FEMALE ENTREPRENEURS’ BUSINESS TRAINING AND ITS EFFECT ON VARIOUS ENTREPRENEURIAL FACTORS: EVIDENCE FROM A DEVELOPING COUNTRY

Abstract

Entrepreneurship has been considered an imperative component of economic development. This is specifically true for developing countries, such as South Africa, where economies face high levels of unemployment and poverty. Several countries have emphasised the importance of female entrepreneurship development, and evidence from the literature suggests that entrepreneurs who accumulate entrepreneurial training prove higher commitment to stay in and grow the business. As such, the aim of this study was to explore the differences in various entrepreneurial factors between South African female entrepreneurs having some form of entrepreneurial training and those who have not had such training. The methodology followed a quantitative descriptive approach using a convenience sampling method. Female entrepreneurs from all nine South African provinces were included and data were collected using a self-administered questionnaire. In total, 510 useable questionnaires were returned. Data were analysed using descriptive, reliability and validity analysis, MANOVA and ANOVA. From the results, four variables returned a statistically significant value: external motivation, intention to grow the business, entrepreneurship training and education and business growth factors. From these variables, all with the exception of the external motivation variable, reported higher means for the group who had previous exposure to entrepreneurial training. No differences were observed for the variables concerning internal motivation, intention to remain in business and attitude towards business. The literature supports the findings in that females who had previous entrepreneurial training reported higher means for intention to grow their business. Surprisingly, females with previous entrepreneurial training reported a lower mean for external motivation, possibly suggesting that training may affect their outlook regarding desire for wealth, applying skills and knowledge, proving oneself and improving one’s status, for example. Recommendations include that government should introduce and promote special training programmes for female entrepreneurs and facilitate funding opportunities for these businesses to ensure sustained growth.

Keywords

• Female entrepreneurs,South Africa,entrepreneurial training,developing country

References

1. American Express. (2017). The 2017 state of women-owned businesses report. https://about.americanexpress.com/sites/americanexpress.newshq.businesswire.com/files/doc_library/file/2017_SWOB_Report_-FINAL.pdf. Accessed 2019/07/01.
2. Arthur-Aidoo, B.M., Aigbavboa, C.O. and Thwala, W.D. (2016). Attitudes of owners which impedes firm’s growth: A case of small and medium-sized construction firms in Ghana. Procedia Engineering, 164(2016), 230-234.
3. Banda, H., Ngirande, H. and Hogwe, F. (2016). The impact of economic growth on unemployment in South Africa. Investment Management and Financial Innovations, 13(2), 264-255.
4. Bergström, E. and Martinez, M.G. (2016). Extrinsic motivation on employee engagement: a qualitative study of the perceptions of managers in public and private sector organisations. http://www.divaportal.org/smash/get/diva2:944047/FULLTEXT01.pdf Accessed 2019/06/28.
5. Cabrera, E.M. and Mauricio, D. (2017). Factors affecting the success of women’s entrepreneurship: a review of literature. International Journal of Gender and Entrepreneurship, 9(1), 31-65.
6. Chimucheka, T. (2014). Entrepreneurship Education in South Africa. Mediterrean Journal of Social Sciences, 5 (2), 403-416.
7. Clark, L.A. and Watson, D. (1995). Constructing validity: Basic issues in objective scale development. Psychological Assessment, 7(3), 309-319.
8. Consortium of Entrepreneurship Education. (2013). Entrepreneurship education. http://www.entre-ed.org/. Accessed: 2017/10/04.

