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 Mmbengwa 1* ,Jan Groenewald 1 , Mazuru Gundidza 2 and Amidou Samie 3

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 other organizations, 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

*=Significant , ns= non significant 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 1.00 ns 0.05 * P-Values (95%)

FACTORIAL ANALYSIS Factor Loadings (Varimax normalized) Extraction: Principal axis factoring (Marked loadings are >.700000) Factor Factor Variable 1 2 Creativity 0.345720 0.395931 Risk 0.356328 0.376458 Innovation 0.638736 0.205175 Interest 0.582975 0.105147 Perseverance 0.840070 -0.223026 Passion 0.408145 -0.364424 Resources -0.052386 -0.618198 Infrastructure -0.194549 -0.639099 Financial capacity 0.032544 -0.357613 Expl.Var 2.208081 1.505957 Prp.T otl 0.220808 0.150596

INFERENTIAL ANALYSIS Variable Rank sum U Z P-values Z 2*1sided Group 1 adjusted exact P Creativity 5 965 812 0.81 0.42 ns 0.81 0.42 ns Risk taking 3 1002 830 0.88 0.38 ns 0.88 0.38 ns Innovative 4 0.38 ns 0.38 ns 1001 830 0.88 0.88 Interest 8 204 172 -0.20 0.84 ns -0.20 0.84 ns Perseverance 9 132 126 0.90 0.37 ns 0.90 0.38 ns Passion 7 397 94 -2.07 0.03 * -2.07 0.03 * Resources 6 464 390 -0.25 0.80 ns -0.25 0.80 ns Infrastructure 1 0.28 ns 0.29 ns 6839 734 1.07 1.07 Financial 1069 591 -1.46 0.15 ns -1.46 0.15 ns capacity 2

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.

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