Social capital effects on migrant micro1entrepreneurial opportunity creation in rural poor emerging markets : a constructivist approach

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.