9. Coulter, M. (2003). Entrepreneurship in action. 2nd ed. New Jersey: Prentice Hall.
10. Crampton, N. (2016). Funding and resources for young SA entrepreneurs. Unemployment in South Africa. Investment Management and Financial Innovations, 13(2), 264-255.
11. Davidsson, P. (1995). Culture, structure and regional levels of entrepreneurship. Entrepreneurship and Regional Development, 7(1), 41-62.
12. Dawson, C. and Henley, A. (2019). Push versus pull entrepreneurship: an ambiguous distinction? International Journal of Entrepreneurial Behaviour and Research, 18(6), 697-719.
13. De Bruin, A. Brush, C.G. and Welter, F. (2007). Advancing a framework for coherent research on women’s entrepreneurship. Entrepreneurship Theory and Practice, 31(3), 323-339.
14. Dean, H., Larsen, G., Ford, J. and Akram, M. (2019). Female entrepreneurship and the metanarrative of economic growth: a critical review of underlying assumptions. International Journal of Management Reviews, 21, 24-49.
15. Dvorsky, J., Popp, J., Virglerova, Z., Kovács, S. and Judit Oláh (2018). Assessing the importance of market risk and its sources in the SME of the Visegrad Group and Serbia. Advances in Decision Sciences, 22(A), Special Issue, 1-25.
16. Galindo, M.A. and Méndez, M.T. (2014). Entrepreneurship, economic growth and innovation: Are feedback effects at work? Journal of Business Research, 67, 825-829
17. Gartner, W.B. 1989. Who is an entrepreneur? Is the wrong question. Entrepreneurship, Theory and Practice, 12, 47 – 68.
18. Gender Equality Report: SA shines, illustrates BRICS cultural divide. 2016. https://www.biznews.com/wef/2016/10/27/gender-equality-wef/ Accessed 2019/06/28.
19. Global Entrepreneurship Monitor (GEM). (2018). Global report. https://www.gemconsortium.org/report/gem-2017-2018-global-report. Accessed 2019/06/28.
20. Greblikaite J., Sroka W. and Gerulaitiene N. (2016). Involving young people in Polish and Lithuanian social enterprises by fostering entrepreneurial skills and abilities as entrepreneurial opportunity at university, Entrepreneurial Business and Economics Review, 4(3), 131-152. DOI: 10.15678/EBER.2016.040310
21. Greblikaite J., Sroka W. and Grants J. (2015). Development of social entrepreneurship in European Union: Policy and Situation of Lithuania and Poland, Transformations in Business & Economics, 14(2B) (35B), 376-396.
22. Hamilton, L. (2015). Generation Y female students’ inclination towards entrepreneurship: A comparative study between South Africa and the Netherlands. South Africa: North West University. (Thesis – PhD).
23. Hamilton, L. and De Klerk, N. (2016). Generation Y Female students' motivation towards entrepreneurship. International Journal of Business and Management Studies, 8(2), 50 - 65.
24. https://www.entrepreneurmag.co.za /advice/funding/ how-to-guides funding/funding-and resources-for-young-sa-entrepreneurs/. Accessed 2019/07/04.
25. Ibrahim, A.B. and Soufani, K. (2002). Entrepreneurship education and training in Canada: A critical assessment. Education and Training, 44(8/9), 421-430.
26. Ijeoma, E.O.C. and Matarirano, O. (2011). Government subsidised financial assistance to small scale businesses: A comparative analysis of Namibia, South Africa and Zimbabwe. Journal of Public Administration, 46(Special issue 1), 854-867.
27. Irene, B.N.O. (2017). Women entrepreneurship in South Africa: Understanding the role of competencies in business success. The Southern African Journal of Entrepreneurship and Small Business Management, 9(1), A121.
28. Ismail, H.C. (2012). An exploratory study of motivational factors on women entrepreneurship venturing in Malaysia. Business and Economic Research, 2(1), 1-13.
29. Kalinic, M., Simin, M.J. and Janjusic, D. (2014). Female entrepreneurship – as potential benefit to the economic development of Serbia. Prakticni menadzment, 1, 53-57.
30. Kerr, S.P., Kerr, W.R. and Xu, T. (2017). Personality traits of entrepreneurs: A review of recent literature. https://www.hbs.edu/faculty/Publication%20Files/18-047_b0074a64-5428-479b-8c83-16f2a0e97eb6.pdf Accessed 2019/06/28.
