Get Complete Project Material File(s) Now! »
BACKGROUND
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. According to Mason and Brown (2013:222) policy makers need to customise and shape policy properly to the specificities of their own distinctive economic, small business and entrepreneurial context. Policies aimed at entrepreneurship are less prominent but still 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. Amongst the outcomes of small business and entrepreneurship are job creation, economic growth and general prosperity. At present, the small business sector in South Africa is not large enough because it has not absorbed as much labour as it should have (The World Bank Group, 2010b:1, Themba, 2012:5; Peyper, 2012:1). Consequently, one of the priorities of government has been to change the environment in which Small Medium and Micro Enterprises (SMMEs) operate. For this reason, a small business policy was developed to support small business and entrepreneurship. Research provides information to build government policy and strategy relating to small business and entrepreneurship.
Stimulating entrepreneurship and supporting it appropriately as well as properly, will require considerable reforms which must start at the highest levels of government (Herrington, 2013:12). van Vuuren and Groenewald (2007:269) highlight that although much support, education and training are given in South Africa, policy makers and educational institutions should take note of the various differences in the needs of small businesses and entrepreneurial ventures to make provision in their support and training for these differences. These two types of business ventures can be further distinguished into start-up (less than 3.5 years old) and established businesses (more than 3.5 years old), based on the age of the business (Turton & Herrington, 2013:15). It is important to distinguish clearly between entrepreneurial ventures and small businesses. Nieman and Nieuwenhuizen (2009:9) and Nieman (2006:4) regard them both as critical to the performance of the economy because they serve different economic functions. While both need entrepreneurial action for start-up, the small business venture will tend to stabilise at a certain stage and will only grow with inflation (Barringer & Ireland, 2012:32).
In contrast, entrepreneurial ventures are businesses where the principal objectives are profitability and growth. Nieuwenhuizen (2007:2) and Watson (2013:406) further assert that it is important to keep in mind that not everyone who starts a new business is, in reality, an entrepreneur. Some might be enterprising but true entrepreneurs habitually create and innovate to build and grow something of recognised value. An entrepreneur identifies an opportunity to start a business that fulfils a consumer’s need. This need may have not been acknowledged by other individuals or enterprises (Mariotti & Glackin, 2014:14). Not all SMMEs achieve anything new or different, nor do they all grow and become successful. Thus, although small businesses contribute to wealth creation and add value to the economy, not all SMMEs are necessarily entrepreneurial (Westhead, Wright & McElwee, 2011:18). If one accepts that there are these differences between small businesses and entrepreneurial ventures, it calls for different methods of development and support.
As observed by the Global Entrepreneurship Monitor (GEM) 2007 South African report, a “one system fits all” approach to entrepreneurship development or a blanket approach aimed at supporting all small businesses might not be the optimal choice in this changing environment (Maas & Herrington, 2007:8; Ligthelm, 2013:73). At the same time it should be noted that the age of the business also determines the different kinds of support and assistance required. In a study conducted by Dockel and Ligthelm (2005:61) it was brought to the attention of policy makers that policy measures that merely provide a favourable climate for a small business and not for an entrepreneurial venture, are not effective. More specific and targeted policies that focus on prioritised growth factors and sub-sectors of the SMME sector are required. Nel and Rogerson (2005:20) support this finding and recommend that national policy needs to be more supportive of local developmental endeavours and not only encourage local economic development (LED) but also give it clearer direction and focus.
