Challenges and opportunities for survival entrepreneurs in the township of Soweto 

 

by 

 

Refilwe Molapo 

2153493 

 

Research Report 

submitted for the degree of 

 

Master of Business Administration 

in the 

Faculty of Commerce, Law and Management 

 

University of the Witwatersrand 

 

Supervisor: Dr McEdward Murimbika 

 

 

Date: February 2024



ii 

 

Declaration 

I, Refilwe Molapo, declare that this research report is my own work except as indicated in the 

references and acknowledgements. It is submitted in partial fulfilment of the requirements for 

the degree of Master of Business Administration at the University of the Witwatersrand, 

Johannesburg. It has not been submitted before for any degree or examination in this or any 

other university. 

Student ……………………………...  Date  ……………………… 

  

31/05/2024



iii 

 

Dedication 

This research is dedicated to my wife, Lindeni Molapo, and my daughter, Refilwe Motheo 

Molapo. Thank you for your patience, support, and encouragement throughout this journey. 

  



iv 

 

Acknowledgments 

To my supervisor, Dr. McEdward Murimbika. Thank you for your knowledge, guidance, and 

feedback throughout the research process.  



v 

 

Abstract 

This research paper investigated the challenges and opportunities of survivalist entrepreneurs 

in Soweto by evaluating the effectiveness of the entrepreneurial ecosystem. The study also 

examined the potential of using education to improve the entrepreneurial mindset. 

Additionally, the research investigated how education and the entrepreneurial mindset can be 

leveraged to improve business performance. 

A positivist paradigm was adopted to guide the quantitative research strategy. A cross-sectional 

study was conducted, and the data was collected from 125 respondents through a self-

administered questionnaire. The population sample was subdivided into smaller groups based 

on the participant’s geographical location within Soweto, this was done through cluster 

sampling. Thereafter, the convenience sampling technique based on availability and 

accessibility was employed to reach the participants within the designated clusters. The 

hypotheses were evaluated through a single moderated regression model as the conceptual 

framework perfectly represented a moderated mediation model. 

The results from the model summary confirmed that all three variables – entrepreneurial 

mindset, entrepreneurial education, and entrepreneurial ecosystem – significantly influenced 

business performance. The direct effects of the entrepreneurial ecosystem on the 

entrepreneurial mindset were confirmed to be significant. Furthermore, the research 

demonstrated that the entrepreneurial mindset mediated the relationship between the 

entrepreneurial ecosystem and business performance in the township of Soweto. 

The practical implications of the study are that further investment in developing the resources 

and strengthening the support infrastructure in the township of Soweto will create more 

opportunities for survivalist entrepreneurs to improve their business performance. The study 

revealed that those with increased education levels are not immune from the systemic 

challenges that may cause individuals to start informal businesses in the township. Therefore, 

creating educational programmes that focus on developing practical skills could have a positive 

effect, empowering these survivalist entrepreneurs with the necessary skills to improve their 

business performance. 

Keywords: survivalist entrepreneur, entrepreneurial ecosystem, entrepreneurial mindset, 

entrepreneurial education, informal economy  



vi 

 

Table of Contents 

 

Declaration ................................................................................................................................. ii 

Dedication ................................................................................................................................ iii 

Acknowledgments..................................................................................................................... iv 

Abstract ...................................................................................................................................... v 

Table of Contents ...................................................................................................................... vi 

List of Tables ............................................................................................................................. x 

List of Figures .......................................................................................................................... xii 

Chapter 1: Introduction .............................................................................................................. 1 

1.1 Introduction ................................................................................................................. 1 

1.2 Research Problem ........................................................................................................ 3 

1.3 Research Questions ..................................................................................................... 4 

1.4 Justification for the Research ...................................................................................... 5 

1.4.1 Contribution to Theoretical Literature ................................................................. 5 

1.4.2 Contribution to Practice ....................................................................................... 5 

1.4.3 Contribution to Policymaking .............................................................................. 5 

1.4.4 Empowerment of Local Township Communities ................................................ 6 

1.5 Delimitations of the Study........................................................................................... 6 

1.6 Operational Definitions ............................................................................................... 6 

1.7 Outline of the Report ................................................................................................... 8 

1.8 Summary ..................................................................................................................... 8 

Chapter 2: Literature Review ................................................................................................... 10 

2.1 Introduction ............................................................................................................... 10 

2.2 Empirical Literature Review ..................................................................................... 10 

2.2.1 Defining Survivalist Entrepreneurs.................................................................... 10 

2.2.2 The Township of Soweto ................................................................................... 11 

2.2.3 Survivalist Entrepreneur Growth Challenges .................................................... 11 

2.2.4 Entrepreneurial mindset ..................................................................................... 13 

2.2.5 Motivations for Survival Entrepreneurs............................................................. 14 

2.3 Theoretical Literature Review ................................................................................... 15 

2.3.1 Cognitive Dissonance Theory ............................................................................ 15 

2.3.2 Social Cognitive Theory .................................................................................... 16 

2.3.3 Effectuation Theory ........................................................................................... 17 



vii 

 

2.3.4 Conceptual Framework for Entrepreneurs ......................................................... 18 

2.4 Chapter Summary ...................................................................................................... 20 

Chapter 3: Research Methodology........................................................................................... 22 

3.1 Introduction ............................................................................................................... 22 

3.2 Research Paradigm .................................................................................................... 22 

3.3 Methodological Decisions ......................................................................................... 23 

3.4 Research Design ........................................................................................................ 23 

3.5 Population.................................................................................................................. 23 

3.6 Sample Size and Targeted Sample ............................................................................ 24 

3.7 Sampling Method ...................................................................................................... 24 

3.8 Data Collection Procedure ........................................................................................ 25 

3.9 Research Instrument .................................................................................................. 26 

3.10 Data Analysis and Interpretation ............................................................................... 26 

3.10.1 Descriptive Statistics .......................................................................................... 26 

3.10.2 Validity and Reliability ...................................................................................... 27 

3.10.3 Hypothesis Testing............................................................................................. 27 

3.11 Ethical Considerations............................................................................................... 27 

3.12 Chapter Summary ...................................................................................................... 28 

Chapter 4: Presentation of Results ........................................................................................... 29 

4.1 Introduction ............................................................................................................... 29 

4.2 Data Validation and Screening .................................................................................. 29 

4.3 Sample Characteristics .............................................................................................. 29 

4.3.1 Age of Respondents ........................................................................................... 29 

4.3.2 Location ............................................................................................................. 30 

4.3.3 Education Level ................................................................................................. 31 

4.3.4 Reason for Operating in the Informal Sector ..................................................... 32 

4.4 Validity Analysis – Exploratory Factor Analysis ..................................................... 33 

4.4.1 Sampling Adequacy ........................................................................................... 33 

4.4.2 Total Variance Explained .................................................................................. 34 

4.4.3 Rotation of Factors ............................................................................................. 35 

4.5 Reliability Analysis ................................................................................................... 37 

4.5.1 Factor 1 – Entrepreneurship Education .............................................................. 37 

4.5.2 Factor 2 – Entrepreneurial Mindset ................................................................... 39 

4.5.3 Factor 3 – Entrepreneurial Ecosystem ............................................................... 40 



viii 

 

4.5.4 Factor 4 – Business Performance ....................................................................... 40 

4.6 Descriptive Statistics and Normality Tests ............................................................... 41 

4.7 Correlation Analysis .................................................................................................. 44 

4.8 Hypotheses Testing ................................................................................................... 45 

4.8.1 Model Summary................................................................................................. 46 

4.8.2 Hypothesis 1....................................................................................................... 47 

4.8.3 Hypothesis 2....................................................................................................... 47 

4.8.4 Hypothesis 3....................................................................................................... 48 

4.8.5 Hypothesis 4....................................................................................................... 48 

4.8.6 Hypothesis 5....................................................................................................... 49 

4.9 Chapter Summary ...................................................................................................... 49 

Chapter 5: Discussion of the Results ....................................................................................... 52 

5.1 Introduction ............................................................................................................... 52 

5.2 Demographics and Sample Characteristics ............................................................... 52 

5.2.1 Age ..................................................................................................................... 52 

5.2.2 Education Levels ................................................................................................ 53 

5.2.3 Ecosystem .......................................................................................................... 53 

5.3 Discussion of Findings .............................................................................................. 54 

5.3.1 Hypothesis 1....................................................................................................... 54 

5.3.2 Hypothesis 2....................................................................................................... 56 

5.3.3 Hypothesis 3....................................................................................................... 57 

5.3.4 Hypothesis 4....................................................................................................... 57 

5.3.5 Hypothesis 5....................................................................................................... 58 

5.4 Chapter Summary ...................................................................................................... 58 

Chapter 6: Conclusion, Implications and Recommendations .................................................. 60 

6.1 Introduction ............................................................................................................... 60 

6.2 Conclusion of the Findings ....................................................................................... 60 

6.3 Implications and Recommendations ......................................................................... 61 

6.4 Limitations of the Study ............................................................................................ 61 

6.5 Recommendations for Future Research .................................................................... 62 

References ................................................................................................................................ 63 

Appendices ............................................................................................................................... 73 

Appendix A: Research Instrument ....................................................................................... 73 

Appendix B: Consistency Matrix ......................................................................................... 76 



ix 

 

Appendix C: Participant Information Sheet ......................................................................... 77 

Appendix D: Ethical Clearance Certificate .......................................................................... 78 

 

  



x 

 

List of Tables 

Table 1: Operational Definitions ............................................................................................... 7 

Table 2: Motivations for Survivalist Entrepreneurs ................................................................. 15 

Table 3: Approaches to Determining the Sample Size ............................................................ 24 

