IDEAS home Printed from https://ideas.repec.org/a/pcz/journl/v13y2016i1p121-133.html
   My bibliography  Save this article

Barriers To Small Informal Business Development And Entrepreneurship: The Case Of The Emfuleni Region

Author

Listed:
  • Natanya Meyer

    (North-West University, School of Economic Sciences)

  • Daniel Francois Meyer

    (North-West University, School of Economic Sciences)

  • Karabo Molefe

    (North-West University, School of Economic Sciences)

Abstract

The nature of being an entrepreneur encapsulates the essence of fully embracing opportunities and taking on new challenges and risks. Informal entrepreneurship is often taken for granted and hardly recognised as being a profession. This study aims at identifying the importance of entrepreneurship in the informal sector and the barriers that these entrepreneurs face on a daily basis in South Africa. As part of the methodology, both quantitative and qualitative approaches were used to analyse and interpret the data. Results from the study indicated that most of the informal entrepreneurs are necessity driven rather than opportunity driven and that some of the main barriers they face are crime, service delivery and lack of vacant land and premises. Possible solutions to these barriers include: providing areas for the entrepreneurs from which to operate and to make funding available for expansion and growth of their businesses.

Suggested Citation

  • Natanya Meyer & Daniel Francois Meyer & Karabo Molefe, 2016. "Barriers To Small Informal Business Development And Entrepreneurship: The Case Of The Emfuleni Region," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 13(1), pages 121-133, June.
    • Handle: RePEc:pcz:journl:v:13:y:2016:i:1:p:121-133
    as