CONTENTS :
- DECLARATION
- ABSTRACT
- ACKNOWLEDGEMENTS
- LIST OF FIGURES
- LIST OF TABLES
- ABBREVIATIONS, ACRONYMS AND GLOSSARY
- CHAPTER 1: INTRODUCTION AND BACKGROUND TO THE STUDY
- 1.1 INTRODUCTION
- 1.1.1 BACKGROUND
- 1.1.2 PROBLEM STATEMENT
- 1.1.3 NEEDS OF START-UP AND ESTABLISHED BUSINESS OWNERS
- 1.1.4 RESEARCH OBJECTIVES
- 1.1.4.1 PRIMARY OBJECTIVE
- 1.1.4.2 SECONDARY OBJECTIVES
- 1.1.5 HYPOTHESES
- 1.1.6 IMPORTANCE AND BENEFITS OF THE STUDY
- 1.2 DEFINITION OF KEY TERMS
- 1.2.1 ENTREPRENEUR
- 1.2.2 ENTREPRENEURSHIP
- 1.2.3 START-UP BUSINESS
- 1.2.4 ESTABLISHED BUSINESS
- 1.2.5 ENTREPRENEURIAL VENTURE
- 1.2.6 SMALL BUSINESS
- 1.2.7 POLICY
- 1.2.8 SMALL BUSINESS POLICY
- 1.2.9 ENTREPRENEURSHIP POLICY
- 1.3 LITERATURE REVIEW
- 1.3.1 SMALL BUSINESS AND ENTREPRENEURSHIP POLICIES
- 1.3.1.1 POLICIES IN GENERAL
- 1.3.1.2 SMALL BUSINESS POLICY
- 1.3.1.3 ENTREPRENEURSHIP POLICY
- 1.3.2 SMALL BUSINESS POLICY AND THE VALUE OF AN ENTREPRENEURSHIP POLICY IN SOUTH AFRICA
- 1.3.2.1 SMALL BUSINESS POLICY IN SOUTH AFRICA
- 1.3.2.2 THE VALUE OF AN ENTREPRENEURSHIP POLICY IN
- SOUTH AFRICA
- 1.4 DELIMITATIONS
- 1.5 RESEARCH DESIGN AND METHODOLOGY
- 1.5.1 DESCRIPTION OF OVERALL RESEARCH DESIGN
- 1.5.1.1 RESEARCH INSTRUMENT
- 1.5.1.2 RESEARCH DESCRIPTORS
- 1.5.2 SAMPLING
- 1.5.2.1 TARGET POPULATION
- 1.5.2.2 UNITS OF ANALYSIS
- 1.5.2.3 ENTITIES / SOURCES FROM WHICH DATA WILL BE COLLECTED
- 1.5.2.4 METHODS / TECHNIQUES FOR SELECTING RESPONDENTS, PARTICIPANTS OR DATA SOURCES
- 1.5.2.5 NUMBER OF RESPONDENTS, PARTICIPANTS OR OTHER DATA SOURCES TO BE INCLUDED IN THE STUDY
- 1.5.3 DATA COLLECTION
- 1.5.3.1 NATURE OF THE DATA TO BE COLLECTED
- 1.5.3.2 DATA COLLECTION METHODS
- 1.5.3.3 PRE- / PILOT-TESTING
- 1.5.4 DATA ANALYSIS
- 1.5.5 ASSESSING AND DEMONSTRATING THE QUALITY AND RIGOUR OF THE PROPOSED RESEARCH DESIGN
- 1.5.5.1 SOURCES OF ERROR OR BIAS
- 1.5.5.2 CRITERIA AND TECHNIQUES FOR ASSESSING THE QUALITY AND RIGOUR OF THE PROPOSED STUDY
- 1.5.6 RESEARCH ETHICS
- 1.6 OUTLINE OF THE DOCUMENT
- CHAPTER 2: DEFINING SMALL BUSINESS AND ENTREPRENEURSHIP AS WELL AS SMALL BUSINESS AND ENTREPRENEURSHIP POLICIES
- 2.1 INTRODUCTION
- 2.2 RESEARCH TRENDS IN SMALL BUSINESS
- 2.3 SMALL BUSINESS
- 2.3.1 DEFINING SMALL BUSINESS
- 2.3.1.1 NUMBER OF EMPLOYEES EMPLOYED IN THE BUSINESS