Table 4: Age of Respondents ................................................................................................... 30 

Table 5: Reasons for Informal Business .................................................................................. 32 

Table 6: KMO and Bartlett's Test ............................................................................................ 33 

Table 7: Total Variance Explained .......................................................................................... 34 

Table 8: Pattern Matrix ............................................................................................................ 36 

Table 9: Reliability of Measurement Scales ............................................................................ 37 

Table 10: Factor 1 – Reliability Statistics ................................................................................ 38 

Table 11: Factor 1 – Summary Item Statistics ......................................................................... 38 

Table 12: Factor 1 – Item-total Statistics ................................................................................. 38 

Table 13: Factor 2 – Reliability Statistics ................................................................................ 39 

Table 14: Factor 2 – Summary Item Statistics ......................................................................... 39 

Table 15: Factor 2 – Item-total Statistics ................................................................................. 39 

Table 16: Factor 3 – Reliability Statistics ................................................................................ 40 

Table 17: Factor 3 – Summary Item Statistics ......................................................................... 40 

Table 18: Factor 3 – Item-total Statistics ................................................................................. 40 

Table 19: Factor 4 – Reliability Statistics ................................................................................ 41 

Table 20: Factor 4 – Summary Item Statistics ......................................................................... 41 

Table 21: Factor 4 – Item-total Statistics ................................................................................. 41 

Table 22: Descriptive Statistics (Including Skewness and Kurtosis) ...................................... 42 

Table 23: Pearson’s Correlation Coefficient............................................................................ 45 

Table 24: Regression Analysis – Variable Classification ........................................................ 45 

Table 25: Conceptual Framework Summary ........................................................................... 46 

Table 26: Business Performance – Model Summary ............................................................... 46 

Table 27: Direct Effect of Entrepreneurial Ecosystem on Business Performance .................. 47 

Table 28: Entrepreneurial Mindset – Model Summary ........................................................... 47 

Table 29: Interaction Between Mindset and Education ........................................................... 48 

Table 30: Conditional Indirect Effects of X on Y.................................................................... 49 

Table 31: Index of Moderated Mediation ................................................................................ 49 

Table 32: Hypothesis Summary ............................................................................................... 51 



xi 

 

Table 33 Education Level by Age Group ................................................................................ 53 

Table 34: Entrepreneurial Support Levels vs Location ........................................................... 55 

Table 35: Education vs Location ............................................................................................. 55 

  



xii 

 

List of Figures 

Figure 1: Cognitive Dissonance Theory (Festinger, 1957; Gaya, 2017) ................................. 16 

Figure 2: Visual Illustration of Social Cognitive Theory ........................................................ 17 

Figure 3: Conceptual Framework for Enterprise Growth ........................................................ 19 

Figure 4: Distribution of Respondents ..................................................................................... 31 

Figure 5: Education Levels ...................................................................................................... 32 

Figure 6: Scree Plot .................................................................................................................. 35 

Figure 7: Histograms................................................................................................................ 42 

Figure 8: Q-Q Plots .................................................................................................................. 43 

Figure 9: Box Plots .................................................................................................................. 44 

Figure 10: Entrepreneurial Ecosystem – Combined Responses .............................................. 54 

 



1 

 

Chapter 1: Introduction 

1.1 Introduction 

South Africa is an unequal society affected by unemployment and poverty, especially among 

the youth. This has led to much of the underprivileged Black population being marginalised by 

the formal economy and forced to create possibilities in the informal economy by employing 

various forms of entrepreneurship (Masuku & Nzewi, 2021). These forms of entrepreneurship 

have become a crucial part of South African economic activity. The informal sector employs 

about 2.9 million individuals in the country, a figure which has increased by over 600 000 from 

2013 (Lamb et al., 2019), demonstrating, that the sustainability and growth of the sector must 

be understood and encouraged. 

Research by Ledingoane and Viljoen (2020) classifies businesses that operate in the informal 

sector into two main categories: survivalist enterprises and growth-oriented enterprises. The 

authors maintain that survivalist businesses form the majority in South Africa, at 78% of the 

enterprises in the informal sector. This indicates that most entrepreneurs are largely motivated 

by protecting their livelihoods. This is reflective of most businesses and entrepreneurs 

operating in the townships. 

The township economy makes up a significant part of the informal sector, which is mainly 

characterised as unregulated, unregistered small-scale businesses not governed through 

conventional measures, as in the formal sector (Cant & Rabie, 2018). An alternative 

measurement or description of an informal business, in addition to the size and characteristics, 

is provided through the nature of the employment relationships that occur; often employees are 

not protected legally and socially (Stuart et al., 2018). 

The township economy exists and manifests in three main areas: (1) apartheid townships, 

which were created for only residential purposes to house Black labourers, (2) post-apartheid 

townships that were built on the peripheries of suburban residential areas and remain 

underdeveloped, lacking public infrastructure and social services and (3) informal settlements 

which are constructed often illegally on land that was designated for something else (Scheba 

& Turok, 2020). This economy serves almost half of the population that lives in these 

overpopulated and underdeveloped communities in townships and informal settlements (Cant, 

2017). In such societies, entrepreneurial activity, which was heavily policed and suppressed, 



2 

 

was severely restricted by the effects of the apartheid era. Furthermore, economic and financial 

literacy was and still is limited (Department of Planning, Monitoring and Evaluation, 2017). 

Various types of businesses have formed in the township economy; street vendors sell a variety 

of products from clothes to food and informal convenience stores – locally known as spaza 

shops – as well as taverns make up most of the informal enterprises in this environment 

(Western Cape Economic Development Partnership, 2019). Research by Scheba and Turok 

(2020), which references a survey on township economies completed by the Sustainable 

Livelihoods Foundation (2016), shows that most of these businesses provide food and alcohol 

services, contributing 54% of the economic activity. 

Local services, including businesses such as hair and beauty salons, mechanical and electrical 

repairs and home-based businesses such as childcare centres, also make a significant 

contribution at 34%. A small portion consists of manufacturing at 2%. The last 10% is 

attributed to miscellaneous activity, which also includes unlawful behaviour. The survey 

collected data from approximately 11 000 informal businesses from nine townships across 

South Africa (Scheba & Turok, 2020; Sustainable Livelihoods Foundation, 2016). 

These informal businesses are operated by survivalist entrepreneurs who encounter significant 

management challenges that inhibit their enterprise development. The study focused on several 

key factors that could enhance and sustain their Business Performance. The study examines 

how the external socioeconomic and environmental factors impact the performance of these 

entrepreneurs – adopting the Social Cognitive Theory emphasizing the importance of the 

survivalist entrepreneur’s interactions with their Entrepreneurial Ecosystem to develop their 

entrepreneurial mindset, enabling them to realize entrepreneurial effectiveness. Furthermore, 

the relationship between the survivalist entrepreneur and the resource-constrained 

environments is explored from the perspective of the Effectuation Theory, which refers to the 

decision-making process in uncertain environments, leveraging the limited resources available. 

Additionally, the study concentrates on Entrepreneurial Education's critical role in acquiring 

knowledge, the relevant entrepreneurial competence and the correct behaviours required for 

developing a strong Entrepreneurial Mindset enabling effective problem-solving and 

innovation. Developing a constructive Entrepreneurial Mindset is viewed through applying, 

the Cognitive Dissonance Theory. 



3 

 

1.2 Research Problem 

Throughout the history of democracy in South Africa, the country has struggled to realize and 

sustain structural transformation, failing to create an economy that maintains high productivity 

levels in the labour market (Andreoni et al., 2021). As a result, the country has suffered low 

economic growth, only achieving 0.8% annually in average growth in GDP since 2012 due to 

high unemployment levels and widespread poverty (South African government: National 

Treasury, 2024). Research on informal entrepreneurship conducted by Urban & Ndou (2019) 

states that the high levels of unemployment and poverty have fuelled inequality in the country, 

creating a dual economy, with a small portion of the population living in a highly developed 

economy and much of the disadvantaged populace struggling for survival in the informal 

economy. Based on these circumstances, the growth of small and medium-sized enterprises 

(SMMEs) is considered crucial for creating jobs and alleviating poverty (Urban & Ndou, 

Informal entrepreneurship: A focus on South African township entrepreneurs, 2019). 

Entrepreneurship can be used to make a significant improvement to the socio-economic 

development of the township economy. It has been recognised by researchers such as Wiid and 

Cant (2021) to have the potential to contribute to improving efforts to alleviate poverty, reduce 

the effects of economic exclusion and provide sustainable means for creating access to 

equitable opportunities (Local Government Sector Education and Training Authority, 2020; 

Wiid & Cant, 2021). 

Although there has been a significant amount of research carried out on the township economy, 

there is a continuing requirement to gain comprehensive knowledge of the variables that 

promote and inhibit the expansion of township businesses (Urban & Ndou, Informal 

entrepreneurship: A focus on South African township small, medium and micro-enterprises 

(SMMEs), 2019). Furthermore, most of the research only considers the external influences that 

impact the growth of small businesses in this environment. Nambiar et al. (2020) mention that 

most studies attributed the failure of small businesses to ineffective marketing, adverse 

financial circumstances, and inefficient operations. Moreover, a substantial amount of the 

literature focuses on the role of formal enterprises in the townships and excludes the significant 

contribution and challenges faced by small-scale survivalist entrepreneurs (Asoba & Mefi, 

2021). 



4 

 

This research paper sought to investigate the challenges and opportunities of survivalist 

entrepreneurs in Soweto by evaluating the effectiveness of the entrepreneurial ecosystem. The 

study also examined the potential of using education to improve the entrepreneurial mindset. 

