Akoh_EI_2023
Akoh_EI_2023
21856837
APRIL 2023
SOCIAL ENTREPRENEURSHIP AS A TOOL FOR SUSTAINABLE
DEVELOPMENT IN THE TOWNSHIPS IN KWAZULU-NATAL PROVINCE
APRIL 2023
Promoter/Supervisor: 13/04/2023
_________________
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DECLARATION
13/04/2023
_______________________ ______________________
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ABSTRACT
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therefore, covers a critical research area with the potential to improve the present
state of South African social entrepreneurship, with specific reference to social
entrepreneurship within the townships in KwaZulu-Natal (KZN).
The study aimed to identify the critical factors affecting social entrepreneurship as
a tool for sustainable development in the KZN townships and to propose a
prototype model to improve its effective contribution, since the contribution level
currently experienced in the social sector is poor, which is attributed to various
significant challenges faced by social entrepreneurs in South Africa. Research
was thus conducted in three townships within the KZN Province, employing a
quantitative research method, where the study population consisted of 90 social
entrepreneurs. A non-probability, convenience sampling technique was adopted,
while a closed-ended questionnaire was used to collect the primary data for the
study. Inferential and descriptive statistical analysis of the data was undertaken
using SPSS (version 27.0) software.
The findings of the study indicate several challenges severely affect social
entrepreneurs, who are constantly faced with significant barriers that affect their
performance, impacting on social entrepreneurs’ innovativeness and creativity
that could promote and improve their contribution to sustainable development.
The study identified environmental factors to have a significant impact on social
entrepreneurs’ contribution to sustainable development, while society’s
perception, social networking, social impact measurement and access to financial
resources were also identified as catalysts to social entrepreneurs’ performance.
Key insights are provided into both the theoretical and practical implications of
social entrepreneurs’ contribution to sustainable development. In addition, an
extensive range of recommendations is outlined and a theoretical framework
proposed for those factors that social entrepreneurs, government officials, and
policy makers can understand to help develop remedies for current challenges
affecting social entrepreneurs
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ACKNOWLEDGEMENTS
There is a common phrase I have heard that goes along the lines of “It takes a
village to raise a child”. In a similar fashion, I know I would not have been able to
complete this process without “my village”. I would like to acknowledge the
support and assistance of all those that helped in the successful completion of
this study.
DUT, my gratitude for the opportunity to further my studies and the financial
support throughout the course of this research.
I sincerely appreciate all the participants who gave their valuable time to complete
the questionnaires and provided insightful information. This study would not have
been achieved without your participation.
Lastly, my humble appreciation also goes to my family, in-laws, and friends for all
their support, encouragement, and prayers. We did it guys!
Romans 9:16 “So then it is not of him that willeth, nor of him that runneth, but of
God that showeth mercy”.
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TABLE OF CONTENTS
ABSTRACT ..................................................................................................... iv
ACKNOWLEDGEMENTS................................................................................ vi
vii
1.8 PILOT STUDY ..................................................................................... 18
viii
2.8 CATEGORIES OF DEFINITIONS ........................................................ 39
ix
2.18 THE SIGNIFICANCE OF SOCIAL ENTREPRENEURSHIP DURING
COVID-19 IN SA ........................................................................................... 66
x
3.7.1 External factors ................................................................................. 96
xi
4.11 VALIDITY........................................................................................ 143
xii
5.6.11 Social entrepreneurs’ activities involves more females than males
................................................................................................................. 163
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5.6.24 Lack of social impact measurement affects the willingness of investors
to invest in social entrepreneurs’ activities ............................................... 187
5.6.26 Many social entrepreneurs depend on family and friends for finance to
survive ..................................................................................................... 191
5.6.30 Lack of technical skills affects social entrepreneurs’ activities ...... 198
5.6.38 Social entrepreneurs’ activities are affected by social factors ....... 210
5.6.39 High crime rate affects social entrepreneurs’ activities ................. 212
xiv
5.6.40 Lack of understanding of taxation for social enterprises affects their
activities ................................................................................................... 213
5.6.41 High interest rates affect social entrepreneurs’ activities .............. 215
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CHAPTER SIX ................................................................................................ 242
xvi
APPENDIX 2: ETHICAL CLEARANCE LETTER ......................................... 341
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LIST OF TABLES
Table 2.1: Key events in social entrepreneurship history in South Africa ..... 57
Table 5.1: Reliability Scores......................................................................... 148
Table 5.2: KMO and Bartlett’s Test ............................................................. 149
Table 5.3: Highest Qualification ................................................................... 150
Table 5.4: Age Group ................................................................................... 152
Table 5.5: Gender ........................................................................................ 153
Table 5.6: Location of Social Enterprise ...................................................... 154
Table 5.7: Type of Social Enterprise ............................................................ 155
Table 5.8: Type of Ownership ...................................................................... 156
Table 5.9: Years of Operation ...................................................................... 157
Table 5.10: Social entrepreneurs’ activities are influenced by age .............. 159
Table 5.11: Social entrepreneurs’ activities are influenced by
unemployment .......................................................................... 160
Table 5.12: Social entrepreneurs’ activities are influenced by gender ......... 161
Table 5.13: Social entrepreneurs’ activities involves more females
than males ................................................................................ 163
Table 5.14: Social entrepreneurs’ activities are influenced by level
of education .............................................................................. 165
Table 5.15: Component Matrix: The characteristics of social entrepreneurs
in the KZN townships ................................................................ 166
Table 5.16: Social entrepreneurs’ activities are affected by society’s lack of
understanding of the role of social entrepreneurs ..................... 168
Table 5.17: Social entrepreneurs’ activities are affected by society’s
inadequate information about their activities ............................. 169
Table 5.18: Social entrepreneurs’ activities are influenced by society’s poor
awareness of their contributions ............................................... 171
Table 5.19: Social entrepreneurs’ activities are affected by inadequate
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involvement of the society in their activities .............................. 173
Table 5.20: Component matrix of society’s perception of social
entrepreneurship in KZN townships .......................................... 174
Table 5.21: Social entrepreneurs’ activities are affected by lack of
partnership with other social entrepreneurs .............................. 176
Table 5.22: Social entrepreneurs’ activities are affected by lack of support
and partnership from corporate organisations........................... 177
Table 5.23: Social entrepreneurs’ activities are affected by lack of support
and partnership from government ............................................. 178
Table 5.24: Social entrepreneurs’ activities are affected by the lack of use
of platforms for social networking.............................................. 180
Table 5.25: Component Matrix: Social networking as it relates to social
entrepreneurs in the KZN townships ......................................... 181
Table 5.26: Lack of understanding of social impact measurement affects
social entrepreneur’s activities .................................................. 183
Table 5.27: Social entrepreneurs’ activities are affected by lack of applying
appropriate social impact measurement methods/techniques .. 184
Table 5.28: Lack of social impact measurement affects social entrepreneurs’
from identifying other opportunities to solve social problems .... 185
Table 5.29: Lack of social impact measurement affects the willingness of
investors to invest in social entrepreneurs’ activities ................. 187
Table 5.30: Component Matrix: Social impact measurement as it affects
social entrepreneurs’ activities in KZN townships ..................... 188
Table 5.31: Lack of access to financial resources affects social
entrepreneurs’ activities ............................................................ 190
Table 5.32: Many social entrepreneurs depend on family and friends for
finance in order to survive ......................................................... 191
Table 5.33: Lengthy processes required by financial institutions to obtain
financial resources affects social entrepreneurs’ activities. ....... 193
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Table 5.34: Social entrepreneurs’ activities are affected by lack of
government financial assistance ............................................... 194
Table 5.35: Component Matrix: The effects of financial resources on social
entrepreneurs’ activities ............................................................ 195
Table 5.36: Lack of management competence and skills affects social
entrepreneurs’ activities ............................................................ 196
Table 5.37: Lack of technical skills affects social entrepreneurs’ activities .. 198
Table 5.38: Lack of education and training development affects social
entrepreneurs’ activities ............................................................ 199
Table 5.39: Lack of marketing skills affects social entrepreneurs’ activities . 201
Table 5.40: Component Matrix: Internal environmental factors that affects
social entrepreneur’s contribution to sustainable development
in KZN townships ...................................................................... 202
Table 5.41: Lack of adequate legal framework for social entrepreneurs in
South Africa is affecting their activities ...................................... 204
Table 5.42: Adequate government rules and regulations will improve social
entrepreneurs’ activities ............................................................ 205
Table 5.43: Increased government support will improve social entrepreneurs’
activities .................................................................................... 206
Table 5.44: Political instability affects social entrepreneurs’ activities .......... 208
Table 5.45: Social entrepreneurs’ activities are affected by corruption ........ 209
Table 5.46: Social entrepreneurs’ activities are affected by social factors ... 211
Table 5.47: High crime rate affects social entrepreneurs’ activities ............. 212
Table 5.48: Lack of understanding of taxation for social entrepreneurs
affects their activities ................................................................. 213
Table 5.49: High interest rates affects social entrepreneurs’ activities ......... 215
Table 5.50: Social entrepreneurs’ activities are affected by rapid
technological changes .............................................................. 216
Table 5.51: Social entrepreneurs’ activities are affected by lack of
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government support to technological changes ......................... 218
Table 5.52: Social entrepreneurs’ activities are influenced by competition
from other businesses .............................................................. 219
Table 5.53: Social entrepreneurs’ activities have been affected by the
Covid-19 pandemic .................................................................. 221
Table 5.54: Social entrepreneurs’ activities have been affected by lack of
government support from the effects of Covid-19 .................... 222
Table 5.55: Component Matrix: External environmental factors that affect
social entrepreneurship as a tool for sustainable development
in KZN townships ..................................................................... 224
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LIST OF FIGURES
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Figure 5.15: Social entrepreneurs’ activities are influenced by society’s
poor awareness of their contribution ......................................... 172
Figure 5.16: Social entrepreneurs’ activities are affected by inadequate
involvement of the society in their activities .............................. 173
Figure 5.17: Social entrepreneurs’ activities are affected by lack of
partnership with other social entrepreneurs .............................. 176
Figure 5.18: Social entrepreneurs’ activities are affected by lack of support
and partnership from corporate organisations........................... 177
Figure 5.19: Social entrepreneurs’ activities are affected by lack of support
and partnership from government ............................................. 179
Figure 5.20: Social entrepreneurs’ activities are affected by the lack of
use of platforms for social networking ....................................... 180
Figure 5.21: Lack of understanding of social impact measurement affects
social entrepreneur’s activities .................................................. 183
Figure 5.22: Social entrepreneurs’ activities are affected by lack of applying
appropriate social impact measurement methods/techniques .. 184
Figure 5.23: Lack of social impact measurement affects social entrepreneurs’
from identifying other opportunities to solve social problems .... 186
Figure 5.24: Lack of social impact measurement affects the willingness
of investors to invest in social entrepreneurs’ activities ............. 187
Figure 5.25: Lack of access to financial resources affects social
entrepreneurs’ activities ............................................................ 190
Figure 5.26: Many social entrepreneurs depend on family and friends for
finance in order to survive ......................................................... 191
Figure 5.27: Lengthy processes required by financial institutions to obtain
financial resources affect social entrepreneurs’ activities ........ 193
Figure 5.28: Social entrepreneurs’ activities are affected by lack of
government’s financial assistance ............................................ 194
Figure 5.29: Lack of management competence and skills affects
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social entrepreneurs’ activities .................................................. 197
Figure 5.30: Lack of technical skills affects social entrepreneurs’ activities . 198
Figure 5.31: Lack of education and training development affects social
entrepreneurs’ activities ............................................................ 200
Figure 5.32: Lack of marketing skills affects social entrepreneurs’
activities .................................................................................... 201
Figure 5.33: Lack of adequate legal framework for social entrepreneurs in
South Africa is affecting their activities ...................................... 204
Figure 5.34: Adequate government rules and regulations will improve
social entrepreneurs’ activities .................................................. 205
Figure 5.35: Increased government support will improve social
entrepreneurs’ activities ............................................................ 206
Figure 5.36: Political instability affects social entrepreneurs’ activities ........ 207
Figure 5.37: Social entrepreneurs’ activities are affected by corruption ....... 208
Figure 5.38: Social entrepreneurs’ activities are affected by social factors .. 211
Figure 5.39: High crime rate affects social entrepreneurs’ activities ............ 212
Figure 5.40: Lack of understanding of taxation for social enterprises affects
their activities ............................................................................ 213
Figure 5.41: High interest rates affect social entrepreneurs’ activities ......... 215
Figure 5.42: Social entrepreneurs’ activities are affected by rapid
technological changes .............................................................. 217
Figure 5.43: Social entrepreneurs’ activities are affected by lack of
government support to technological changes .......................... 218
Figure 5.44: Social entrepreneurs’ activities are influenced by competition
from other businesses ............................................................... 220
Figure 5.45: Social entrepreneurs’ activities have been affected by the
Covid-19 pandemic ................................................................... 221
Figure 5.46: Social entrepreneurs’ activities have been affected by lack of
government support from the effects of Covid-19 ..................... 223
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Figure 6.1: Conceptual framework based on literature review ..................... 252
Figure 6.2: Proposed integrated conceptual framework ............................... 253
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ACRONYMS AND ABBREVIATIONS
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SDGs Sustainable Development Goals
SE Social enterprise
SECP Social Entrepreneurship Certificate Programme
SPSS Statistical package for Social Sciences
SSA Sub-Saharan Africa
UK United Kingdom
USA United States of America
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CHAPTER ONE
INTRODUCTION AND STUDY OVERVIEW
1.1 INTRODUCTION
The focus of this research is on social entrepreneurship as a tool for sustainable
development in townships in the Kwazulu-Natal (KZN) province of South Africa
(SA). It seeks to identify the critical factors affecting social entrepreneurs’
contribution to the sustainable development of township communities in KZN, and
proposes a prototype model that could be used to improve the contribution of
social entrepreneurs in sustainable township development. In SA, the majority of
work considered as social entrepreneurship today emanated from numerous Non-
Governmental Organisation (NGOs) established in the 15-year period preceding
1994, where courageous individuals who decided to assist disadvantaged and
disenfranchised communities as a primary objective, thus substituting and
relegating their own personal agendas in the pursuit of social goals (Visser 2011:
234). The social enterprise (SE) sector consists of numerous entities – from
individuals to national organisations, working tirelessly to employ hundreds of
people, improve literacy, numeracy, and skills, as well as health and living
conditions (GIBS 2018: 6). However, despite the importance of this sector to the
future development of communities such as townships in SA, little is known about
the sector (Littlewood and Holt 2018: 526), and, as such, understanding the
current situation will create the platform to develop strategies enabling improved
social entrepreneurship use as a tool in the sustainable development of
townships.
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– such as water and electricity; and is also still considered as one of the most
unequal countries in the world – with a 63.4 score in the Gini index (Littlewood
and Holt 2018: 526). The limits in capacity of the South African government to
address these societal challenges, as well as the limited efforts by businesses as
part of their Corporate Social Responsibility (CSR), has created a void (Littlewood
and Holt 2018: 526). Social entrepreneurship can be used to fill that void, when
the factors that hinder their contributions to sustainable development are properly
understood and addressed, particularly in the KZN townships.
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According to a study by the Gordon Institute of Business Science (GIBS) (2018:
10), the growth rate of SA’s Gross Domestic Product (GDP) in 2016 dropped from
1.3 percent in the previous year, to 0.4 percent, making it the third consecutive
year the country experienced negative per-capita growth and stagnating poverty.
The report also states the South African growth forecast was downgraded by the
World Bank to 0.6 percent in 2017, because it believed a second quarter recovery
from recession would not be enough to guarantee GDP growth in 2017, with GDP
expected to only rise to 1.1 percent in 2018 and 1.7 percent in 2019, which are
relatively low compared to countries such as China, with GDP still hovering
around seven percent.
The SA government’s inability to effectively deal with diverse and escalating social
and economic problems in the country demands new approaches to assure
acceptable service delivery and the creation of more sustainable systems in
communities such as townships. Some researchers have identified the complete
reliance on government to provide the people with most services as a challenge
that hinders growth in communities such as townships (Steinerowski and
Steinerowska-Streb, 2012: 168; Moses and Olokundun 2014: 159; Olutuyi 2016;
Sroka & Meyer, 2021). More people should, therefore, become involved in the
upliftment of their community through development, as well as service delivery, to
facilitate their communities’ sustainability (Moses and Olokundun 2014: 159;
Olutuyi 2016; Littlewood and Holt 2018: 526; Sroka & Meyer, 2021).
In SA, the term “township” refers to the underdeveloped urban living areas that
started in the early 19th century, which the Department of Co-operative
Governance and Traditional Affairs (COGTA) (2009: 5-6) outlines were a result of
the Group Areas Act of 1950, whereby non-whites (Africans, Coloured and
Indians) were removed from suburbs designated for ‘whites only’ during the
apartheid period. However, the Department of Provincial and Local Government
(DPLG) highlighted that these areas serve as the source of most capital formation
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and is an important market for local manufacturers in terms of labour force and
raw materials (DPLG 2006).