31. Kirkwood, J. (2009). Motivational factors in a push-pull theory of entrepreneurship: Gender in management. An International Journal, 24(5), 346-364.
32. Klonaridis, R. and de Klerk, N. (2017). Start-up and established organisations’ requirements from university business incubators. International Journal of Business and Management Studies, 9(2), 200-213.
33. Kolvereid, L. and Moen, Ø. (1997). Entrepreneurship among business graduates: Does a major in entrepreneurship make a difference? Journal of European Industrial Training, 21(4), 154-160.
34. Kozan, M.K., Oksoy, D. and Ozsoy, O. (2012). Owner sacrifice and small business growth. Journal of World Business, 47(2012), 409–419.
35. Kritikos, A.S. (2014). Entrepreneurs and their impacts on jobs and economic growth. https://wol.iza.org/uploads/articles/8/pdfs/entrepreneurs-and-their-impact-on-jobs-and-economic-growth.pdf Accessed 2019/06/28.
36. Krueger, N.F. and Carsrud, A.L. (1993). Entrepreneurial intentions: Applying the theory of planned behaviour. Entrepreneurship and Regional Development, 5(4), 315-330.
37. Kuckertz, A. and Prochotta, A. (2018). What’s hot in entrepreneurship research 2018. https://www.researchgate.net/publication/323258024_What%27s_Hot_in_ Entrepreneurship_Research_2018. Accessed 2019/07/03.
38. Kuratko, D.F. (2005). The emergence of entrepreneurship education: Development, trends, and challenges. Entrepreneurship Theory and Practice, 29(5), 577-598.
39. Littlewood, D. and Holt, D. (2018). Social Entrepreneurship in South Africa: Exploring the influence of environment. Business and Society, 57(3), 525-561.
40. Maina, S. (2013). The role of entrepreneurship education on job creation among youths in Nigeria. International Letters of Social and Humanistic Sciences, 15, 87-96.
41. Malebane, M.J. (2014). Entrepreneurial intentions and entrepreneurial motivation of South African rural university students. Journal of Economics and Behavioural Studies, 6(9), 709-726.
42. Mamabolo, M.A., Kerrin, M. and Kele, T. (2017). Entrepreneurship management skills requirements in an emerging economy: A South African outlook. Southern African Journal of Entrepreneurship and Small Business Management. 9(1), 1-10.
43. Mandipaka, F. (2014). Overview of women entrepreneurs in South Africa. Mediterranean Journal of Social Sciences, 5(9), 127 – 130.
44. Meyer, D.F., Meyer, N. and Neethling, J.R. (2016). Perceptions of business owners on service delivery and the creation of an enabling environment. Administratio Publica, 24(3), 52-73.
45. Meyer, N. & Synodinos, C. (2019). Entrepreneurial skills, characteristics and intentions amongst unemployed individuals in South Africa. Journal of Contemporary Management, 16(2), 1-22.
46. Meyer, N. (2018). Research on female entrepreneurship: Are we doing enough? Polish Journal of Management Studies, 17(2), 158-169.
47. Meyer, N. (2019). South African female entrepreneurs’ business styles and their influence on various entrepreneurial factors. Forum Scientiae Oeconomia, 7(2), 25-35. DOI: 10.23762/fSo_vol7_no2_2
48. Momani, B. (2017). Entrepreneurship: An Engine for job creation and inclusive growth in the Arab world. Qatar: Brookings Institution. https://www.brookings.edu/research/entrepreneurship-an-engine-for-job-creation-and-inclusivegrowth-in-the-arab-world/ Accessed 2019/07/03.
49. Moodley, S. (2016). Creating entrepreneurs in South Africa through education. University of Pretoria. South Africa: University of Pretoria. (Dissertation – Masters).
50. Nabi, G., Walmsley, A., Liñán, F., Akhtar, I. and Neame, C. (2018). Does entrepreneurship education in the first year of higher education develop entrepreneurial intentions? The role of learning and inspiration. Studies in Higher Education, 43(3), 452-467.
51. Nunnally, J.C. and Bernstein, I.H. (1994). “Psychometric Theory.” New York: McGraw-Hill.
52. Oláh, J., Kovács, S., Virglerova, Z., Lakner, Z. and Popp, J. (2019), Analysis and Comparison of Economic and Financial Risk Sources in SMEs of the Visegrad Group and Serbia, Sustainability, 11(7), 1-19.