Additionally, the research investigated how education and the entrepreneurial mindset can be 

leveraged to improve business performance.  

1.3 Research Questions 

Evaluating the entrepreneurial ecosystem, education and mindset offers improved contextual 

knowledge of the environment in which survivalist entrepreneurs operate, providing awareness 

and understanding of the unique socio-economic challenges and opportunities encountered by 

these entrepreneurs. The research investigated the condition of the entrepreneurial ecosystem 

in the informal economy of Soweto and how it contributed to developing sustainable and 

scalable enterprises in this environment. 

Furthermore, the study explored the entrepreneurial mindset of these entrepreneurs to establish 

whether they believed they were capable of creating their own success irrespective of the 

challenges brought on by the adverse economic, social, and political environment in which they 

operated. How entrepreneurial education contributed to the survivalist entrepreneurial mindset 

was explored by evaluating the individual capacity of these entrepreneurs to grow their small-

scale operations to understand how this process influenced the effectiveness and empowerment 

of local township entrepreneurs in Soweto. 

Therefore, the following research question was formulated: What role does the 

entrepreneurial ecosystem, education, and mindset have in the development or success of 

the survivalist entrepreneur? The following three sub-questions directed the data collection 

method: 

• What challenges does the resource-constrained township environment of Soweto 

present for survivalist entrepreneurs? 

• Would an improvement in education and training levels in Soweto have a positive 

influence on the survivalist entrepreneurial mindset? 

• To what extent does the entrepreneurial mindset influence the business performance of 

the survivalist entrepreneurs operating in the informal economy of Soweto? 



5 

 

 The study addressed the research questions by examining the direct relationships between the 

entrepreneurial ecosystem, entrepreneurial mindset, and business performance. In addition, the 

research explores the role of entrepreneurial education as a moderating variable between 

entrepreneurial mindset and business performance and whether entrepreneurial education 

mediates the relationship between the ecosystem and business performance. 

1.4 Justification for the Research 

1.4.1 Contribution to Theoretical Literature 

This academic study will contribute to the literature focusing on the growth and development 

of survivalist entrepreneurs in township economies. Researchers and academics will gain more 

insights and comprehension into how the development of the entrepreneurial mindset and the 

entrepreneurial ecosystem in the township plays a role in achieving sustainable business 

performance, development, and sustained competitiveness. 

1.4.2 Contribution to Practice 

The research and theory were intended to provide survivalist entrepreneurs with a conceptual 

framework that could be used to improve their business performance, empowering themselves 

with the knowledge and competence required to manage and grow their enterprises effectively. 

Increasing the collective power of businesses in the informal township economy by promoting 

an entrepreneurial culture with the correct values, principles, and competencies would enable 

improved income generation (Danish et al., 2019; Malgas & Zondi, 2020). 

Manyaka-Boshielo (2017) states that entrepreneurship begins with defining and understanding 

individual identity. It is followed by resolving issues around self-worth or the restoration of 

dignity to improve one’s intrapersonal relationships and strengthen the interpersonal 

relationships one creates and shares with others. Manyaka-Boshielo concludes that this process 

should be supported by acquiring the necessary business competencies to create a successful 

entrepreneur. 

1.4.3 Contribution to Policymaking 

The study will provide government agencies and other key business development organisations 

involved in policymaking targeted at improving the township economy, with the necessary 

awareness to enhance their strategic approach to formulating legislation and policy guidelines 



6 

 

that seek to address some of the crucial socio-economic challenges encountered by survivalist 

entrepreneurs. 

1.4.4 Empowerment of Local Township Communities 

Township communities would benefit substantially from the success of these informal 

organisations, improving their standard of living through employment generation (Ledingoane 

& Viljoen, 2020). Survivalist enterprises are crucial in sustaining local economies, reducing 

unemployment, and providing an alternative source of income for those employed in the formal 

sector but who seek to supplement their income to endure the tough economic environment 

(Musara & Nieuwenhuizen, 2020). 

The study will provide a diagnosis of entrepreneurial ecosystems in the township environment, 

emphasising aspects that can be improved and enabling community developmental initiatives 

focused on entrepreneurship to be adequately structured to support the growth of these informal 

enterprises. 

1.5 Delimitations of the Study 

The research constraints are designed to establish guidelines to ensure the feasibility of the 

study and confirm that it effectively addresses the research objectives. The scope of this 

analysis centred on survivalist entrepreneurs who operate informal enterprises in the township 

of Soweto. The delimitations of the study are outlined below: 

• This study did not focus on enterprises operating in the formal economy. 

• Non-governmental organisations and non-profit organisations were excluded. 

• Only South African entrepreneurs were studied. 

• The influence of gender on the results of the study, was not considered. 

1.6 Operational Definitions 

Table 1 provides a description of the operational definitions. 

  



7 

 

Table 1: Operational Definitions 

Term Definition 

Entrepreneurial 

Mindset 

The entrepreneurial mindset has three key factors: cognitive ability, 

behavioural competencies, and emotional aspects (Kuratko et al., 2021). 

Improving these three attributes develops self-leadership, inventiveness, 

and improvision to readily act and organise under uncertain conditions to 

create and exploit business opportunities, irrespective of any external 

constraints that may be present (Kuratko et al., 2021). Moreover, having 

the correct mindset empowers the entrepreneur with the necessary risk 

appetite, the ambition to succeed, and the eagerness to acquire new skills 

to start and develop new business ventures (Bosman & Fernhaber, 2019; 

Kuratko et al., 2021). 

 Informal Sector  
The informal sector is not regulated, and business activity is not directed 

by formal contractual agreements (Etim & Daramola, 2020).  

Survivalist Enterprises 

A business that operates in the informal sector, mostly in the township, 

where there is low market potential (Ledingoane & Viljoen, 2020). The 

revenue produced by this business is usually below the income level.  

Survivalist 

Entrepreneurs  

Survivalist entrepreneurs operate microenterprises with a survival 

objective to protect their livelihoods and provide for their families in under-

resourced communities (Du Toit et al., 2020). They usually receive little to 

no assistance from government-led initiatives due to the informal nature of 

their enterprises (Asoba & Mefi, 2021).  

Entrepreneurial 

Education 

The research adopts the perspective of Gwija et al., (2014), which describes 

entrepreneurial education as an educator empowering a learner with the 

required entrepreneurial knowledge, capabilities, competence, and 

personal behavioural development to operate a business successfully. In 

the context of the study, this is defined as local training programs organized 

by either community, government, or organizations aimed at skill 

development for survival entrepreneurs, including coaching or mentoring 

provided by other entrepreneurs or business professionals, as well as 

workshops or seminars that offer informal learning opportunities aimed at 

developing specific entrepreneurial skills. 

 



8 

 

1.7 Outline of the Report 

The opening chapter provides the rationale and insights into the selected area of research, 

providing the background of the research problem and objectives. An empirical review of the 

literature is then presented in the second chapter, evaluating the critical concepts that have been 

applied through similar studies, providing justification of the research questions, and 

permitting the identification of gaps in the literature. This chapter also delivers a conceptual 

framework comparing and contrasting various theoretical frameworks to guide the research. 

These frameworks enabled the formulation of hypotheses or statements of expectation that 

were evaluated in the study. 

An outline of the proposed methodology for the study and the research design, which is based 

on a pragmatism paradigm using a quantitative approach to explore and examine the research, 

is presented in the third chapter. Finally, an analysis of the study is presented, and the results 

are interpreted and summarised to offer a unique perspective on the resolution of the study. 

The report concludes with the future implications for the research and recommendations. 

1.8 Summary 

The informal economy encourages economic growth, providing just over 17% of total 

employment. The township economy forms a significant part of the informal sector as most of 

the enterprises that operate in this environment are based in townships and are created by 

survivalist entrepreneurs out of the necessity for subsistence. However, these survivalist 

entrepreneurs fail to grow or sustain their businesses, most of which fail within five years of 

inception. 

The study focused on Soweto, one of the largest townships in the City of Johannesburg. Much 

like in most townships across South Africa, survivalist entrepreneurs who operate in this 

environment are faced with numerous socio-economic challenges that contribute to high levels 

of poverty and low household income levels. The research sought to understand and evaluate 

the self-inclination and the resilience of these entrepreneurs to overcome adversity to grow 

their businesses. The growth and development of these enterprises could provide a much-

needed solution to income generation and poverty alleviation in these overpopulated and 

underdeveloped communities. 



9 

 

The research aimed to create a form of reference and provide insights into the entrepreneurial 

ecosystem of survivalist entrepreneurs in the township of Soweto. This knowledge would 

empower survivalist entrepreneurs with a conceptual framework that could be leveraged to 

increase entrepreneurial performance to achieve business growth and sustained 

competitiveness and significantly contribute to the practice of entrepreneurship. 

Policymakers would also benefit from the research as it might be used to formulate legislation 

or guidelines to address the socio-economic challenges encountered by survivalist 

entrepreneurs. Most importantly, local township communities could use the literature to 

identify how the entrepreneurial ecosystem contributes to this problem and how it might be 

addressed through community-led developmental initiatives. 

To ensure the effectiveness of the study, it only focused on South African-born survivalist 

entrepreneurs who operate informal enterprises in the township of Soweto. The research also 

eliminated non-profit and non-governmental organisations as it sought to evaluate enterprises 

with profit-making potential. 