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As with many countries around the world, SA remains steadfast in its commitment
to the sustainable development concept. The Department of Environmental
Affairs and Tourism (DEAT) (2008) reported that one of the greatest challenges
SA agreed to, in September 2002 in Johannesburg, at the World Summit on
Sustainable Development (WSSD), was dealing with poverty, which resulted in
an agreed, negotiated outcome, known as the Johannesburg Plan of
Implementation (JPOI). With 37 targets through which sustainable development
would be achieved, incorporating the Millennium Development Goals (MDGs), the
JPOI defined part of their commitment to national strategy preparation and
implementation that will lead to sustainable development (DEAT 2008).
Nonetheless, no clear and all-embracing national strategy exists in SA,
notwithstanding the numerous sustainable development considerations,
strategies and programmes, for sustainable development (DEAT 2008).
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Haywood et al. (2018: 555), are of the opinion the agenda of the new sustainable
development cannot be achieved by itself, since its scope is broader, larger and
more ambitious than what is expected from the MDGs. This means effective
partnerships are “required within countries; across all sectors, disciplines,
government agencies and global partnerships across nations”. As Haywood et al.
(2018: 555) point out, as SA implements the SDGs, there is a need to strengthen
effective partnerships relating to current regional and national strategic plans,
namely SA’s National Development Plan (NDP) along with the African Union’s
Agenda 2063. To identify and prioritise the developmental objectives of SA, the
country has in recent years made an effort to align its NDP and SDGs; and most
significantly, to emphasise the necessity of multi-stakeholder partnerships to
ensure development objective attainment (Haywood et al. 2018: 555).
However, Fourie (2018: 765) asserts that SA, similar to many other developed
and developing countries, is challenged by the alignment of national policies with
global development goals that have been expanded, “especially with regards to
the SDGs’ integrated nature and its related challenges, such as measuring,
monitoring and communicating processes”. Fourie (2018: 766) adds that SA will
face two obstacles in positioning its domestic development plan in accordance
with the SDGs: The author states the first as the “political challenge of
superimposing the adopted 2030 SDGs agenda onto an already developed local
plan that cannot easily be changed without causing serious damage to its
legitimacy”. The second obstacle is that the SDGs “do not and cannot address
national development challenges” specific to SA, because the development plan
is clearly and plausibly created to address apartheid era injustices.
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partnership is concerned SEs can, therefore, comprise a crucial part, as they
contribute ways to address social issues that are both creative and innovative and
will assist SA in attaining its NDP and SDGs.
In addition, Bansal, Garg, and Sharma (2019: 1) suggest the main sustainable
development signs or characteristics are based on the amount of social value
each social entrepreneur can create and, as such, social entrepreneurship
promotion is imperative to create these social values. However, most of this
literature emphasises social entrepreneurship’s relevance to sustainable
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development; however, few highlight the factors that could affect their operation.
Failure to understand the significant influence the factors within an environment
have on social entrepreneurship is considered one of the reasons they might not
be operating at maximum capacity to create adequate social value in a country
such as SA and specifically in communities such as townships (Littlewood and
Holt 2018: 527; Ngatse-Ipangui and Dassah 2019: 2; Rivera-Santos et al, 2015:
1; Sroka & Meyer, 2021).
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province. According to Razavi et al. (2014: 2), management skills (expert
knowledge and motivation) are critical factors in ensuring SEs create social values
that will impact their communities. However, it is important to investigate whether
these factors highlighted by Razavi et al. (2014) are applicable in the KZN
township context.
For this aim to be achieved, the secondary objectives outlined below will be
addressed:
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Sub-objective 1: To ascertain the characteristics of social entrepreneurs that
influence their contribution to sustainable development in the townships in KZN.
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Question 4. What is the effect of social impact measurement on social
entrepreneurship as a tool for sustainable development in the townships in KZN?
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Ha3: There is a relationship between social networking and internal environment
and social entrepreneurship contribution to sustainable development in the
townships in KZN.
Figure 1.1 below reflects the variables for the proposed framework of the study.
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Figure 1.1: Characteristics of the proposed model
In addition, this study seeks to provide clear insights into those critical factors that
could hinder social innovation and the creation of social value, which also affects
social entrepreneurs’ survival within a challenging and dynamic environment such
as the townships in KZN. This study will also contribute to the success stories of
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social entrepreneurship by providing a theoretical antecedent that will create the
platform for better understanding of this phenomenon in the KZN township
context. There have been several studies conducted on how the environment can
affect social entrepreneurship (for example Littlewood and Holt 2018; Bacq and
Janssen 2011; Seelos and Mair 2005; Fernández-Laviada et al. 2020). However,
no work has been done specifically on social entrepreneurship and its link to
sustainable development in the townships in KZN. This study further intends to
determine and understand social entrepreneurship characteristics in KZN
townships.
Not only will this study be relevant academically and educationally, it may also
have an impact on the setting-up and running of social entrepreneurship in
communities in many countries with similar characteristics as townships in SA.
Owners and managers of such organisations can find this study useful in
understanding many issues that will help them to maximise the effectiveness of
their operations and activities, which will enable them to successfully contribute
to sustainable development in their respective countries. In SA, the level of
participation in social entrepreneurship remains very low compared to other
countries around the world (GEM 2019). Most people are being forced to avoid
participation because of the various challenges and barriers they envisage.
Therefore, this study intends to provide individuals and organisations with the
relevant understanding to overcome these barriers and thus increase their
participation in social entrepreneurship, which can, in turn, lead to sustainable
development in the townships in KZN. Furthermore, this study can provide local
and provincial government with a roadmap that to address most social issues in
the communities and can also help create a conducive environment for social
entrepreneurship to grow and thrive.
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1.6 RESEARCH DESIGN
The design of a research study is described as the “plan or structure that holds all
the element in a proposed research work together” in a manner that ensures
relevant information required to address a research problem is obtained (Akthar
2016: 68). The approach adopted for this study was quantitative, using a closed-
ended questionnaire. This type of method is adequate and enables the researcher
to obtain detailed, relevant quantitative data for the purpose of acquiring an in-
depth comprehension of the critical factors that impact social entrepreneurship as
a sustainable development tool in the KZN townships (Stochemer 2019). Data
were collected from selected social entrepreneurs operating in the townships in
KZN.
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located and listed, it is called an infinite population and the researcher can
conceptualise the target population by assuming a subdivided target population,
compiled from the research subjects’ common character.
Due to the lack of specific database to constitute a sample frame, as well as time
and financial constraints, it became the decision of the researcher to identify a
sample size relevant for the study. According to Sekaran and Bougie (2013, cited
in Lekhanya 2017: 76), for parametric statistics, 30 is the smallest usable sample
number, while also following a normal distribution curve. A sample of 30
participants from each township will, therefore, be chosen to make up a total of
90 participants. Use was made of non-probability, convenience, snowball
sampling to identify and choose social entrepreneurs as key participants for data
gathering. These individuals are ideal for providing in-depth information that
relates to the variables of this study, these being: characteristics of the social
entrepreneur, social impact measurement, resources, and environmental factors,
16
as well as social network, and society’s perception of the social entrepreneur’s
activities, all of which have been identified from the literature review to affect the
social entrepreneurship contribution to sustainable development. As defined by
Frey (2018), snowball sampling, also known as ‘chain sampling’ or ‘chain referral’
sampling, is used to generate a pool of participants for a study by researchers, as
a result of referrals made by individuals with the same research interest
characteristics as the target population. In the process of building the sample,
adequate data are collected to be of use to the study (Sharma 2017: 752). This
sampling technique is appropriate to recruit participants for this study because
they are not widely known, and as earlier indicated, there is no validated national
database of social entrepreneurs in SA.
In the first stage of recruiting participants, the list of registered NPOs was
requested and obtained from the Department of Social Development office in the
eThekwini Municipality. The NPOs were screened against the established
inclusion and exclusion criteria. NPOs that met the criteria were contacted by the
researcher through email and telephonically, to form the first group of respondents
recruited for the study. Thereafter, the snowball sampling technique was applied.
In addition, using a convenience sampling method for this study was pivotal since
selection of participants relied on their willingness to participate in the study as
well as their availability.
The inclusion criteria of participants for this study were based on the following:
the social entrepreneur has been operating for the past one year, the social
entrepreneur is only pursuing a social issue that is not for personal gain, the social
entrepreneur is registered with the Department of Social Development or intents
to do so in the near future, and the social entrepreneur is involved in an income
generating venture. The exclusion criteria included: social entrepreneurs
operating for less than a year, those social entrepreneurs who only pursue social
17
issues for personal gain, and social entrepreneurs not involved in any income
generating venture.
18
to ensure the information required is collected and it is a good study design. The
pilot study is used to improve the main study’s quality or efficiency and can either
be performed independent of the main study as an external pilot study or included
in the main study as an internal pilot study (In 2017: 1). For the pilot study, 10
percent of the main study respondents were selected (Cadete 2017), however,
they were not part of the main study. The pilot study purpose is to help develop a
risk mitigation strategy that will ultimately reduce the chances of failure of the
larger study (Fraser et al.2018: 1).
1.9 VALIDITY
Validity is described as the degree of measurement a research instrument
(questionnaire) achieves in the entire domain related to the variables it was
designed to measure (Heale and Twycross 2015). Haradhan (2017) elaborates
that the validity shows the degree at which the results are truthful and encompass
the entire experimental concept to ensure the research findings meet all the
scientific research method requirements. To ensure the methods used in this
research have valid findings, there were research procedures used to test the
application. The researcher ensured participants were informed adequately with
regard to the research aims and objectives, their contributory role and how their
participation in the research and information provided were recorded without any
bias. Furthermore, by piloting the questionnaire to the target population, the
researcher ensured all the factors that could compromise the validity of the study
were detected early, allowing adequate measures to be taken to ensure
questionnaire suitability and its effectiveness as data collecting method for the
study (Haradhan 2017).
1.10 RELIABILITY
Research reliability denotes the degree to which no bias exists, and the
assessment tool produces a consistent, stable and repeatable result that will
remain consistent or can be replicated, even if obtained in identical situations but
19
different circumstances (Haradhan 2017; Bolarinwa 2015; Heale and Twycross
2015). To ensure the reliability of the study instrument, use was made of the
correlation coefficient test, Pearson’s product moment correlation coefficient (r)
and coefficient determination (R-sq.), as well as a t-test, at 90 percent and 99
percent confidence level, to establish the study reliability. Furthermore, adequate
application of Chi-square and other relevant tests ensured reliability of the study.
In addition, to improve instrument reliability, the Cronbach coefficient alpha was
used to measure internal consistency at 0.70. The internal consistency quantifies
how similar the items represent an outcome construct that the questionnaire is
aiming to measure (Heo, Kim and Faith 2015). As stated by Taber (2018: 1273),
a Cronbach’s Alpha is a statistic that is generally used to demonstrate whether
constructed and or adopted tests and scales for research projects fit the purpose.
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to understand the aim and objective of the study, as well as the voluntary nature
of their participation. They were neither bribed nor forced to take part and could
opt out at any point they no longer felt comfortable with the process. Participants
were also fully informed about the study confidentiality and information provided
were recorded without any bias. In addition, an informed consent form was
obtained from each participant to respect the principle of autonomy and
confidentiality (Varkey 2021: 18). Moreover, the letter of information covers the
following aspects: the purpose of the study; outline of the procedures; risks or
discomforts to the participants; and benefits; remuneration; as well as participant
confidentiality.
21
the guide throughout the study, ensuring the aims and objectives of the research
are achieved.
22
The study findings will be presented and discussed in this, which will also provide
interpretations in line with the study aims and objectives, thus ensuring the reader
finds it easy to understand. Furthermore, the findings were assessed in relation
to the secondary data, as well as tested with the hypotheses generated.
1.15 CONCLUSION
Social entrepreneurs are believed to have a critical role to play in achieving
sustainable development in a country like South Africa, particularly in township
communities. Their growth and survival hinges on many factors within the
environment. This study sought to investigate and understand the factors affecting
social entrepreneurship contributions to sustainable development in the
townships in KZN province. This chapter offered the introduction and overview of
the study. The chapter provided the research problem together with the research
aim, objectives, questions, hypotheses, and significance of the study. It also
offered a primer of the research methodology, which outlined the research design,
target population, sampling method, data collection, data analysis, pilot study,
validity and reliability, anonymity and confidentiality, ethical consideration, and
lastly, the study limitations. The last section of the chapter outlined the structure
of the study.
The subsequent chapter reviews the literature in detail and provides the
background information on social entrepreneurship and the important aspects
pertaining to this study.
23
CHAPTER TWO
LITERATURE REVIEW: AN OVERVIEW OF SOCIAL
ENTREPRENEURSHIP AND THEORETICAL BACKGROUND
2.1 INTRODUCTION
According to the report on creative SEs in SA by the British Council (2020a: 4),
these enterprises are an emerging phenomenon, classified as small businesses,
yet operating primarily as private companies, with under R500 000 turnover.
Researchers such as Visser (2011: 237) highlight that SEs in SA include a wide
range of organisations, “from traditional NGOs, not-for-profit SEs, hybrid SEs, and
for-profit SEs, as well as socially committed enterprises”, with social value
creation as their primary objective. This commonly distinguishes SEs from other
forms of small businesses (ILO 2017: 9; Davies, Haugh and Chambers 2019:
1617; Ngatse-Ipanqui and Dassah 2019: 2; Littlewood and Holt 2018: 526).
Interestingly, because SEs in SA often register as both for profit and not-for-profit
companies, they are open to accessing both grants and commercial funding
which, according to the Gordon Institute of Business Sciences (GIBS), creates a
spectrum of opportunities to develop unrestricted income streams into the
organisation (GIBS 2015). Most SEs have emerged from their founders identifying
a social problem in society, and through their goodwill spirit, have developed
entrepreneurial ways of addressing these problems, with some not knowing they
demonstrate social entrepreneurship (Mair and Marti 2006: 37). Hence, there has
been no clear definition of the phenomenon, yet, its nature usually implies more
priority is assigned to social value creation and sustainable development, as
opposed to focusing on economic value (Mair and Marti 2006: 36; Moses and
Olokundun 2014: 160; Littlewood and Holt 2018: 532).
24
Social entrepreneurship has become trendy, “gaining popularity as a tool to bring
about change and sustainable development” in most countries, globally
(Littlewood and Holt 2018: 526). On that basis, Steinerowski and Steinerowska-
Streb (2012: 167-182) and Littlewood and Holt 2018: 530) suggest the
identification of the strengths, innovation and knowledge of individuals within
communities may serve as an important way of transforming and addressing the
social and economic problems affecting them. A well-established and supported
SE sector will ensure the use of business management strategies that focuses on
developing benefits with social purpose and providing solutions to problems
affecting communities, such as unemployment, poverty and crime (Fernández-
Laviada et al. 2020: 826). Accelerating social entrepreneurship activities becomes
crucial in a context where SA has experienced a continuous drop in GDP, a record
34.4 percent unemployment as at the second quarter of 2021, or 44.4 percent
when expanding the definition to include those who have given up seeking jobs
(StatsSA 2021), and the jobless situation of more than six million working age
South Africans, (GIBS 2018: 10).
Moses and Olokundun (2014: 164), Razavi et al. (2014: 1) and Littlewood and
Holt (2018: 527) explain social entrepreneurship might have been successful in
25
ensuring sustainable development and addressing social problems in countries
that are developed; nevertheless, it is not the most suited solution to address
socio-economic problems in developing countries, such as SA, without proper
comprehension of the potential effect of certain factors. Social entrepreneurs are
confronted by internal and external factors (GIBS 2018: 15), often limiting their
effective social value creation. Not only challenges in the external environment
such as lack of legislative framework, difficult process of registering and
measuring impact for funders, but also internal factors, such as shortage of
business management skills, mismanagement of resources and lack of leadership
affect their ability to thrive and contribute to sustainable development (GIBS 2018:
63; Watters et al. 2012; Steinerowski and Steinerowska-Streb 2012: 176).
26
who suggest social entrepreneurs serve as innovative and creative forces, with
flexibility of choices in relation to factors that can be used to meet unsatisfied
needs, amongst which are: structure, funding, resources and business models.
Moses and Olokundun (2015: 164) nevertheless, argue there are no universal
formula for achieving sustainable development. Hence, nations would have to
develop and design practical ways that will gear them towards sustainability.
Otherwise, the increasing level of foreign investments, aids, as well as policy
reforms to improve economic growth, might turn out to be failed efforts and
attempts (Moses and Olokundun 2015: 163). This sentiment is supported by
Watters et al. (2012: 2), when they state aid is not the solution to the long-lasting
socio-economic problems in developing countries such as SA, instead advocating
for the provision of support to small entrepreneurs, particularly social
entrepreneurs, who can be a critical tool to bring sustainable and lasting solutions.
