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A proposed Christian-based governing model to increase the success of entrepreneurial ventures in South Africa

The Republic of South Africa (RSA) became a democracy when the African National Congress (ANC) came to power in 1994. However, more than twenty years after the apartheid era, the people of the RSA are highly politicised and society still shows an extremely high level of inequality in income that is aggravated by the lack of formal job opportunities in the country. Disturbingly, early-stage entrepreneurial activity in the RSA declined from 7.8 percent in 2008 to 5 percent in 2009. As a result, the low levels of entrepreneurial activity are partly responsible for the stagnation in the structural transformation of the economy. The economy remains dependent on sectors such as agriculture and mining where looting, instability, violence and rent-seeking are endemic in spite of plentiful natural resources. As a consequence of these factors, manufacturing is becoming increasingly uncompetitive and the economy is becoming increasingly less innovative. The RSA‟s government leaders should have used the strengths of the country to minimise or rectify the weaknesses of the extremely high levels of inequality in income and the lack of formal job opportunities. Instead, these leaders identified their supporters, satisfied their short-term consumption demands, distributed jobs to the party faithful and provided social welfare to the poor. Additionally, the majority of school leavers are not pursuing tertiary studies but, with limited or little education, they still have to form part of the potential labour force of the future. The youth employment rate for 15 to 24 year-olds, in the RSA, is as low as 12.5 percent. Again, this highlights the importance of finding alternative ways to increase the population‟s participation in the economy, probably through some form of entrepreneurship. The purpose of this study was to develop a theoretical model with the main objective being to identify the factors (variables) that will promote growth, sustainability and good governance in Christian-owned Small, Micro and Medium Enterprises (SMME) within the RSA. Business is commonly viewed as a secular pursuit and religious people, particularly in Western societies, have a narrow view of the conceptual and practical application of their faith and spirituality in their businesses. As a result, the potential of businesses to influence communities, particularly with regard to issues such as social iniquities and cultural reform, good governance, responsible business behaviour, social capital, spiritual intelligence (SQ) and Christian entrepreneurship orientation appear to be, at worst, more or less irrelevant and, at best, greatly under-valued and under-utilised. The intersection of these constructs provides an understanding of how an entrepreneur‟s heightened consciousness in terms of his/her personal values and beliefs can affect his or her business activities and crucial characteristics of the entrepreneurial process, such as the recognition of opportunities, the creation of new ventures, as well as the operation and growth of these business ventures. This study uncovered a number of themes that shed light on how Christian SMME owner-managers rationalise the everyday dealings of their business lives as an expression of their faith. This study is an expression of a complex phenomenon that is extremely relevant in the present day and sharpens the focus on the important role that religious faith has to play in the field of business outcomes. Many Christian entrepreneurs express a motivational need to give back to their communities, customers and other stakeholders of the business venture. Christian entrepreneurs value intrinsic factors like purpose, passionate work and personal calling above wealth, fame, power, money, and recognition. A combination of Christian character traits forms the backbone of a Christian‟s internal power and purpose. God created people to glorify Him and this purpose is achieved through the fulfilling of a personal calling. A calling is often accompanied by a conviction of divine influence and the vocation in which one customarily engages. The call to the Christian entrepreneur is to be the salt and light in an environment (Mathew 5:13) like RSA, that is not conducive to entrepreneurial behaviour, where unemployment is very high, infrastructure is buckling under the pressures of bad management and corruption is rife.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:20712
Date January 2016
CreatorsBoshoff, Leslie Ian
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Doctoral, DBA
Format390 leaves, pdf
RightsNelson Mandela Metropolitan University

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