- 2.3.1.2 DIFFERENT CATEGORIES OF SMALL BUSINESSES
- 2.3.2 SMALL BUSINESS CHARACTERISTICS
- 2.4 RESEARCH TRENDS IN ENTREPRENEURSHIP
- 2.5 ENTREPRENEURSHIP
- 2.5.1 DEFINING ENTREPRENEURSHIP
- 2.5.2 ENTREPRENEURIAL VENTURE CHARACTERISTICS
- 2.6 DISTINGUISHING BETWEEN SMALL BUSINESSES AND ENTREPRENEURIAL VENTURES
- 2.7 SMALL BUSINESS POLICY
- 2.7.1 THE AIMS AND OBJECTIVES OF SMALL BUSINESS POLICY
- 2.7.2 MAIN ACTIVITIES OF SMALL BUSINESS POLICY
- 2.7.2.1 IDENTIFYING AND ADDRESSING THE SPECIFIC NEEDS AND DEMANDS FOR SUPPORT
- 2.7.2.2 PROVIDING ACCESS TO FINANCIAL SUPPORT
- 2.7.2.3 PROVIDING SOFT SUPPORT
- 2.7.2.4 LOWERING BURDENS OR IMPEDIMENTS TO ENTREPRENEURIAL ACTIVITY
- 2.7.3 THE OUTCOMES OF SMALL BUSINESS POLICY
- 2.8 ENTREPRENEURSHIP POLICY
- 2.8.1 THE AIM AND OBJECTIVES OF ENTREPRENEURSHIP POLICY
- 2.8.2 MAIN ACTIVITIES OF ENTREPRENEURSHIP POLICY
- 2.8.3 THE OUTCOMES OF ENTREPRENEURSHIP POLICY
- 2.8.4 KEY COMPONENTS OF AN ENTREPRENEURSHIP POLICY FRAMEWORK
- 2.9 DIFFERENCES BETWEEN SMALL BUSINESS POLICY AND ENTREPRENEURSHIP POLICY
- 2.10 INTERNATIONAL PERSPECTIVE ON SMALL BUSINESS AND ENTREPRENEURSHIP POLICIES
- 2.10.1 DEFINING SMES IN DIFFERENT COUNTRIES
- 2.10.2 SMALL BUSINESS POLICY IN DIFFERENT COUNTRIES
- 2.10.3 DEFINING ENTREPRENEURSHIP IN DIFFERENT COUNTRIES
- 2.10.4 ENTREPRENEURSHIP POLICY IN DIFFERENT COUNTRIES
- 2.11 CONCLUSION
- CHAPTER 3: THE SOUTH AFRICAN SMALL BUSINESS SECTOR AND POLICY
- 3.1 INTRODUCTION
- 3.2 THE STATE OF SOUTH AFRICA’S BUSINESS ENVIRONMENT
- 3.2.1 THE NATIONAL ECONOMY
- 3.2.2 SOUTH AFRICA’S GLOBAL COMPETITIVENESS RANKING
- 3.2.3 DOING BUSINESS IN SOUTH AFRICA
- 3.3 SMALL BUSINESS SECTOR IN SOUTH AFRICA
- 3.3.1 DEFINING SMALL BUSINESS IN SOUTH AFRICA
- 3.3.2 SIZE OF THE SMALL BUSINESS SECTOR IN SOUTH AFRICA
- 3.3.3 SOUTH AFRICA’S SMALL BUSINESS SECTOR SIZE VERSUS THE SIZE OF OTHER DEVELOPING COUNTRIES
- 3.3.4 MAJOR BARRIERS FACING THE SMALL BUSINESS SECTOR
- 3.4 SOUTH AFRICA’S SMALL BUSINESS POLICY
- 3.4.1 POLICY ELEMENTS
- 3.4.2 GOVERNMENT STRATEGIES ENTAILING SOUTH AFRICA’S SMALL BUSINESS POLICY
- 3.4.3 KEY SUPPORT INSTITUTIONS AND DEVELOPMENT FINANCE INSTITUTIONS TO SUPPORT SMALL BUSINESS
- 3.4.3.1 KEY SUPPORT INSTITUTIONS FOR IMPLEMENTING THE SMALL BUSINESS POLICY
- 3.4.4 OTHER GOVERNMENT INTERVENTIONS TO SUPPORT SMALL BUSINESS