  



10 

 

Chapter 2: Literature Review 

2.1 Introduction 

The purpose of the literature review was first to investigate similar forms of research that 

investigate the development of survivalist entrepreneurs through the enhancement of the 

entrepreneurial mindset in township economies. Second, an analysis of the correlation between 

cognitive capability and business performance uncovered the research gaps supported by 

empirical evidence to guide the direction of the research. The review of the theoretical literature 

led to the utilisation and expansion of an available conceptual framework established through 

prior investigations. The literature review addressed the following question: What role do the 

entrepreneurial ecosystem, education, and mindset have in the development or success of 

the survivalist entrepreneur? 

A pragmatism paradigm was adopted to conduct a critical review of the literature to evaluate 

the concepts and methodologies that provided practical resolutions and greater insights into the 

survivalist entrepreneurs’ entrepreneurial mindset, their business motives and the constraints 

that contributed to their limited success and failure in the township of Soweto. 

2.2 Empirical Literature Review 

2.2.1 Defining Survivalist Entrepreneurs 

Survivalist entrepreneurs can be classified as persons who are driven into entrepreneurship in 

order to survive and not due to the desire to pursue opportunities or profit motives (Mapuranga 

et al., 2021). These individuals struggle to find employment and form part of the poor working 

class. They have limited opportunities for finding alternative gainful employment and are 

compelled by their circumstances to employ a survival strategy to create a source of income to 

alleviate the effects of poverty (Ntoyanto & Khumalo, 2021). 

Survivalist entrepreneurs operate businesses that require minimal capital investment and 

struggle to generate income levels above the poverty line. Most survivalist entrepreneurs lack 

formal training, relevant business knowledge, and expertise (Mapuranga et al., 2021). 

Mapuranga et al. (2021) classify survival entrepreneurship and informal businesses into three 

categories: (1) lack or infringement of economic regulations, (2) small-scale operations, and 

(3) engaging in prohibited or illegal activities. 



11 

 

Survivalist entrepreneurs are distinct from the normal systematic or opportunity-driven 

entrepreneurs who explore business prospects for profit, opportunity development, and 

innovation. Survivalist entrepreneurs are often seen as short-term players in the economy 

instead of potential contributors to development (Ranyane, 2015). However, some survivalist 

entrepreneurs may have the ability to develop and legitimise their businesses over time. 

2.2.2 The Township of Soweto 

Soweto consists of the largest population in Johannesburg, with residents occupying 24% of 

the city. However, the population figures do not correlate with the employment rate, which is 

currently at 43%, making Soweto the region with the highest unemployment rate in the city 

(Ministry of Cooperative Governance and Traditional Affairs, 2020). Moreover, the township 

experiences considerable poverty levels and very low household income levels. Most 

survivalist entrepreneurs in the township of Soweto fail to develop past the initial stage, and 

their businesses remain fixed in their survivalist nature or fail within five years of inception, as 

examined in research by Asoba and Mefi (2021), which references literature from Choto et al. 

(2014) and Iwu et al. (2016). 

The plight of local survivalist entrepreneurs has correspondingly created an opportunity for 

their foreign counterparts, who are now in control of almost 50% of informal businesses (Lamb 

et al., 2019). It is crucial to acknowledge that the immigrant entrepreneur is subjected to 

significantly worse socio-economic and political conditions, such as xenophobic attacks and 

poor government policy regulation. However, they tend to be more resilient and successful 

(Tengeh, 2016). 

2.2.3 Survivalist Entrepreneur Growth Challenges 

2.2.3.1 Entrepreneurial Ecosystem 

External socio-economic environment factors impact the performance of entrepreneurs and, 

unfortunately, most of these factors are outside the entrepreneur's control and this complexity 

often leads to business failure (Ibidunni et al., 2021). The environment in which entrepreneurs 

operate, as well as their level of expertise, directly affects their entrepreneurial self-efficacy 

(Luo et al., 2022). Urban & Ndou (2019) assert that an enterprise's success primarily depends 

on the environment in which the entrepreneur is operating, regardless of the person's own 

capability and competence. 



12 

 

In the townships, survivalist entrepreneurs function in a resource-constrained environment that 

is not conducive to personal or economic development. The success of these informal 

entrepreneurs is affected by several socio-economic issues, such as dilapidated and 

underdeveloped infrastructure, high levels of poverty, low levels of skills, and the absence of 

business support services (Omonona et al., 2021). 

Research from Ledingoane and Viljoen (2020) further explains that these entrepreneurs 

attribute their limited potential for success to poor economic infrastructure, restricted access to 

funding, increased cost of municipal services, increased competition from migrant traders and 

larger retailers, strikes and crime and the exorbitant cost of technology. Du Toit et al. (2020) 

identify that spatial patterns also have an impact on informal entrepreneurship because 

townships are often built 3 to 8 kilometres away from a region's main economic centres, a 

legacy of the country’s pre-democratic apartheid past. 

2.2.3.2 Education 

A constant recurring theme in the literature describing the challenges faced by survivalist 

entrepreneurs is their lack of education and training. Iwu and Opute (2019) argue that 

survivalist entrepreneurs do not meet the requirements from a human capital perspective – 

referring to poor educational backgrounds, limited experience, and the lack of relevant 

knowledge, competence, levels of intellect, and entrepreneurial awareness and judgment. The 

typical survivalist entrepreneur has low levels of education and experience, and most are 

without formal qualifications (Manyaka-Boshielo, 2017); in contrast, most opportunity-driven 

entrepreneurs can be described as highly skilled and technical individuals who already possess 

an advanced mentality in problem-solving and innovation. 

A study conducted by Jiatong et al. (2021) demonstrates a positive correlation between 

entrepreneurial education and mindset. Education increases awareness and capability, 

improves comprehension, and aids the individual in establishing a sustainable philosophy about 

entrepreneurship (Handayati et al., 2020). Research emphasises education as an antecedent 

variable, critical to sustaining the relationship between the entrepreneurial mindset and the 

entrepreneurial process (Cui & Bell, 2022). It is through this development that entrepreneurs 

acquire knowledge and skills and create the correct behaviours required for growing a 

successful enterprise. 



13 

 

2.2.4 Entrepreneurial mindset 

Entrepreneurial success is typically evaluated based on the outcomes of an enterprise or the 

entrepreneur, such as revenue generation or enterprise growth, and it fails to consider the 

readiness and required changes in the mental ability of individuals who engage in the 

entrepreneurial process (Wigner et al., 2022). Thus, it is necessary to evaluate the 

entrepreneurial mindset. 

In the context of this study, the concept applies to survivalist entrepreneurs operating under a 

highly volatile and uncertain environment and seeking to establish the status of the survivalist 

entrepreneurial mindset. Thereafter, a comparison must be made with the entrepreneurial 

mindset of systematic or opportunity-driven entrepreneurs to understand the deviation between 

the two different perspectives and the influence they have on entrepreneurial success. 

2.2.4.1 Status of the Survivalist Entrepreneurial Mindset 

Choto et al. (2014) refer to survivalist entrepreneurs as having a negative or fixed mindset, 

stating that they cannot maintain the required dedication and appetite to enable business success 

and that they consider themselves as having no control over changing the course of their lives. 

Choto et al. (2014) also describe these entrepreneurs as having limited awareness of their own 

potential as they are limited by their cognitive capacity to understand general business concepts 

and adopt a long-term perspective on business performance and sustainability. Therefore, they 

cannot maximise their potential to navigate and overcome business challenges. 

A study investigating the link between poverty and the entrepreneurial mindset conducted by 

Morris and Tucker (2021) highlights the scarcity mindset as one of the dimensions that prevents 

those who are living in poverty from developing an effective entrepreneurial mindset that will 

enable them to build successful businesses. Further, they state that the effects of experiencing 

poverty have a negative psychological and emotional impact on entrepreneurs who come from 

impoverished backgrounds. 

In contradiction to the view expressed by the authors above, a qualitative study investigating 

survivalist entrepreneurs operating in marginalised communities commissioned by Du Toit et 

al. (2020) identified some positive common themes relating to the survivalist entrepreneurial 

mindset; these included having a positive attitude and the ability to be creative and innovative 

to solve challenges in the environment around them and demonstrating that they wanted to be 



14 

 

purposefully engaged in constructive occupation to improve their economic situation. 

Furthermore, there was evidence that demonstrated that some of the respondents were not just 

concerned about self-preservation but also had an altruistic mindset to uplift and empower their 

community. Their study results also presented significant levels of perseverance and a strong 

work ethic among some of the respondents. 

2.2.4.2 Desired Entrepreneurial Mindset 

A study conducted by Lynch and Corbett (2021) that explored the entrepreneurial mindset 

emphasised the argument that expanding the entrepreneurial mindset is a key contributor to 

building sustainable business ventures and that the entrepreneur needs to continuously develop 

this mental capacity to avoid failure. Furthermore, the entrepreneurial mindset empowers 

entrepreneurs to adapt to change easily and prepares them to find solutions to complex 

challenges to advance their entrepreneurial objectives of every kind and not just enterprise 

development (Lynch & Corbett, 2021). 

Lynch and Corbett (2021) describe the duality that exists within the concept of the 

entrepreneurial mindset as continuously moving between elaboration – feasibility and planning 

– and implementation – application and review. It is this relationship that drives the ability to 

activate the cognitive processes that facilitate the opportunity evolution from ideation to 

application, advancing entrepreneurial objectives and increasing the ability to overcome 

adversity when the desired results are not achieved. 

2.2.5 Motivations for Survival Entrepreneurs 

In a study investigating survivalist entrepreneurs and the eradication of poverty and 

unemployment, Iwu and Opute (2019) identify five key motives for survival entrepreneurs; 

these include establishing a source of income and creating an alternative source of income to 

increase earning potential to support the family. Another motive – a common theme among 

women participants – was referred to as “breaking the glass ceiling” (Iwu & Opute, 2019, p. 