    Download full text from publisher

    File URL: http://pjms.zim.pcz.pl/PDF/PJMS131/Barriers%20to%20Small%20Informal%20Business%20Development%20and%20Entrepreneurship-the%20Case%20of%20the%20Emfuleni%20Region.pdf
    Download Restriction: no
    File URL: http://pjms.zim.pcz.pl/-articles-13.1.php
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erik Stam, 2013. "Knowledge and entrepreneurial employees: a country-level analysis," Small Business Economics, Springer, vol. 41(4), pages 887-898, December.
    2. Benn Eifert & Alan Gelb & Vijaya Ramachandran, 2005. "Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data," Working Papers 56, Center for Global Development.
    3. Sleuwaegen, Leo & Goedhuys, Micheline, 2002. "Growth of firms in developing countries, evidence from Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 68(1), pages 117-135, June.
    4. Michael Grimm & Jens Krüger & Jann Lay, 2011. "Barriers To Entry And Returns To Capital In Informal Activities: Evidence From Sub‐Saharan Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57, pages 27-53, May.
    5. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    6. Jean Hillier, 2000. "Going round the Back? Complex Networks and Informal Action in Local Planning Processes," Environment and Planning A, , vol. 32(1), pages 33-54, January.
    7. Sobel, Russell S., 2008. "Testing Baumol: Institutional quality and the productivity of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 641-655, November.
    8. Adenutsi, Deodat E., 2009. "Entrepreneurship, job creation, income empowerment and poverty reduction in low-income economies," MPRA Paper 29569, University Library of Munich, Germany.
    9. Balazs, Katharina, 2002. "Take One Entrepreneur:: The Recipe for Success of France's Great Chefs," European Management Journal, Elsevier, vol. 20(3), pages 247-259, June.
    10. Zoltán J. Ács & László Szerb, 2010. "Global Entrepreneurship and Development Index 2011," Books, Edward Elgar Publishing, number 14234.
    11. Colin C. Williams & Sara Nadin, 2010. "Entrepreneurship And The Informal Economy: An Overview," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 361-378.
    12. Mangold, W. Glynn & Faulds, David J., 2009. "Social media: The new hybrid element of the promotion mix," Business Horizons, Elsevier, vol. 52(4), pages 357-365, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Saad Baloch & Abubakr Saeed & Ishtiaq Ahmed & Judit Oláh & József Popp & Domicián Máté, 2018. "Role of Domestic Financial Reforms and Internationalization of Non-Financial Transnational Firms: Evidence from the Chinese Market," Sustainability, MDPI, vol. 10(11), pages 1-16, October.
    2. Thanyani S Madzivhandila & Mazanai Musara, 2020. "Taking responsibility for entrepreneurship development in South Africa: The role of local municipalities," Local Economy, London South Bank University, vol. 35(3), pages 257-268, May.
    3. Daniel Francois Meyer & Natanya Meyer, 2016. "A Comparative Analysis Of The Perceptions Of Business Chambers In Rural And Urban South Africa On The Developmental Role Of Local Government," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(1), pages 152-162, December.
    4. Natanya Meyer, 2017. "South Africa's Youth Unemployment Dilemma: Whose Baby is it anyway?," Journal of Economics and Behavioral Studies, AMH International, vol. 9(1), pages 56-68.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reeg, Caroline, 2015. "Micro and small enterprises as drivers for job creation and decent work," IDOS Discussion Papers 10/2015, German Institute of Development and Sustainability (IDOS).
    2. Elert, Niklas & Stenkula, Mikael, 2020. "Intrapreneurship: Productive, Unproductive, and Destructive," Working Paper Series 1367, Research Institute of Industrial Economics.
    3. Estrin, Saul & Guerrero, Maribel & Mickiewicz, Tomasz, 2024. "A framework for investigating new firm entry: The (limited) overlap between informal-formal and necessity-opportunity entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(4).
    4. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    5. Arne Bigsten & Mans Söderbom, 2006. "What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa?," The World Bank Research Observer, World Bank, vol. 21(2), pages 241-265.
    6. Martijn Adriaan Boermans & Daan Willebrands, 2017. "Entrepreneurship, risk perception and firm performance," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 31(4), pages 557-569.
    7. Zhongfeng Su, 2021. "The co-evolution of institutions and entrepreneurship," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1327-1350, December.
    8. Micheline Goedhuys & Leo Sleuwaegen, 2010. "High-growth entrepreneurial firms in Africa: a quantile regression approach," Small Business Economics, Springer, vol. 34(1), pages 31-51, January.
    9. Niels Bosma & Jeroen Content & Mark Sanders & Erik Stam, 2018. "Institutions, entrepreneurship, and economic growth in Europe," Small Business Economics, Springer, vol. 51(2), pages 483-499, August.
    10. José Ernesto Amorós & Carlos Poblete & Vesna Mandakovic, 2019. "R&D transfer, policy and innovative ambitious entrepreneurship: evidence from Latin American countries," The Journal of Technology Transfer, Springer, vol. 44(5), pages 1396-1415, October.
    11. Elizabeth M Moore & Luis Alfonso Dau & Santiago Mingo, 2021. "The effects of trade integration on formal and informal entrepreneurship: The moderating role of economic development," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 746-772, June.
    12. KOUADIO, Hugues, 2015. "Constraints of SME in West Africa: the case of Côte d'Ivoire after the crisis," MPRA Paper 79055, University Library of Munich, Germany.
    13. Harbi, Sana El & Anderson, Alistair R., 2010. "Institutions and the shaping of different forms of entrepreneurship," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(3), pages 436-444, June.
    14. Yaron Zelekha & Gil Avnimelech & Eyal Sharabi, 2014. "Religious institutions and entrepreneurship," Small Business Economics, Springer, vol. 42(4), pages 747-767, April.
    15. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    16. Ali Hussein Samadi, 2019. "Institutions and entrepreneurship: unidirectional or bidirectional causality?," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-16, December.
    17. Jose Ernesto Amoros, 2009. "Entrepreneurship and Quality of Institutions: A Developing-Country Approach," WIDER Working Paper Series RP2009-07, World Institute for Development Economic Research (UNU-WIDER).
    18. Szirmai A. & Gebreeyesus M. & Guadagno F. & Verspagen B., 2013. "Promoting productive employment in Sub‐Saharan Africa : a review of the literature," MERIT Working Papers 2013-062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Rosa Caiazza & Maksim Belitski & David B. Audretsch, 2020. "From latent to emergent entrepreneurship: the knowledge spillover construction circle," The Journal of Technology Transfer, Springer, vol. 45(3), pages 694-704, June.
    20. Michael Wyrwich, 2020. "The value orientation of entrepreneurs in challenging institutional contexts: Insights from a unique historical episode," Jena Economics Research Papers 2020-001, Friedrich-Schiller-University Jena.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pcz:journl:v:13:y:2016:i:1:p:121-133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Paula Bajdor (email available below). General contact details of provider: https://edirc.repec.org/data/wzpczpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.