The field of entrepreneurship research offers differing theories regarding the underlying behaviours of entrepreneurs. These theoretical frameworks describe the behaviours and principal thought processes that entrepreneurs use to create new businesses. The unique attributes of the South African context, characterised by high unemployment and low entrepreneurial activity, together with new business formation make this field of research particularly important. Some of the major theoretical frameworks were reviewed in the study, and a qualitative study was employed using the Grounded Theory approach. Ten successful entrepreneurs were interviewed for the study and the data collected was used to provide insight into their behaviour and particularly sought to determine whether principles from Effectual Theory were present. The findings of the research supported some aspects of the important theoretical frameworks, emphasising the need for a multitude of perspectives rather than a single best framework. Particularly strong evidence of effectual entrepreneurial behaviours were found in the data, supporting the Theory of Effectuation as a construct for new business formation in South Africa. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / Unrestricted

The humble beginnings of business incubators date back to the 1970s in the USA and United Kingdom, where abandoned industrial buildings were converted to rent out to small businesses. South Africa (SA) was first introduced to business incubation in the 1980s when the Small Business Development Corporation (SBDC) established a number of business ‘hives’ and provided business space to entrepreneurs to operate their businesses. In their most basic form, business incubators provide a safe and nurturing environment for entrepreneurs to establish their small businesses. While in incubation, the Small and Medium Enterprises (SMEs) are supported with a number of services which assist their growth and development until they are able to exit the incubator as sustainable and viable businesses. Global incubator models have matured significantly, and now include assisting with business idea generation, accelerating business start-ups and commercialisation processes, and identifying high-growth orientated SMEs to assist them with gaining market access. The establishment of business incubators was a government-driven initiative, and more than 33 SME incubators exist in SA. Most of the incubators are government-funded, and have focused on the establishment and growth of SMEs to act as a catalyst to promote economic development and alleviate socio-economic challenges such as unemployment and poverty. Despite these noble objectives, incubation in SA has not been fully utilised, and a high SME failure rate still prevails in the country. One of the reasons for SME failure may be ascribed to the lack of an enabling SME incubation environment in SA. When compared to other developing countries such as Brazil with as many as 400 incubators, it is clear that the SA incubation industry still needs further development. The purpose of this study therefore was to ascertain the best practices of global business incubators in both developed and developing countries, and how SA incubators could learn from these best practices to create a more conducive and enabling SME incubation environment. Background literature on business incubation with a specific focus on best practices in world incubators in both developed and developing countries, was reviewed. Some of the literature reviewed included Aernoudt (2004), Buys and Mbewana (2007) and Chandra (2009). From the literature review, four main best practice areas were identified, namely strategic focus, sources of funding, incubator services, and the role of government. The study followed a qualitative approach, and an interview schedule was developed to seek the perceptions of incubator managers on how the four identified best practices can be utilised to create an enabling SA incubation environment. A survey was conducted by interviewing 14 incubator managers (twelve government and two private) in SA. Data was collected over a six-month period, using face-to-face and telephonic interviews. Data was analysed using the content analysis, constant comparison, grounded theory and case study methods. The biographical profiles of the incubator managers and incubators were presented in case studies. An initial analysis was made to identify themes and sub themes within the four best practices explored, using the constant comparison method. Thereafter a provincial comparative analysis was made, as well as a comparison of government funded versus privately funded incubators. The findings suggested that there is a relatively high turnover in incubator management, and that they often do not have incubator management experience. A provincial comparison of SA incubators revealed that their strategic focuses are greatly influenced by the industry prevailing in the various provinces. All SA incubators provide pre- and post incubation services, but few are utilising virtual incubation. Most SA incubators are government-funded, and some use a hybrid funding model. It was evident that most SA incubators are aware of government policies and programmes available to assist them on local, provincial and national levels. A comparison of the best practices of two developing countries and three developed countries, as well as suggestions made by SA incubator managers indicated that SA has indeed followed best practices from both developing and developed countries, but there are areas of non-alignment which provide scope for improvement, to create a more conducive and enabling incubation environment. This study recommends that incubators should have an entrepreneurial focus, and reposition and align their strategic focus with government policies and instruments. SA incubators must pursue opportunities for virtual incubation as well as linkages with academic institutions, in order to offer value-added services such as research, development and commercialisation of the product ideas. Incubators in SA must pursue a hybrid funding model with a combination of government and private funding, and generate some or their own income. With regard to the role of government, it is recommended that the roll-out of more industry-specific incubators be privatised, and that an overseeing body for incubation be established.