1442) and interpreted as the need to prove to their male counterparts that they can venture into 

business. Meeting social requirements, having a purpose and keeping active were further 

motives. Table 2 shows the corresponding comments from the qualitative research that led to 

the motivations mentioned here. 



15 

 

Table 2: Motivations for Survivalist Entrepreneurs (Iwu & Opute, 2019)

Survivalist entrepreneurs are perceived to be unmotivated to create new growth opportunities. 

However, Knox et al. (2019) in their study into the growth aspirations of informal enterprises 

refutes this perception, referencing Choto et al. (2014) who presented that “ninety per cent of 

the survivalist entrepreneurs that enrolled in incubator programmes did so because they 

aspired to grow” (Knox et al., 2019, p. 7). These authors further present an alternative 

argument, stating that informal enterprises should not be measured by their profit generation 

ability but rather should be evaluated on their potential impact on the local economy (Knox et 

al., 2019; Neves & Du Toit, 2012). 

2.3 Theoretical Literature Review 

2.3.1 Cognitive Dissonance Theory 

A mindset is a predetermined approach or frame of mind that influences or predisposes an 

individual's perspective as well as how they act and behave consistently (Robinson & Gough, 

2020). A deeper understanding of the entrepreneurial mindset can be achieved through the 

application of cognitive psychology. Given that the term ‘mindset’ refers to the collective 



16 

 

cognitive processes that are activated to start and complete any task or activity (Lynch & 

Corbett, 2021), cognitive consistency theories applied to entrepreneurship suggest that people 

need to develop behaviours, values, beliefs, emotions and attitudes consistent with the practice 

of entrepreneurship (Alves & Yang, 2022). 

Alves and Yang (2022), further demonstrate how these cognitive mechanisms contribute to (1) 

improved entrepreneurship competence – which is required to evolve through the life cycle of 

a business, (2) cognitive flexibility and creativity – which focus on the capability of the 

entrepreneur to effectively organise their resources and use their skills and awareness to 

spontaneously respond and adapt to uncertainty, (3) the substantial effect on entrepreneurial 

self-efficacy and (4) the level of optimism in facing challenges and overcoming failure. 

This perspective leverages the cognitive dissonance theory which correspondingly states that 

when there is cognitive inconsistency or discrepancy, it causes psychological discomfort, also 

referred to as dissonance discomfort, which will encourage the entrepreneur to eliminate the 

dissonance (Harmon-Jones & Mills, 2019). Figure 1, shows a visual interpretation of the 

process flow illustrating the application of cognitive dissonance theory (Festinger, 1957; Gaya, 

2017). 

 

Figure 1: Cognitive Dissonance Theory (Festinger, 1957; Gaya, 2017) 

2.3.2 Social Cognitive Theory 

The social cognitive theory investigates human behaviour from a psychological perspective. 

The main principles of the theory are based on people's interactions with their social 

surroundings that have a significant impact on their learning ability, their level of motivation 



17 

 

and their self-regulation (Schunk & DiBenedetto, 2020). This theory can assist survivalist 

entrepreneurs in developing their entrepreneurial mindset, enabling them to understand their 

own cognitive aptitude regarding self-determination, resilience and commitment, all of which 

are factors that will ultimately determine the level of effort they will implement to realise 

entrepreneurial effectiveness (Bandura et al., 1999; Elnadi & Gheith, 2021). 

Based on social cognitive theory, self-efficacy beliefs have a crucial role in the development 

of human cognition as it empowers individuals with the ability to regulate their actions, 

emotions, and behaviours (Schunk & Pajares, 2010). Figure 2 presents a visual illustration of 

social cognitive theory. 

 

Figure 2: Visual Illustration of Social Cognitive Theory (Bandura, 2004; Lee et al., 2018) 

2.3.3 Effectuation Theory 

The effectuation theory refers to the process of decision-making in uncertain environments; the 

logic provides entrepreneurs with the ability to be agile in their response to volatile situations 

or resource-constrained environments (Matalamäki, 2017). Entrepreneurs who adopt this 

approach develop a resource-based view, creating opportunities by leveraging the limited 

resources available as opposed to using a predictive planning perspective. 

Survivalist entrepreneurs are created out of urgency and, therefore, may not follow a 

predetermined process. These entrepreneurs need to be able to act and effectively use the 

resources at their disposal to start and grow their businesses. Neck et al. (2018) agree with this 

perspective as they believe that entrepreneurship does not follow a direct process based on 

planning and predetermined objectives. Entrepreneurship rather requires a method that can be 

improved through continuous learning and practice, applying the creation logic aimed to 

achieve business objectives by taking advantage of the available resources in an uncertain 



18 

 

business environment. This concept is similar to the approach taken by survivalist 

entrepreneurs. 

2.3.4 Conceptual Framework for Entrepreneurs 

Cognitive dissonance theory provides a framework of how the survivalist entrepreneur’s 

mindset, through psychological discomfort, can be motivated to improve and correct the 

inconsistencies brought on by the impoverished township environment. The theory provides 

the entrepreneur with a purpose to achieve the required behavioural outcomes. However, this 

is assuming an optimistic outcome. 

Contrastingly, cognitive theories can also explain how negativity in the mind can lead to 

maladaptive behaviour that is reinforced through repetition leading to increased anxiety and 

depression and producing adverse and undesirable results (LeMoulta & Gotlib, 2019). This 

explains the current reality of these survivalist entrepreneurs, where a challenging political, 

economic and social environment perpetuates and reinforces poverty and inequality. Thus, 

these entrepreneurs are compelled to focus only on creating a source of sustenance for 

themselves and their families (Iwu & Opute, 2019). 

The literature considers entrepreneurial learning through the application of Bandura's social 

cognitive theory which emphasises the importance of self-belief in the cognitive process and 

the decisive role it has in stimulating motivation and creating sustainable behavioural change 

(Schunk & DiBenedetto, 2020). 

Chen (2022), referencing Schunk & Pajares (2010), describes the social cognitive theory as a 

psychological perspective that encourages individuals to have the cognitive ability to 

effectively manage internal biological factors, take initiative and apply self-regulation to 

prevent themselves from being negatively impacted by external factors in their environment. 

These authors further maintain that self-efficacy enables the necessary self-influence to achieve 

personal goals and facilitates the transformation from the real self to the ideal self. The theory 

provides direction on how learning and development can be applied to survivalist entrepreneurs 

to enhance their entrepreneurial mindset. 

The conceptual framework shown in Figure 3 was derived from the research to investigate the 

influence of the entrepreneurial mindset on improving the entrepreneurial effectiveness of 



19 

 

survivalist entrepreneurs to achieve entrepreneurial success and growth in the township of 

Soweto and evaluate their readiness to overcome their adverse environment. 

 

Figure 3: Conceptual Framework for Enterprise Growth 

The independent variable of the framework is the entrepreneurial environment and is based on 

interpretations of the entrepreneurial ecosystem by Isenberg (2010), Stam and Bosma (2015) 

and Urban and Ndou (2019) which describes six interdependent variables that facilitate 

successful entrepreneurship within an environment. These are (1) access to suitable 

infrastructure and institutional assistance, (2) a conducive market for trading goods and 

services, (3) access to finance, (4) policy certainty with good governance and leadership, (5) 

exceptionally skilled human resources and (6) a supportive entrepreneurial culture. 

Entrepreneurial education is the moderating variable which is based on a research done by Iwu 

et al. (2021). This variable focuses on the perceived benefits of improving the entrepreneurial 

mindset by increasing innovation and equipping entrepreneurs with essential business 

management expertise and the ability to leverage the resources around them. The 

entrepreneurial mindset, as interpreted by Kuratko et al. (2021), includes emotional, cognitive 

and behavioural characteristics and mediates the relationship between the environmental 

factors and entrepreneurial business performance. 

The synthesis of the relationships explored in the review of the literature and the resultant 

conceptual framework shown in Figure 3 led to the following hypotheses: 

• H1: Entrepreneurial ecosystems in the township of Soweto have a considerable 

influence on survivalist entrepreneurs achieving business performance. 

• H2: The entrepreneurial ecosystem has a significant influence on the survivalist 

entrepreneurial mindset in the township of Soweto. 



20 

 

 

Academics have identified that the ecosystem has a positive predictive influence on the 

development of entrepreneurial capability. Societal norms, academic systems and 

family background are crucial to the development of entrepreneurial competence. The 

environment provides the necessary support for entrepreneurs to start, scale and 

commercialise their business ventures (Luo et al., 2022). 

 

• H3: Entrepreneurial education moderates the relationship between the entrepreneurial 

mindset and business performance. 

 

Iwu et al. (2021) describe entrepreneurial education as the foundation of entrepreneurial 

action as it has a significant impact on the entrepreneurial mindset and encourages 

entrepreneurial intention. It also creates innovative thinking, promotes entrepreneurial 

awareness, and improves business performance. This is achieved by instilling the 

correct attitudes, principles, and beliefs and through education and training in the 

correct knowledge and skills. 

 

• H4: Improved entrepreneurial mindset has a positive influence on business performance 

in the context of Soweto. 

• H5: Entrepreneurial mindset mediates the relationship between entrepreneurial 

ecosystem and business performance (indirect effect). 

 

The entrepreneurial mindset is the culmination of intentions and competence in the 

cognitive process entrepreneurs apply for critical decision-making, opportunity 

identification, value creation and business performance. It refers to connecting various 

components of entrepreneurship to advance entrepreneurial objectives, continuously 

improving business venture opportunities by effectively using the available resources 

(Kuratko et al., 2021). Lastly, it empowers the entrepreneur with the ability to overcome 

complex challenges and difficulties (Lynch & Corbett, 2021). 