- 3.5 SMALL BUSINESS POLICIES OF SELECTED PROVINCES IN SOUTH AFRICA
- 3.5.1 GOVERNANCE IN SOUTH AFRICA
- 3.5.2 REGIONAL SMALL BUSINESS AND ENTREPRENEURSHIP
- 3.5.3 REGIONAL OVERVIEW OF GAUTENG PROVINCE
- 3.5.3.1 GAUTENG METROPOLES
- 3.5.3.2 GAUTENG PROVINCE SMALL BUSINESS SUPPORT
- 3.5.3.3 GAUTENG SMME POLICY FRAMEWORK
- 3.5.4 REGIONAL OVERVIEW OF WESTERN CAPE PROVINCE
- 3.5.4.1 WESTERN CAPE PROVINCE SMALL BUSINESS SUPPORT
- 3.5.4.2 WESTERN CAPE SMME POLICY FRAMEWORK
- 3.5.5 REGIONAL OVERVIEW OF KWAZULU-NATAL PROVINCE
- 3.5.5.1 KWAZULU-NATAL PROVINCE SMALL BUSINESS SUPPORT
- 3.5.5.2 KWAZULU-NATAL PROVINCE SMME POLICY FRAMEWORK
- 3.6 CONCLUSION
- CHAPTER 4: MONITORING AND EVALUATING SOUTH AFRICA’S SMALL BUSINESS POLICY AND DETERMINING THE NEED FOR AN ENTREPRENEURSHIP POLICY
- 4.1 INTRODUCTION
- 4.2 MONITORING AND EVALUATION IN PERSPECTIVE
- 4.2.1 DEFINING MONITORING AND EVALUATION
- 4.2.2 KEY MONITORING AND EVALUATION CONCEPTS
- 4.2.3 MONITORING AND EVALUATION IN A PUBLIC POLICY CONTEXT
- 4.3 POLICY MONITORING AND EVALUATION IN SOUTH AFRICA
- 4.4 SMALL BUSINESS POLICY EVALUATION
- 4.4.1 KEY CONSIDERATIONS FOR SMALL BUSINESS POLICY EVALUATION
- 4.4.2 THE PROCESS OF SMALL BUSINESS POLICY EVALUATION
- 4.5 EVALUATING SOUTH AFRICA’S SMALL BUSINESS POLICY
- 4.6 THE NEED FOR AN ENTREPRENEURSHIP POLICY
- 4.7 CONCLUSION
- CHAPTER 5: RESEARCH DESIGN AND METHODOLOGY
- 5.1 INTRODUCTION
- 5.2 THE RESEARCH PROBLEM
- 5.3 RESEARCH OBJECTIVES
- 5.3.1 PRIMARY OBJECTIVE
- 5.3.2 SECONDARY OBJECTIVES
- 5.4 HYPOTHESES
- 5.5 RESEARCH DESIGN
- 5.5.1 DEGREE OF RESEARCH QUESTION CRYSTALLISATION
- 5.5.2 METHOD OF DATA COLLECTION
- 5.5.3 CONTROL OF VARIABLES
- 5.5.4 PURPOSE OF THE STUDY
- 5.5.5 TIME DIMENSION
- 5.5.6 TOPICAL SCOPE
- 5.5.7 THE RESEARCH ENVIRONMENT
- 5.5.8 THE PARTICIPANTS’ PERCEPTUAL AWARENESS
- 5.6 SAMPLE DESIGN
- 5.6.1 SAMPLING
- 5.6.2 POPULATION
- 5.6.3 SAMPLE SELECTION
- 5.6.4 SAMPLE SIZE
- 5.6.5 SAMPLE ERROR
- 5.6.6 SUMMARY OF SAMPLE DESIGN
- 5.6.7 RESPONSE RATE
- 5.7 DATA COLLECTION DESIGN
- 5.7.1 DATA COLLECTION
- 5.7.2 QUALITATIVE SECONDARY RESEARCH
- 5.7.3 QUESTIONNAIRE DESIGN
- 5.7.3.1 RESEARCH QUESTIONNAIRE DESIGN FOR GOVERNMENT OFFICIALS
- 5.7.3.2 RESEARCH QUESTIONNAIRE DESIGN FOR START-UP AND ESTABLISHED BUSINESS OWNERS
- 5.7.3.3 MEASUREMENT OF RESEARCH QUESTIONNAIRES
- 5.7.4 PILOT STUDY
