Establishing a Culture of Entrapreneurship as a Contributor to Sustainable Economic Growth

Article excerpt

ABSTRACT

Potential creators of new ventures often struggle to obtain venture capital due to a lack of collateral. Entrapreneurship has been successfully used in countries such as the USA, Malaysia, Germany and Japan, and can also provide a solution for the high unemployment in South Africa and provide an income for people to become economic-active citizens. Within ethical parameters, managers can add value to organisational effectiveness and growth through the identification of new opportunities and the development of new markets in a global arena. Competence is generally defined as the skills, knowledge, attitudes, attributes and values required to perform a task and the ability to apply them in the work environment. For the purpose of this article, attitudes, attributes and values are referred to as personal competencies. This article accepts that managers have the generic competence requirements in terms of planning, leading, organising and control, but will attempt to point out the additional competence requirements that managers will need to be able to become entrapreneurial managers.

INTRODUCTION

South Africa has a population of 48.6 million (25 largest in the world), a well-diversified economy and is capable of producing a wide range of consumer and investment goods, and produces one fifth of the entire production of the African continent. Since 1998, South Africa's economic dependency on the export of raw materials, especially on gold, has lessened. The economy is based on foreign trade with more than half the gross national product (GNP) achieved through exports and imports. Exports consist mainly of mineral raw materials, agricultural produce, chemical products, machinery, electric appliances and vehicles; whilst import goods are machines, plastic products, chemicals and vehicles. Main export countries are, Japan (7.2%), Italy (6.2%), USA (6.2%), Germany (5.1%), Great Britain (4.8%) and Zimbabwe (4.1%); whilst import countries are Germany (13%), USA (11%), Great Britian (10.5%), Japan (7.4%), Italy (4.4%) and France (3.2%). In 2007 South Africa's Gross Domestic Product (GDP) was $666,95 billion (20th in the world) and had a per capita of $13, 845 (57th in the world).

Through the Accelerated and Shared Growth Initiative for South Africa (ASGISA) government attempts to ensure that economic growth is accelerated by at least 4,5% per annum over the period 2005 to 2009 to be followed by an average of 6% between 2010 to 2014. In the period 2005 to 2007 South Africa maintained an average of 5% per annum. This acceleration of growth is required to achieve the government's mandate of halving poverty and unemployment by 2014. ASGISA also includes infrastructure development to upgrade and build railway lines, harbors, ports and roads in the period 2005 to 2009. With South Africa's unemployment rate at 26.7% (2006), the infrastructure program is geared towards creating and sustaining employment. Government expenditure for infrastructure development will total more than R410 billion between 2007 and 2010. Of this, about 40% will be spent by public enterprises, mainly ESKOM (R84 million covering energy generation, transmission and distribution) and Transnet (R47 billion, of which R40 billion will go towards harbors, ports, railway and petroleum pipelines). Although this growth is seemingly significant, there is one particular area where government has not managed to succeed -job creation (Manuel, 2005, pp. 5 -6).

As in the case of the United States of America and Malaysia, entrepreneurship can provide the impetus for economic development and growth to address the redistribution of wealth based on a fair and unforced basis. With the support of government, entrepreneurship can also provide a solution for the high unemployment in the country and provide an income for people to become economic -active citizens. In the international arena entrepreneurship proved to support struggling economies. …