2.4 Chapter Summary 

The literature review was guided by preceding investigations into the operational components 

of entrepreneurship, which could contribute to the development of survivalist entrepreneurs 



21 

 

and enable them to build effective, reliable and successful enterprises. The analysis of the study 

was directed to pursue resolutions that could be applied to the research problem and to identify 

gaps in the literature that could be tested against the research questions. 

The theoretical review of the literature explored how various aspects of entrepreneurship 

contributed to creating entrepreneurs that could grow and create successful business ventures. 

Furthermore, the study sought to examine how these factors could be improved through the 

deliberate application of the entrepreneurial mindset. Incorporating learning that considers 

cognitive consistency theories and sociological theories to reconstruct the survivalist mindset 

could improve entrepreneurial success. This approach was then utilised to generate a 

conceptual framework for entrepreneurs to improve business performance. The framework was 

evaluated against the context of the study. 

  



22 

 

Chapter 3: Research Methodology 

3.1 Introduction 

This chapter begins by exploring the research methodology adopted for the study, detailing the 

procedures and methodological selections used for identifying, sampling, collecting and 

interpreting data to analyse the research problem. The research paradigm, which established 

the philosophical underpinnings that directed the research strategy, is also outlined. 

Furthermore, the quality of the research that was assessed for consistency and accuracy through 

reliability and validity testing is explained. The chapter concludes by considering the ethical 

issues. 

3.2 Research Paradigm 

A positivist paradigm was used to guide the research strategy. As the key relationships that 

affect the growth and development of survivalist entrepreneurs had to be identified, adopting 

an interpretivist philosophy would not be as valuable as employing a realist or positivist 

paradigm ontology. Hence, the decision was to utilise a positivist research philosophy as the 

overarching approach. This perspective depends on the collection of measurable data that can 

then be statistically examined and is based on the hypothetico-deductive method (Park et al., 

2020). 

Positivism is based on the confirmation of prior knowledge and investigation through the 

application of hypothesis testing, with the findings used to guide and improve future studies 

(Park et al., 2020). Park et al. (2020) further explain that this philosophy focuses on using 

quantitative analysis to identify associations in data, making this approach suitable for 

evaluating and generating an understanding of how the various variables of entrepreneurship 

are influenced by the entrepreneurial mindset. 

The study, which investigated the entrepreneurial ecosystem, education and mindset of 

survivalist entrepreneurs, began with the identification of the phenomenon – the lack of growth 

enterprises in the informal sector. Thereafter, hypotheses, which focused on how the 

entrepreneurial mindset of the survival entrepreneurs operating in this environment can be 

developed to improve their self-efficacy and enable them to build successful businesses, were 

formulated. Empirical evidence was used to determine the validity of the hypothesis to address 

the research problem. 



23 

 

3.3 Methodological Decisions 

A quantitative approach was selected because the research sought to test existing psychological 

theories against the research problem. Alharahsheh & Pius (2020) state that quantitative 

research is often utilised to assess existing ideology or concepts, quantifying discrete or 

continuous data based on application to a specific phenomenon. 

3.4 Research Design 

The research paper adopted a realist paradigm and applied deductive methodology throughout 

the investigation. A cross-sectional study was used to gather the necessary data to effectively 

examine the hypotheses developed through the review of the literature. A self-administered 

survey was used to collect the primary data from the population sample. Participants either 

completed an online questionnaire electronically for those with access to the internet or 

physical copies were made available for those without an internet connection to complete 

manually. 

The cross-sectional research design enabled the collection of data from multiple individuals at 

a single point in time. It provided a convenient technique to evaluate and develop a broad 

understanding of the interactions between distinct factors and situations (Hunziker & 

Blankenagel, 2021). However, this approach was not without its weaknesses in that the survey 

or questionnaire was completed only once within a set timeframe making it difficult to establish 

causality (Woodside, 2011). 

3.5 Population 

The target population of interest for the study was survivalist entrepreneurs in the township of 

Soweto. These individuals are characterised by owning and operating a business in the informal 

sector. Their businesses engage in low-income-producing activities as they operate out of 

necessity rather than the pursuit of opportunity. However, the study sought to gain a better 

understanding of the growth and success of these entrepreneurs in the informal sector and, 

therefore, it considered a broad cross-section of survivalist entrepreneurs in the township at 

various stages of their enterprise development. 



24 

 

3.6 Sample Size and Targeted Sample 

In a research paper investigating the justification of sample size, Lakens (2022) mentions six 

approaches, listed in Table 3, to determine the sample size in quantitative research. Survivalist 

entrepreneurs are not registered with any official organisation or association as they operate 

informally, making it difficult to quantify the sample size. Thus, for this study, a heuristic 

approach, guided by prior literature investigating simple size justification and similar studies 

conducted in the same context, was adopted. However, Lakens (2022) cautions that one should 

not simply aim for the same sample size as used in previous studies, explaining that this 

approach can only be adopted if the size justification applies to the current study. 

Table 3: Approaches to Determining the Sample Size (Lakens, 2022)

A study by Koran (2016), which investigated sample size requirements for confirmatory 

factor analysis models, established the minimum sample sizes for satisfactory convergence, 

power and bias; they ranged from 93 to 108 based on the factor determinacy which was 

placed at either 0.4 or 0.8. This study referenced and built on research conducted by Jackson 

et al. (2013) which suggested a minimum sample size of 50 observations. However, Lakens 

(2022) advises that such investigations must not be incorrectly cited to justify collecting any 

more than the suggested minimum sample size without acknowledging the effect size. Based 

on the informality of survivalist entrepreneurs and the complexities of quantifying their size, 

this study aimed for a sample size of 110 respondents. 

3.7 Sampling Method 

Cluster or area sampling was used to identify and extract data from potential participants. 

Cluster sampling is typically used when the population and the desired sample size are 



25 

 

particularly large. This technique refers to a probability sampling method where a large 

population is separated into smaller clusters and then the sample is randomly chosen from the 

selected clusters (Simkus, 2022). Therefore, to conduct the investigation, individuals that made 

up the population were grouped into clusters based on geographic location and organised into 

a single cluster based on their neighbourhood or local region. Then, simple random sampling 

was used to determine the clusters or groups that would be involved in the study. Thereafter, 

individual survivalist entrepreneurs were randomly selected from the different clusters to form 

the sample of the study. 

Convenience sampling was employed, based on participant availability and accessibility within 

the designated cluster. The convenience sampling method provides an efficient and 

inexpensive method to complete the sample size (Stratton, 2021); this was carried out through 

in-person recruitment. These decisions considered resource constraints – the geographical 

proximity of the participants, their perceived inclination to engage and participate in the 

research and the time available to complete the study. 

3.8 Data Collection Procedure 

A questionnaire was created and distributed to the target sample. The researcher physically 

identified and approached entrepreneurs who fell within the boundaries of the study. The 

population was subdivided into smaller groups based on their geographical location and then 

random sample selection was used to select the clusters that would represent the population. 

After that, the participants in a particular cluster were randomly sampled through a combination 

of convenience and snowball sampling. 

Due to the limitation that survivalist entrepreneurs may have due to time, the research 

conducted structured interviews based on the survey in groups to eliminate any difficulties and 

ensure that the participants completed the questionnaire timeously. This approach also assisted 

in resolving any literacy or comprehension issues that might have arisen as the researcher was 

available to translate and explain, ensuring their understanding of the questions. 

The use of the internet and web-based platforms was restricted as survivalist entrepreneurs list 

the exorbitant cost of technology as one of their growth constraints (Ledingoane & Viljoen, 

2020), meaning that most of the target sample did not have access to technology. However, the 

internet option was made available to those who had access to a computer or smartphone with 

a stable internet connection. 



26 

 

3.9 Research Instrument 

The research instrument consisted of five sections. The first part gathered the participants’ 

demographic profiles. This section consisted of five variables: age, level of education, years of 

experience, location in the township of Soweto and reason for operating in the informal sector. 

Pre-selected reasons adopted from the motivations for survivalist entrepreneurs provided by 

Iwu and Opute (2019) as presented in Table 2 were offered. The four other sections were 

extracted from validated research instruments from prior sources of literature. All the items 

were measured on a seven-point Likert scale (1 = strongly disagree and 7 = strongly agree). 

The second section was adopted from Iwu et al. (2021). This section also included a seven-

point Likert scale to assess the survivalist entrepreneur’s perception of entrepreneurship 

education. The third section evaluated the respondent’s entrepreneurial mindset using a seven-

item scale adopted by Handayati et al. (2020). The fourth section covered the entrepreneurial 

ecosystem factors using a scale adopted by Elnadi & Gheith (2021). The final section assessed 

enterprise success, the dependent variable, by using a six-item scale to assess performance 

adopted from González-Benito et al. (2008) which compared the respondents' business 

performance against that of their competitors. 

Appendix B presents a summary of the research instrument. 

3.10 Data Analysis and Interpretation 

SPSS statistical software was used for data analysis. Descriptive and inferential techniques 

were used to identify trends in the statistics and evaluate the hypotheses. Descriptive statistics 

provided an analysis of the distinctive population characteristics, such as the mean, standard 

deviation, range, skewness and kurtosis, and inferential statistics were formulated to develop 

models to detect relationships between the different variables. 

3.10.1 Descriptive Statistics 

Descriptive statistics were used to systematically summarise the data by describing and 

characterising the relationships that existed between the variables in the sample (Kaur et al., 

2018). The demographic statistics were descriptive and included the age, education level, years 

of experience, geographic location and motive for operating in the informal sector. These 



27 

 

served as control variables as they might have influenced the results, even though they were 

constant and unchanged throughout the investigation. 