27
and products, stimulation promotion of a sustainable economy, in addition to
future hope and opportunities. Further to this, in the authors’ opinion, “social
entrepreneurship has a promising approach, through its entrepreneurial
strategies, to open trade, which has a positive impact in eliminating poverty and
creating a boost to the Pakistani economy” (Kazmi et al. 2016: 161).
Given an ideal environment, SEs are flexible and able to carry out innovative
activities by discovering new ideas relating to products, services and models,
which are generally suitable and appropriate to address societal needs such as
social inclusion, environmental protection and sustainable development (Sijabat
2015: 37). However, their growth is very low in SA, where less than two percent
of adults participate in the SE sector, even though SA has structures similar to
countries where social entrepreneurship is flourishing, as set out by the Global
Entrepreneurship Monitor (GEM) (2009, cited in GIBS 2018: 10).
28
sustainable development. As discussed above, SEs are considered important
ventures that can drive economic growth and sustainable development around
the world. Nonetheless, in order to effectively create social value, they need to
have the appropriate structure and conducive environment (Littlewood and Holt
2018: 2; Rivera-Santos et al. 2015: 74; Seelos and Mair 2004: 6).
Sckliuckiene and Kisielius (2015: 1016) and Zahra et al. (2009: 524) agree
contextual factors, such as institutional, legal, and social environment factors,
are of significant importance in supporting or hindering the social value creation
process. In other words, understanding these factors is paramount to ensure
effective and efficient social value creation, more so, as social entrepreneurship
performance is linked to the environmental and structural factors within a
country. In this regard, Rivera-Santos et al. (2015: 75) agree that understanding
the context in which social entrepreneurs operate creates social needs and many
opportunities for them to emerge in new and creative forms. However, recent
research by Littlewood and Holt (2018: 2) confirm the effects of the environment
receive limited consideration particularly, how these impact social
entrepreneurship growth and development in SA.
In the UK, apart from the significant number of people employed by SEs, these
businesses also contribute more than £24 billion to the UK economy (British
Council 2015: 5). In essence, therefore, in this highly successful country, social
entrepreneurship is a major contributor to economic growth and sustainable
development. This could well be an indication that social entrepreneurship is an
essential tool in achieving sustainable development around the world (Ifeoma and
Ifeanyichukwu, 2019: 14). Understanding the factors affecting social
entrepreneurship may be necessary to create a conducive environment and
platform for growth and creating social value relevant to drive change and
sustainable development.
29
2.3 RELEVANT THEORIES CONSIDERED FOR THIS STUDY
This section discusses the embedded theories that create the link between social
entrepreneurship and sustainable development, namely SE, Institutional and
Structuration theories.
This theory, however, fails to dissect and provide a clear understanding on how
society can, in return, either boost or hinder social entrepreneurship as a driver of
social change. Furthermore, contrary to the belief by scholars such as
Schumpeter, who sees entrepreneurs as an agent of change within the larger
economy, Drucker’s (1985) theory avers entrepreneurs are not necessarily agents
of change themselves, but rather committed exploiters of change. Regardless of
whether entrepreneurs are perceived to be innovators or early exploiters, a
universal perception of theorists about entrepreneurs is their ability to see and
seize new opportunities, with full cognisance of the context where the opportunity
is situated (Martin and Osberg 2007: 30). This means, for SEs to create social
value and bring change in society, an understanding is needed of the context they
operate in to effectively exploit opportunities and create the necessary change.
30
Deshwal (2015: 977) mentions the potential for economic and societal gains that
SEs offer, while it also plays an increasingly more significant part in rounding out
“the social services offered by charitable organisations and government
agencies”. As Drucker (1985, cited in Straub 2016) stated, society does not only
need an entrepreneurial economy but an entrepreneurial society, where
innovation and entrepreneurship are normal, steady and continuous. These
theories, however, do not provide an indication of the critical elements, tools,
processes, and/or procedures required to ensure entrepreneurs, such as social
entrepreneurs, are successful in creating social value that will improve their
contribution to sustainable development when operating in, for example,
communities in KZN townships. This study seeks to identify these elements and
procedures.
Institutional theory puts the institution at the heart of the design and conduct of
organisations. In addition, complying with institutionalised prescriptions ensures
legitimacy, decreases uncertainty, and increases the unambiguousness of the
organisation’s action and activities (Berthod 2018: 1). This theory is used to
31
provide explanation(s) for the adoption and spread of formal organisational
structures, which may include written policies and standard practices (David,
Tolbert and Boghossian 2019). These authors highlight that the institution creates
the incentive structure in an economy, and organizations within that structure will
identify ways of taking advantage of the opportunities provided within a given
institutional framework. Even though the institution is considered critical in
providing the relationship between the organisation’s goals and the functioning of
society at large, uncertainty whether the formal institution conforms to the norms
and cultural guidelines that comprise the informal institution, presents a
considerable challenge to the entire process (David et al. 2019).
32
Accordingly, institutional theory in social entrepreneurship is essential, not only in
ensuring organisational legitimacy, but also to improve operations and their
performance in the economy, as well as effectively creating social value (Agrawal
and Hockerts 2013: 11). When there are weak and absent institutional
agreements, an institutional void is created that prevents individuals from
participating in market activities (Mair and Marti 2009: 419-435). The adoption of
this theory can thus help SEs to develop strategies in response to the many
turbulences created by the institutional environment that affect their contribution
to sustainable development, with specific reference to KZN.
Furthermore, the researcher is of the opinion this theory will enable SEs in SA to
navigate the structural challenges that affect their operations and impact their
ability negatively in the creation of social value that furthers sustainable
33
development. Maas (2013) mentioned structuration theory and its importance in
understanding the underlying cause(s) and direction in how social entrepreneurs
interact with their environment. Accordingly, this theory can be of great support to
the country’s SEs in understanding how government monopoly, bureaucracy,
domination, and centralisation, as well as the lack of legal systems, are some
critical factors within the structure that could highly affect their operations (Razavi
et al. 2014: 1-5).
34
2.5 CONCEPTUAL SOCIAL ENTERPRENEURSHIP MODEL AND ITS
CONTRIBUTION TO SUSTAINABLE DEVELOPMENT
Social Basic needs Needs for enabling structures Needs for maximising
Challenges/Problems choices
Social
Entrepreneurship
Effectively addressing social challenges and problems
35
required to generate change, consequently improving the quality of life (Iwueke
and Nwaiwu 2014: 4). However, using social entrepreneurship to achieve
sustainable development in a particular environment is a tricky and intricate
activity that requires adequate understanding (Seelos and Mair 2004: 1-17).
The framework designed by Seelos and Mair (2004: 1-17) indicates there are no
structures or resources in many developing countries to enable and support social
entrepreneurship operations to contribute to sustainable development.
Additionally, without structure and resources, Bansal et al. (2019: 1) believe the
government has an even larger role to play to ensure social entrepreneurship
grows, thrives and contributes to sustainable development. Hosseini and Ziaaldini
(2019: 52-59) are of the view that government pays overwhelming attention to the
economic aspect of entrepreneurship yet neglects the environmental, specifically
the social dimension, which may not create much concern in the short-term, but it
will be a problem in the long-term.
Entrepreneurial
Adjustment
36
Fischer and Comini (2012: 363-369) are of the opinion social entrepreneurs
operate ventures that focus on economic production: creating work and
generating income for individuals or groups with difficulties in accessing formal
markets. They dedicate themselves to natural resource conservation activities,
increasing the vitality of economic relations, and serving as a means that brings
together two crucial sustainable development objectives that previously seemed
incompatible - financial sustainability and the creation of social value. In other
words, the social entrepreneur’s value creation and ability to generate income
becomes vital to sustain their operation and contribute to sustainable
development. The dynamic and complex social problems in society today require
social entrepreneurs to use business models that will provide solutions and
create shared value, which also consist of both economic and social value that
will significantly impact society (Zahra et al. 2009: 519-532).
Perrini, Vurra, and Costanza (2010, cited in Sckliuckiene and Kisielius 2015:
1015-1019) identified four stages social entrepreneurs undergo to ensure social
value creation. These include; 1) an opportunity is identified, perceived by the
entrepreneur to be an inappropriate social situation; 2) evaluation of opportunity,
which focuses on creating a balance between project sustainability and social
impact; 3) opportunity exploitation, where the required operating principles and
innovativeness for the opportunity are defined; 4) expansion, making it possible
to identify underlying potential in different contexts and provide a wider social
impact.
Sinkovics, Sinkovics and Yamin (2014) suggest, on the one hand, in a theoretical
construct, numerous recognised international organizations, for example the
World Bank and the United Nations (UN), emphasise the private sector’s role in
advancing the social agenda in society. On the other hand, it is suggested in
literature that although commercial enterprises can provide transformational
social impact, the primary mission of a social entrepreneur is commonly found
37
and considered to be social value creation, more so than a commercial
entrepreneur (Sinkovics et al. 2014). Subsequently, social value creation and its
effectiveness is the key to success and a major factor for social entrepreneurs to
remain relevant and contributors to sustainable development (Davies et al. 2019;
Sckliuckiene and Kisielius 2015: 1015-1019; Szabo and Krátki 2018: 15-25). A
culture of social value creation must, therefore, be fostered in social
entrepreneurship (Blagoycheva 2019: 488-495), as it brings available resources
together in order to establish new products, services and processes for a better
quality of life for everyone (Marin 2017: 89-106).
On the one hand, it is believed social value creation is at the heart of all social
entrepreneurs, as the impact created in the long- or short-term or immediately
through social change that deals with problems/issues/needs on a social level.
This creation of social value encompasses a broad array of social impacts,
starting with awareness creation, beneficiary empowerment, and ensuring altered
38
perceptions, attitudes, behaviour, and norms as well as institutions, while
beneficiaries and their communities also benefit from the socio-economic impacts
(Singh 2016: 105-116). For beneficiaries, on the other hand, social value is
understood as benefits social entrepreneurs create through their activities and the
subsequent variety of positive changes and direct or indirect impact as a result of
the benefits created (Singh 2016: 105-116).
Bacq and Janssen (2011: 388) describe the social entrepreneurship concept as
“the process of identifying, evaluating and exploiting opportunities aiming at social
value creation by means of commercial, market-based activities and of the use of
a wide range of resources”. Equally, Bornstein and Davies (2010: 1) state that
social entrepreneurship is a process where institutions are built or transformed by
citizens to advance solutions to social problems, such as poverty and corruption,
in order to ensure many have a better life. Furthermore, researchers such as
Fernández-Laviada et al. (2020: 1) propose social entrepreneurship “focuses on
the use of business management strategies with the aim of generating benefits
with a social purpose”. This was also the sentiment of Visser (2011: 233), who
explains social entrepreneurship as engagement in entrepreneurial activities by
either individuals or organizations, with a focus on a social objective.
39
With reference to other writers, Visser (2011: 233-247) submits there is emphasis
on problem–solving and social innovation, where social entrepreneurship
activities blur the traditional boundaries between the public, private and non-profit
sectors. However, one of the generally acceptable, broad measure definitions of
social entrepreneurship that forms the basis for this study, is by the GEM (2015:
9), which describes the concept as “individuals who are starting or currently
leading any kind of activity, organization or initiative that has a particularly social,
environmental or community objective”.
40
problems in society, SE as mentioned by (Littlewood and Holt 2018), is
increasingly seen as an organisation that focuses on social over economic value
creation, which is the key boundary line separating such enterprises from normal
businesses.
A debate about the description of SEs by Defourny and Nyssen (2012) highlights
two different schools of thought. The first is classified as the “earned income”
perspective, because they conceptualise and refer to SEs as NPOs using
commercial activities to support their mission. Furthermore, Defourny and Nyssen
(2012) elaborate and expand this perspective by emphasising the SE definition
should be broader and encompass all forms of business activities with a social
purpose as part of its business strategy, including for-profit organisations. This
latter perspective was referred to as a “mission-driven business approach”.
One scholar who identified with this perspective was Barney (2007, cited in Maji
and Itodo 2016: 2), who describes a SE as “any business formulation with social
objectives whose surpluses are reinvested either in the business or community
geared towards improving the welfare of the society”. The second school of
thought was classified as the “social innovation” perspective. It lays emphasis on
the profile and behaviours of SEs and describes them as “change makers”, who
focus on outcomes rather than incomes and use “new combinations” of a systemic
nature of innovation to bring about change and impact the broader levels of
society (Defourny and Nyssen 2012).
One distinctive definition of SE from this school of thought is by Dees (1998: 4),
who explained that SEs:
41
and learning, acting boldly without being limited by resources currently
in hand, and exhibiting heightened accountability to the constituencies
served and for the outcomes created”.
Increasing debate in literature has made scholars such as Littlewood and Holt
(2018) attempt to provide a distinction of the above three concepts, when they
described “SE” as the venture or entity; “social entrepreneurship” as the process;
whereas “social entrepreneur” are the founding individual(s). However, in
literature these concepts are often used indifferently and interchangeably to
describe the same idea, because there is no unifying paradigm in the field of social
42
entrepreneurship (Bacq and Janssen 2011; Peredo and Mclean 2006: 56-65).
Hence, this study follows the practice of using the terms interchangeably as done
by other researchers.
The sustainable development concept has long been relevant and is adopted by
many countries to ensure they engage in sustainable developmental processes.
However, the relevance has increased in recent years because of global
consciousness concerns regarding increasing populations, while there is no
corresponding increase in the natural resources available to mankind (Mensah
43
2019; Theodossiou et al. 2020), These global concerns have translated from the
MDGs, a target of eight goals rolled out for 15 years (2000-2015), to the
Sustainable Development Goals (SDGs), which is a 2030 development agenda
entitled “Transforming our World”, approved by the UN, to protect the
environment, eliminate poverty and improve the well-being of people (Mensah
2019; UN 2020a). The 17 SDGs were primarily developed to achieve the following
summarised objectives:
• Eradicate poverty, achieve zero level of hunger, and guarantee good health
and well-being;
• Ensure access to basic amenities such as clean water, sanitation and
affordable and clean energy;
• Provide quality education and decent work for the youths that will serve as a
medium for economic growth;
• Provide basic infrastructure and foster innovation that will ensure the
development of industries, and to create communities and cities conscious of
sustainability in their production and consumption;
• Reduce the level of inequality in the world, especially with regard to gender;
• Care and protect the environment by acting to stop climate change, keeping
the ocean clean and safeguarding the ecosystem;
• Stand up for peace, justice and strong institutions and ensure partnerships to
boost development financing.
(Mensah 2019; UN 2020; Theodossiou et al. 2020)
SA, similar to many other countries globally, has pledged its commitment to the
sustainable development concept. At the WSSD in September 2002, in
Johannesburg, SA agreed dealing with poverty was one of the greatest
challenges; the agreed negotiated outcome was known as the JPOI (DEAT 2008).
44
As part of their commitment to national strategy preparation and implementation
for sustainable development, the JPOI set out 37 targets to achieve sustainable
development, which includes the MDGs, (DEAT 2008). Although there are several
strategies and programmes that include considerations of sustainable
development in SA, a clear and all-encompassing national sustainable
development strategy does not exist (DEAT 2008).
Other than SA, many developed and developing countries in the world face the
challenge of national policy alignment with expanded global development goals,
particularly where the integrated nature of the SDGs and related challenges are
concerned, which include processes of measuring, monitoring and
communicating (Fourie 2018: 765-771). Accordingly, use of existing institutional
structures and processes is one important way these challenges can be
overcome, which requires organising “existing structures to be more efficient and
improving policy coherence by government actors and all other stakeholders”
(Fourie 2018: 765-771). This will create the conducive environment for social
entrepreneurship to thrive, grow and become integrated into the multi-stakeholder
45
partnership, as this provides ways to address social issues that are creative and
innovative, assisting attainment of SA’s NDP and SDGs.
2.8.5 Townships
In SA, the term “township” refers to the underdeveloped urban living areas that
started in the early 19th century, enacted by the Group Areas Act of 1950, which
allowed for non-whites (Africans, Coloured and Indians) to be removed from
suburbs designated for ‘whites only’ during the apartheid period (COGTA 2009:
5-6). According to Manyaka-Boshielo (2017: 1-10), townships are usually
saturated by informal settlements and, in general, these areas commonly lack
adequate infrastructure and basic amenities, with most people living in these
areas having to travel outside their residential areas to find employment in order
to provide for themselves and their families.
There are roughly 532 African, Asian and coloured townships in SA, with a larger
geographic area than both the cities of Johannesburg and Durban combined
(Schwabe 2020). In addition, it is estimated that, as at 2019, approximately 21.7
million people live in townships across the country, which represents a significant
percentage of the total SA population (Schwabe 2020). This makes it critical that
focus is placed on these areas to improve and address their needs.
46
making opportunities, as well as the lack of requisite functioning market
institutions, discourages participation of traditional businesses in addressing
social issues and these give rise to SEs being active in that space.