- 5.7.5 ADMINISTERING OF QUESTIONNAIRES
- 5.8 DATA ANALYSIS
- 5.8.1 MEASUREMENT DESIGN
- 5.8.2 LEVEL OF MEASUREMENT
- 5.8.3 VALIDITY AND RELIABILITY OF THE MEASURING INSTRUMENTS
- 5.8.3.1 VALIDITY OF THE MEASURING INSTRUMENTS
- 5.8.3.2 RELIABILITY OF THE MEASURING INSTRUMENTS
- 5.8.3.3 FACTOR ANALYSIS
- 5.8.4 DATA PREPARATION / PROCESSING AND ANALYSIS
- 5.8.4.1 DESCRIPTIVE STATISTICS
- 5.8.4.2 INFERENTIAL STATISTICS
- 5.8.4.2.1 One-Way Analysis of Variance (ANOVA) Test
- 5.8.4.2.2 Kruskal-Wallis One-Way Analysis of Variance (ANOVA) Test
- 5.8.4.2.3 Friedman Two-Way Analysis of Variance (ANOVA) Test
- 5.8.4.2.4 Chi-square Test
- 5.8.4.2.5 Pearson’s correlation coefficient
- 5.8.4.2.5 Mann-Whitney U Test
- 5.8.4.2.6 Statistical significance
- 5.9 CONCLUSION
- CHAPTER 6: RESEARCH FINDINGS
- 6.1 INTRODUCTION
- 6.2 PERSONAL DEMOGRAPHICS OF THE TOTAL SAMPLE
- 6.3 BUSINESS VENTURE DEMOGRAPHICS OF THE START-UP / ESTABLISHED BUSINESS OWNERS’ RESPONDENTS
- 6.4 DEMOGRAPHICS OF GOVERNMENT OFFICIALS’ CLIENTS
- 6.5 DESCRIPTIVE STATISTICS REGARDING SUPPORT SERVICES
- 6.5.1 GOVERNMENT OFFICIALS’ RATING OF THE SUPPORT SERVICES PROVIDED TO START-UP / ESTALISHED BUSINESS OWNERS
- 6.5.2 START-UP / ESTABLISHED BUSINESS OWNERS’ RATINGS OF THE SUPPORT SERVICES NEEDED
- 6.5.3 COMPARING THE SUPPORT SERVICES PROVIDED BY GOVERNMENT OFFICIALS AND NEEDED BY START-UP / ESTABLISHED BUSINESS OWNERS
- 6.5.4 GRAPHS ILLUSTRATING THE SIMILARITIES AND DIFFERENCES OF THE SUPPORT SERVICES AS RATED BY GOVERNMENT OFFICIALS AND START-UP / ESTABLISHED BUSINESS OWNERS
- 6.6 DESCRIPTIVE STATISTICS REGARDING POLICY EVALUATION
- 6.6.1 SMALL BUSINESS POLICY EVALUATION BY THE GOVERNMENT OFFICIALS
- 6.6.2 SMALL BUSINESS POLICY EVALUATION BY THE START-UP / ESTABLISHED BUSINESS OWNER
- 6.6.3 GRAPHS ILLUSTRATING THE SIMILARITIES AND DIFFERENCES OF THE SMALL BUSINESS POLICY AS RATED BY THE GOVERNMENT OFFICIALS AND START-UP / ESTABLISHED BUSINESS OWNERS
- 6.7 VALIDITY AND RELIABILITY OF THE MEASURING INSTRUMENTS
- 6.7.1 FACTOR ANALYSIS OF RESPONDENTS’ NEEDS FOR BUSINESS SKILLS DEVELOPMENT, BUSINESS PHASE SUPPORT AND ENTREPRENEURIAL SKILLS NEEDED
- 6.7.2 FACTOR ANALYSIS FOR RESPONDENTS’ EVALUATION OF THE OBJECTIVES OF SOUTH AFRICA’S SMALL BUSINESS POLICY
- 6.7.3 FACTOR ANALYSIS FOR RESPONDENTS’ EVALUATION OF THE OUTPUTS OF SOUTH AFRICA’S SMALL BUSINESS POLICY
