Barriers to Student Entrepreneurship in South Africa

As rising unemployment levels continually erode job opportunities in South Africa, it is sensible to assume that entrepreneurship would be considered as the next-best career option; however, university graduates show very little interest in becoming entrepreneurs. Having observed this disinterest, South African economic policies have put in place initiatives encouraging youth entrepreneurship; however, these have failed to significantly affect the willingness to engage in entrepreneurial activities. It is against this background that this paper investigates barriers to entrepreneurship as experienced by students. A survey of 235 university students was conducted. Their views regarding entrepreneurship were collected by means of self-completion questionnaires and studied using cluster analysis. It was concluded that a taxonomy of two distinct categories of student exist – sceptics and optimists – based on respondents’ predispositions to entrepreneurship barriers. The author identifies the themes that underlie the formation of the taxonomy, namely, family and social influence, exposure to entrepreneurial activity, entrepreneurial support, and education. The paper concludes with a discussion of practical solutions and strategies to mitigate the problem of a lack of student entrepreneurship

The Adoption of WhatsApp: Breaking the Vicious Cycle of Technological Poverty in South Africa

Although research clearly demonstrates that consistent technology usage is correlated to socioeconomic development, the Vicious Cycle of Technology Affordability and Non-adoption impedes the uptake of ICTs in many developing countries. In South Africa, however, one Smartphone messaging application, WhatsApp, appears to have broken this vicious cycle. This paper argues that, given that promoting the uptake of ICTs is a developmental imperative for emerging economies, studying the adoption and diffusion patterns of WhatsApp provides invaluable insights into ICT usage within the context of a developing country. This study modelled the factors influencing the adoption of WhatsApp among South African youths. Some 192 students participated in the study by means of a self-completion questionnaire developed from the Technology Acceptance Model. Structural equation modelling tested the proposed theoretical model. Results suggest that a combination of cost efficiency, simplicity, userfriendly features, and the ability to run on multiple platforms influences and promotes users’ attitudes and behavioural intentions to adopt WhatsApp

Individual Differences Versus Consumer Readiness Variables Predictive Power Over Internet Banking Adoption in South Africa

Self-service banking technology is gaining recognition globally in spite of its numerous challenges. Debit cards, ATMs and other Self Service Technologies (SSTs) are well received in South African market; however, customers seem cynical about Internet Banking (IB). IB consumer’s adoption patterns frameworks are tested within this paper based on a framework providing for the South African market with the best explanatory power. Thus, investigating consumer readiness (CR) and individual differences (IDs) variables as common groupings usually cited in the literature consumer variables predictive efficacy, provide better understanding of the consumers towards SSTs in South Africa.CR comprises role clarity, ability and motivation (extrinsic and intrinsic), while IDs includes inertia, technology anxiety, need of interaction, previous experience and demographics. This study purposes to identify among IDs and CR variables, which one with greater predictive power on IB adoption in South Africa.Considering this gap within the body of knowledge, in relation with IB adoption behaviour among the South African consumer is therefore the present article primary objective. Consumer’s individual differences (technology anxiety and education variables specifically) as exogenous variables, through a large sample size (n=1516), descriptive quantitative analysis, were found in context of South African market with greatest predictive power for IB adoption by comparison over consumer readiness. In South Africa particularly for marketers, these findings therefore are a set of relevant keys that can be useful in promoting IB adoption.&nbsp

Internet Banking Adoption in South Africa: The Mediating Role of Consumer Readiness

The recent rapid development of Internet banking (IB) around the world is not without certain challenges. For instance while a majority of banking SSTs (Self Service Technologies, e.g. ATMs and debit cards) have been well received by the South African market, consumers seem sceptical towards Internet banking. This paper seeks to test various conceptual frameworks of consumer adoption patterns of IB with the view of a framework with the greatest explanatory power for the South African market. To achieve the stated objective of a framework for IB adoption in South Africa, this paper suggests an approach not yet undertaken, according to the literature review conducted, within the South African retail banking industry – investigating a comparison of the predictive efficacy of two common groupings of variables most cited in the consumer behaviour literature as important determinants of adoptive behaviour in SSTs. These are: perceptions of innovation characteristics and consumer readiness (CR) variables. Therefore, the primary objective of this article is the consideration of this gap within the body of knowledge around South African consumers’ IB adoption behaviour. Through a descriptive quantitative analysis of 1516 large sample size, innovation characteristics as consumer’s perceptions (complexity, perceived risk notably) or views (endogenous variables) were found with greatest predictive power over IB adoption, in the South African consumer market context. This finding is therefore for marketers (particularly in South Africa) a set of useful tools that can be relevant to promote the adoption of IB

Entrepreneurship development framework for smallscale rural tourism establishments in South Africa

Abstract:This paper reports the findings of a study whose purpose sought to identify strategies to addressing the discord and disharmony between entrepreneurial policy and practice in developing countries such as South Africa. Beginning in the early days of its democracy in 1994, the South African government identified entrepreneurship as an all-encompassing strategy to address a plethora of socioeconomic challenges including unemployment and economic growth. In line with this agenda, the government has developed various policies aimed at both developing and growing small enterprises. Despite this, the small to medium enterprise sector has not developed as intended. Characteristically, small businesses are battling to survive amid intensifying competition from large scale enterprises (LSEs). Ironically, the latter is one example where practice does not necessarily follow the dictates of policy. To fully develop an in-depth understanding of this phenomenon, a qualitative case study involving 15 tourism small-scale businesses as well as five government departments in Mpumalanga Province was designed. Data were collected by means of in-depth interviews. ATLAS.ti was used to analyse data. Results revealed a gap between policy and practice. Interestingly, political rhetoric was observed as exacerbating an already dire situation by injecting confusion in the entrepreneurship discourse. Furthermore, the study proposes a conceptual framework, the POEE, which attempts to harmonise policy and entrepreneurial actions. Recommendations are made within the context of the POEE framework