Most countries in the world have adopted traditional options to deal with some of
their social challenges and achieve sustainable development (Lubberink 2019;
Bľanda and Urbančíková 2020). There are various articles and previous studies
conducted on social entrepreneurship and how it can be used to address the
growing social issues around the world (Diab 2019; Lubberink 2019; Bľanda and
Urbančíková 2020; Iwueke and Nwaiwu 2014). Nonetheless, minimal if any
research exists that identify those factors that could potentially impede the social
entrepreneurship contribution as a sustainable development tool, especially from
the KZN township perspective. Hence, many assumptions, beliefs and confusion
exist around these factors and how they significantly affect the development of
communities such as townships.
Over the years, however, it has been argued that townships have become iconic
in SA society, with great potential, as they serve as the heart of where most of the
freedom struggles emanated (COGTA 2009). Consequently, townships are
places where there is a real sense of community, where many prominent leaders
in the country have developed, including politicians, businesspeople, as well as
sports icons and artists. Mills (1989) concurs that despite most townships
considered as overcrowded, polluted and monotonous wastelands, the underlying
aim of creating an anti-social and controlled environment was highly successful.
47
adequately combine economic, environmental and social goals in one basket to
address the needs of local communities and achieve sustainable development;
nonetheless, it remains important to identify the key factors in local communities
affecting its activities and, where possible, eliminate these challenges.
48
Source: Banyambona (2013: 90)
The INK node is both a presidential poverty within the Urban Renewal Programme
(URP) as well as one of the five Area Based Management (ABM) Learning Areas
within the eThekwini Municipality. According to the Nodal Economic Development
Profile by Business Trust and Department of Provincial and local Government
(2007), the three areas may have individual differences, but they share a common
set of challenges, including low levels of internal economic activities and their
growth prospects are largely dependent on external areas (mainly Durban).
The area has a predominantly female population with figures above 50 percent
compared to males which sits below half. According to Mngadi (2013), the area
requires a significant intervention in terms of youth development and promotion
of entrepreneurship because of the high population of young people compared to
the older population. In addition, 73 percent of households are unemployed, 77
percent of households earn less than R9 600 per annum, 12 percent have no
schooling, 7 percent have completed primary school, 26 percent have matric or
high school, only 4 percent have tertiary education and 43 percent do not have
formal houses. The area comprises of predominantly informal settlements, with
high crime rates, lack of public space and recreational activities and low level of
public services (Banyambona, 2013: 3).
Many roads within the INK area remain unpaved or in disrepair, while water and
electricity are still not available to large section of the population (Banyambona,
2013: 3). This is a major challenge to the socio-economic development of the
area. In the eThekwini Municipality Spatial Development Framework (2022), it
commits that by 2030, the municipality will socially equitable, environmentally
sustainable, resilient and functionally efficient in a manner that bolsters its status
as a gateway to Africa and the world. However, the contribution of social
entrepreneurship to achieving this fate cannot be ignored and as such factors
49
affecting its effective operation in the INK area needs to be given adequate
considerations.
50
According to Barnard (2019: 1-8), social entrepreneurs operating in a country
such as SA, where the national unemployment level is more than 30 percent, and
even higher in local communities such as townships – the employment of people
becomes a critical part of their social mission. Kajiita and Kang’ethe (2020: 95-
106) assert that in a conducive environment this can have a strong multiplier effect
on economic value creation, and mobilisation of resources, as social
entrepreneurship is the sector that can create and leverage partnerships with
other sectors to address social problems such as poverty.
51
this is achieved by means of job creation, life quality improvement of local people
and ensuring valuable social service provision (Jilenga 2017: 41).
In a report on the state of SEs in Kenya by the British Council (2017: 40), an
estimate of approximately 43 933 SEs in Kenya is stipulated, expected to gain
more momentum as the economy continues to grow and levels of political
instability and insecurity are limited. One of the most critical discoveries in the
report, is that young people are at the hallmark of the SE sector in Kenya, with
approximately 79 percent of SEs led by people aged 25-44, with 37 percent of
this led by people aged 25-34, and 42 percent by people aged 35-44 (British
Council 2017: 4). Hence, by growing and sustaining social entrepreneurship, it
could contribute significantly to Kenya’s youth employment rates.
In Nigeria and Cameroon, despite their huge mineral and human resources,
poverty is a daily reality for one of every two people and 1.25 dollars a day or
much less is what most of the population survive on (Maji and Itodo 2016).
Although social entrepreneurship is not recognised by government legislation,
there is no prohibition to engage in SE activities in Nigeria and Cameroon. As
such, there has been increasing and fast emergence of social entrepreneurs in
Nigeria and Cameroon in recent years, making positive change through
innovative solutions in solving the problem of poverty and unemployment (Maji
and Itodo 2016).
In Canada, SE owners have a median age of 22 years and exist for a variety of
reasons, these include: employment development provided by 26 percent ,
training for workforce integration provided by 19 percent, with a further 19 percent
that generates income for a parent organization, and operating to achieve a social
mission indicated by 81 percent , while operating to achieve a cultural mission
was done by 45 percent, a further 27 percent operates to achieve an
environmental mission, and 43 percent operate to enhance poverty reduction
(Elson, Hall and Wamucii 2016).
52
In the European Union, an estimated 10 percent of companies and six percent of
total employment fall within the social economy (ILO 2017). The economy sectors
of both social and solidarity in France account for 10.3 percent of national
employment and almost eight percent of GDP (Summerfield 2020). Furthermore,
SEs in the UK contribute approximately £60bn to the economy, three percent of
GDP and five percent of total employment (Kah 2019; Summerfield 2020).
Fernández-Laviada et al. (2020) concur with this sentiment when they emphasise
the differential behaviours of social entrepreneurs can only be explained when
relevance is given to the environment where the social entrepreneurial activity
53
takes place. Hence, to enrich the theoretical understanding of social
entrepreneurship, there needs to be ongoing interactions between social
entrepreneurs and the context in which they operate (Fernández-Laviada et al.
2020).
Scholars such as Bacq and Janssen (2011) believe there are numerous different
approaches concerning the phenomenon associated with the surrounding social,
economic, cultural and institutional environment. These approaches are also
different on a continental level, because government roles are viewed differently,
without a distinct transatlantic approach to have a better grasp of the social
entrepreneurship concept. Specifically, when reinterpreted from the discourses in
a South African context, the phenomenon adds more local sense to the
entrepreneurs’ social mission (Karanda and Toledano 2012: 201-215). Therefore,
from the above discussions, to understand and conceptualise the social
54
entrepreneurship concept adequately, based on the context, is imperative, in
order to fully prescribe a mechanism or approach appropriate for its success.
The GEM is one of the world most recognised research projects aimed at ensuring
the relationship between entrepreneurship and national economic development is
55
comprehensively understood, in its 2019 report, grouped SA in the middle-income
level, as the economy remains sluggish and its real GDP per capita has
consistently declined since 2011. Furthermore, the report stated the 2019 GDP
growth forecasts for the full-year at roughly 0.8 percent, forecasts for 2020
concerning economic growth at 1.0–1.2 percent and 1.7 percent for 2021, seen
as low and less than population growth (GEM 2019).
Invariably, the result of this low growth will lead to lower job creation levels with
further unemployment and inequality. In fact, the rate of unemployment is at its
highest level since 2008 and youths between 15 to 24 years of age are the most
affected, as their unemployment rate is at 64.4 percent (Stats SA 2021). All these
indicators show why SA’s entrepreneurial activity level, in comparison to other
participating economies, is perceived as very low.
Despite there being a direct relationship between entrepreneurial activity and per
capita income, SA continues to lag other countries, as its early-stage
entrepreneurial activity is ranked 25 of 50 profiled economies, leaving it behind
countries such as Mexico, Madagascar and Latvia (GEM 2019). In addition, the
Global Innovative Index rankings (2021) shows, in terms of innovation, SA is
ranked as the 61st country in the world. Hence, the ability for SEs to step into the
vacuum created by traditional government initiatives and potentially contribute to
ensuring the South African economy grows, is noteworthy. Increasingly seen as
economic growth and a development driver in Africa, social entrepreneurship
presents new solutions for old problems and adopts business enterprises rules,
blending these to generate values with regard to social, economic and
environmental factors (Visser 2011).
In 2009, it was highlighted during the Johannesburg ILO conference that African
countries such as SA ought to adopt an alternative development approach. The
emphasis of this approach, titled the “social economy”, was on the part played by
SEs and social entrepreneurships as key components of the social economy
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(Moss 2012: 11). Furthermore, during this conference, the importance of the
social economy as a vital economic recovery tool in Africa was acknowledged by
the then SA Minister of Economic Development, Ebrahim Patel; a commitment
was made to develop a more socially and economically equitable growth plan for
SA (Moss 2012: 12). Subsequently, the NGP was announced and specifically
highlights different existing measures to advance and motivate social
entrepreneurs and build the country’s SE sector (Moss 2012: 12). With the State
having accepted publicly to join in “the global trend of using social
entrepreneurship [activities] to develop the South African economy”, it is
acknowledged as vital to deal with numerous social issues, thus ensuring
sustainable development in society.
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Source: Littlewood and Holt (2018)
Even though there is commonality among many SE and business enterprise traits
and behaviours, a clear vision of a SE is found in one central characteristic;
namely, it aims to add value and improve the life quality of the less privileged
(Visser 2011). Mitra and Borza (2011) also argue in their study comparing social
entrepreneurs versus commercial entrepreneurs, that characteristics create an
idealistic profile, and most SEs might not encompass all the qualities, however,
the characteristics are important to harness the profile required that will serve as
a guide to those who want to promote SEs. Furthermore, they identified the
following vital characteristics for an organisation to be considered a SE: creating
and sustaining social value is the core mission; identifying and pursuing new
opportunities; innovation is a continuous process in its engagements and; scarce
resources are not considered to be a limitation to overcoming and learning (Mitra
and Borza 2011).
In the UK, according to the British Council (2015), SEs comprise a range of
different organisations that use various business models in different markets to
address the numerous social needs in the UK. Although their origins vary and
many might have started independently or perhaps, they have grown out of
charities and NGOs or emerged from the public sector, they are usually united by
some key characteristics. These include: making their social purpose very clear;
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significant proportion of income generated from trading and; the majority of profits
are reinvested into their social mission (British Council 2015).
Bacq and Janssen (2011) believe attempts have been made by scholars to isolate
SEs but many of their characteristics overlap with their commercial enterprise
counterparts - they have the same focus on leadership, vision and ability to
influence and empower others to develop their ideas into reality. However, the
main distinct characteristic of a SE is the vision to solve a problem identified in
the social sector or an entrepreneurial focus or ambition motivated by a social
moral (Bacq and Janssen 2011).
Boschee and McClurg (2003), some of the scholars who support the mission-
driven business approach of SE, point out that for any organisation to be
described or classified as a social entrepreneur and act in an entrepreneurial
manner, it must be generating earned income from its activities. Furthermore, they
highlighted two distinct characteristics of a social enterprise: the earned income
strategies of a SE must be directly tied to its social mission; and every SE is
embedded on a double bottom line, an effective combination of financial and
social returns (Boschee and McClurg 2003).
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2.15 SOCIAL ENTERPRISE TYPES AND LEGAL FORMS IN SA
There are many organisations operating in SA that can satisfy the characteristics
identified above for them to be classified as SEs. However, the concept of SE is
relatively new in SA (GIBS 2018) and there is no legislative framework that
addresses the structure and classification of SEs in the country (Watters et al.
2012; Claeye 2016). In an attempt to bridge this gap, in 2009, a group of high
level South African government officials were taken by the ILO to Belgium and the
UK to explore and understand the legislative and other supportive frameworks
used in those countries, however, there has to date not been any outcome
(Watters et al. 2012).
According to Matsimela (2017: 14), the Non-profit Organization Act (1997) and
Companies Act (1993) are the only known legal frameworks enterprises such as
NPOs, voluntary associations, trusts and companies established for public
purposes could use to fulfil their social goals and mission. Otherwise, they are
established as co-operatives, close corporations, private companies or section 21
public companies (Matsimela 2017: 14).
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Matsimela (2017: 15) finds two types of strategies used by SEs that operate within
the not-for-profit model. There is the “purely non-profit strategy” on the one hand,
which constitutes organisations that do not believe in making profit from their
social activities. However, the problem with this type of SEs is their limited
finances and the possible challenge of sustainability and scalability (Matsimela
2017: 15). On the other hand, there are those SEs that use the “non-profit with
earned income strategy”, made up of organisations that not only depend on donor
funding and government grants, but also generate income, reinvested in the
organisation to improve their social mission (Matsimela 2017: 15; Coetzee 2016).
Upon dissolution, organisations that operate the non-profit with earned income
strategy will, however, be required to donate all surplus assets and money to other
NPOs with similar objectives (Claeye 2016: 15). Organisations that may fall within
this not-for-profit model include: voluntary associations, trusts, and non-profit
companies (previously referred to as section 21 companies) (Claeye 2016: 15).
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2.15.3 Hybrid model
To achieve the social purpose of the organisation, Claeye (2016: 24) explains this
type of SE combines the “not-for-profit” and “for-profit” models. The author
suggests when a SE diversifies it is able to spread the risks to the organisation
among various entities, either not-for and for-profit, and reinvest income
generated from the for-profit entities into the not-for-profit branches, to meet its
social objectives (Claeye 2016: 24). Matsimela (2017: 15) describes this type of
SE as a double bottom line business because boundaries between for-profit and
not-for-profit models are blurred and allow operation as a commercial business,
generating income from the sale of goods and services to the public and private
sector, as well as accepting donations and grants to achieve its social mission.
Claeye (2016: 24) however, warns that despite the luring potential of the hybrid
model to SE, it is considered very complex in terms of administration, as well as
its legal and managerial constructs.
Despite the different models described above, Visser (2011) suggests social
entrepreneurship manifests itself in different industries and forms of business and
serves as the single unifying symbol for the various venture and organisational
activities, throughout a wide range - from the private, public and the informal
sectors. In a typology that explains the continuum of social entrepreneurial
activities, Bosma and Levie (2009, cited in Visser 2011) identified the following
spectrums:
• Traditional NGO: sets high social and environmental goals but the objective is
not profit;
• Non-profit SEs: similar principles as the traditional NGO but the driving force
is innovation;
• Hybrid SE: similar principles as the above but income and profit are also an
important part of their mission;
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• Profit-oriented SEs: significant level of social and environmental goals set, with
income strategy embedded in daily undertakings.
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focus in addressing social concerns in the townships, however, are also geared
towards generating profits and creating wealth (Manyaka-Boshielo 2017;
Littlewood and Holt 2018).
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Current forecasts estimate the COVID-19 pandemic may push 1 million more
people in the country into poverty (Bittar 2020), which means more people in the
townships will be living in poverty. However, through intervention and innovation,
social entrepreneurship can create a new, more just and stable equilibrium that
will bring about some level of relief and improve the standard of township living
(Manyaka-Boshielo 2017). Although social entrepreneurs are focused on
addressing social concerns in the townships, they are also geared towards
generating profits and creating wealth.
Littlewood and Holt (2018) state businesses are crucial to ensure areas, such as
townships in SA, are transformed and developed, specifically by means of CSR
activities. An increasing interest in social entrepreneurs in these townships and
their engagement nevertheless exists, because they provide innovative
mechanisms to address complex sustainable development problems. The socio-
economic impact of township social entrepreneurs cannot be ignored as they are
involved in various community activities, more comprehensive than education,
health and housing (Kajiita and Kang’ethe 2020).
Despite township social entrepreneurs being very innovative and dynamic, their
importance in township development is not fully understood and they are
sometimes perceived negatively (Ngatse-Ipanqui and Dassah 2019). In addition,
due to the lack or partial knowledge of the social entrepreneurship impact in the
townships, it is difficult for the field to effectively contribute to sustainable
development, improve cohesion in the townships, gain support from community
members and create institutions (Ngatse-Ipanqui and Dassah 2019). However,
social entrepreneurship in the township creates a major opportunity for individuals
or organisations to develop innovative solutions to social problems government
and charitable organisations are failing to alleviate, as some social and
environmental context tends to inspire social entrepreneurship more strongly than
others (Mefi and Asoba 2020).
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Overall, the literature review thus shows that understanding the township context
will enable social entrepreneurs identify opportunities to initiate change and
operate at full potential, as well as present activities to proliferate in the country
and help achieve its sustainable development goals. Interestingly, even though
the context of township has an important part in social entrepreneurship
operations, the characteristics of who is classified as a social entrepreneur and
the structure of how activities are managed should not differ between townships
and other parts of the country (Manyaka-Boshielo 2017).
Covid-19 effects have additionally seen many across SA quickly descend into
food poverty, with many relying on soup kitchens and food parcels to survive
(Millson 2021). According to Mbunge (2020: 1809), “the closure of international
borders, global demand meltdown, supply disruption, dramatic scaling down of
human and industrial activities during lockdown” have created many socio-
economic problems in SA. Furthermore, in a country such as SA, where there are
approximately three million micro and informal businesses, the impact of Covid-
19 has left many people in this sector without a source of income or safety net
and struggling to meet their basic needs (Department of Small Business
Development 2021: 7; Adebiyi et al. 2021: 234).
