Variables distinguishing entrepreneurs and non-entrepreneurs from different ethnic groups in the South African environment

Abstract

A distinguishing characteristic of the current world economy is the decline in the number of industrial job opportunities which is also affecting South Mrica. The multi-ethnical and multicultural society of South Africa is also experiencing low economic growth rates, high population growth rates and an unacceptably high unemployment rate. Entrepreneurship currently plays an important role in the successful economies of the world. The small business can make important contributions to economic growth, job creation and social development. For this reason it is important that entrepreneurial behaviour be promoted in South Mrica. In previous research studies, researchers isolated different variables of entrepreneurial behaviour such as the environment, personal characteristics, values and personal background of individuals. Of these variables, only personal characteristics may be manipulated to advance entrepreneurial behaviour. The objectives of this study were to indicate whether certain biographical and demographical factors are related to an individual's behaviour towards the formation of a new enterprise and to indicate whether certain personal characteristics, namely achievement motivation and locus of control, are related to an individual's behaviour in the formation of a new enterprise. It was decided to compare four groups, namely white non-entrepreneurs, black nonentrepreneurs, white entrepreneurs and black entrepreneurs. Three factors of achievement motivation and three factors of locus of control were identified by means of factor analysis, and statistical analyses were done on the four different groups. To establish the above-mentioned relationships, the researcher made use of sophisticated statistical analyses. The following conclusion were drawn from the results: The models of achievement motivation and locus of control seem to predict membership of the group black entrepreneurs better than the group white entrepreneurs. Using the locus of control scales, membership of the group black entrepreneurs can be predicted well. The study revealed that there are differences between black groups and white groups (entrepreneurs and non-entrepreneurs) in South Africa. It is clear from the present study that there have to be additional factors, other than achievement motivation and locus of control, that influence entrepreneurial behaviour. The ethnic and cultural situation in South Africa also influences entrepreneurial behaviour in this country.