Micro-perspective lens on entrepreneurs in the early stage of business: Expectations vis-à-vis realities

In the early stage of business, which is where most new ventures fail, many entrepreneurs experience discrepancies between their entrepreneurial expectations and business realities. These discrepancies referred to by this paper as an entrepreneurial gap (EG) are, therefore, among other factors, professed to be responsible for the high attrition rate of emerging ventures in South Africa. An oversight in this area of EG, despite the provision of most required resources, may still lead to business failure. This paper argues that there is more yet to be comprehended regarding early-stage business success, concerning the entrepreneur component. The purpose of this paper was to recognize and classify factors responsible for establishing entrepreneurial gaps with the intent to improve the level of preparedness among emerging entrepreneurs. A qualitative approach with in-depth interviews was employed in the data collection. ATLAS ti 8 was used to unpack factors that instigate entrepreneurial gaps while posing challenges to emerging entrepreneurs in the early stage of business. The groups identified were: entrepreneur management, familism and personal management. The findings provide information that is credible to improving the level of preparedness among emerging entrepreneurs, and could be used by mentors, coaches and relevant support structures

Perception of Service Quality: Voices of Guests and Lodge Managers in Vhembe District Municipality of South Africa.

Over the past decade the proliferation of lodging establishments in Vhembe District Municipality of South Africa, has intensified competition within the sector, which is threatening the survival of many of the businesses. As a result, lodging establishment businesses are continuously searching for strategies to maintain their market share in a tricky environment. Given the high service nature of the hospitality sector, managers seek to improve customers’ experience and service offering. The current study presents the results of an investigation into managers’ and guests’ perceptions of service quality in one municipal district in Limpopo Province, South Africa, and the ways in which service quality can lead to customer satisfaction. A qualitative study was designed to collect data, through semi-structured interviews, from three lodging establishments as well as from five guests. The study found managers to be perceiving satisfaction as being highly influenced by tangibles. On the other hand, guests were also observed to attribute satisfaction to both tangible and intangible factors, including employees’ attitudes, and to ‘ambience’. Despite this revelation shared with them, lodging establishment managers appeared to lack the urgency to prioritise employee training as a measure to enhance employee attitudes. The implications of the study are many. Firstly, managers need to invest more resources towards employee training. Secondly, tangible factors such as improving the environment and ambience, are likely to enhance guests’ (intangible) emotional experiences

Entrepreneurship gaps framework model: An early-stage business diagnostic tool

Background: In South Africa, entrepreneurship literature demonstrates that three out of four businesses collapse within 3 years of their inception. A plethora of research effort identifies factors such as the lack of finance and access to markets as the leading causes for the high attrition rates amongst emerging businesses. This study finds the narrative to be limiting and inadequate as it does not address the possible gap between entrepreneurs’ expectations and their realities of managing their businesses. Aim: To present the entrepreneurship gaps framework (EGF), an early-stage business diagnostic tool that seeks to assess entrepreneurs’ preparedness. Setting: This study focused on emerging entrepreneurs operating within the limits of developing economies. The framework can be used by emerging entrepreneurs, capacity development institutions and lenders. Methods: A descriptive research design supported by a mixed-method research approach was employed. This was coupled by a two-phase data collection procedure which took place within Limpopo province with 215 participants. Explorative data analysis based on discrete choice models was further implemented. Results: Findings on the EGF illustrated the ability of the framework to act as a more comprehensive diagnostic mechanism that improves early-stage entrepreneurship survival. Conclusion: Entrepreneurship gaps framework is a decision-making tool that can be used by lenders and capacity development institutions to evaluate the emerging entrepreneur with respect to specific areas of business. This results in the necessary support for improving entrepreneur preparedness being provided to entrepreneurs. Secondly, entrepreneurs are likely to benefit from the EGF, if used as a self-diagnostic tool to measure their business preparedness and experience

The relationship between perceived organizational support and organizational commitment among academics: the mediating effect of job satisfaction

This study investigated the relationship between perceived organizational support (POS), job satisfaction (JS) and organizational commitment (OC) in an institution of higher learning. The mediating effect of job satisfaction on the relationship between perceived organizational support and organizational commitment was tested. Self-completion questionnaires were administered to a sample of (n=302) participants. Structural equation modelling techniques were used to test the hypothesized relationships. Results indicate strong significant positive correlations among the variables. Furthermore, findings of the study demonstrate that job satisfaction mediates the relationship between perceived organizational support and organizational commitment. The results also showed that there is a significant relationship between perceived organizational support and job satisfaction. A significant relationship between perceived organizational support and affective commitment, as well as continuance commitment was also noted, but no significant relationship between perceived organizational support and normative commitment was found. Results showed a significant positive relationship between job satisfaction and affective commitment, as well as continuance commitment, but no significant relationship between job satisfaction and normative commitment was found. Keywords: academic staff, perceived organizational support, organizational commitment, job satisfaction, relationships, SEM. JEL Classification: J2