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During the 2020 second quarter lockdown in SA, adequate education was not
provided to an estimated 13 million students, which raises concerns in SA, where
learning poverty is a reality for 80 percent of students, while the decline in
economic activity further aggravates unemployment of young people (Alvarez-
Iglesias, Garman and Lund, 2021: 200). In addition, Sekyere et al, (2020: 5)
conclude the Covid-19 effects in SA have drawn attention to the systemic quality
of service delivery weaknesses, for instance, services in many communities
across SA such as water and sanitation, healthcare, housing, and infrastructure.
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impact (Worsham, Langsam and Martin 2020). Hence, all stakeholders need to
double down on their support to social entrepreneurs in order that they may scale
up their innovative solutions in response to the challenges Covid-19 has created
in communities (World Economic Forum 2020).
2.19 CONCLUSION
Chapter two presented the background into the concept of social
entrepreneurship, definition of the relevant concepts, types and legal forms of
social enterprises in SA, and understanding social entrepreneurship as a context
phenomenon. The chapter also provided an in-depth literature review on the
contribution of social entrepreneurship to the international economy, South
African economy, and the township economy. Furthermore, this chapter
highlighted the conceptual view and theories relevant to the study.
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CHAPTER THREE
SOCIAL ENTREPRENEURSHIP AND FACTORS AFFECTING ITS
SUSTAINABLE DEVELOPMENT CONTRIBUTION
3.1 INTRODUCTION
The World Bank (2017) indicates that the SE ecosystem comprises the actors,
institutions, and networks that provide the necessary support for SEs to grow and
develop. However, in South African townships, SEs still lack a supportive
ecosystem, or enabling environment that could ensure these organisations thrive
and grow (Mefi and Asoba 2020).
Researchers such as Gorji and Rahimian (2011: 31-36) suggest that, in general,
some of the most important factors affecting entrepreneurship are financing,
physical resources, marketing and socio-cultural factors. However, social
entrepreneurship is explicitly motivated to achieve a dual mission of economic
and social value creation, which implies the factors attributed to affecting
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commercial entrepreneurship are less than those of social entrepreneurship, as
the latter is encountered with more of an array of complex factors (Davies et al.
2019). Thus, the understanding of SEs cannot be achieved “in a purely economic
sense”, except when the social context receives adequate focus, along with the
local environment (Mair and Marti 2006: 36-44).
Bvuma and Marnewick (2020) are of the opinion that in KZN, as in other parts of
SA, SEs and other SMMEs may generally encounter similar factors, such as lack
of access to finance. However, these enterprises also have factors uniquely
influenced by their environment and historical background where they operate,
such as in townships. Davies et al. (2019) mention some of the impediments
potentially related to the township SE, include the inability of opportunity
identification and exploitation, as well as individual, organisational and institutional
constraints.
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Davies et al. (2019) find gender, race, educational level and class are some of the
factors created in the environment that could negatively affect SEs. In other
words, perceived individual’s characteristics in townships can serve as hindrance
to their ability to engage in activities that create value to grow a SE. The lack of
involvement of local people in community development, lack of synergy between
stakeholders, inadequate presentation of a viable SE plan to the community, and
lack of proper implementation of SE activities, are confirmed to be some of the
factors affecting SE development in the townships (Ngatse-Ipanqui and Dassah
2019).
Littlewood and Holt (2018) find the nature of the environment in which SA SEs
operate typified by resources and support from the state that are limited,
diminishing international donors, no dedicated SE legal status, and inadequate
government policy and legislation implementation. Further to this, SEs are unable
to access enterprise development assistance and bring their business model and
strategies into alignment with B-BBEE frameworks, in addition to the associated
reporting and auditing costs when the corporate sector is engaged. These are all
considered important factors hindering social entrepreneurship growth and
development.
Rivera-Santos et al. (2015: 72-91) add that poor infrastructure, relative cost,
bureaucracy, challenging business conditions, and weak institutional structures,
along with a high level of informality, also influence the growth and development
of SEs in communities such as townships. Hence, the growth and development
of SEs in townships greatly depend on removing all these bottle-necks to ensure
SEs effectively create social values that will improve the social entrepreneurship
contribution to sustainable development.
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declaration, and committed to eliminate poverty, advance human dignity and
equality, and realise peace, democracy and environmental sustainability.
However, two decades later, nations are becoming poorer, life expectancy has
plummeted due to various diseases and lack of access to proper health care,
countries are torn with conflicts, and deteriorating environmental conditions are
experienced nearly everywhere (Seelos and Mair 2004).
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Smith (2003: 52-76) asserts most companies engaging in CSR do so because of
a business or normative case and are usually faced with challenges regarding the
formation and implementation of strategy, as many uncertainties are associated
with determining organisations’ societal obligations. Seelos and Mair (2004) argue
that regardless of the challenges attributed to CSR, the role of business
contributions to sustainable development cannot be ignored.
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Figure 3.1: Social networks and sustainable development
Source: Seelos and Mair (2004)
Similarly, a study by the British Council (2020a: 5) finds limited access among 50
percent of SEs in SA with regard to investors as these enterprises do not have
the relevant contacts and their network is limited. It is therefore important to
understand the relationships between social entrepreneurship and other
cooperative actions, as they all play different roles, but can also collaborate in
achieving sustainable development in the townships of KZN.
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CSR requires businesses to continuously commit to ethical behaviour and play a
part in economic development, while also improving employees and their families’
quality of life, as well as the community they operate in, and society at large (Niño
2015).
Seelos and Mair (2005: 241-246) are of the opinion that creating a link between
social entrepreneurship and CSR programmes could provide a promising model,
with regard to achieving sustainable development. In addition, they believe
forming working relationships with local social entrepreneurs will help companies
participate in actual projects that address appropriate needs, as local social
entrepreneurs are usually better in scanning and identifying opportunities in their
local communities and building up grassroots efforts with very limited resources
(Seelos and Mair 2005: 241-246).
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capacities of management, in their efforts to contribute to sustainable
development in communities such as the KZN townships.
Furthermore, IOs such as the Ashoka or Schwab foundations, are well-known for
their direct support to social entrepreneurs by providing funding and creating
platforms for access to crucial support networks (Seelos and Mair 2005: 241-246).
When support is provided by public institutions, for example the government, in
addition to stimulating innovation through funding and subsidies, while
entrepreneurial solutions are encouraged through public policies directed towards
innovative causes, Bansal et al. (2019) suggest the social and environmental
impact of social entrepreneurs can be improved. This makes it important to
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comprehend the partnership level between SEs and public institutions
(international and local), as well as its effects on their contribution to sustainable
development in the KZN townships.
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Razavi et al. (2014) assert when individuals in a society are sensitive to social
problems and have a social attitude, they will be able to identify social demands
more easily, which will help in the development of promising ideas in society.
Perceived desirability of society is shown to be positively and significantly
correlated with social entrepreneurial intention in a study Urban and Kujinga
(2017) conducted in SA. Hence, opportunities to increase the youth’s self-esteem
and confidence to participate in the social and economic spheres more actively,
will be provided through improved perceptions and by nurturing societal norms
towards social entrepreneurship. A similar study in Bangladesh by Ashrafi et al.
(2020: 88-104) reveals 51 percent of respondents perceived social
entrepreneurship is a respectable career, its activities provide individuals with the
ability to be more independent, and enable them to create jobs for the
communities. For the concept to have a significant positive impact in contributing
to sustainable development in SA, particularly in local communities, societies
have the right perception and desirability of social entrepreneurship, it will provide
a platform and serve as a critical support system. According to the GEM (2019)
report, entrepreneurs rely on a wide range of support from stakeholders in society,
which comprise family, friends, customers, and suppliers, to be successful. This
makes it important to understand how they are perceived in society, from the
social entrepreneur’s perspective, and its effects on their contribution to
sustainable development, especially in KZN townships.
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increased (Day and Jean-Denis 2016: 59-69). This is echoed by recent authors
(Littlewood and Holt 2018; Moriggi 2020: 437-453; Choi and Chang 2020: 1-18),
who add the necessary capacity is required by social entrepreneurs for enabling
resources to be mobilised and created, in addition to stimulating innovative
initiatives in acknowledgement of unmet issues of sustainability, thus contributing
to processes of socio-economic transformation. Thus, social entrepreneurs
operating in communities such as townships need to demonstrate these
capacities, in order to generate social values that will enhance their sustainable
development contribution.
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receiving relevant government support information, crime, non-existing
infrastructure; and lack of support from stakeholders, lack of legal knowledge,
as well as inadequate business acumen, along with insufficient technological
skills (Bvuma and Marnewick 2020). This means it is important to highlight these
factors, because they may be critical in influencing social entrepreneurship
contributions in KZN townships.
The GEM (2016) revealed that in SSA, money to start their operation is required
by 90 percent of social entrepreneurs with own money invested by 82 percent.
Funding from family is, furthermore, relied on by 67 percent, whereas 42 percent
are reliant on banks or other financial institutions, with government programmes,
donations or grants relied on by only 38 percent. In SA, social entrepreneurs
continue to be confronted by grant funding access, which remains a major
challenge that limits their social value creation capacity to, which in turn, impacts
their sustainable development contribution, particularly in local communities
(Maphalla et al. 2009).
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British Council (2020a: 34) findings in SA support this sentiment, revealing that
70 percent of SEs indicated a key barrier to their growth as access to grant
funding. social entrepreneurs in SA have, in recent years, been subjected to
limited state resource and support access, in addition to diminishing
international donors (Littlewood and Holt 2018). Owners/managers of SEs are
affected by these critical factors when social value creation strategies are
developed, as this frustrates their growth and development, offering little
reassurance to participate in social entrepreneurship.
In research conducted in India, Satar (2018: 23-25) finds the lack of awareness
by SE owners/managers, where managing people strategically is concerned,
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obscures the organisation from realising its potential human capital in driving the
bigger goals of social value creation. In addition, little or no role clarity for
employees working in such organisations was found, as job descriptions are not
laid down properly, which gives rise to role ambiguity among employees (Satar
2018: 23-25). In support of these findings, Satar (2018: 23-25) suggests because
social entrepreneurs mainly drive results through people, the owners/managers
of such organisations must work towards establishing formal human resource
management practices that will enable them to benefit from their optimisation.
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entrepreneur, their level of education, and whether they graduated from a
prestigious university. This shows age and gender (Loarne, Maalaoui and Dana
2017: 363-381; Nicolás and Rubio 2016: 56-62) and level of education (Marín,
Nicolás and Rubio 2019) are considered important characteristics of social
entrepreneurs that cannot be ignored, as they significantly influence their social
value creation and activities in general.
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Marín et al. (2019: 1-16) furthermore indicate the individual’s social commitment
is increased through a higher level of education. In other words, a higher level of
education provides knowledge and greater skills to an individual making them
more socially oriented, with social problems perceived as business opportunities.
Additionally, a positive relationship is concluded by the authors to exist between
higher level of education and social value generation. Individuals can, therefore,
“start a business not primarily conditioned for own economic benefits but for the
creation of social value to benefit others” (Marín et al. 2019: 1-16).
A study by the British Council (2020a: 33) determined the highest level of
education attained by SE managers in SA as: 34 percent achieved a post-
secondary diploma/certificate or vocational qualification, with 27 percent
indicating Bachelor and 21 percent Masters degrees. It is therefore important to
investigate these viewpoints and establish whether a higher level of education is
an important characteristic that significantly affects the contribution made by
social entrepreneurs to sustainable development in KZN townships.
3.5.2 Age
According to Le´vesque and Minniti (2006: 177-194), age is an inherent factor that
triggers entrepreneurship and a negative relationship is found between
entrepreneurial attitude and age. They also suggest a threshold age exists that is
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critical for individual distribution of working time between entrepreneurship and
waged labour. Hence, when this threshold is reached, the willingness of
individuals to invest time in starting new enterprises begins to decline (Le´vesque
and Minniti 2006: 177-194).
In support, Marín et al. (2019: 1-18) highlight a key factor when detecting social
problems, is time. Furthermore, the age and social orientation relationship shows
older people, because they have been able to observe and analyse these
problems over the years, identify more social problems in the environment.
Nevertheless, age is argued as “not the only condition required to detect social
problems, there is also the need for the social entrepreneur to feel capable to
undertake the task” (Marín et al. 2019: 1-18).
The chance of entrepreneurs older than 54 years focusing on SEs was observed
to be approximately two times higher, while Fernández-Laviada et al. (2020: 1-
15) add that these entrepreneurs “show a greater propensity to start a SE when
they perceive the need for more development of the sector in their countries”. In
a study in six local communities of five European countries, Socci, Clarke and
Principi (2020: 1-19) concur, highlighting that the social contexts, past
experiences of individuals, their knowledge, and motivation, shows older people
are seen, more and more, as useful resources with which to appropriately
“address and build the pathway towards social solutions for unmet social
problems detected within local communities”.
Stypinska, Franke and Myrczik (2019), in addition, highlight the advantages older
social entrepreneurs bring, such as more work and industry experience, social
networks that are better developed, and higher technical and managerial skills,
while their financial position is also stronger than that of younger social
entrepreneurs. According to GIBS (2018: 8), however, in SA social
entrepreneurship seems to be most appropriate for young people between the
ages of 25 and 44 years, are mainly unemployed and are drawn by this appealing
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means to enter the working world. Findings in the GEM (2016) report support a
greater representation (52 percent) of the SSA younger generation in operational
social entrepreneurship, in comparison to the 46 percent operational commercial
entrepreneurship representation. Decision-making of social venture resource
providers, in a Korean context, furthermore seeks younger, high-energy
entrepreneurs, with learning skills and a risk-taking propensity. These human
capital abilities are considered appropriate to a business environment that is
highly uncertain, thus, obtaining resources such as financial and marketing,
becomes more of a reality for SEs (Choi 2020: 1-18).
3.5.3 Gender
As explained by McKague and Harrison (2019), gender is described as what
society holds around being female or male in terms of their roles, responsibilities,
rights, expectations and power. The discrepancies between men and women with
regard to salaries, position and growth opportunities, tend to show persistent
gender inequality in traditional entrepreneurship, more so than in social
entrepreneurship (Winter 2014). This view is supported by Nicolás and Rubio
(2016: 56-62), who emphasise the gender gap in social entrepreneurship is less,
compared to that of traditional entrepreneurship, because the roles and
stereotypes that influence women’s behaviours usually leads them to associate
with values promulgated by SEs. However, the GEM (2016) study suggests either
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a non-existent or less of a gender gap for operational social entrepreneurship in
SSA, as opposed to operational commercial entrepreneurship.
Nicolás and Rubio (2016: 56-62) explain that the level of a country’s development
determines the starting-up of businesses by women – the percentage of
enterprises created by women decreases as the development of the country they
live in increases. However, Marín et al. (2019: 1-16) point out this viewpoint is
motivated by women becoming self-employed, due to the necessity to escape
poverty, as a result of weak economic systems in their countries. In addition,
reduced entry barriers due to low efficiency levels encourage women to start new
enterprises and establish businesses in underdeveloped countries.
Pines, Lerner and Schwartz (2012) are of the opinion that, irrespective of the
economic level of the country, there is a gender gap between both the early
entrepreneurial participation stage and established business ownership. In SA,
social entrepreneurs are highlighted by GEM (2009, cited in GIBS 2018: 8), as
most likely to be male. Hence, it is important to investigate and understand
whether the social entrepreneurship contribution to sustainable development in
the township context, especially in KZN, is affected by gender as a characteristic.
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Women social entrepreneurs may also be impacted in communities such as
townships, particularly in KZN. Ultimately, should these issues be addressed, it
will empower more women to be social entrepreneurs (Mannion 2017). Hence,
Carty (2020) stresses that for the social sector to effectively tackle the biggest
systemic problems in any society, its patriarchal inclination has to be abandoned
and funding, support and practice require a more gender-balanced approach.
Consequently, this will lead to more systemic approaches in social
entrepreneurship, where instead of it being about approaches or attributes that
are either male and female, solving social issues are developed from the full
spectrum of human strengths and capabilities (Carty 2020).
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Maas and Liket (2011: 171-202), nevertheless, emphasise the challenge for
organisations, including SEs, is to optimise impact in several dimensions, rather
than maximising impact against a single dimension. Hadad and Gauca (2014:
119-136) advocate social impact should be individualised and assessed based on
the nature of each social initiative, ensuring it correlates with the objectives of the
process, and considering the soft outcomes (skills, competencies, psychological
improvements) developed from the activities of the specific entity.
According to All Answers Ltd. (2018), there is an increasing need for social impact
measurement, as pressure mounts on social organisations to be held more
answerable to investors and other resource providers, while also undertaking a
systematic evaluation of their performance. In addition, the identification of
measuring tools that would enable SEs detect their impact in society will assure
investors whether their resources are being used in the most efficient way – in a
manner that ensures favourable returns in terms of the value created socially,
economically and environmentally (All Answers Ltd. 2018).
This view is supported by Gonul and Senyuva (2020), in stating that social
ventures must plan for and assess their social impact, because the sustainable
impact and change they create measures the success of their activity, while also
attracting social impact investors in securing activity funding and resources.
