A descriptive analysis of the differences between two of the SMME categories in relation to entrepreneurial orientation, age and levels of education in South Africa

Abstract

One of the main challenges in driving business development in developing countries is the lack of information for policy decision-making. The aim of this report is provide an analysis of the differences between survivalist and micro/very small enterprises using the Entrepreneurial Orientation (EO) constructs, which are considered critical for business growth. The research also aims to validate findings of previous research into age and levels of education being a determining factor for business venture success. A structured questionnaire was used to gather data from 45 SMMEs. Parametric and non-parametric statistics were used to test for significant differences between means of the two SMME groups. The results revealed that competitive aggressiveness, which is positively associated with innovation and autonomy to be significantly different between the two SMME groups. The conclusion is that overall there is no significant difference in the level of EO between the two groups, but previous research has indicated that the interaction between the EO constructs are not yet fully understood. The research findings also did not support age being a factor in successful new venture formation, and but highlighted significant differences in levels of education between micro/ very small enterprises, in contrast with recent findings.