Investigate entrepreneurial skills of contingent employees in small retail businesses in Roodepoort as job security determinant

Abstract

Entrepreneurial skills stimulate entrepreneurial activities. An increase in entrepreneurial activities culminates in high economic growth, creation of employment, and alleviation of poverty. South Africa’s entrepreneurial activity ratio stands at 9.1%, far below 14.3% of the BRICS (Brazil, Russia, India, China and South Africa) countries. Entrepreneurship is a national priority endeavour which helps absorb individuals searching for employment. Small, Medium and Micro Enterprises (SMMEs) provide employment to approximately 61% of households in South Africa. SMME shutdowns have increased and can be attributed to lack of entrepreneurial proficiencies. Hence, contingent employees in small retail businesses face poor working conditions, are unprotected by labour legislation, low remuneration, skills redundancy, and discrimination. They are also not affiliated with a union. The foregoing variables lead to job insecurity. Job insecurity leads to job dissatisfaction, disloyalty, and low organisational commitment. The study investigated whether contingent employees in Roodepoort have entrepreneurial skills to be entrepreneurial, as an avenue to offset job insecurity. The question why contingent employees are not entrepreneurial in Roodepoort was posed. A sample composed of 129 contingent employees from 60 small retail businesses in Roodepoort was used. Results showed a positive relationship between entrepreneurial skills and entrepreneurship, job insecurity and entrepreneurship, and contingent employees and job insecurity. However, it appears that contingent employees in Roodepoort were not affected nor concerned about job insecurity. They possess a significant understanding of entrepreneurial skills, yet they are not entrepreneurial.