Furthermore, the European Commission (2014) suggests funders and investors
desire to channel their scarce resources to initiatives where impact can be
demonstrated. Therefore, a clear measurement of impact ensures service
providers and commissioners can effectively improve delivery and better focus
their effort to meet SE objectives. This makes it important to understand how SEs
in the townships in KZN measure their social impact and whether it affects their
resources, as well as their contribution to sustainable development.
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number of targeted beneficiaries that benefited from their social mission; making
it difficult to establish a compelling case for social impact. This resonates with
findings from Buckland and Hehenberger (2021), who point out that impact
measurement underinvestment means there is none of the evidence SEs need to
secure funding from government, grant makers and impact investors, thus
resulting in a vicious cynicism and distrust cycle.
A study by Hojnik and Crnogaj (2020) finds social impact is measured by a larger
proportion of SEs in north-western European countries, in comparison to south-
eastern countries. Attributed to the internal environment of the SE, these relatively
low social impact measurements include (lack of resources, size of the SE, and
lack of knowledge, however, in the external environment examples include the
requirement to access funding as legislative or a social impact measurement. In
addition, the study highlights SEs in north-western countries measure their social
impact more during the operational than in the start-up phase, while SEs in south-
eastern countries measure their social impact more in the start-up than in the
operational phase. A study conducted by Methvin (2019) in SA highlighted that
impact actually measured is less than 10 percent of SEs, with most measuring
only outputs and outcomes; which creates concern.
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3.6.1 Benefits
A report by the OECD (2015) states the mission of SEs affects multiple
stakeholders (public authorities, private investors, internal stakeholders and
external beneficiaries). Therefore, traditional performance measurement may not
be adequate, while a multidimensional accountability system is more suitable, as
it focuses on both the economic bottom line, as well as social outcomes. In other
words, this system will ensure SEs are accountable to their stakeholders and
manage these relationships, while satisfying their set objectives.
The Australian Social Value Bank (ASVB) (2018) supports this view and asserts
organisations that pursue social purpose are under pressure not only to create
social value and contribute to positive change in the world, but must also prove it.
The only way to prove the social value created, is to measure it. In addition, the
bank highlights some social impact measurements, important to organisations
such as SEs, include assisting to: achieve their social mission, attract additional
funding, provide effective communication of impact to stakeholders, and use
impact to inform programme improvement, as well as help to demonstrate value
for money (ASVB 2018).
Ayala (2019) explains the benefits of social impact measurement using three
perspectives:
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• The employee’s perspective shows employees becoming more motivated
when they can directly see the social impact their activity is having, relative to
when they are only assuming their work has a positive impact.
3.6.2 Challenges
Buckland and Hehenberger (2021) highlight social impact measurement has its
challenges, as it is believed the long-term effects of interventions, from
organisations such as SEs, involve multiple stakeholders and addressing complex
challenges, which makes it difficult to measure and this is easily overlooked.
According to Gonul and Senyuva (2020), the most common challenges faced by
SEs in developing an efficient social impact measurement are the difficulties to
quantify their effect, difficulties concerned with the long-term social impact
predictions and, resource limitations necessary to quantify their social impacts.
These could also be the challenges faced by SEs in township communities.
Furthermore, the OECD (2015) asserts some of the practical challenges social
impact measurement might create include SEs possibly being overburdened with
social impact measurement requirements. In addition, SEs may not have the
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resources and capacity to measure their impact, and may find it difficult to align
their needs with those of their investors (OECD 2015).
Methvin (2019) states the primary reasons why few SEs are measuring their
impact in SA is because of: lack of information and the inability to differentiate
between an output, an outcome and impact; scarcity of resources required to
measure impact; longitudinal requirements where actual impact only occurs many
years after intervention; and the feeling derived from emotional knowledge of their
intervention, as well as the witness of positive changes make impact
measurement seem unnecessary; along with the fear of knowing their intervention
did not have the positive changes envisaged. This supports findings of Ngatse-
Ipangui and Dassah (2019) that SEs operating in communities such as townships
do not provide community members with clear impact measurement, to create
awareness of the impact of their activities. Measurement would also ensure the
perception is eliminated that what SEs generally attempt to achieve is
immeasurable and clarify that the impact may not be visible or appear in future.
The weak monitoring and unclear impact measurement of their activities creates
the perception that the outcomes of SE activities are, furthermore, not sustainable
enough to trigger development and community members, thus give up quickly on
their operations (Ngatse-Ipangui and Dassah 2019). However, very little or no
research has been conducted on social impact measurement challenges from the
SE perspective, of those entrepreneurs operating in KZN townships. Hence, this
study attempts an understanding of the social impact measurement effect on the
SE contribution to sustainable development, particularly in KZN townships.
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surroundings, but is used to mean anything that surrounds the business
organisation (Eruemegbe 2015: 479), in addition to factors that play a role in
promoting or restraining its growth (Ayyagari, Kunt and Maksimovic 2008: 483-
516). These environmental factors consist of internal and external factors. Petrus
(2019: 28-36) describes these environmental factors as environmental dynamism
and refers to them as the rate of changes, unpredictability, volatility, and instability
in an environment.
This is in line with the opinion of Seo, Kim and Kim (2020), who explain the rate
of change in the environment over time, in terms of its speed and strength, is
referred to as environmental dynamism. These changes in the competitive
environment influence the way businesses compete and how they respond to
customer demands and the development of the business (Drnevich and
Kriauciunas 2011: 254-279). In other words, the environmental factors within a
particular society create some level of dynamism in the unpredictability, instability
and changes social entrepreneurs need to be aware of, and develop strategies to
overcome their effects on their activities and contribution to sustainable
development.
According to Islam (2016), internal factors are those within the organisation and
external factors are those factors outside the organisation that affect its social
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activities. Internal factors include management efficiency, leadership quality,
knowledge and education, along with skills and experience, social innovation
capacities, entrepreneurial abilities, and human capital. In addition, other internal
factors include a high propensity for risk-taking, opportunity identification
competence and motivations, impact growth/performance, and the how effective
social value creation of social entrepreneurship is (Islam 2016; Gray et al. 2018;
Griffiths, Gundry and Kickul 2013: 341-357). External factors, for instance, include
legal, political and regulatory frameworks, cultural values in society, together with
economic and technological factors (Dobele 2011: 101-107).
Dobele (2011: 101-107) states environmental factors that influence SEs were
found by a study in Latvia to potentially occur “at different stages of the
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organisation’s life cycle – from courtship to the organisation’s death”. In addition,
external environmental factors are associated with the threats and opportunities
outside of the business that it cannot control directly, while internal environmental
factors are the threats and opportunities within the business it has to compete with
(Dobele 2011: 101-107). SEs, particularly in communities such as townships, face
unique environmental factors that impact their development and growth, inhibiting
their effective contribution to sustainable township development (Findley and
Ogbu 2011).
These unique environmental factors range from the lack of effective mechanisms
to stimulate their creation and development, inability to access external sources
of funds, and the lack of appropriate legal form, to lack of business support, and
the poor understanding of the “entrepreneurship with a social objective” concept
(Pacut 2020). Mitchel (2009) mentioned the ability for entrepreneurs to perceive
and recognise opportunities in these unique environments depends on both
external factors (institutions and structures that create opportunities) and internal
factors (heterogeneous motivations, personal traits, and individual motivations to
participate and create social value). This makes it imperative to identify and
understand these environmental factors, since they enormously impact the social
entrepreneur’s ability, particularly in addressing individual, societal and future
generations’ needs in the townships of KZN.
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highlights how social entrepreneurs are affected by external environmental
factors, such as the overall conditions in the political, economic and cultural
environment, as well as the surrounding cultures and degree of government
support in entrepreneurial motivation.
Social entrepreneurs need all the support the external environment can provide,
to help take their innovative social ideas from conceptualisation to actual
execution, which will serve to accelerate and facilitate their successful
development and create a more effective social sector (Poon 2011). These factors
may not, but can directly touch on the short-term activities of a social
entrepreneur, and often influence its long-term decisions (Onodugo and Onodugo
2015: 246-254). However, it is not clear how social entrepreneurs in communities
such as townships, especially in KZN, are affected by factors in their external
environment.
A comparative study conducted on North America, Latin America, India and SSA
by Bewayo and Vicente Portes (2016: 39-56), reveals external environmental
factors such as economic and political institutions, significantly influence and
determine any country ‘s social entrepreneurship nature. Moreover, Africa has the
biggest gap with regard to the difference in economic, political and socio-cultural
environment, compared to the other three regions. This means, for social
entrepreneurship to effectively create social value in the African context, there
needs to be an adequate understanding of the external factors that would affect
its activities and hinder its contribution to sustainable township development
(Carriles-Alberdi, Lopez-Gutierrez and Fernandez-Laviada 2021).
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and informal institutional limitations, incentives, reserves and resources that are
potentially compatible. Furthermore, they assert individual behaviour may be
impacted by institutions, as both a stimulant of motivation and as tangible and
intangible resource support providers to social entrepreneurs.
According to Pacut (2020), SEs are significantly impacted by, on the one hand,
informal institutions, in other words, social values, models of conducts and beliefs
and, on the other hand, formal institutions, for example, rules, laws and
regulations, also play a significant role in their operations. However, a study
conducted in Spain by Ferri (2014), highlights informal institutional factors more
significantly impact social entrepreneurial activities than formal institutional
factors, with both institutional factors mutually dependent. Nevertheless, for some
economies, such as in Africa, the ability to adequately identify the perfect policy
mix can be very tasking.
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impact on its operations. A further suggestion is for governments to set the
example, leading through their role of social incubator creation, potentially
developing social change.
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and delivery of services. It is therefore important for SA to have a defined legal
form for SEs that will allow their effective operations, particularly in township
communities, without unnecessary red-tape and restrictions.
Political instability
According to Doumit (2015), when there is a settled and secured political situation
in any country, the innovative elements social entrepreneurs set in motion will
enable the government to realise their full socio-political capacity and create a
reciprocally innovative system. Political instability has a significant negative effect
on the ability of any entrepreneur, including social entrepreneurs, to be innovative
and create value in a country (Shumetie and Watabaji 2019). In addition, any
politically unstable country with frequent social unrest, civil war, and violence,
deters foreign direct investment and capital inflow, which is key for enterprise
innovativeness (Shumetie and Watabaji 2019; Hammed 2018). Hence, a
politically stable environment is critical to ensure social entrepreneurs are
effective in using their innovativeness to create social value that will enhance
community development.
As stated by Dutta, Sobel and Roy (2013: 130-143), any politically stable country
will significantly lower risk and transaction/contracting cost, and increase the level
of government transparency, predictability and accountability, which will, in turn,
increase the rate of entrepreneurship and wealth creation. This principle may also
apply to social entrepreneurship in communities such as townships. Although
SA’s percentile rank on political stability in 2019 is considered reasonable (40 of
100), the July 2021 violence in parts of the country highlights the risk of increasing
income inequality and high unemployment levels, which could jeopardise social
and political stability over the medium- to long-term (Fitch Ratings 2021).
Evidently, for the country’s economy to recover from the effects of its latest
recession, violence, and COVID-19 impact, there needs to be huge compromises
to prioritise political stability in SA, where political parties put the interest of society
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over their ideologies and leadership preferences to improve governance and
accountability (Mkhabela 2020). This would create an enabling environment for
entrepreneurs such as social entrepreneurs to flourish.
Corruption
Corruption is an institutional factor that hinders development in many countries
around the world. It can be described as the dishonest or illegal behaviour,
especially by government officials (Hammed 2018). According to Maretich (2019),
corruption is bad for business and demonstrates the danger of social investors
unwittingly putting resources behind programmes and enterprises controlled by
bad institutional systems that support corruption and its oppressive effects on
local people. Corruption plays a significant role as an economic catalyst in
countries characterised by numerous barriers to entrepreneurial activity, such as
excessively strict norms and regulations or obstacles to obtaining credit (Ceresia
and Mendola 2019). Apart from corruption being harmful to the growth and
institutional quality of a country, it is also a deterrent for both entrepreneurial spirit
and activities (Afridi 2016).
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when the necessary governmental structures and policies are in place to minimise
or eliminate the rate of corruption. The Corruption Perception Index (CPI) of
Transparency International (2020) reveals SA is ranked 69th of 180 countries, with
a score of 44 points out of 100. The failure to move above the 50-point mark for
nearly 10 years shows the extent of corruption and its damaging effects in the
country (Mabuza 2021).
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distinct competitive advantage, which may have a significant influence on the
business or activity they start (Ratten 2020).
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Socio-demographics
Socio-demographics has a significant effect on social entrepreneurship, as its
factors generally guide and motivate the decision for social welfare and social
value creation through the display of innovations, leadership and risk
management of the enterprise (Islam 2016). Marín et al. (2019: 1-16) highlight
socio-demographic factors, such as the critical role of women in social
entrepreneurship, because they are more affected by social and environmental
benefits and give more importance to providing socially stable communities
through maintaining relationships, helping others and nature. Nonetheless, more
importance is seemingly afforded by men to their money and career, which shows
“a more prominent ethics of justice”. This view is supported by Onyshchenko and
Shyshkin (2019), who mention that women have proved to be more trusted social
entrepreneurs with counterparties, than men. They further highlight individuals
with socially oriented businesses believe there was more accommodation,
understanding and solidarity in former times than at present, while younger social
entrepreneurs believe the opposite.
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South African township context to understand whether SEs and their contribution
to sustainable development are affected.
Culture
A difficult concept to describe, culture is without fixed boundaries with different
situational meanings attributed to it (Causadias 2020: 310-320). However, Dlabay
and Scott (2011, cited in Masovic 2018: 1-6) describe culture as the accepted
behaviours, customs and values of a given society or environment. There are
many elements that make up a culture and these elements are components
derived and related to the beliefs and behaviour of a group of people (Masovic
2018: 1-16). This means cultural dimension and societal changes influence the
type of SE activities started in society (Ratten 2020; Pounder 2021: 344-357).
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for social entrepreneurship emergence and development in different cultural
contexts (Canestrino et al. 2020: 133).
Crime
According to Dzomonda (2021: 5), the growth and performance of social
entrepreneurs in SA are significantly retarded by the high level of crime in the
country, as many entrepreneurs spend their income on improving their business
security instead of increasing operational capacity. The total property-related
crime, which includes burglary at non-residential (business) premises and stock
theft, increased by six percent in 2020/2021, compared to -21 percent in
2019/2020 (South African Police Service 2021).
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dictates product sales and services levels, with the demand size and growth, as
well as the country’s economic well-being, being influenced overall.
Bansal et al. (2019) state that in developing countries such as SA, government
has a bigger role to play, as there are limited and scarce resources, while financial
institutions are unwilling to offer SMEs financial support, including SEs, by
providing finance sources for such entrepreneurs to ensure they function
effectively as sustainable development engines. Furthermore, they highlight while
insufficient resources are a key economic factor that could impact social
entrepreneur’s contribution to sustainable development, there are resource-poor
entrepreneurs seeking innovative business models to enable becoming self-
sustainable (Bansal et al. 2019). In addition, Bewayo and Vicente Portes (2016:
39-56) conclude a weak banking system significantly impacts the commercial
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sector, with high levels of unemployment and poverty, which are some of the
sustainable development issues social entrepreneurship attempts to address.
Socio-economics
LaMarco (2018) describes socio-economic factors as the social and economic
factors that shape and determine the dynamics of a society, highlighting that an
understanding of these factors helps businesses make better decisions, with
regard to their future and the direction the business may take. These factors affect
the behaviour of the different socio-economic classes, in relation to their different
priorities and how they spend their money (LaMarco 2018). Kassa (2021) and
Rotich, Cheruiyot and Yegon (2014: 263-267) identified owner gender and age,
access to finance, experience of the owner, and the age of the business, as well
as business area/location, family business background, and tax, inflation and
interest rates, to be some of the socio-economic factors that could affect SMEs,
including SEs.
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Taxation
Many SEs in SA find the taxation associated with the choices of their legal forms
quite confusing and are usually misinformed on how to formally register their
organisation (Coetzee 2016). According to the Bertha Centre for Social Innovation
and Entrepreneurship (2016: 3), SEs who choose the for-profit legal form have
flexibility regarding sources of finance and private ownership, however, they will
not have easy access to charitable donations and grants. Nevertheless, the SE
with the non-profit legal form could engage fully in business activities, while also
having access to grant funding; this choice has the consequence of taxation.
Interest rate
According to a discussion paper by the Danish Technological Institute (2016),
many SEs are reluctant to use traditional commercial finance products because
of the fear of not being able to pay back the loan due to high interest rates.
Although, SEs might provide goods and services to customers willing to pay a
premium for a socially beneficial product or they might sell an essential service to
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a poor customer at a decent profit, they do not make enough profit to match the
high interest rates of traditional financial markets (Bugg-Levine, Kogut, and
Kulatilaka 2012). These high interest rates contribute to the challenge of funding
or access to finance faced by SEs.
