Abstract:
South Africa's microentrepreneurial context is characterised by poor resources, and
dominated by migrant microentrepreneurs, with a high reliance on social capital. Access to social
capital is determined through the frequency of interactions, together with the strength of ties
which are regulated by bonding and bridging social capital. The purpose of the research is to
explore the effects of social capital on migrant microentrepreneurial opportunity creation in
uncertain environments.
A constructivist approach was taken which recognised entrepreneurial opportunity as produced by
social construction that could not be separated from the entrepreneur or the context. Effectuation
embodies qualities closely related to a constructivist perspective in uncertain environments, and
the principles of effectual logic were applied to the data. A qualitative research design was
followed which allowed understanding the participants in their natural environment, grounded in
interpretivism.
The findings were analysed and four themes emerged that were linked in a virtuous cycle of social
development. The virtuous cycle described the microentrepreneur's identity, knowledge and social
structures, in the context of microentrepreneurial opportunity creation. The data supported views
in literature regarding constructivism, effectual logic and social capital, and also contributed by
uncovering the virtuous cycle of micro entrepreneurial growth in which social connections were
recognised as the main driver
of opportunity creation.
South Africa's microentrepreneurial context is characterised by poor resources, and
dominated by migrant microentrepreneurs, with a high reliance on social capital. Access to social
capital is determined through the frequency of interactions, together with the strength of ties
which are regulated by bonding and bridging social capital. The purpose of the research is to
explore the effects of social capital on migrant microentrepreneurial opportunity creation in
uncertain environments.
A constructivist approach was taken which recognised entrepreneurial opportunity as produced by
social construction that could not be separated from the entrepreneur or the context. Effectuation
embodies qualities closely related to a constructivist perspective in uncertain environments, and
the principles of effectual logic were applied to the data. A qualitative research design was
followed which allowed understanding the participants in their natural environment, grounded in
interpretivism.
The findings were analysed and four themes emerged that were linked in a virtuous cycle of social
development. The virtuous cycle described the microentrepreneur's identity, knowledge and social
structures, in the context of microentrepreneurial opportunity creation. The data supported views
in literature regarding constructivism, effectual logic and social capital, and also contributed by
uncovering the virtuous cycle of micro entrepreneurial growth in which social connections were
recognised as the main driver
of opportunity creation.
