurship, there seems to be a paucity of studies that have investigated the entrepreneurial barriers that are faced by entrepreneurs living with physical disabilities in South Africa. This study set out to explore the entrepreneurial barriers that are confronted by entrepreneurs living with physical disabilities. In this study, data were collected within the Sebokeng Township, which is an African township located in the Vaal Triangle, south of Johannesburg in South Africa. A qualitative research approach was used to collect data for the study. The researchers gathered qualitative data by means of semi-structured face-to-face interviews and focus groups. The analysis of the qualitative data was conducted through the use of thematic analysis. The themes that emerged from the findings include lack of equipment and machinery, discrimination, business networking, hardships in obtaining start-up capital, knowledge of support centres for entrepreneurs living with physical disabilities, and lack of education and training. Each theme was discussed individually, followed by substantiating quotes. Most respondents stressed that the barriers they face hinder the survival and growth of their ventures. The paper suggested that in order to help entrepreneurs living with physical disabilities, the South African government must formulate some schemes that are most necessary for their improvement and betterment of their life

The Sustainability and Challenges of Business Incubators in the Western Cape Province, South Africa

Notwithstanding the growing interest in business incubation programmes and the benefits derived from such programmes, the path is beset by numerous challenges. This paper investigates the challenges faced by business incubators (BIs) as they strive to support their clients. The study utilized a qualitative approach to collect data by way of interviews to gain in-depth knowledge and understanding of the concept and challenges of business incubators. The data were collected using structured and unstructured in-depth personal interviews, which were carried out with the respondents of business incubators in the Western Cape. The research participants for this study were limited to the business incubators on the database of a local organization that promotes small and medium enterprises (SMEs) development strategy and programmes in the Western Cape Province. All five business incubators on the database were deemed suitable for the study. The results indicated that an average of twenty-five entrepreneurs graduated from the incubation programme in the last five years. Furthermore, lack of sponsorship, production space, advanced technological facilities (prototype) and expansion to different areas were found to be among the challenges hindering incubators

Strategic human resource metrics: a perspective of the general systems theory

Measurement and quantification of strategic human resource outcomes in relation to key performance criteria is essential to develop value-adding metrics. Objectives This paper posits (using a general systems lens) that strategic human resource metrics should interpret the relationship between attitudinal human resource outcomes and performance criteria such as profitability, quality or customer service. Approach Using the general systems model as underpinning theory, the study assesses the variation in response to a Likert type questionnaire with twenty-four (24) items measuring the major attitudinal dispositions of HRM outcomes (employee commitment, satisfaction, engagement and embeddedness). Results A chi square test (chi-square test statistic = 54.898, p=0.173) showed that variation in responses to the attitudinal statements occurred due to chance. This was interpreted to mean that attitudinal human resource outcomes influence performance as a unit of system components. The neutral response was found to be associated with the ‘reject’ response than the ‘acceptance’ response. Value The study offers suggestion on the determination of strategic HR metrics and recommends the use of systems theory in HRM related studies. Implications This study provides another dimension to human resource metrics by arguing that strategic human resource metrics should measure the relationship between attitudinal human resource outcomes and performance using a systems perspective

Navigating the reasons behind joining a business Incubation programme: Empirical evidence from entrepreneurs in South Africa

This study aims to examine why entrepreneurs choose to join the incubation programme in urban areas, South Africa. The study utilised a quantitative method approach to collect data by way of questionnaires. The data was collected using structured questionnaires. The research participants for this study were limited to entrepreneurs in the incubation programme in Western Cape Province and Gauteng Province in South Africa during the course of the study. Populations of all 65 (incubatees) were deemed suitable for the study. This paper provides an insight into the reasons entrepreneurs chose to join the incubation programme. The findings indicated that entrepreneurs join the incubation programme to acquire entrepreneurial skills, entrepreneurial education, funding, business networks, Access to technology, sported a gap in the market and employment creation

Exploring status consumption in South Africa: a literature review

South Africa is one of the most important countries in the status goods market. In addition, it has the biggest share from the status consumption market in Africa and it is amongst fastest growing countries worldwide in status consumption. The growth in status consumption in South Africa is attributed to the growth of the high-income and middle-income groups. As the demand for status increases and status goods become more available, the concept of status has become an important research area for academics and marketers. The aim of this study is to explore the concept of status consumption and provide an overview of status consumption. In this study, the literature has been reviewed for the studies on the same subject to make a compilatio

The Sustainability and Challenges of Business Incubators in the Western Cape Province, South Africa