Lyon and Baldok (2014) highlight that since the global financial crisis in
2007/2008, access to both debt and equity business finance for all enterprises,
including SEs in the UK, has become considerably more difficult and expensive,
with an average four percent increase in the interest rate on bank loans between
2008 and 2012. Many traditional finance sources, such as banks, believe SEs are
higher-risk and less profitable than other businesses, and higher-risk requires
higher interest rates (European Commission 2016), as a result of the various
constraints associated with the redistribution of their profit, and the gaps created
in the financial market. This is a critical economic factor that could discourage
social entrepreneurship participation in addition to affecting its sustainable
development contribution.
Competitive environment
One of the significant effects of globalisation is the demand for enhanced
competitiveness from SMEs, including SEs (Mathew 2008: 22-24).
Competitiveness is considered a very crucial aspect of any business environment
and is helpful to humankind, as it ensures businesses provide superior products
and services to remain highly competitive (Ullah 2020). Markets where many SEs
exist and compete are not solely impact-focused (Ross 2018). The extent of value
creation and impact of a SE thus relies on the ability of the enterprise to make
effective use of the available resources and continue to be competitive. Seferian
(2020) argues that for SEs to be successful, they need to view competition the
same way as a commercial enterprise and leverage their social impact, while
providing products and services, not inferior in terms of quality, design, or the
customer experience in general.
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A recent study by Lin-Hi et al. (2020: 58-84) finds no difference in customer
willingness to buy and willingness to pay for sustainable products offered by SEs
and commercial enterprises, indicating it is a difficult undertaking for SEs to
compete successfully with commercial enterprises eventually. However, Yalcintas
(2019) suggests SEs possess unique characteristics that do not exist in
commercial enterprises and these resources can be exploited to develop
strategies that will ensure competitive advantage.
SEs can thus survive in a competitive environment, but will need to generate a
balanced combination of excess financial returns and excess social value,
through identifying relevant resources that represent a potential source of
sustained competitive advantage over the commercial enterprise (Walkenhorst,
Damaske and Sturm 2021). In addition, SEs have the tendency to increasingly
cooperate with each other, more so when they offer similar goods or services, but
a healthy competition among them is also essential (Arenas 2020).
COVID-19
COVID-19, a strain of the coronavirus, has had devastating economic effects on
millions of people around the world, as many governments close ‘non-essential’
businesses and institutions in an effort to limit the spread of the virus (Weaver
2020: 1). These closures have affected revenue generation of small businesses
such as social entrepreneurs, requiring a profound shift and alteration in the
fundamentals of their business models or running the risk of disappearing (British
Council 2020c: 2; Weaver 2020: 1; Kang and Seidl 2021). Furthermore, social-
distancing guidelines requiring prescribed physical distance be maintained
between everybody, taken to contain the virus once it was declared a pandemic,
have affected many micro and small businesses in the service sector, where
physical proximity often matters (Belitski et al. 2021: 2).
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SMMEs. Where the supply side is concerned, reduction in the supply of labour is
experienced by many companies as a result of movement restriction, while loss
of demand and revenue is dramatic and sudden on the demand side, due to
customer loss of income and reduced purchasing power (COMESA Monetary
Institute 2020: 2). These challenges may also cause a severe drop in social
entrepreneurs’ capacity to effectively contribute to sustainable development.
In the United States of America (USA), the number of active business owners
plummeted by 3.3 million or 22 percent over the crucial two-month window from
February to April 2020, and may remain closed permanently because of the
inability to finance ongoing expenses (Fairlie 2020: 1). However, in the UK, only
approximately one percent of SEs are expected to close because of strict
government lockdown regulations, compared to the 11 percent for businesses
(Social enterprise UK 2021: 2). This is attributed to the incredible resilience SEs
have shown throughout the pandemic and their creative entrepreneurial mind-set,
which enables them to adapt to rapidly evolving circumstances (Investec 2021).
Despite the economic effects of the pandemic on the operations of SEs, they are
still considered the shining light and real innovators for social community impact
(Oberoi, Halsall and Snowden 2021: 2; Bonnici 2020). According to Roan and
Udayakumar (2021), this moment of crisis provides an opportunity for social
entrepreneurs committed to creating positive social impact and contributing to the
sustainable development of local communities. Nonetheless, COVID-19 has
caused a major economic shock (Bartik et al. 2020: 17656), with significant effects
on many social entrepreneurs. Furthermore, it is important for this study to
understand how they are adapting and the impact COVID-19 has on their
sustainable development contribution in local communities.
Russia-Ukraine conflict
According to Kammer et al. (2022) and Naidoo-McCarthy (2022), Russia and
Ukraine are major community producers and the conflict between the two
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countries is a major blow to the global economy, as global prices have soared as
a result, especially for oil and natural gas. SA, as with many other SSA countries,
is still gradually recovering from the COVID-19 pandemic and are as such,
particularly open to the conflict consequences, more so due to increased energy
and food prices, diminished tourism, and possible challenges to access capital
markets internationally (Kammer et al. 2022). A press release by the World Bank
(2022) highlights that the conflict has given rise to increasing apprehension
regarding a definitive global slowdown, with inflation and debt surging, and an
unprecedented poverty level increase. In addition, with organisations such as SEs
moving quickly to alleviate interruptive impacts on their business to maintain the
flow of goods, funds, and information across the supply chain, the global supply
chain is being tested (Kilpatrick 2022). These could negatively affect social
entrepreneurs and their operations in SA.
In a recent parliamentary debate on the economic effects of the conflict, the South
African Deputy Minister of Finance, Mr David Masondo, admitted to the significant
risks the conflict poses to the country’s economic outlook, particularly as an
increase in prices of household stables such as maize, wheat and oil supplies,
will add to inflation and reduce disposable income of consumers (Mputing 2022).
In 2021, Russia imported R1.3 billion worth of products from SA and exported
products to SA to the value of approximately R458 million, furthermore, the
volume of trade between South African and Ukraine accounts for roughly 0.2
percent of exports and 0.05 percent of imports (Davis 2022). This shows the
economic grounds when it comes to trade between the three nations.
However, Moffat (2022) argues that despite the negative economic impact of the
conflict on African countries such as SA, it also provides an opportunity to act on
the possibility to strengthen policy formulation and implementation that will benefit
and grow SMEs, including social entrepreneurs. Except for Russia, SA is the
second biggest palladium producer in the world, with the precious metal being
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critical to automobiles and electronics, while it is also a major gold exporter;
therefore, the country could benefit from growing demand (Resnick 2022).
Furthermore, the Finance Minister, Enoch Godongwana, mentioned that while the
conflict offset other reactions, SA’s economy may be spared from the effects of
the conflict and instead, could see positive economic activity (Mahlakoana 2022).
Hence, the economic sanctions on Russia could be an unseen benefit for South
African SMEs such as social entrepreneurs, as this may lead to increased
demand for goods and services both locally and internationally (Business Tech
2022)
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entrepreneurship’s contribution to sustainable development in communities such
as townships, particularly in KZN.
Technology
Infrastructure such as technology has an important significance for any
entrepreneur, even those without technological focus or products (Mark and
Putzschel 2014). Entrepreneurs need to adjust their business practises to
technological changes and the introduction of new technologies and products in
a market, in order to be competitively relevant (Mark and Putzschel 2014).
Galvanauskaite (2014) is of the opinion technology increases transparency for
social entrepreneurship and equips people for social cause, as well as
encouraging individuals to make a social impact.
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efficiencies, as well as reduced process and product cost, and higher
differentiation of products.
According to Mihda (2017), technology serves as a driving force for society and
business, and organisations such as SEs can use the power of technology to
better understand and quantify the problem to be solved, as well as help to move
quickly from proof of concept, to proof of application. Hence, lack of proper
technological infrastructure and easy accessibility to new technology could hinder
the effective operations of social entrepreneurs to create social value.
Electricity
Power-cuts or blackouts, well-known as load shedding, have become more
frequent in SA as a result of the low supply and high demand of electricity
(Coetzee and Els 2016: 268). The main provider of electricity in SA and also the
largest, Eskom, has not met the country’s electricity demand because of
insufficient existing power station maintenance, inability to introduce new
infrastructure successfully, poor management and corruption allegations (Laher
et al. 2019: 899). Eskom performance is considered vital for the South African
economy grow, because unless generation capacity is improved, new industry
such as social entrepreneurship cannot develop and grow to overcome social
problems including unemployment and poverty (Colling 2021). In addition,
businesses are subjected to widespread disruption as a result of insufficient
energy security and predictability in SA, particularly for small businesses such as
SEs, who are negatively impacted and many are closing (Liedtke 2021). The
South African Chamber of Commerce and Industry (SACCI) estimate that load
shedding costs the country R17 million loss per hour (Mkhabela 2022). This
means load shedding is an important structural challenge that needs to be
urgently addressed.
According to Mbomvu et al. (2021: 3), South African SMMEs, including social
entrepreneurs, depend on electricity to conduct their business and load shedding
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may, as such, adversely influence their profitability, solvency, efficiency and
liquidity. Many small businesses such as SEs cannot afford to buy generators to
keep the power on during rolling blackouts, which makes them lose thousands of
rands and leaves their security systems compromised, exposing the businesses
to theft and other forms of crime (IOL 2022a). Furthermore, some of the worst and
most commonly felt effects of load shedding on SMMEs such as SEs are
highlighted as failed wireless connectivity, negatively impacted staff morale,
planning deficiencies, and being unable to trade, as well as inoperative equipment
and bad traffic (Alumo Energy 2020). Hence, adequate electricity supply is a
critical factor that could enhance social entrepreneurs’ growth, thus improving
their sustainable development contribution in SA.
Climate change
AS stated by Sulcas (2022), time is running out for humanity to save the planet
and people from catastrophic global warming. Jackson (2021) and Rosen (2021)
describe climate change as the cyclic climate changes due to atmospheric
fluctuations and interactions, between the atmosphere and a variety of factors
within the earth’s systems; geologic, chemical, biological and geographical. The
severe KZN flooding of 12 April 2022 that left hundreds dead, with houses,
businesses, roads, and bridges damaged extensively, in addition to water,
electricity, rail and telecommunication infrastructure, was attributed to climate
change by President Cyril Ramaphosa (SA Government 2022). However, many
local residents living in townships and informal settlements have blamed poor
infrastructure for the scale of the flooding, as they are the hardest hit, because
they lack resilience and options (Mwai 2022; Du Plessis 2022; Galvin and Bond
2022). Omarjee (2022) highlights the KZN floods are just the start of many more
extreme weather events to come, and the rebuilding of infrastructure needs to be
resilient to such climate risks. In other words, businesses such as SEs may
continue to experience the effects of climate change should proper infrastructures
not be in place.
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Mwai (2022) points out the weather system that triggered the floods on 11 April,
resulted in more than 300mm rainfall within a 24-hour period. In comparison to
previous flooding, the latest figures are significantly more than, for example 2019,
with 165mm recorded on 22 April and in 2017, rainfall measured 108mm on 10
October. This shows an upward trajectory in the weather system. SA cane
growers reveal that damage to cane fields and farm infrastructure as a result of
the floods, stood at R222.9 million (Daily News 2022). Furthermore, an estimated
cost for road infrastructure damage is preliminarily at R5.6 billion; this includes 1
369 infrastructure projects across the KZN province (Mbhele and Molapo 2022).
Mahlaka (2022) explains the damage caused by the floods will have long-term
repercussions on infrastructure and many small businesses such as SEs, may
not be adequately insured to recover losses, thus putting their existence and
sustainability at risk. Karaoulanis (2022: 1) asserts the impact of climate change
on small businesses, including SEs, are multidimensional and could negatively
affect supply change, production, and resource acquisition, while it can also cause
infrastructural damages.
Mavuso (2022) argues the crisis should trigger the conversation of how the
government is preparing for climate change as extreme weather system are
becoming a reality. Naidoo (2022) is of the opinion that investing in smart early-
warning systems is an urgent way for government to adapt to this changing
environment, as it will ensure rapid disaster risk analysis and ensure quick
communication with decision makers and communities. Hence, social
entrepreneurs identifying ways to adapt to the extreme weather system and
climate change may be crucial, if they are to contribute to sustainable
development in KZN townships.
Internet connectivity
The internet has, over the years, transformed the way small businesses such as
SEs operate, communicate with employees and interact with customers
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(Columbia Telecommunication Corporation 2010: 1). The internet is fast, efficient
and filled with resources that can help small businesses, including SEs, to build
or develop an online presence that will offer prestige to the business, improve
brand visibility, and increase the confidence of potential customers in the business
offer (Apăvăloaie 2014: 956; Barhatov, Campa and Pletnev 2018: 555). As the
globe moves towards a digital economy, small businesses such as SEs require
fast and stable internet connectivity to enable them to remain connected, even
while they are on the go (West 2012). In other words, adequate internet
connectivity to create social values effectively and efficiently, is crucial for social
entrepreneurs in order that these may contribute to sustainable development.
Queen (2021) argues that slow and unreliable internet connectivity can cost small
businesses such as SEs, money, time and reputation, and can also impact
everything from employee productivity to customer service, to the ability to
develop new business and reach new customers. According to Mzekandaba
(2021), the average national broadband speed in SA has improved from 14.04
Mbps in 2020 to 19.94 Mbps in 2021, and the country has improved from 97th, to
rank 90th in the world, indicating significant improvement. However, more needs
to be done, as telecommunication investment in the country decreased by six
percent in 2020 (Briggs 2021).
Mkansi (2021: 2) highlights that SMEs in Africa constitute only two percent of
enterprises in e-commerce, attributed to the direct costs from internet
connectivity, access to telecommunication, and network facilities. As at 2021, 36
percent of South Africans remain unconnected to the internet and major mobile
network providers offer a per gigabyte average cost at R38.93, placing SA 136th
worldwide, where data affordability is concerned, while the cheapest data cost
average in the world is 22 times less that SA (Briggs 2021). In addition to the issue
of affordability, there is also the problem of lack of digital skill and literacy, and the
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lack of content in local languages (Richard 2019). These factors may significantly
limit social entrepreneur’s value creation.
According to Islam (2016), key internal factors that could influence the activities
of social entrepreneurs include uncertainty and risk, funding and resources, and
management efficiency. In addition, Sitharam and Hoque (2016: 278) identify
internal environmental factors such as “management competency and skills,
financial knowledge, business management training, and technological
capabilities” to have a significant influence on any business enterprise. In a study
conducted in Latvia by Dobele (2011: 101-107), internal factors are described as
the opportunities and threats that exist within a SE the owner/manager has to
compete with.
These internal factors include access to finances, staffing problem and personal
issues. One of the internal challenges faced by SEs is their inability to compete
with traditional businesses, with regard to level of salary offered, however, SEs
provide meaningful jobs and great experience (Dobele 2011: 101-107). This
makes it crucial to comprehend which internal factors impact SEs and how they
can be addressed to enable effective social value creation that will contribute to
sustainable development.
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In a study conducted by Amini, Arasti and Bagheri (2018), managerial
competence is revealed as one of those general entrepreneurial competencies all
managers require to ensure the effectiveness and efficiency of the enterprise,
including SEs. In addition, these managerial competencies are referred to as the
knowledge, skills and abilities relating to management knowledge that will help
the owner/manager to realise organisational objectives (Amini et al. 2018).
Consequently, it is important for owners/managers of SEs to have management
skills and competencies to run their enterprises effectively and efficiently,
including those operating in KZN townships.
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of people, because lack of any of these functions may lead to the SE not achieving
its full potential.
Rattner (2014) highlights the need for social entrepreneurs to have a deep
understanding of the value ICT can contribute to their social mission, especially
when offered in context, with appropriate training and the intent of empowering
the user. Furthermore, technical skills can empower social entrepreneurship
initiatives through democratising access to information, creating business value,
and enabling new capacities (Rattner 2014). According to Galvanauskaite (2014),
having the appropriate technical skills will help social entrepreneurs fill the gap
neglected by other sectors and contribute positively to their impact on economic
and social conditions, as well as breaking several barriers and enabling people in
communities to escape from the vicious cycle of ongoing social problems.
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entrepreneurial capacity of individuals to develop new ventures, which Waghid
and Oliver (2017) assert could have positive economic implications for society.
As Roslan et al. (2019) explain, entrepreneurial education and training can help
equip individuals with all the necessary knowledge, skills, and personal well-
being, and develop their abilities to explore and identify new opportunities, as well
as create innovative solutions to address social problems in society. However,
entrepreneurs operating in the townships, including social entrepreneurs, are
usually faced with challenges that differ from well-developed urban areas. Hence,
it is suggested such entrepreneurs need to have education and training
programmes specific to their context (Lekhanya 2017).
Social environment factors are considered top of the list of factors affecting social
entrepreneurship education and training and makes it important for individuals to
be informed of these social environment factors that could affect their success
and development (Sarikaya and Coskun 2015: 888-894). However, Sarikaya and
Coskun (2015: 888-894) mention that regardless of these factors, social
entrepreneurship education and training will significantly increase the level of
social awareness, and the sensitivity to problems in the environment, create
innovative solutions to the problems, and provide support in the ability to provide
an opinion to the solutions created.