53. Pérez-Pérez, C. and Avilés-Hernández, M. (2015). Explanatory factors of female entrepreneurship and limiting elements. Suma De Negocios, 7:25-31. https://www.sciencedirect.com/science/article/pii/S2215910X15000531. Accessed 2019/06/28.
54. Phillips, M., Moos, M. and Nieman, G. (2014). The impact of government support on the growth of female businesses in Tshwane South Africa. Polish Mediterranean Journal of Social Sciences, 15(5), 85-92.
55. Prochazkova, P.T. (2015). Various perspectives on entrepreneurship education: Emerging trends in entrepreneurship support. Trendy V Podnikani – Business Trends. 2, 28-36.
56. Reichborn-Kjennerud, K. and Svare, H. (2014). Entrepreneurial growth strategies: the female touch. International Journal of Gender and Entrepreneurship, 6(2), 181-199.
57. Ribeiro-Soriano, D. (2017). Small business and entrepreneurship: their role in economic and social development. Entrepreneurship & Regional Development, 29, 1-4. https://www.tandfonline.com/doi/full/10.1080/08985626.2016.1255438. Accessed 2019/07/01.
58. Rodrigues, D.A. (2018). The impact of (opportunity and necessity) entrepreneurship on economic growth: Does human capital matter? Portugal: University of Porto. (Dissertation – Masters).
59. SA News. (2018). https://www.sanews.gov.za/south-africa/women-owned-businesses-spotlight. Accessed 2019/07/04.
60. Sadaf, R., Oláh, J., Popp, J. and Máté, D. (2018), An Investigation of the Influence of the Worldwide Governance and Competitiveness on Accounting Fraud Cases: A Cross-Country Perspective. Sustainability, 10(3), 1-11.
61. Sanne, P.N. and Wiese, M. (2018). The theory of planned behaviour and user engagement applied to Facebook advertising. South African Journal of Information Management, 20(1), 1-10.
62. Schneider, K. (2017). Entrepreneurial competencies of woman entrepreneurs of micro and small enterprises. Science Journal of Education, 5(6), 252-261.
63. Segal, G., Borgia, D. & Scoenfeld, J. (2014). The motivation to become an entrepreneur. International Journal of Entrepreneurial behavior, 11(1), 42 – 57.
64. Sinkovec, B. (2013). Entrepreneurial Education and Innovation: Developing entrepreneurial mindset for knowledge economy. http://www.knowledgeeconomy.net/uploads/documents/documents/2013/workshops/wolverhampton/Wolverhampton%20Workshop%20-%20Analytical%20Compendium.pdf Accessed 2019/06/25.
65. Statistics South Africa. (2018). Statistical release P0302: 2018 mid-year population estimates. https://www.statssa.gov.za/publications/P0302/P03022018. Accessed 2019/06/28.
66. Statistics South Africa. (2019). Quarterly labour force survey: QLFS Q1:2019. http://www.statssa.gov.za/?p=12115. Accessed 2019/06/28.
67. Thom, D. (2015). An exploratory study into Entrepreneurial Motivation in changing contexts. Wellington: Victoria University of Wellington. (Thesis – PhD).
68. Tshikovhi, N. and Shambare, R. (2015). Entrepreneurial knowledge, personal attitudes and entrepreneurship intentions among South African Enactus students. Problems and Perspectives in Management, 13(1), 152-158.
69. Van der Zwan, P., Thurik, R., Verheul, I. and Hessels, J. (2016). Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs. Eurasian Business Revision, 6, 273-295.
70. Veena, M. and Nagaraja, N. (2013). Comparison of male and female entrepreneurs: An empirical study. International Journal of Engineering and Management Research, 3(6), 138-143.
71. Verheul, I. and Thurik, R. (2001). Start-up capital: Does gender matter? Small Business Economics, 16(4), 329-346.
72. Verheul, I., Thurik, R., Hessels, J. and van der Zwan, P. (2010). Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs. Zoetermeer, 1-26. http://ondernemerschap.panteia.nl/pdf-ez/h201011.pdf. Accessed 2019/06/28.
73. Yao, Y., Wu, X. and Long, D. (2016). University students’ entrepreneurial tendency in China: Effect of students’ perceived entrepreneurial environment. Journal of entrepreneurship in emerging economies, 8 (1), 60-81.
74. Zaki, I.M. and Rashid, N.H. (2016). Entrepreneurship impact on economic growth in emerging economies. The Business and Management Review, 7(2), 31-39.