Abstract:
The study presents itself during a period where the South African economy is
shrinking, coupled with high unemployment rates, which are expected to further
increase due to the economic downgrade to junk status, and is exacerbated by the
coronavirus pandemic. Corporate organisations therefore find themselves
challenged and unable to retain their human capital resources, and therefore current
employees are at risk of job loss.
It is understood that entrepreneurship has a beneficial effect on unemployment, and
further enables a positive economic growth. The purpose of the study is therefore to
understand how individuals transition from formal employment into entrepreneurship,
after experiencing a sudden change that is brought on by a shrinking economy. The
theory that is explored in this study is learned entrepreneurship.
The research methodology followed was a qualitative research method, using semistructured
interviews, on participants who have transitioned from formal employment
to entrepreneurship. The findings of the study indicated the possible skills and
capabilities required for such a transition and how challenges encountered can be
overcome. The study concluded with a proposed conceptual model on transitioning
from formal employment to entrepreneurship after going through a sudden change
in a shrinking economy.
