Private activities and business success of South African business owners

Abstract

Entrepreneurship in South Africa is of growing importance, given the climate of high unemployment and negligible economic growth. Engagement in entrepreneurship, provides an opportunity for job creation, creating a self-reliant society. However entrepreneurial endeavours face significant challenges in resource shortages, particularly within the fledgling years, that can compromise and affect the longevity of the business. The objective of the study was twofold. Firstly, the activities that South African entrepreneurs engage in within their personal capacity, was evaluated to understand if these could be summarised into key themes of factors. Secondly, the factors were assessed to identify which are important in determining entrepreneurial success, as defined in the context of sales growth, number of years in operation and growth in workforce. The study is cross-sectional and quantitative in nature. Primary data, from a sample of 136 entrepreneurs, was collected through self-administered surveys. Data analysis included factor analysis and multiple linear regression analysis. The results have revealed that entrepreneurial success is largely driven by the entrepreneur maintaining motivation and work-life balance and improving their general knowledge. The results are largely aligned to the Entrepreneurial Ecosystem Framework by addressing the markets, human capital and support elements. The results iterate that it is important for entrepreneurs to take necessary steps outside of the ordinary course of business, in order to ensure the success of their entrepreneurial endeavours. Furthermore, the identified factors and activities that entrepreneurs can engage in, can be used as funding criteria for investors.