Notwithstanding the growing interest in business incubation programmes and the benefits derived from such programmes, the path is beset by numerous challenges. This paper investigates the challenges faced by business incubators (BIs) as they strive to support their clients. The study utilized a qualitative approach to collect data by way of interviews to gain in-depth knowledge and understanding of the concept and challenges of business incubators. The data were collected using structured and unstructured in-depth personal interviews, which were carried out with the respondents of business incubators in the Western Cape. The research participants for this study were limited to the business incubators on the database of a local organization that promotes small and medium enterprises (SMEs) development strategy and programmes in the Western Cape Province. All five business incubators on the database were deemed suitable for the study. The results indicated that an average of twenty-five entrepreneurs graduated from the incubation programme in the last five years. Furthermore, lack of sponsorship, production space, advanced technological facilities (prototype) and expansion to different areas were found to be among the challenges hindering incubators

The role of business incubators in facilitating the entrepreneurial skills requirements of small and medium size enterprises in the Cape metropolitan area, South Africa

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2016.In both developed and developing countries, small and medium enterprises (SMEs) create employment opportunities and can therefore improve the standard of living. The South African Government have embarked on a number of initiatives in support of SMEs. The Department of Trade and Industry (DTI) and the SEDA Technology Programme (STP) have a number of assistance programmes that are being implemented in support of SMEs. Although there have been many varied studies on business incubators, there is still a need for research to determine the importance of entrepreneurial skills for the development of successful incubators.Business incubators are essentially organisations that assist to increase survival rates of innovative start-up companies and support the entrepreneurial process. Incubators provide resources and services to entrepreneurs, including working space or physical offices, technical expertise, management mentoring, assistance in compiling an effective business plan, shared administrative services, technical support, business networking, advice on intellectual property and sources of financing, markets as well as strict admission and exit rules, which are designed to ensure that the incubator concentrates its efforts in helping innovative and fast-growth business start-ups that are likely to have a significant impact on the local economy. This therefore reduces the start-up capital and overhead costs, and allows the entrepreneur to focus on his/her core business whilst receiving operational support and hand-held coaching. The incubator concept supports the clients’ development journey to ensure business sustainability and growth.The main objective of the study is to determine the role that business incubators play in filling entrepreneurial-skills requirements for SMEs in the Cape metropolitan District. The population of this study comprised all the business incubators on the data base of one of the organisations that promotes SME development strategies and programmes in the Cape Metropolitan Area (CAM). All of the five business incubators that were registered on the database of a local organisation, known as Traction, during the course of the investigation, were deemed suitable for the study and therefore comprised the sample, which promotes SMEs’ development. The study utilises a mixed approach of quantitative and qualitative methods to collect data. From a quantitative point of view, questionnaires are utilised, while face-to-face interviews is used as a qualitative method. A maximum of seventy questionnaires is administered to incubated SMEs, 28 questionnaires were returned and all qualified for data analysis. This amounts to a 40% response rate. To complement the survey questionnaire, five face-to-face interviews were conducted with business incubators. The Statistical Package for the Social Sciences (SPSS) software was utilised to analyse the quantitative data, whereas qualitative data was analysed by means of content analysis and the results for both methods were presented in the format of figures, tables and charts

An evaluation of the effectiveness of business incubation programs: a user satisfaction approach

Business incubators were designed to sustain the deep-rooted image of entrepreneurs being self-reliant and by offering a broad spectrum of tailored services; it seeks to raise the success rate of small and medium size enterprises (SMEs) significantly. BIs have the characteristics to be completely dedicated to the success of a small business in its initial stages but, followed through, it puts in place the tools to achieve long-term success: space, funding, legal, accounting, computer services and other prerequisites to running a business, make BIs a one-stop shop for SMEs. This study has been conducted to establish if there has been a fairytale ending to the symbiotic relationship or whether the business incubator, like the SME, has had to traverse its own set of challenges towards achieving a happy union. The paper adopted a quantitative research approach in which the questionnaire was utilized as the relevant data collection tool. The Statistical Package for the Social Sciences (SPSS) software was used to analyze the data, with descriptive statistics at the end. As much as limited funding was reported to be a significant challenge that incubatees faced prior to joining the incubation programs, the results point to the fact that the need for multiple skills was the central force that seduced/lured the incubatees into the programs, but the majority of the participating respondents declare a complete lack of regret. Instead, they fully endorse the merits of the union, stating that BIs exists to effectively meet the objectives of SMEs