The impact that the small business sector has on the economy is well known and has been extensively studied. In 2008, 46% of the Swedish workforce in the private sector were employed by small businesses, the small businesses where also accountable for 42% of GDP, these are just some arguments in behalf of the impact that they have on the Swedish economy. Reviewing theories of entrepreneurship this paper asks if maybe a disproportionate part of the impact dealt by the small business sector comes from the entrepreneurial ventures that operate within that same sector. Because small businesses and entrepreneurial ventures in the small business sector find themselves in an overlap they are often confused with each other. Many studies fail to differentiate between these to organizational structures and therefore the impact on the economy dealt by entrepreneurial ventures is joined with the impact that is dealt by small businesses. With a qualitative approach, the use of two case studies and discussing theories developed by scholars in the field, this paper identifies an entrepreneurial venture that operates within the small business sector and compares it to an ordinary non-entrepreneurial small business that operates within that same sector. With the use of further theories it also identifies which of the two organisations that has the greatest impact on economic development. The results lead to the conclusion that a differentiation between entrepreneurial ventures and ordinary small businesses needs do be done so that political efforts, academic research and literature in the field can be reallocated towards entrepreneurial ventures and the field of entrepreneurship as a whole. The paper also gives suggestions for further research with the use of a quantitative approach and greater sample size so that results can be generalized.

MCom / Department of Business Management / Government regulations are needed to achieve a range of economic and social objectives which are beneficial to the nation as a whole. However, many countries experience problems with their regulatory systems as they invariably impose costs on businesses. In South Africa, it comes in the form of red tape, high taxes, labour laws and corruption. This places various regulatory burdens including compliance, administrative costs and other costs that may adversely influence firms’ productivity and frustrate their overall business performance and growth, particularly the small business sector. Given this sector’s indisputable contribution towards the overall economic health of the nation, it is important to address its concerns regarding the issue of the regulatory environment and government policy, in order to initiate corrective action and introduce regulatory reforms. Again, it is important to point out that not all businesses within the small business sector suffer under the weight of regulation. The purpose of this study was to examine the extent to which South Africa’s regulatory environment curtails the growth of the small business sector as well as determine whether the different categories of firms within the Small Business Sector (micro, very small, small or medium) bears different regulatory burdens. This study was carried out in Polokwane, Capricorn District Municipality, Limpopo Province, South Africa. To address the research problem, the positivist paradigm was used. The study used the mixed research method and the descriptive research design. The stratified sampling technique was used to determine various characteristics of the study population, while the convenience sampling technique was used due to constraints in reaching everyone in the population. The aim was therefore to find a representative sample of that population. Thus, to ensure that the population was representative, a sample size of 121 participants was derived using the Raosoft sample size calculator as well as other criteria. Questionnaires were utilised as the data collection tool and the collected data were analysed using SPSS version 25. Descriptive statistics, cluster analysis and Kruskal Wallis were also used to analyse the collected data. Results indicate that to a certain extent, the regulatory environment influences the small business sector negatively. On the other hand, the efforts and skills of the business owner influence their success and ability to remain in business, thus influencing the growth of the sector. The results also show that different categories of businesses within the small business sector bear different burdens, owing to certain characteristics they are defined by. / NRF