Business incubators, as recognised in their contemporary form, have a history dating back to the 1970s in the United Kingdom and the USA. South Africa is no stranger to this concept of business incubation either: Since the 1980s the Small Business Development Corporation (SBDC) operated business “hives” as clusters of small enterprises. Business incubators are support facilities that empower and stimulate small-entrepreneurial businesses – from the financially vulnerable start-up period, until the time that the fledgling company is ready to operate more autonomously. Business incubators provide, as part of their services, affordable space, financial-management services, sound business advice and other development services. Incubation stimulates the development of small-entrepreneurial businesses and, to this end, helps stimulate the economy. Thus, for South Africa to invest in the development of small growing businesses, is to invest directly in its larger economy and to address its own development challenges like employment-creation, income-generation and the alleviation of poverty. It is in this context that this study discusses the development challenges of one of the rural areas in South Africa, Oudtshoorn, and aims to provide a viable strategy of business incubation for this area, in anticipation that in future lessons can be drawn from this and applied to other rural areas. Oudtshoorn is a town in the Klein Karoo, in the Western Cape Province of South Africa. The strongest sectors in Oudtshoorn’s economy are agriculture and tourism. These two sectors should provide the basis for an empowering business incubator to strengthen and enhance smaller businesses in the town. The study focuses on the development challenges of South Africa and, in particular, a rural town such as Oudtshoorn, the importance of investing in small entrepreneurial businesses so as to strengthen the country’s economy. the nature an significance of a business-incubation strategy for the Oudtshoorn area. Background literature on South Africa’s development challenges was collated as well as information gathered on small-business support and incubation in particular. Literature was retrieved from local institutions as well as national and international sources. Case studies of incubators in South Africa and in other countries were included to enhance the understanding of the importance of business incubation. In addition, the researcher’s close networks with the Oudtshoorn municipality, the local Red Door office and the different role-players in the small-business support sphere allowed for an in-depth assessment of support for such an incubation project and the critical obstacles it may encounter en route.

The focus on entrepreneurs as drivers of the economies of nations has catapulted them into the forefront of the local and international marketplace. This has led to a demand for entrepreneurial education and training resulting in a plethora of different and often divergent views. One commonality that has emerged is that entrepreneurship can be taught; although it cannot be taught in conventional and traditional ways. It requires a move from traditional education and training to more enterprising participative and supportive forms of business development. It requires investments of time, resources and support. Incubators are facilities that are engaged with entrepreneurs and offer a variety of support including education and training. This study has assessed the effectiveness of training offered by the Seda Nelson Mandela Bay ICT incubator. There has been limited research undertaken on entrepreneurial education and training in an incubator setting. This study followed the qualitative paradigm. The sample comprised of 10 small businesses at the Seda Nelson Mandela Bay ICT incubator. Empirical data was obtained by interviewing the owners of the small businesses using an interview schedule. Issues such as the most effective training programme, content that it contained, methodology used and quality of the facilitator and applicability of the training programme were explored. The study found that the small businesses were opportunity driven rather than necessity driven and that the incubator served as a bridging facility in moving the businesses from the informal sector to the formal sector. The content of the training programmes was found to be effective when a mix of both theoretical and practical is offered especially with an emphasis on the underlying entrepreneurial themes of confidence, persistence and uncertainty and so on. It also found that training programmes should be linked to the life cycle of the business and address the specific needs of the small business owner. The start-up phase requires very specific training. Most of the facilitators were found to be experienced and empathetic. However, only a few were using a wider range of preferred learning styles favoured by entrepreneurs such as role playing, simulation, brainstorming and problem-solving techniques. The study also found that when generic training programmes are offered there was less recall on the part of the trainees. The management team of the incubator is an important determinant of the success of the incubatees and it is recommended that they need to be well versed in their sector and have good networking skills. There is a strong link between the theoretical and the practical content of training programmes especially where the emphasis is more on the practical content. It is recommended that facilitators pay attention to their relationship with trainees as it is a critical success factor in the training programme. Training programmes offered over a period of time add more value to the incubatee. This might be because of the mentoring and counselling that is available after each training module is completed. Finally, more research needs to be undertaken on the quality and effectiveness of training programmes offered by incubators to small businesses.

