 Could Business Networks Be an Antidote for Entrepreneurial Success in Emerging Economies?Brian Ngwako Mokgatetswa Mahosi (),
Fulufhelo Godfrey Netswera () and
Stephan van Der Merwe ()
Chapter Chapter 16 in The Palgrave Handbook of Decolonising Entrepreneurship, 2025, pp 413-435 from Springer Abstract: Abstract South Africa currently faces one of the highest unemployment rates globally, with an official rate of 31.9% (STATSSA, 2024: 5). Small enterprises, which are seen as a potential solution to poverty and unemployment, often struggle and have high failure rates. Interestingly, enterprises owned by foreign nationals seem to be more sustainable, potentially due to their participation in expanded business networks. This study aims to evaluate the impact of business network involvement on the sustainability of small business enterprises and determine whether it is a key factor in their long-term success. Understanding the role of business networks in small business success and sustainability is crucial for addressing the unemployment crisis and fostering economic growth in South Africa and globally. By investigating the experiences of small business enterprises in the City of Tshwane Municipality, this research contributes to the existing knowledge on the challenges and opportunities faced by local entrepreneurs. The findings will inform policymakers, and the business community about the importance of business networks and provide insights for developing effective strategies to support small enterprises and mitigate the unemployment crisis. This research employed an exploratory approach and utilized a quantitative method to investigate the impact of business networks in sustaining small business enterprises. Data for this study were gathered from 300 small business enterprises in Pretoria, the capital city of South Africa, using a structured questionnaire. The results highlight the positive influence of business networks on the sustainability and success of small enterprises. This suggests that involvement in business networks may serve as an essential factor in overcoming challenges and enhancing competitiveness. The study examines [independent variable: business network involvement] and [dependent variable: sustainability and success of small enterprises], aligning with the research hypothesis that stronger network engagement contributes to long-term business viability. The findings emphasize the importance of fostering and supporting business networks to enhance the resilience and long-term viability of local entrepreneurs. This study recommends that policymakers and stakeholders implement targeted strategies to support and expand business networks. These may include providing financial incentives, creating mentorship programs, and establishing networking platforms for small enterprises. Such initiatives can enhance business sustainability, drive economic growth, reduce unemployment, and contribute to poverty alleviation in South Africa. Keywords: Business networks; Migrant business owners; Entrepreneurship; Competitive advantage; Small business enterprises; City of Tshwane Municipality (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-92310-4_16 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-92310-4_16 Access Statistics for this chapter More chapters in Springer Books from Springer |
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