3.10.2 Validity and Reliability 

Reliability and validity tests were used to assess the quality, dependability and credibility of 

the measurements and findings of the research instrument. Reliability is concerned with the 

reproducibility, consistency and stability of the instrument, while validity is the degree to which 

a measurement accurately measures the stated area of the investigation (Taherdoost, 2016). 

Sürücü & Maslakci (2020) indicate that researchers should aim for high validity and reliability 

in their measurements to obtain precise and reliable findings and to minimise any measurement 

error that might occur. 

3.10.3 Hypothesis Testing 

To test all the hypotheses, a single moderated regression model was used as this approach is 

more effective and statistically powerful. The conceptual framework in Figure 3 perfectly 

represents a moderated mediation model. Wen & Ye (2014) define moderated mediation as the 

result of a moderator moderating a mediation effect. The result is referred to as moderated 

mediation and the model is known as the moderated mediation model. 

3.11 Ethical Considerations 

The study explored survivalist entrepreneurs, a group that may be considered vulnerable due 

to the nature of their work and the context in which they operate. As previously noted in the 

literature review, these entrepreneurs are forced into entrepreneurship out of necessity to 

protect their livelihood and not by the recognition of opportunity advancement. 

The study sought to protect the confidentiality and anonymity of those who contributed to the 

research. The information collected was stored and processed securely to safeguard the privacy 

and integrity of the respondents. A consent form was attached to each survey, informing each 

participant about the objective of the research, and ensuring that they were aware that 

involvement was voluntary and to prevent any undue influence or coercion during the 

completion of the questionnaire. The participants had the right to withdraw their consent at any 

point during the process. 



28 

 

The literature that is referred to in this study is included in in-text citations and references to 

ensure that no plagiarism occurs and that the original author's ideas and concepts are 

represented fairly, ensuring that credit is given to the original sources. Furthermore, an ethics 

clearance request was made to the Witwatersrand Business School's Ethics Committee to 

obtain permission to conduct the research and collect the data. This guarantees that the research 

procedure complies with the ethics standards established by the university. 

3.12 Chapter Summary 

This chapter outlined the research design and methodology that was used to guide this study. 

A positivist paradigm was adopted to guide the quantitative research strategy. The population 

sample was subdivided into smaller groups based on the participant’s geographical location 

within Soweto, this was done through cluster sampling. Thereafter, the participants in a 

particular cluster were randomly sampled using the convenience sampling technique. 

A cross-sectional study was conducted, and the data was collected through a self-administered 

questionnaire, targeting at least 110 respondents. The responses on the questionnaire were 

entered into a spreadsheet Excel, and the data was cleaned and exported to SPSS statistical 

software for data analysis. Using the statistical software, the data were evaluated using 

descriptive and inferential statistics techniques to identify trends in the data and test the 

hypotheses. The analysis derived from the statistics are presented and discussed in Chapter 4. 

  



29 

 

Chapter 4: Presentation of Results 

4.1 Introduction 

The results of the research are presented and examined in this chapter of the study. The 

preceding chapter characterised the target population as survivalist entrepreneurs operating in 

the township of Soweto. This chapter begins by detailing the data screening procedure and then 

goes on to a description of the demographic profile of the respondents in question. It then 

proceeds to assess the construct validity and reliability of the measurement of the scales. The 

chapter concludes with the findings of the hypotheses testing. 

4.2 Data Validation and Screening 

The data screening process evaluated the data for accuracy and consistency and assessed for 

any missing values to ensure the quality of the data set. In total, the data set consisted of 125 

cases and 33 questions. In total from the 125 observations, only four had missing values. The 

missing values accounted for 0.35% of the complete data set. 

Although the missing values formed a very small percentage of the complete data set, it was 

still important to check whether the values were missing completely at random (MCAR). This 

was confirmed using Little’s MCAR test, which was performed using SPSS. The significant 

value (p = 0.931) from Little’s MCAR test was greater than the significance level of 0.05. 

Therefore, the null hypothesis that the missing values were MCAR was supported. 

The data imputation function on SPSS was then used to replace the missing values, this method 

was selected because it does not add bias or distortion in the complete data set. After the data 

imputation, the data set was complete and ready for further analysis. 

4.3 Sample Characteristics 

4.3.1 Age of Respondents 

The data indicated a significant age distribution among the surveyed population and, therefore, 

participants were categorised into four age groups. The first was made up of those who were 

between the ages of 19 and 29; the survey consisted of 10.4% of responses from this age group. 

A significant portion of the study consisted primarily of individuals who were between the ages 

of 30 and 40. Of the 125 respondents, this age group constituted 52.8% of the population. The 



30 

 

third age group included individuals that fell within the 41 to 50 age range; they made up 28% 

of the data. Lastly, the group with the lowest percentage, accounting for 8.8% of the 

participants, was the 51 to 60 years of age population. Table 5 presents this data graphically. 

Table 4: Age of Respondents 

Age 

  Frequency Per cent Valid per cent Cumulative per cent 

Valid 19–29 13 10,4 10,4 10,4 

30–40 66 52,8 52,8 63,2 

41–50 35 28,0 28,0 91,2 

51–60 11 8,8 8,8 100,0 

Total 125 100,0 100,0   

 

4.3.2 Location 

The data displayed a distribution of respondents throughout many parts of the township of 

Soweto, revealing information about the geographical distribution of the sampled respondents. 

Pimville and Protea Glen had the least number of participants, with 4.8% and 3.2%, 

respectively. Meadowlands contributed 14.4%, followed by the district of Dube, which had a 

participation of 16%. The community of Kliptown was the second largest contributor, with 

22.4% of respondents. The area of Orlando had the most participation, accounting for 24% of 

all responses. Figure 4 presents the distribution of the respondents. 



31 

 

 

Figure 4: Distribution of Respondents 

4.3.3 Education Level 

The education levels varied across the surveyed participants. The data showed that the majority 

of the respondents had completed matric but had no tertiary education; this group constituted 

39.2% of the total population. Those who had started school but did not matriculate were the 

second largest group, contributing 29.6% of responses. Individuals without a formal education 

made up 24% of the sampled population. The group with the lowest representation, with only 

9 respondents and making up only 7.2%, were those with an undergraduate qualification. 

The cumulative proportion of those who had begun school but had not completed it as well as 

those who had no formal education, amounted to more than half of all participants – 53.6%. 

This discovery is significant as it offers valuable insights into the educational levels of the 

majority of survivalist entrepreneurs. Figure 5 presents the education levels of the respondents. 



32 

 

 

Figure 5: Education Levels 

4.3.4 Reason for Operating in the Informal Sector 

The respondents were required to specify their reason for operating in the informal sector from 

five pre-selected reasons referenced from the motivations for survivalist entrepreneurs adopted 

from Iwu & Opute (2019) and presented in Table 2. The various choices, together with their 

matching data set, are presented in Table 5. 

Table 5: Reasons for Informal Business 

Reason for operating in the informal sector 

  Frequency Per cent 

Valid per 

cent 

Cumulative 

per cent 

Valid Creating a source of income 54 43,2 43,2 43,2 

Meeting social requirements 4 3,2 3,2 46,4 

Overcoming the barriers set to 

prevent access to advancement 

21 16,8 16,8 63,2 

To earn extra money to support 

family 

43 34,4 34,4 97,6 

To get something to do and stay 

active 

3 2,4 2,4 100,0 

Total 125 100,0 100,0   

 



33 

 

A significant portion of the respondents listed creating a source of income to escape 

unemployment as the main reason for their existence in the informal sector. The second most 

selected option was to earn extra income to support their families. Both these reasons had a 

cumulative total of 83.2%. This finding is significant as it was consistent with the survivalist 

nature of the entrepreneurs who were being investigated. 

4.4 Validity Analysis – Exploratory Factor Analysis 

A validity test was done using SPSS statistical software. An exploratory factor analysis was 

conducted to discover groups of related variables that showed the underlying factors in the 

data. This was done to confirm either the convergence or the discrimination of the research 

constructs in the study. The dataset of 125 rows was prepared and Kaiser-Meyer-Olkin (KMO) 

and Bartlett’s test of sphericity were selected. Exploratory factor analysis was performed on 

the scales of entrepreneurial education, entrepreneurial mindset, entrepreneurial ecosystems, 

and business performance using the principal axis factoring method for the factor extraction 

and oblimin rotation for factor rotation. 

4.4.1 Sampling Adequacy 

The KMO measure of sampling adequacy and Bartlett's test of sphericity tests are important 

for evaluating the factorability of the data (Shrestha, 2021). Shrestha (2021) further states that 

a KMO value between 0.8 and 1 is deemed acceptable or adequate and that Bartlett's test of 

sphericity should produce a significant value < 0.5. 

The KMO test produced a value of 0.878, indicating that the sample adequacy was good enough 

to proceed with factor analysis as it was far greater than the minimum acceptable levels, which 

fall between 0.6 and 0.69 (Shrestha, 2021). Bartlett's test of sphericity indicated that factor 

analysis may be done as it had a significant value < 0.05; the p-value is 0.000. These results 

are presented in Table 7. 

Table 6: KMO and Bartlett's Test 

 

0,878

Approx. Chi-Square 2978,130

df 406

Sig. 0,000

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling 

Adequacy.

Bartlett's Test of 

Sphericity



34 

 

4.4.2 Total Variance Explained 

According to Table 8, the variance was divided into 29 potential extraction factors, with only 

6 of them having an eigenvalue larger than one. A general guideline to extract the number of 

factors above the eigenvalue greater than one is given by Kaiser’s criterion (Yong & Pearce, 

2013). Yong and Pearce (2013) further state in their research that using only the general 

guideline may result in an overestimation of the factors retained and advise that a scree test 

should also be used to support the selection number of factors that are retained. 