Thesis (M.Tech.: Entrepreneurship)-Dept. of Entrepreneurial Studies, Durban Institute of Technology, 2003 ix, 90 leaves / The South African economy is unable to support the employment needs of the growing number of graduates. In an attempt to address these needs, the proposed study focuses on the development of an incubator system to nurture young entrepreneurs (graduates), until they are able to survive independently – usually in two to three years.

Thesis (MDF (Development Finance))--University of Stellenbosch, 2010.

Thesis (M.Tech.: Entrepreneurship)-Dept. of Entrepreneurial Studies, Durban Institute of Technology, 2003 ix, 90 leaves / The South African economy is unable to support the employment needs of the growing number of graduates. In an attempt to address these needs, the proposed study focuses on the development of an incubator system to nurture young entrepreneurs (graduates), until they are able to survive independently – usually in two to three years.

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2016. / In both developed and developing countries, small and medium enterprises (SMEs) create employment opportunities and can therefore improve the standard of living. The South African Government have embarked on a number of initiatives in support of SMEs. The Department of Trade and Industry (DTI) and the SEDA Technology Programme (STP) have a number of assistance programmes that are being implemented in support of SMEs. Although there have been many varied studies on business incubators, there is still a need for research to determine the importance of entrepreneurial skills for the development of successful incubators.Business incubators are essentially organisations that assist to increase survival rates of innovative start-up companies and support the entrepreneurial process. Incubators provide resources and services to entrepreneurs, including working space or physical offices, technical expertise, management mentoring, assistance in compiling an effective business plan, shared administrative services, technical support, business networking, advice on intellectual property and sources of financing, markets as well as strict admission and exit rules, which are designed to ensure that the incubator concentrates its efforts in helping innovative and fast-growth business start-ups that are likely to have a significant impact on the local economy. This therefore reduces the start-up capital and overhead costs, and allows the entrepreneur to focus on his/her core business whilst receiving operational support and hand-held coaching. The incubator concept supports the clients’ development journey to ensure business sustainability and growth.The main objective of the study is to determine the role that business incubators play in filling entrepreneurial-skills requirements for SMEs in the Cape metropolitan District. The population of this study comprised all the business incubators on the data base of one of the organisations that promotes SME development strategies and programmes in the Cape Metropolitan Area (CAM). All of the five business incubators that were registered on the database of a local organisation, known as Traction, during the course of the investigation, were deemed suitable for the study and therefore comprised the sample, which promotes SMEs’ development. The study utilises a mixed approach of quantitative and qualitative methods to collect data. From a quantitative point of view, questionnaires are utilised, while face-to-face interviews is used as a qualitative method. A maximum of seventy questionnaires is administered to incubated SMEs, 28 questionnaires were returned and all qualified for data analysis. This amounts to a 40% response rate. To complement the survey questionnaire, five face-to-face interviews were conducted with business incubators. The Statistical Package for the Social Sciences (SPSS) software was utilised to analyse the quantitative data, whereas qualitative data was analysed by means of content analysis and the results for both methods were presented in the format of figures, tables and charts.

