Entrepreneurial orientation, age of owner and small business performance in Johannesburg
Date
2013-08-06
Authors
Kaunda, Chikumbusko Mkondo
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Abstract
The rate of population growth has been declining in most regions of the world though it remains high in some areas. The overall impact of this is that there is an increase in the proportion of people aged over 60 years old while the working population of those aged 25–59 has been growing at a slower pace. This scenario creates challenges for an economy that is still developing like South Africa‟s. Increasingly entrepreneurship is being seen as one of the ways in which the problems caused by high unemployment and its associated effects can be tackled while stimulating economic growth in an economy.
This study, completed by means of a convenience sample of 103 firms in Johannesburg, collected and analysed the data on small entrepreneurs and established an understanding of the link between entrepreneurial orientation and business performance, amongst younger and older entrepreneurs in South Africa.
The study found that more than other factors the proactivity of the entrepreneur influenced the entrepreneurial orientation (EO) relationship, while risk taking and innovation did not have a major effect on this relationship and subsequent performance of the business (BP). Other key finding of the research showed a suggestion of age having an inverse relationship with entrepreneurial orientation and business performance as well. The results of the dummy variable regression analysis exclude statistical significance testing.
This research is expected to add value to entrepreneurs, future researchers and policy makers in government by helping identify where to direct their focus in enhancing entrepreneurial development.
Description
Thesis (M.M. (Entrepreneurship and New Venture Creation))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2013.
Keywords
Entrepreneurship, Small business, South Africa