Table 7: Total Variance Explained 

 

The scree plot (Figure 6) supports the choice of four components as it shows the eigenvalues 

levelling out after the fourth component. Therefore, only four factors were selected for the 

solution as they reflect the main essential structure of the data and explain a total of 66.29% of 

the variation. 

Total

% of 

Variance

Cumulat

ive % Total

% of 

Varianc

e

Cumulat

ive %

1 12,182 42,008 42,008 12,182 42,008 42,008

2 4,035 13,914 55,922 4,035 13,914 55,922

3 1,677 5,784 61,706 1,677 5,784 61,706

4 1,329 4,584 66,290 1,329 4,584 66,290

5 1,062 3,663 69,953 1,062 3,663 69,953

6 1,023 3,527 73,480 1,023 3,527 73,480

7 0,784 2,703 76,183

8 0,755 2,604 78,787

9 0,607 2,093 80,880

10 0,573 1,977 82,858

11 0,546 1,882 84,740

12 0,522 1,800 86,540

13 0,483 1,667 88,207

14 0,402 1,388 89,594

15 0,373 1,286 90,880

16 0,338 1,164 92,044

17 0,327 1,127 93,171

18 0,317 1,093 94,264

19 0,267 0,919 95,183

20 0,247 0,853 96,036

21 0,224 0,772 96,808

22 0,194 0,668 97,476

23 0,163 0,560 98,036

24 0,140 0,483 98,520

25 0,130 0,449 98,969

26 0,104 0,359 99,328

27 0,083 0,287 99,614

28 0,062 0,213 99,828

29 0,050 0,172 100,000

Extraction Method: Principal Component Analysis.

Total Variance Explained

Compone

nt

Initial Eigenvalues

Extraction Sums of 

Squared Loadings



35 

 

 

Figure 6: Scree Plot 

4.4.3 Rotation of Factors 

The principal axis extraction method and the oblimin rotation method were used as the factors 

were expected to correlate. Additionally, this combination results in fewer cross-loadings as it 

aims to simplify the complexity of both the structure and the statistical results (Yong & Pearce, 

2013). A cut-off level of 0.4 was selected for factor loading cut-off, as described by Hair et al. 

(1995) in their book which gives practical guidance for doing different forms of multivariate 

statistical analysis. They characterise a cut-off level of 0.3 as having minimal importance, one 

of 0.4 to be significant and anything above 0.5 to be very significant. 

Based on the results, Factor 1, entrepreneurial ecosystems, retained all the 7 items initially 

presented and Factor 2, entrepreneurial education, also retained all 10 items. All 6 items from 

Factor 3, business performance, were also retained. However, Factor 4, entrepreneurial 

mindset, lost one item; just 5 items were retained. 

Furthermore, Factor 4 had one item from Factor 2 with loadings of 0.429 and 0.422, 

respectively, suggesting a moderate association. This correlation is reasonable as the item from 

Factor 2 “Entrepreneurship_education2 Entrepreneurship education is a discipline that can 

promote self-reliance” focuses on a key theme (self-reliance) that has an impact on the role of 

the entrepreneurial mindset in entrepreneurship. Convergent validity was confirmed as all the 

items that were initially grouped converged on their own scales. Table 9 presents the pattern 

matrix. 

  

0

2

4

6

8

10

12

14

1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829

Ei
ge

n
va

lu
e

Component Number

Scree Plot



36 

 

Table 8: Pattern Matrix 

Pattern Matrixa 

  Factor 

1 2 3 4 

Entrepreneurial_ecosystem4 Enabling Infrastructure 0,892       

Entrepreneurial_ecosystem2 Supportive Government Policies and 

Regulations 

0,866       

Entrepreneurial_ecosystem1 Access to Finance 0,828       

Entrepreneurial_ecosystem5 Supportive Cultural Factors 0,821       

Entrepreneurial_ecosystem3 Supportive Government Programmes 

and Support 

0,793       

Entrepreneurial_ecosystem6 Supportive Social Factors 0,712       

Entrepreneurial_ecosystem7 Excellent Education and Training 0,634       

Entrepreneurship_education5 Entrepreneurship education reduces 

poverty 

  0,788     

Entrepreneurship_education4 Entrepreneurial education decreases 

unemployment among youth 

  0,744     

Entrepreneurship_education10 Entrepreneurship education helps 

reduce the number of failed businesses 

  0,702     

Entrepreneurship_education6 Entrepreneurship education enhances 

creative and innovative ideas 

  0,688     

Entrepreneurship_education8 Entrepreneurship education equips 

graduates with business creation skills 

  0,668     

Entrepreneurship_education9 Entrepreneurship education helps in 

harnessing local resources 

  0,655     

Entrepreneurship_education7 Entrepreneurship education can 

facilitate the development of commerce in informal communities 

  0,644     

Entrepreneurship_education3 Entrepreneurship education promotes 

self-employment among people 

  0,596     

Entrepreneurship_education2 Entrepreneurship education is a 

discipline that can promote self-reliance 

  0,429   0,422 

Entrepreneurship_education1 Entrepreneurship education is suitable 

for any economy 

  0,425     

Business_Performance2 Higher Sales Growth     -0,824   

Business_Performance6 High chances for New Product/Service 

Success 

    -0,707   

Business_Performance3 Higher Market Share Growth     -0,699   

Business_Performance1 More Profitability     -0,693   

Business_Performance5 Better Image and Reputation     -0,653   

Business_Performance4 Better Customer Satisfaction     -0,544   

Entrepreneurship_mindset4 I evaluated both opportunities and 

challenges associated with entrepreneurial activities. 

      0,751 

Entrepreneurship_mindset3 I have considered the financial 

opportunities for involvement in entrepreneurial activities. 

      0,740 

Entrepreneurship_mindset5 I've decided to pursue entrepreneurial 

ideas for business opportunities. 

      0,551 

Entrepreneurship_mindset2 I've noticed the allocation of time for 

entrepreneurial activities. 

      0,502 

Entrepreneurship_mindset1 I have thought about both the 

opportunities and challenges concerning entrepreneurial activities. 

      0,414 

Entrepreneurship_mindset6 I have debated whether engaging in 

entrepreneurial activities would be beneficial for me. 

        



37 

 

4.5 Reliability Analysis 

Reliability refers to the consistency and stability of the measurement instrument to ensure 

repeatability under constant conditions (Taherdoost, 2016). Taherdoost (2016) notes that 

reliability testing is crucial as it ensures consistency across the components of the measuring 

instrument. The Cronbach’s alpha coefficient is generally used to measure internal consistency 

and is considered a suitable measure of reliability when using Likert scales such as the ones 

used in this study (Schrum et al., 2020). 

The output from the pattern matrix determined the number of items to be included in each 

factor. The factors were then selected individually and evaluated. The significant results from 

the reliability assessment are the Cronbach’s alpha coefficient as well as the inter-item 

correlation figures and item-total information. An acceptable level for Cronbach’s alpha 

coefficient is above 0.6 and for the inter-item correlation, a value greater than 0.30 is considered 

acceptable, the item-to-total correlation must be greater than 0.50 (Hajjar, 2018). Table 10 

gives a summary of the reliability of the scales. 

Table 9: Reliability of Measurement Scales 

Construct No. of items Cronbach's alpha Reliability level 

Entrepreneurship education 10 0.895 Acceptable 

Entrepreneurial mindset 5 0.817 Acceptable 

Entrepreneurial ecosystem 7 0.948 Highly satisfactory 

Business performance 6 0.939 Highly satisfactory 

 

4.5.1 Factor 1 – Entrepreneurship Education 

The first factor consisted of 10 items designed to measure various aspects of the perceived 

benefits of entrepreneurship education. The analysis was performed on a dataset comprising 

125 cases, with no cases excluded from the analysis due to missing data. The Cronbach's alpha 

for entrepreneurial education was 0.895, indicating a high internal consistency. Standardisation 

slightly increased the alpha coefficient to 0.908, confirming its reliability (Table 11). The 

average inter-item correlation (Table 12) was 0.481, indicating moderate to strong 

relationships. The correlation ranged from 0.298 to 0.677, indicating a coherent construct. 

Removing any item from the scale did not significantly increase the alpha coefficient, 

indicating that each item contributed to its consistency (Table 13). 



38 

 

Table 10: Factor 1 – Reliability Statistics 

 

Table 11: Factor 1 – Summary Item Statistics 

 

Table 12: Factor 1 – Item-total Statistics 

 

Cronbach's Alpha

Cronbach's Alpha 

Based on 

Standardized Items N of Items

0,895 0,908 10

Mean Minimum Maximum Range

Maximum / 

Minimum Variance N of Items

Inter-Item Correlations 0,481 0,298 0,677 0,379 2,270 0,010 5

Scale Mean if 

Item Deleted

Scale Variance if 

Item Deleted

Corrected Item-

Total Correlation

Squared Multiple 

Correlation

Cronbach's 

Alpha if Item 

Deleted

Entrepreneurship 

education is suitable for 

any economy

55,90 49,666 0,587 0,413 0,889

Entrepreneurship 

education is a discipline 

that can promote self-

reliance

56,02 49,137 0,603 0,504 0,888

Entrepreneurship 

education promotes self-

employment among 

people

55,88 49,502 0,685 0,537 0,886

Entrepreneurial 

education decreases 

unemployment among 

the youth

56,55 43,527 0,607 0,490 0,890

Entrepreneurship 

education reduces 

poverty

56,59 42,397 0,734 0,615 0,878

Entrepre