An investigation and problematisation of the Entrepreneurial Framework Conditions associated with entrepreneurship amongst Blac

Abstract

South Africa is faced with the ‘triple threat’ of unemployment, poverty and inequality (National Planning Commission (NPC), 2012). Since democracy, transformation of the economy has been elusive, to the extent that Black Africans, who are the majority population group, have faced increasing deprivations (Stats SA, 2017; Bastos & Bottan, 2016; Viljoen & Sekhampu, 2013). One way to overcome this problem is entrepreneurship, which is known to be a positive contributor to economic growth and employment. In light of this, the Global Entrepreneurship Monitor (GEM) has created a list of Entrepreneurial Framework Conditions (EFC), which are conditions, factors and institutions that can either encourage or discourage the level of entrepreneurial activity in a country or region (Herrington and Turton, 2012; Herrington., Kew & Kew 2015; Herrington, Kew & Mwanga, 2016/17). This research study investigated the EFCs associated with Entrepreneurial Activity (EA) and sustainability amongst Black Africans, whether the policies that the government has implemented encourage and sustain EA amongst Black Africans, and if differences exist between the EFCs associated with Black-owned enterprises and those identified by GEM. A qualitative research design located in the interpretive paradigm was utilised for methodology and analysis purposes, and in-depth interviews were conducted with established Black African business owners in Johannesburg. This study’s overall findings were similar to the GEM’s findings; however two main findings may be isolated as having uniquely affected the respondents, i.e. race and finance. Race in particular has served as both a curse and a blessing for entrepreneurs; it is one of the first characteristics that are used to make value judgements on the abilities of these entrepreneurs. While government policies and programmes provide assistance on the basis of race and merit in an attempt to even the playing field, the administration of these policies fails entrepreneurs as they are susceptible to corruption. Furthermore, race is particularly complex as it is intertwined in all of the other factors, including finance, which was the second most commonly identified factor in determining access to, and success in, entrepreneurship. It is recommended that the findings of this study be used as a basis for a larger, more in-depth study, which may provide more conclusive results, and the Government is advised to seek the perspectives of entrepreneurs when formulating entrepreneurship-related policies.