An analysis of local and immigrant entrepreneurship in the South African small enterprise sector (Gauteng Province)

Abstract

This study was undertaken to investigate the motivation, intention, self-efficacy, culture, business support,entrepreneurial orientation and business performance of South African and immigrant entrepreneurs in small and medium enterprises (SMEs) in Gauteng province. The performance of the SMEs was investigated, and the reasons and gaps that have led to the assumed low competitive ranking and poor performance of South African entrepreneurs compared to immigrant entrepreneurs were analysed. A structured research instrument (questionnaire) was used to collect data through interviews and a self-administered survey. A total of 466 questionnaires out of 500 questionnaires that had been distributed to respondents by six fieldworkers were returned (93.2%) for analysis.A number of hypotheses were postulated to address the study aims and the collected data were analysed to answer the hypotheses. The results of the study showed a significant correlation between motivation and business performance (a motivated entrepreneur is more likely to succeed in business than an unmotivated entrepreneur) and a significant positive correlation between culture and motivation to start a business (a culture that is supportive of entrepreneurial activities, lowuncertainty avoidance, high individualism and lowpower distance relates positively to a high level of entrepreneurial self-efficacy).The results also showed a significant difference between the mean values of business performance and the education of the owner. It is suggested that the government creates a favourable climate to allow entrepreneurs to release their potential. The government can help by making complex legislation easier for start-ups and reducing the tax burden on new entrepreneurs.