Scielo RSS <![CDATA[South African Journal of Economic and Management Sciences ]]> vol. 11 num. 4 lang. es <![CDATA[SciELO Logo]]> <![CDATA[<b>The role of entrepreneurial characteristics in predicting job satisfaction</b>]]> This study investigates the prediction of job satisfaction using the important entrepreneurial characteristics of corporate entrepreneurship (CE), market orientation (MO) and organisational flexibility (F). In this study, Structural Equation Modelling (SEM) was used to predict the causal relationship between these entrepreneurial characteristics and job satisfaction (JS) as the outcome variable. It was found that the corporate entrepreneurship factors of work discretion, work improvement and rewards/reinforcement displayed a statistically significant common variance of > 25.00 with extrinsic job satisfaction. The four Structural Equation Models built in this study indicated a reasonable to good fit with the data. Since all the entrepreneurial variables investigated can be controlled by management, it follows that the application of the research findings of this study can go a long way toward improving job satisfaction and possibly organisational performance through innovative entrepreneurial activities. <![CDATA[<b>Critical variables of business failure: A review and classification framework</b>]]> Failure is a phenomenon that ventures face during all stages of the life cycle and requires insight into its causes before it can be reversed. The scientific literature on failure is, however, spread over multiple disciplines. This study's line of enquiry firstly reviews the documented research (both theoretical and empirical) encompassing the phenomenon 'business failure' on a multi-disciplinary basis. A conceptual framework is then proposed for categorising variables into four sub-domains namely: signs and prediction; causes and preconditions; recovery; and cognition and learning. Better understanding of the failure phenomenon is achieved. The methodology applied is fundamentally based on grounded theory interpretation with a focus on classifying the identified relevant variables. <![CDATA[<b>Environmental conditions for SMME development in a South African province</b>]]> The development of entrepreneurship is the focus of considerable policy interest in South Africa and many other countries. This is particularly in recognition of its contribution to economic growth, poverty alleviation and employment creation. In South Africa, various new strategies and institutions have recently been created with a view to empowering formerly disadvantaged members to enter the mainstream economy as entrepreneurs rather than job seekers. While the government directs considerable efforts to advancing Small, Medium and Micro Enterprises (SMMEs), certain environmental factors can favour or hinder the optimal development of these firms. According to the Global Entrepreneurship Monitor (GEM) reports, the level of entrepreneurial activity in South Africa is rather low in relation to that in other countries at a similar level of development. This paper uses factor analysis to examine the internal and external environmental conditions influencing the development of small ventures on the basis of a survey conducted in Pietermaritzburg, the capital of the KZN province. The results indicate that three clusters constrain SMME development in Pietermaritzburg: management, finance and external environmental conditions. In the external set, rising crime levels, laws and regulations, and taxation are found to be significant constraints to the development of business firms. <![CDATA[<b>Small business owner-managers' perceptions of entrepreneurship in the Emfuleni district</b>]]> The primary objective of this study was to analyse small business owner-managers' perceptions of entrepreneurship and their motives to start their businesses in the Emfuleni district in South Africa. A total of 307 useable questionnaires were gathered and utilised for the statistical analysis. There were three statements that small business owner-managers perceived to be most applicable to them, i.e. entrepreneurs work longer hours and harder than managers in large companies; money is the most important start-up ingredient; and entrepreneurs experience a great deal of stress and as a consequence pay a high price of their health. With regard to the entrepreneurial motives, an Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. Two factors with eigenvalues greater than one were extracted describing the theoretical dimensions of the entrepreneurial motive and the non-entrepreneurial motive. The owner-managers indicated that the entrepreneurial motives, to have more satisfaction in work, to be independent, and to use own creative skills, were the most important motives for them venturing into entrepreneurship. No practically significant relationship could be found between the extracted factor, the entrepreneurial motive, and the demographical variables in this study. Practical recommendations are offered to entrepreneurs, the government and business educators. <![CDATA[<b>Primary commodity export and economic growth in Sub Sahara Africa: Evidence from panel data analysis</b>]]> The paper sought to examine the impact of instability in primary commodity export earnings and the level of commodity dependence on economic growth in Sub Saharan Africa (SSA). Fixed effects panel data estimator was used in the empirical estimation. The findings of the study suggest that there is a negative relationship between instability in export earnings and economic growth. The results also indicate that the level of commodity dependence matter in determining economic growth in the region. The results of the paper have economic development policy implications for SSA economies and these are not farfetched. First, it appears the difficult growth experience of SSA is not solely due to instability in export receipts. The question of continued dependence on a narrow range of primary commodities is also matter of great importance. <![CDATA[<b>Companies' investment determinants: Comparison of different panel data estimators</b>]]> In this study, Aivazian, Ge and Qiu's (2005) analysis using static panel models is extended to using dynamic panel estimators, considering data for listed Portuguese companies. The results confirm Aivazian et al.'s (2005) conclusion that an Ordinary Least Squares (OLS) regression is not the best way to estimate the investment/determinant relationship. Investment decisions are probably dynamic, so the most suitable way to estimate the investment/determinant(s) relationship is using dynamic panel estimators. Alternatively a fixed effect panel model can be used, consistent with a first order autocorrelation. In this way, firstly, it is possible to determine more accurately the positive impact of sales (Neo-classic theory) and cash flow (Free Cash Flow theory) on the investments of listed Portuguese companies. Secondly, the positive effect of growth opportunities (Agency theory) is not overestimated when it seems to be the consequence of a first order autocorrelation. Using dynamic panel estimators permits correct measurement of dynamism in company investment decisions by examining the relationship between investment in the previous and the current periods. <![CDATA[<b>An augmented gravity model of South Africa's exports of motor vehicles, parts and accessories</b>]]> The study applies an "augmented" gravity model to South Africa's exports of motor vehicles, parts and accessories to 71 countries over the period 1994 to 2004. A static panel data model is specified and estimated. Several conclusions are drawn from the study. First, a number of variables, namely, importer income, distance, level of import tariffs, government effectiveness, regulatory quality, use of right-hand drive vehicles are important determinants of bilateral trade flows for motor vehicles, parts and accessories. Second, solving the gravity model deterministically, we show that export potential exists in a number of countries like Malawi, Zambia, Kenya and Malaysia. A number of barriers hinder the members of the National Association of Automobile Manufacturers of South Africa (NAAMSA) from exploiting these export markets. These include very high import tariffs, lack of South Africa's diplomatic mission in the trading partner and the uncertainty regarding what happens at the expiry of the Motor Industry Development Programme (MIDP) in 2012. Finally, the export potential identified by the gravity model should be regarded only as an indication since it is sensitive to the model specification and sample of countries. <![CDATA[<b>Risk and FDI flows to developing countries</b>]]> The explanatory power of institutional and macroeconomic variables for FDI stock accumulation in developing countries is investigated. Hypotheses are tested by means of pooled least squares regressions. The impact of institutional variables on FDI flows produced mixed results: levels of economic freedom facilitate inward FDI; political risk dampens investment. Some macroeconomic variables displayed significant explanatory power: market size (as measured by per capita income in the base year) and absolute growth of GDP positively impacts FDI inflows. Other key macroeconomic variables, such as lower current account balance, appreciation of host country's currency, and lower inflation rate stimulate FDI inflows.