Assessment of internal entrepreneurship capacity of small, micro and - - PowerPoint PPT Presentation

Assessment of internal entrepreneurship capacity of small, micro and medium enterprises (SMMEs) in the underdeveloped areas of George municipality, Western Cape Province, RSA.

UJ CSBD, 2012 VENUE: UJ SOWETO CAMPUS Victor Mmbengwa1* ,Jan Groenewald1 , Mazuru Gundidza2 and Amidou Samie3

TABLE OF CONTENTS

• INTRODUCTION
• AIM & OBJECTIVES
• MATERIALS AND METHODS
• RESULTS & DISCUSSIONS
• CONCLUSSION

INTRODUCTION

• Small businesses –are known for creating jobs,

wealth and food security in the poor and underdeveloped areas

• Without SMMEs, many countries will not be

able to meet millennium development goals (MDGs)

Continue-

• Nieman et al, (2004) refers to entrepreneurship is the

emergence and growth of a new business.

• Whilst Timmons and Spinelli, 1990 referred to

entreprenuership as the creation of opportunities and pursuance of business regardless of the resources

• What is then an internal entreprenuership capacity?

Continue-

• Entrepreneurial capacity relates to the ability of

entrepreneurs to pursue entrepreneurial activities with capacity such as staffing, physical infrastructure, technology, financial resources, strategic leadership, programme, process management, networks, linkages with

• ther
• rganizations, monitoring and evaluation abilities

(IDRC, 2002).

Aim and objective of the study:

The aim of the study was to determine the internal entrepreneurship capacity of agricultural focussed small business in poor communities of George

• Municipality. The objective being to assess the

internal entrepreneurial capacity of SMMEs in the underdeveloped areas of the municipality stated above.

MATERIALS AND METHODS

The research used both qualitative and quantitative methods.

RESULTS AND DISCUSSION

• DESCRIPTIVE ANALYSIS
• FACTORIAL ANALYSIS
• INFERENTIAL ANALYSIS

DESCRIPTIVE ANALYSIS

GENDER MALE FEMALE AGE DESCRIPTIVE VARIABLES Mean 49.45 43.49 Median 50.00 45.00 N 67.00 59.00 Minimum 28.00 26.00 Maximum 70.00 62.00 Standard Deviation 9.23 10.32 Variance 85.22 106.56 Lower conf. interval (95%) 47.20 40.80 Upper conf. Interval (95%) 40.80 46.18 Range 42.00 56.00 Skeweness

• 0.098
• 0.68

Kurtosis

• 0.57

1.53 Lower quartile (Q25) 43.00 37.00 Upper quartile (Q75) 57.00 52.00 P-Values (95%) 1.00ns 0.05*

*=Significant , ns= non significant

FACTORIAL ANALYSIS

Factor Loadings (Varimax normalized) Extraction: Principal axis factoring (Marked loadings are >.700000) Variable Factor 1 Factor 2 Creativity Risk Innovation Interest Perseverance Passion Resources Infrastructure Financial capacity Expl.Var Prp.T otl 0.345720 0.395931 0.356328 0.376458 0.638736 0.205175 0.582975 0.105147 0.840070

• 0.223026

0.408145

• 0.364424
• 0.052386
• 0.618198
• 0.194549
• 0.639099

0.032544

• 0.357613

2.208081 1.505957 0.220808 0.150596

INFERENTIAL ANALYSIS

Variable

Rank sum Group 1 U Z P-values Z adjusted 2*1sided exact P Creativity5 965 812 0.81 0.42ns 0.81 0.42ns Risk taking3 1002 830 0.88 0.38ns 0.88 0.38ns Innovative4 1001 830 0.88 0.38ns 0.88 0.38ns Interest8 204 172

• 0.20

0.84ns

• 0.20

0.84ns Perseverance9 132 126 0.90 0.37ns 0.90 0.38ns Passion7 397 94

• 2.07

0.03*

• 2.07

0.03* Resources6 464 390

• 0.25

0.80ns

• 0.25

0.80ns Infrastructure1 6839 734 1.07 0.28ns 1.07 0.29ns Financial capacity2 1069 591

• 1.46

0.15ns

• 1.46

0.15ns

CONCLUSSION

According to inferential analysis, infrastructural capacity, financial capacity, risk taking, innovation and creativity are the most top five indicators that determine SMMEs internal entrepreneurship capacity. On the other hand, factorial analysis places the perseverance, innovation, interest, passion and risk taking as the top five indicators that may enable SMMEs to possess internal entrepreneurial capacity. All analyses show that innovation and risk taking are crucial.

THANK YOU !!!