Entrepreneurial team formation in the craft sector in South Africa : the case of the Ekurhuleni crafter groups

Abstract

The aim of this study was to determine entrepreneurial team formation criteria in the craft sector in South Africa, aimed at creating employment opportunities for the marginalized unemployed in the informal economy through linkages to the formal economy. A quantitative research approach was used in a descriptive research design, based on social network characteristics, as determined from the literature review, to identify team member absorption criteria to an entrepreneurial crafter group. The unit of analysis was existing crafter groups in Ekurhuleni. A questionnaire was used to gather the data in face-to-face interviews. Frequency tables, cross tabulations and Chi-square analysis were undertaken to determine the highest responses across all the variables. The outcome of the analysis indicated that new team members were selected to a team based on strong tie connections and Small World Networks. The majority of team members indicated that they would not have been selected to the group if the team leader did not trust them, indicating the importance of trust in the selection criteria. The financial position of the majority of team members had not improved as a result of membership to a crafter group. The critical role of weak ties, to link crafter groups to the formal sector, became evident to ensure sustainability of the crafter groups.