The effect of short-term business training on firm performance of youth owned enterprises in Johannesburg
Date
2020
Authors
Adeyemi, Adewale Felix
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Abstract
The objective of this research study is to investigate to what extent is the effect of short-term business training on firm performance of youth-owned enterprises in Johannesburg, South Africa. This study draws from the vast entrepreneurship educational materials and human the capital theory that is essential for developing the human capital competencies within the target population, however, the most significant predictor of firm performance of the youth-owned enterprises is human capital development. A survey questionnaire with thirty-two (32) questions through Likert measure was utilized to obtain data. This is a cross-sectional, quantitative study that follows a positivist approach. Primary data with a sample size of two hundred and nine (209) was collected from government agencies such as the “SEDA, SETA, DTI, NYDA, GEP”, institutions of higher learning, industry experts – otherwise known as “the triple helix model” – and independent companies through computerised questionnaires and mobile devices. Data analysis include linear, regression, disruptive and Mann Whitney U tests analysis. Formal short-term business training emerged as a significant indicator of firm performance, implying that the quality of formal short-term business training determines the quality of firm performance. However, it is, by far, the most influential predictor of financial firm performance. The results also confirmed that formal short-term business training have a significantly high effect on financial and non-financial firm performance when compared to informal entrepreneurship education and training. Youth-owned enterprises who are trained and confident can then raise enough competence for their businesses, thus producing firm performance. Government policies and support programs need to take a holistic dimension when supporting youth-owned enterprises. While taking a holistic view, priority needs to be put on making entrepreneurship education and training available for youth-owned enterprises to develop and grow into a mainstream economic contributor. The study’s findings are very important in that it could help the government and other stakeholders of entrepreneurship education and training
understand that financial resources or capital, in form of grant, are not the only important forecasters of firm performance of the youth-owned enterprises. Thus, the need to review current entrepreneurship education and training assessment models.
Description
A research report submitted in partial fulfilment of the requirements for the degree of Master of Management in Entrepreneurship and New Venture Creation
to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, 2020
Keywords
Short-term business training, Formal and Informal, Entrepreneurship education, Firm performance (Financial and non-financial)