PhD (Business Management) / Department of Business Management / Microfranchising’ is one of the new innovative entrepreneurial concepts that has gained traction in the past few years and potentially can provide a livelihood to the three billion people that live at the Bottom of the Pyramid (BoPInnovationCenter, 2020) on less than US$2 a day. While microfranchising is a strategy meant to rapidly scale-up entrepreneurship behaviour, very little is known about the microfranchising processes as well as its ability to enhance entrepreneurship in South Africa. Resultantly, the latter is ignored from entrepreneurship discussion and discourse at both academic and policy levels. To address this gap the study assessed microfranchising practices in South Africa, with the aim of proposing a microfranchising framework that will enhance entrepreneurship development. The study used the interpretivism research paradigm to achieve the study objectives. Primary and secondary data were employed to collect data on the microfranchising practices in South Africa. The study sampled five microfranchise entrepreneurs (four microfranchisee and one microfranchisor using the in-depth structured interview format while secondary data (microfranchisees and microfranchisors success stories) and was employed to collect data on the former and current practices of microfranchising in South Africa. The collected data was analysed using the ATLAS.ti. The study results show that microfranchisees exhibit traits of successful entrepreneurs. As a result, the study concludes that microfranchising can be used as a tool for entrepreneurship development using the proposed microfranchising framework developed in Chapter 6 of this study. The value of this work is among the first in seeking to propose a framework for developing entrepreneurship through microfranchising. The implication of the study is that it potentially provides policymakers with valuable tools to understand microfranchising practices and its efficacy in stimulating entrepreneurship development in South Africa. The study recorded and established microfranchising practices in South Africa to enhance the extinct academic literature on microfranchising and entrepreneurship ventures operating at the BoP. / NRF

MCom / Department of Business Management / Africans are, by nature, collectivist people. This is especially true for countries such as South Africa, where people live their lives as a community – they celebrate life’s achievements together and mourn life’s tragic moments together. Africans support each other as one big family, at least theoretically, however, in the recent past, effects of urbanisation and globalisation have reshaped, reorganised, and reoriented African families. The once communal and collectivist views towards life (that the community or family comes first before the individual) are fast being replaced by individualistic perspectives towards life. The nuclear family is rapidly taking centre stage. In the process, individual needs are crowding out those of the family and community. Communal needs are now being viewed as a burden. To describe this ‘new’ burden, modern society has coined a term to express its mixed emotions towards its responsibility towards the extended family; they call it “black tax”. As a form of tax, supporting one’s extended family results in greater good, at least in the long-run, however, in the short-run, high levels of indebtedness and growing personal needs make one’s obligation to the family almost seems morally wrong, insensitive, and illegal, hence, the word “black,” as in the black market – an informal underground market that is often immoral and illegal. By extension, contemporary South Africans seem to be saying that whilst looking after one’s extended family in the 21st century is immoral, insensitive, unreasonable, and expensive, we still will try our best to be play our part, whenever and wherever we can. Clearly, black tax affects the lives of individuals, particularly those being black taxed. Despite this growing phenomenon, the literature has largely ignored the effect of black tax on the life of ordinary people. The few available studies focus mostly on black tax within the middle class, employed, working population. Very little studies have looked at the effect of black tax on entrepreneurs, as they too are not immune to black tax. It was, therefore, opportune for this dissertation to address this gap within the literature. Consequently, the purpose of this study is to investigate the effects of black tax on micro-entrepreneurs, as well as to identify coping strategies employed by the latter to balance business needs and communal expectations. A qualitative case study was conducted in which 12 entrepreneurs from the Thulamela Local Municipality area participated. Data were collected using in-depth interviews. After transcription, the interviews were analysed by means of thematic analysis using ATLAS.ti. Results indicate a high prevalence of various forms of black tax, challenges as well as well-structured coping strategies, as employed by the entrepreneurs. The value of this dissertation is that it is among the first in contributing towards understanding the impact of black tax on micro-entrepreneurship within the South African context. Several theoretical and practical implications have been suggested. / NRF