Jabulile Msimango-Galawe
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South African business incubators and reducing the SME failure rate – A literature review
Problems and Perspectives in Management Volume 19, 2021 Issue #2 pp. 194-205
Views: 1481 Downloads: 1587 TO CITE АНОТАЦІЯSmall business failure is one of the biggest challenges faced by developing countries, and business incubators have been touted as a solution to reducing the failure rate of these small and medium-sized enterprises (SMEs). Thus, the number of business incubators has escalated worldwide, including South Africa. Consequently, significant time has been devoted to researching business incubators and their role in SME success. However, the effectiveness of these incubators is still in question, thus a study is being conducted to determine how effective business incubators are in reducing the failure rate of SMEs.
The findings show that there are some improvements in SMEs that have been incubated or supported, but not enough to make a dent on the failure rate at the country level, as the failure rate has stubbornly remained the same. One of the concerning key findings is that there is a misalignment between the goals of business incubators (BIs) and the SMEs’ needs. SMEs are looking for access to finance and access to markets, while BIs are offering office space and other support services.
BI and SME goals need to be more aligned if we are to effectively enhance small business development interventions and reduce current failure rates. More empirical research is still needed to measure and quantify the effectiveness of BIs to SME failure rates, as no research has attempted to link a business incubator to both the success of individual SMEs and the country’s SME failure rate. -
The mediating effect of entrepreneurial self-efficacy on business experience and performance of women-owned enterprises
Problems and Perspectives in Management Volume 22, 2024 Issue #2 pp. 213-225
Views: 237 Downloads: 78 TO CITE АНОТАЦІЯThis study aims to investigate the mediating effect of entrepreneurial self-efficacy on the relationship between the business experience and performance of women-owned enterprises in South Africa. A quantitative methodology with random sampling was employed. Qualtrics was used to administer the online questionnaire; a sample size of 258 was attained to test the study hypotheses. This cross-sectional study design followed recommendations from scholars on a minimum of 100 as an adequate sample size for regression analysis. Hierarchical regression and mediation analysis were employed to analyze the primary data collected from women entrepreneurs in South Africa.
Using ordinal data, a seven-point Likert scale was adopted to operationalize constructs. Out of all the entrepreneurial self-efficacy antecedents and dimensions that were tested, industry experience emerged as the most influential predictor of business performance (β = 0.496*) when mediated by the innovation dimension of entrepreneurial self-efficacy. Although the management dimension of entrepreneurial self-efficacy showed strong predictive power, it did not exhibit significant mediating effects. Consequently, there was only partial mediation of the innovation dimension of entrepreneurial self-efficacy in the relationship between industry experience and business performance. Industry experience and business performance are antecedents and outcomes of entrepreneurial self-efficacy, respectively; they were partially mediated by the innovation dimension of entrepreneurial self-efficacy.