IDEAS home Printed from https://ideas.repec.org/a/spr/eurasi/v1y2011i2p160-179.html
   My bibliography  Save this article

Survival Analysis of Small Informal Businesses in South Africa, 2007–2010

Author

Listed:
  • Andre Ligthelm

Abstract

Annual surveys were conducted among a small business panel of 300 businesses during the four-year period 2007 to 2010 aimed at examining small business survival and mortality. By contrasting the profiles of successful businesses with those that closed their doors, a second objective was also attained, namely the identification of principle reasons for small business survival and sustainability. The survey data were applied in a categorical regression model with business survival as dependent variable and several independent variables related to competitive environment, entrepreneurial endowment and comparative advantages as independent variables. The analysis identified the human factor in small businesses and specifically entrepreneurial actions and business management skills as the strongest predictors of small business survival. Businesses portraying these characteristics should be the focus of small business support strategies. Copyright Eurasia Business and Economics Society 2011

Suggested Citation

  • Andre Ligthelm, 2011. "Survival Analysis of Small Informal Businesses in South Africa, 2007–2010," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 1(2), pages 160-179, December.
    • Handle: RePEc:spr:eurasi:v:1:y:2011:i:2:p:160-179
    DOI: 10.14208/BF03353804
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.14208/BF03353804
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.14208/BF03353804?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Cressy, 2006. "Why do Most Firms Die Young?," Small Business Economics, Springer, vol. 26(2), pages 103-116, March.
    2. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
    3. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367.
    4. Gollin, Douglas, 2008. "Nobody's business but my own: Self-employment and small enterprise in economic development," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 219-233, March.
    5. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    6. Everett, Jim & Watson, John, 1998. "Small Business Failure and External Risk Factors," Small Business Economics, Springer, vol. 11(4), pages 371-390, December.
    7. Mark S. Freel, 2000. "Towards An Evolutionary Theory Of Small Firm Growth," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 8(04), pages 321-342.
    8. Michael A. Hitt & R. Duane Ireland & S. Michael Camp & Donald L. Sexton, 2001. "Strategic entrepreneurship: entrepreneurial strategies for wealth creation," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 479-491, June.
    9. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    10. E. Wayne Nafziger, 2008. "Entrepreneurship and Development," Chapters, in: Amitava Krishna Dutt & Jaime Ros (ed.), International Handbook of Development Economics, Volumes 1 & 2, volume 0, chapter 26, Edward Elgar Publishing.
    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. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    2. Sujata Ghosh & Biswajit Mandal, 2019. "Bureaucratic efficiency, economic reform and informal sector," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 121-137, June.
    3. Francesco Quatraro & Marco Vivarelli, 2013. "Entry and Post-Entry Dynamics in Developing Countries," GREDEG Working Papers 2013-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Amelie F. Constant & Klaus F. Zimmermann, 2014. "Self-employment against employment or unemployment: Markov transitions across the business cycle," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 51-87, June.
    5. Sachiko Kazekami, 2017. "Do service sectors need core sectors to improve their productivity?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(3), pages 389-410, December.
    6. Farzana Chowdhury & David Audretsch, 2014. "Institution as looting apparatus: impact of gender equality and institutions on female entrepreneurship," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 207-225, December.
    7. Quatraro, Francesco & Vivarelli, Marco, 2013. "Entrepreneurship In A Developing Country Context," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201314, University of Turin.
    8. Douglas Cumming & Sofia Johan, 2015. "Cameras tracking shoppers: the economics of retail video surveillance," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 235-257, December.
    9. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    10. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.

    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. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    2. 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.
    3. Túlio Cravo & Adrian Gourlay & Bettina Becker, 2012. "SMEs and regional economic growth in Brazil," Small Business Economics, Springer, vol. 38(2), pages 217-230, February.
    4. Danis, Wade M. & De Clercq, Dirk & Petricevic, Olga, 2011. "Are social networks more important for new business activity in emerging than developed economies? An empirical extension," International Business Review, Elsevier, vol. 20(4), pages 394-408, August.
    5. Calza, Elisa & Goedhuys, Micheline, 2016. "Entrepreneurial heterogeneity and the design of entrepreneurship policies for economic growth and inclusive development," MERIT Working Papers 2016-043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1113-1145, December.
    7. Roy Thurik & Marcus Dejardin, 2012. "Entrepreneurship and Culture," Post-Print halshs-00943684, HAL.
    8. Magnus Henrekson & Jesper Roine, 2007. "Promoting Entrepreneurship in the Welfare State," Chapters, in: David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), Handbook of Research on Entrepreneurship Policy, chapter 5, Edward Elgar Publishing.
    9. Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008. "Entrepreneurial aspirations, motivations, and their drivers," Small Business Economics, Springer, vol. 31(3), pages 323-339, October.
    10. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    11. Farzana Chowdhury & David B. Audretsch, 2021. "A dynamic relationship between entrepreneurial orientation and entrepreneurial activity," Journal of International Entrepreneurship, Springer, vol. 19(3), pages 339-356, September.
    12. Mina Baliamoune-Lutz & Pierre Garello, 2014. "Tax structure and entrepreneurship," Small Business Economics, Springer, vol. 42(1), pages 165-190, January.
    13. 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.
    14. 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).
    15. László Szerb & Raquel Ortega-Argilés & Zoltán à cs & Alicia Coduras, 2012. "The examination of the regional level entrepreneurship: The Spanish case," ERSA conference papers ersa12p781, European Regional Science Association.
    16. Kuckertz, Andreas & Berger, Elisabeth S.C. & Mpeqa, Andrew, 2016. "The more the merrier? Economic freedom and entrepreneurial activity," Journal of Business Research, Elsevier, vol. 69(4), pages 1288-1293.
    17. Preeya S. Mohan, 2022. "An investigation into entrepreneurial intentions in Caribbean Small Island Developing States," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-21, December.
    18. Kamilia Loukil, 2020. "Dynamic Panel Data Analysis Of The Impact Of Intellectual Property Rights On Entrepreneurship In Emerging And Developing Countries," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(1), pages 40-48, March.
    19. Meghana Ayyagari & Asli Demirguc-Kunt & Vojislav Maksimovic, 2014. "Who creates jobs in developing countries?," Small Business Economics, Springer, vol. 43(1), pages 75-99, June.
    20. Pathak, Saurav & Xavier-Oliveira, Emanuel & Laplume, André O., 2013. "Influence of intellectual property, foreign investment, and technological adoption on technology entrepreneurship," Journal of Business Research, Elsevier, vol. 66(10), pages 2090-2101.

    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:spr:eurasi:v:1:y:2011:i:2:p:160-179. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.