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In Search Of Black Entrepreneurship: Why Is There A Lack Of Entrepreneurial Activity Among The Black Population In South Africa?

Author

Listed:
  • PETER PREISENDÖRFER

    (Institute of Sociology, Johannes Gutenberg University of Mainz, Colonel-Kleinmann-Weg 2, D-55099 Mainz, Germany)

  • ANSGAR BITZ

    (Institute of Sociology, Johannes Gutenberg University of Mainz, Colonel-Kleinmann-Weg 2, D-55099 Mainz, Germany)

  • FRANS J. BEZUIDENHOUT

    (Department of Sociology and Anthropology, Nelson Mandela Metropolitan University (NMMU), South Campus, Main Building 1019, PO Box 77000, Port Elizabeth 6031, South Africa)

Abstract

Compared to other ethnic groups, the black population of South Africa has a low participation rate in entrepreneurship activities. The research question of this article is to explain this empirical fact. Based on twenty-four expert interviews, five patterns of explanation are presented and elaborated: a historical apartheid explanation, a financial resources explanation, a human capital explanation, a traits and mindset explanation and a social capital and network explanation. The historical apartheid explanation cannot be qualified independently of the other explanations as a distinctive explanation of its own. Although missing financial resources and shortages of human capital are the factors most often mentioned by the experts, and probably the most important ones, the remaining two explanations (mindset and social network) also deserve attention. A point argued in the conclusion of this article is that socio-cultural values, and the concept of "social capital" in particular, merit further investigation with respect to the question of why there is a lack of black entrepreneurship in South Africa.

Suggested Citation

  • Peter Preisendörfer & Ansgar Bitz & Frans J. Bezuidenhout, 2012. "In Search Of Black Entrepreneurship: Why Is There A Lack Of Entrepreneurial Activity Among The Black Population In South Africa?," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-18.
  • Handle: RePEc:wsi:jdexxx:v:17:y:2012:i:01:n:s1084946712500069
    DOI: 10.1142/S1084946712500069
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    References listed on IDEAS

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    1. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355, March.
    2. David B. Audretsch (ed.), 2006. "Entrepreneurship, Innovation and Economic Growth," Books, Edward Elgar Publishing, number 4130.
    3. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    4. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521899604, March.
    5. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
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    3. Crittenden, Victoria L. & Crittenden, William F. & Ajjan, Haya, 2019. "Empowering women micro-entrepreneurs in emerging economies: The role of information communications technology," Journal of Business Research, Elsevier, vol. 98(C), pages 191-203.

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