Business incubation is a concept that describes a business development process that is used to grow successful, sustainable entrepreneurial ventures that will contribute to the health and wealth of local, regional and national economies. Incubators provide a place for businesses to build their foundations. Business incubators use a combination of physical space, resources and services to facilitate and develop businesses, enhance their progress, break down barriers to success, reduce risks and increase the potential for successful survival of early stage ventures., their progress, break down barriers to success, reduce risks and increase the potential for successful survival of early stage ventures. Business incubators are part of a larger value chain that connects enterprises to a vital support system. Most incubators connect their clients to local service providers (such as lawyers, corporate service providers or accountants) and establish relationships that will last after the firm leaves the incubator. Once an enterprise is ready to leave the incubator environment, it will need space to move into, which in turn, boosts property development and leasing. Because of the enhanced credibility of the business incubation process, landlords would be more confident as a stable, growing business can be a reliable tenant. The empirical object of the study is the Seda NMB ICT Incubator in Port Elizabeth. Eastern Cape. Like any other business an incubator is created to deliver a service or product for as long as possible and in this process must create value because the ultimate objective of any profit seeking business is to create wealth for its owners with due consideration of all its stakeholders (Brigham & Ehrhardt 2005:7-12). A preliminary investigation of the Seda NMB ICT Incubator raised the question whether the operation of this incubator meets the performance standards as identified in the international literature. The purpose of this study is therefore to establish whether the performance of the Seda NMB ICT Incubator is in line with generally accepted performance standards. At this stage the standards can be identified as a strategic alliance of the business (vision, mission and strategy), financing principles, management principles and human resource development and growth opportunities. The SEDA NMB ICT Incubator is financed as follows: Partly by the Department of Trade and Industry (the SEDA technology programme) and partly by the Nelson Mandela Bay Metropolitan Municipality. It is recommended that public/private partnerships should be formed to ensure the continuity of the Port Elizabeth incubator. A second recommendation is that the SEDA NMB Incubator becomes more focussed in terms of its clients it is serving. At present it is serving a wide variety of ICT clients ranging from website design, graphic art to preparing business plans for ICT businesses. The period of incubation may be too extended as some incubatees have been on the premises for more than five years. It is recommended that the SEDA NMB Incubator pays attention to the length of stay of an incubatee. The vast majority of the incubatees on the SEDA NMB Incubator premises are not compliant with business acts and regulations. Seven incubatees reported during the personal interview that they were not compliant with all the acts and regulations.

PhD (Business Management) / Department of Business Management / The questions of what constitutes entrepreneurship and, in turn, who an entrepreneur is, have dominated entrepreneurship discourse in recent times. Over the years, a multiplicity of definitions of entrepreneurship has been proffered. However, most of these definitions to be either Eurocentric or Western-oriented and largely devoid of (South) African socio-economic imperatives. Naturally, the manner in which entrepreneurship in South Africa is conceptualised derives from the former definitions. Furthermore, the classification of entrepreneurship ventures in the country is also problematic. A Eurocentric classification regime is, on the one hand, too simplistic; and, on the other hand, it fails to fully capture the true essence of entrepreneurial activity within the South African economy. It is, therefore, not surprising that entrepreneurship development policies and interventions are not successful in stimulating entrepreneurship. This problem, this study argues, is a result of the lack of localised research aimed at understanding entrepreneurship classification dynamics in South Africa. This constitutes a research gap, which this study seeks to address. It is against this background that the aim of this study is to develop a taxonomy of entrepreneurial ventures in the Limpopo Province of South Africa. To achieve this purpose, which is pre-paradigmatic, the proposed study was designed along the dictates of a qualitatively grounded theory research. This facilitated the application of multiple methods of data collection. The study sampled 5 entrepreneurs in the Limpopo Province who were interviewed using an in-depth format. The value of this work is among the first in seeking to propose a framework (i.e. taxonomy) for classifying entrepreneurship ventures within the South African context. The implication of the study is that it potentially provides policymakers with valuable tools to understand South African entrepreneurship and the channels of intervention for small business ventures. / NRF