- 6.7.4 FACTOR ANALYSIS FOR RESPONDENTS’ EVALUATION OF THE OUTCOMES OF SOUTH AFRICA’S SMALL BUSINESS POLICY
- 6.8 INFERENTIAL STATISTICS
- 6.8.1 HYPOTHESES 1 AND
- 6.8.1.1 RESULTS FOR HYPOTHESES 1(A) AND 2(A): OBJECTIVES OF SOUTH AFRICA’S SMALL BUSINESS POLICY
- 6.8.1.2 RESULTS FOR HYPOTHESES 1(B) AND 2(B): OUTPUTS OF SOUTH AFRICA’S SMALL BUSINESS POLICY
- 6.8.1.3 RESULTS FOR HYPOTHESES 1(C) AND 2(C): OUTCOMES OF SOUTH AFRICA’S SMALL BUSINESS POLICY
- 6.8.1.4 THE KRUSKAL-WALLIS ONE-WAY ANALYSIS OF VARIANCE BY RANKS (TO SUPPORT HYPOTHESES 1 AND 2)
- 6.8.2 HYPOTHESIS
- 6.8.2.1 RESULTS FOR HYPOTHESIS 3: IMPACT OF SOUTH AFRICA’S SMALL BUSINESS POLICY
- 6.8.3 HYPOTHESIS
- 6.8.3.1 RESULTS FOR HYPOTHESIS 4: THE KRUSKAL-WALLIS ONE WAY ANALYSIS OF VARIANCE BY RANKS
- 6.8.3.2 DESCRIPTIVE ANALYSIS OF THE IMPACT OF THE SMALL BUSINESS POLICY
- 6.8.4 HYPOTHESES 5, 6, 7 AND
- 6.8.4.1 RESULTS OF HYPOTHESES 5(A), 6(A), 7(A) AND 8(A): BUSINESS SKILLS NEEDED
- 6.8.4.2 RESULTS OF HYPOTHESES 5(B), 6(B), 7(B) AND 8(B): ENTREPRENEURIAL SKILLS NEEDED
- 6.8.4.3 RESULTS OF HYPOTHESES 5(C), 6(C), 7(C) AND 8(C): BUSINESS PHASE SUPPORT
- 6.8.4.4 THE KRUSKAL-WALLIS ONE-WAY ANALYSIS OF VARIANCE BY RANKS (TO SUPPORT HYPOTHESES 5, 6, 7 AND 8)
- 6.8.4.5 CROSS-TABULATION WITH AGE OF BUSINESS AND METROPOLITAN MUNICIPALITY
- 6.8.5 HYPOTHESIS
- 6.8.5.1 THE FRIEDMAN TWO-WAY ANOVA TEST WITHIN THE START UP BUSINESSES GROUP
- 6.8.5.2 THE FRIEDMAN TWO-WAY ANOVA TEST WITHIN THE ESTABLISHED BUSINESSES GROUP
- 6.8.8 HYPOTHESIS
- 6.8.8.1 RESULTS OF HYPOTHESIS
- 6.8.9 HYPOTHESIS
- 6.8.9.1 RESULTS OF HYPOTHESIS
- 6.9 GENERAL COMMENTS BY RESPONDENTS
- 6.10 CONCLUSION
- CHAPTER 7: CONCLUSIONS AND RECOMMENDATIONS
- 7.1 INTRODUCTION
- 7.2 OVERVIEW OF THE LITERATURE STUDY
- 7.3 RESEARCH OBJECTIVES REVISITED
- 7.3.1 PRIMARY OBJECTIVE REVISITED
- 7.3.2 SECONDARY OBJECTIVES REVISITED
- 7.4 HYPOTHESES REVISITED
- 7.4.1 HYPOTHESES 1 AND 2 TESTING
- 7.4.2 HYPOTHESIS 3 TESTING
- 7.4.3 HYPOTHESIS 4 TESTING
- 7.4.4 HYPOTHESES 5, 6, 7 AND 8 TESTING
- 7.4.5 HYPOTHESIS 9 TESTING
- 7.4.6 HYPOTHESIS 10 TESTING
- 7.4.7 HYPOTHESIS 11 TESTING
- 7.5 CONTRIBUTION OF THE STUDY
- 7.6 LIMITATIONS OF THE STUDY
- 7.7 RECOMMENDATIONS AND FURTHER RESEARCH
- 7.8 SUMMARY AND CONCLUSION
- REFERENCES