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Marketing strategy comprises a bundle of decisions that identify the specific
marketing action and involves the planning and executing of a targeted strategy
to ensure goods and services reach customers, as well as satisfy their needs
(Rasmussen 2012). According to the International Management Institute (2019),
for a SE to achieve its objective of social value creation and desired social impact,
it needs to clarify its vision, mission and values, analyse potential users and
competitors, elaborate the market determinants, and manage effective a
distribution system, as well as promotion and communication. Moreover, because
most SEs operate in resource constrained environments and are projected to be
competing for resources with commercial enterprises, it becomes necessary to
embrace some innovative entrepreneurial approaches to their marketing, in order
to create social value and contribute to sustainable development (Satar, Siraj and
Chesti 2016: 16-24).
The emphasis of SEs existing within a double bottom line of social and financial
returns requires they continually make difficult decisions regarding the goods and
services to offer and which market segment to pursue (Boschee 2006). Hence,
SEs cannot shy away from developing marketing strategies and it will be
delusional for them to believe the purpose of their business and the good-will
around their mission will market themselves (Punia 2013). In other words, not
having the necessary marketing skills and strategies will affect SEs social impact,
sustainability and the capacity to scale (Punia 2013). Furthermore, in recent
years, there is an increasing call for SEs to start exploring digital marketing as a
key part of their business strategy; not having an online presence could mean the
enterprise does not exist (Ricard 2019).
The use of various social media platforms to market products and services, build
awareness and gain recognition, has become a relatively new practice for
businesses (Urban and Maphathe 2021: 52; van Scheers 2016: 640). The
evolution of social media has made it easy to use technically, cost effective and
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accessible to a diverse customer base, opening opportunities for SMEs such as
social enterprises, that may not have access to resources, both financial and
technical, to undertake conventional marketing programmes (dos Santos and
Duffett 2021: 2; Tlapana and Dike 2020: 1). Oji, Iwu and Haydam (2017: 2)
highlight that in SA, lack of proper marketing strategies and skills contribute to
business failures on an ongoing basis; the use of social media integrated
marketing systems could allow for a two-way communication pattern, which builds
customers communication as well as loyalty over a broader range of products and
services. Bierman (2021) mentions that not using social media to effectively
market your business meant missing opportunities within a significant segment of
an engaged population, because 40 percent of the South African population are
active social media users. It is therefore imperative for social entrepreneurs to
embrace the use of social media in marketing their products or services.
3.8 CONCLUSION
This chapter provided insight into the factors affecting social entrepreneurship
contribution to sustainable development. The chapter amongst other elements
reviewed literature on important characteristics, the influence of social networking,
society’s perception, resources, social impact measurement, as well as the
internal/external environment that could affect social entrepreneurship
contribution to sustainable development.
The next chapter deals with the research methodology employed in this study.
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CHAPTER FOUR
RESEARCH METHODOLOGY
4.1 INTRODUCTION
The preceding chapter discussed and analysed literature on critical factors
affecting the social entrepreneurship contribution to sustainable development.
The purpose of this chapter is to discuss and provide an overview of the
approaches and techniques used to conduct the research. Research is a search
for knowledge and an art of scientific investigation for pertinent information on a
specific topic/area (Kabir 2016). Patel and Patel (2019: 48) describe methodology
as a “systematic, theoretical analysis of the methods [and principles] applied to a
field of study”. The purpose and function of research methodology are to address
the research questions (Williams 2007: 65). Therefore, this chapter will explain
and discuss the design of the research and the method, in addition to the study
population, data collection instruments, and various data analysis types
employed, validity and reliability, as well as ethical consideration.
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(2016: 68) claim a research design ensures any potential threat to the validity of
the scientific research conclusion is minimised. De Vaus (2001: 9) adds that
research design entails obtaining evidence relevant for answering a research
question, testing a theory, evaluating a programme or describing some
phenomenon accurately. This makes it important that the researcher ensures data
collection, organising and analysing techniques, as well as interpretation of results
and subsequent findings, are consistent with the research questions and meet
relevant norms and standards for validity and reliability (Asenahabi 2019: 77).
For this research study, the research design was adopted because it facilitates
efficient collection of relevant data and the technique for their analyses, which
addresses the research questions and ensures reliability of the results (Kothari
2004: 32). According to Maxwell (2012: 4), research questions are the hub that
holds all other components in a design together and should, as such, inform and
be sensitive to these components.
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It is for this reasons that the positivist research approach was used in this study
because it helps the researcher to objectively understand the host/research
townships’ ontology and epistemology, while also analysing the factors affecting
social entrepreneurship contribution to sustainable development. This approach
is different from the interpretive school of thought (Antwi and Hamza, 2015), which
prefer to understand the world as it is from subjective experiences of individuals,
rely on a subjective relationship between the researcher and subjects, and do not
predefine dependent and independent variables.
A quantitative research method was used for this study, considered appropriate
because of its fundamental ability to effectively examine the relationship among
variables, while the interpretation of research findings need not be seen as mere
coincidence (Daniel 2016: 94). A questionnaire was used to measure these
variables, which were statistically analysed to determine the factors affecting the
sustainable development contribution of social entrepreneurship. To explore a
sample size of 90 social entrepreneurs in KZN townships, this method was also
considered appropriate, deemed necessary to establish valid findings; a
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qualitative method would not have been practically adequate. In addition, a
qualitative research method would not have been appropriate for this study,
because of its inability to adequately test relationships between particular study
variables and conduct statistical tests to prove the study hypotheses. Moreover,
using a different approach would have been time-consuming, with high financial
implications, and not feasible to target the study sample size.
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social entrepreneurs in KZN townships to be innovative and creative in order to
contribute to sustainable development (Stochemer 2019: 18). A quantitative
research method, as with any other approach, requires the collection of data, that
must then be analysed and interpreted, with conclusions then drawn to the study
(Albers 2017: ix). Based on its scientific objectivity and highly systematic
procedures (Creswell 2014), this approach was identified and considered
appropriate for this study, as it proved effective in answering the study objectives.
This approach was also used to test the literature review identified variables that
formed the base of the questionnaire.
4.4 POPULATION
The population is described as the total individuals, groups, organisations or
entities a researcher “seeks to understand and to which the study results may be
generalised or transferred; it is the [main] group the research is concerned with”
(Casteel and Bridier 2021: 343). The group of individuals or participants referred
to as the target population, concerns all that take part who have the specific
attributes a researcher wants to understand (Asiamah, Mensah and Oteng-Abayie
2017: 1612; Banerjee and Chaudhury 2010: 61). Accordingly, as claimed by Davis
(2021), the identification of the population is critical to the research study, because
it provides clearly explained directions on the scope of the research, its objectives
and data types, while also defining characteristic participant variables of those
individuals who meet the study requirements. providing the total population or
universe range to determine the size of the sample. The study population
consisted of social entrepreneurs operating within the selected townships in the
province of KZN.
4.5 SAMPLING
According to Taherdoost (2016: 20), sampling begins by clearly defining the target
population, as researchers neither have time or resources to analyse the entire
population. It is a selection process whereby a population of interest subset is
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selected to be representative of the entire population (Tuner 2020: 8), expecting
the sample data and information to, as much as possible, represent the entire
population, with the least possible error, distortion of data and without substitution
or incompleteness (Elfil and Negida 2017: 1; Adwok 2015: 95; Bhardwaj 2019:
157). Sampling is defined by Hammersley and Mairs (2004: 4) as a practical
means to collect data, where the study population is frequently huge, thus the
larger the population, the greater the risk of the sample drawn from that population
being unrepresentative. However, a ‘sampling frame’ is explained to comprise all
units the sample is drawn from and should preferably be identical to the population
or at least closely resemble it (Stochemer 2019: 57). A questionable sampling or
sampling technique can significantly affect the data integrity, which drives the
credibility of the findings (Asiamah et al. 2017: 1607).
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by those with a particular shared research interest characteristic as per the target
population. This process is generally initiated by the researcher “with a small
number of initial contacts that fit the research criteria and are invited to become
participants within the research” (Parker, Scott and Geddes 2019: 4). The sample
group in this sampling technique grows much as a rolling snowball does, as one
participant introduces the researcher to another participant who fits the research
criteria, who in turn introduces the researcher to a third participant, and so on
(Cohen and Arieli 2011: 424). In building the sample, sufficient data are gathered
to be of practical use in the study (Sharma 2017: 752). Access to potential
informants by the researcher was facilitated through snowball sampling with other
informants across the three KZN townships selected for this study providing the
needed contact information (Noy 2008: 330). This sampling method was
necessary, since gaining access to subjects that have the target characteristics is
challenging (Naderifar, Goli and Ghaljaie 2017: 2).
The researcher began by establishing the inclusion and exclusion criteria for
participant selection. Inclusion criteria: the social entrepreneur has been operating
for the past one year, the social entrepreneur is only pursuing a social issue that
is not for personal gain, the social entrepreneur is registered with the Department
of Social Development or intents to soon comply, and the social entrepreneur is
involved in an income generating venture. Exclusion criteria include: social
entrepreneurs operating for less than a year, social entrepreneurs who only
pursue social issues for personal gain, and social entrepreneurs not involved in
any income generating venture. This was closely done with the procedure of
snowball sampling. These criteria were developed and formulated with the
literature review as basis. This analysis enabled the researcher to precisely
determine the participants to be considered for the sample size.
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accessible and willing to participate by answering the questionnaire (Stratton
2021: 373; Etikan, Musa and Alkassim 2016: 2; Acharya, et al. 2013: 332; Farrokhi
and Mahmoudi-Hamidabad, 2012: 785). A thorough coverage of representation
of social entrepreneurs within the KZN townships being studied was achieved
through the distribution of a questionnaire. This ensures limited bias or
misrepresentation of any of the townships being studied (Speak et al. 2018: 2333).
In addition, it is important to state a probability sampling technique would not be
adequate for this kind of study, since many social entrepreneurs in these
townships are not legally registered and, as such, they do not appear in the list of
registered social entrepreneurs.
It is held by Cappa, Petrowski and Njelesani (2015: 319) that the data collection
method chosen is crucial, as are the data collecting procedures, which should be
clearly defined, since this is, to some extent, dictated by the context of the country
where the research is undertaken. As this study deals with understanding the
prevailing conditions and identifying those factors that affect social
entrepreneurship as a sustainable development tool in the KZN townships, a
descriptive approach was adopted (Nassaji 2015: 129). Sileyew (2019) refers to
the two primary data collection instruments types in quantitative research, namely:
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questionnaires and interviews. Hence, based on the research approach adopted
for this study, a questionnaire was employed for data collection from participants.
4.6.1 Questionnaire
According to Acharya (2010: 2), the design of a questionnaire is important and
crucial to the research, where a questionnaire that is inappropriate will mislead
not only the research, but also academics and policymaking; as such, an
adequate and appropriate set of sequentially ordered questions, is required. As
described by Bhandari (2021b), a questionnaire is a list of questions or statements
used to collect respondent data relating to their attitudes, experiences or points of
view, and is typically used in market research, while also featuring in social and
health sciences.
Boparai, Singh and Kathuria (2018: 210) indicate the design of a questionnaire as
daunting, with data from the questionnaire clearly having to deal with the research
questions, and the study aims and objectives; otherwise, wrong interpretation or
bias may result, the power of the study decreased, and not being able to
generalise the results of the study. Roopa and Rani (2012: 277) warn that, failing
to construct a questionnaire carefully and properly, with suitable questions,
correct question ordering and scaling, or good format can affect reliability of
information significantly. The researcher needs to, therefore, design a
questionnaire that is valid, reliable, clear, and interesting, as well as succinct
(Jenn 2006: 32).
The questionnaire is the heart of any survey research project (Price, Jhangiani
and Chiang 2015a). It is quite an expedient means to collect data from a large
number of individuals that are useful, comparable and potentially produce results
that are valid and meaningful, with clear and concise questions consistently asked
from all participants (Mathers, Fox and Hunn 2009: 19). Thus, the researcher was
able to access a large sample using a questionnaire for this study, while it also
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helped in bias reduction, which may be difficult to achieve with interviews (Phellas,
Bloch and Seale 2011: 182).
The term “questionnaire” is used in this study to signify a device for securing
answers to questions or statements by using a form that the respondents
complete, in order to gather information or data that are statistically analysed
(Kabir 2016: 208). Therefore, the questionnaire is used in correlation to the
adopted research method and because of its intrinsic ability to reach many
respondents, which can generate standardised, quantifiable and empirical data
(Quad 2016). Primary data comprise the original, unique data and may be
gathered through various means, such as observations, surveys, questionnaires,
and case studies or interviews, as per researcher requirements (Ajayi 2017: 2).
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social entrepreneurship to sustainable development. Therefore, both internal and
external environmental factors were considered and covered.
The questionnaire comprised two sections, A and B. The first section sought
demographical information and was designed to understand the nature of the
population and enable the researcher to make statistical inferences that answer
the hypothesis and study objectives. For instance, the section enabled the
researcher to identify whether the respondents understand whether level of
education influences an individual’s participation in social entrepreneurship.
Section B focused fully on the study variables. This section was designed based
on the reviewed literature underpinning the study and in line with aims and
objectives, as well as the research questions. The fundamental purpose of this
section was to understand and critically evaluate the factors affecting and
hindering social entrepreneurship use as a sustainable development tool in KZN
townships. Furthermore, this section enabled the researcher to identify patterns
that provide a better understanding of the dynamic challenges affecting social
entrepreneurs operating in the townships, while also developing practical ways to
address these challenges. This section was presented in Likert-scale form. The
sample of the questionnaire is provided below (See Appendix 1).
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visits and reminders in order to obtain feedback. This development affected the
time-frame initially allocated for distributing and administering the questionnaire
to change from two to five months. This extension was due to the unavailability of
the respondents as a result of their busy schedules and their initial reluctance to
participate.
The researcher piloted the questionnaire under the same conditions planned for
the formal administration (Sincero 2012). This provides the researcher the
opportunity to observe whether respondents experience difficulty in completing
the research instrument, such as problems with item wordings and instrument
format, or with the question order and time it takes to complete (Fraser et al.2018:
263). The pilot study could potentially reveal areas of improvements, allowing the
researcher a better understanding of how to continue to ensure the success of
the study (Crossman 2019).
A total of nine social entrepreneurs across the three selected KZN townships were
involved in the pilot study. These social entrepreneurs were approached across
the three KZN townships, based on snowball characteristics. Prior to the collection
of the primary data, research experts such as, experienced researchers and
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statisticians within the field were consulted to improve the quality of the research
instrument. The pilot study provided the researcher with insightful and
constructive feedback and all suggestions made were incorporated in the
questionnaire. It was suggested that “the statements within the questionnaire
need to be short, specific and straight to the point” and also “some of the
statements seems repetitive”. However, the general flow of the questionnaire and
its simplicity were highly commended. This process enhanced the quality of the
questionnaire, ensuring it was not unnecessarily long and time-consuming to
complete, while it also minimised any potential ambiguity in the statements. The
duration for the pilot study was set for two weeks and it went smoothly as planned.
It is also important to state that the nine pilot study respondents were not included
with the 90 respondents who participated in the main study.
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4.9.1 Frequency analysis
Frequency analysis was used in this study to determine the associated number of
times each respondent identified with a particular statement and to help the
researcher categorise the data so it can be interpreted in a visual way (Cherry
2021). Furthermore, the frequency analysis provided the researcher with a fair
idea of the number of cases that were part of various categories set in the
research questionnaire, in addition to supplying the snapshots required for a
detailed analysis of the study (Shreffler and Huecker 2022)
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by this test, considering the sample size and number of variables in the
relationship (Hayes 2021b).
In this study, the researcher used the Chi-square (X²) test to determine the
goodness of fit and to test the relationships between the variables being studied
(Onchiri 2013: 1235). The objectives of the study guided the variables that were
tested. Thus, conducting the inferential statistics and Chi-square test were to
determine whether there were relationships between all the variables that are
significant, which were then used in determining and proving the research
hypothesis. Furthermore, due to the fact that the sample data consisted of
numerical scores, it was much easier to use a Chi-square test to determine
different relationships between the tested variables.
4.9.4 Correlations
Correlation statistical analysis is employed in assessing the degree of association
that exists between the two measured quantitative variables in individual group
members (Aggarwal and Ranganathan 2016: 187; Nickolas 2021). The strength
of the relationship between two quantifiable variables is represented by +5 and -
5 (Yang et al. 2019: 4605). Schober, Boer and Schwarte (2018: 1763) explain that
correlation analysis does not only provide the researcher with the information
about the strength but also the direction of a relationship between variables. For
the purpose of this study, correlation analysis was used to determine and identify
the critical factors that impact the contribution made by social entrepreneurship to
sustainable township development in KZN.
Factor analysis is used to summarise and regroup data “into a limited set of
clusters based on shared variance so that relationships and patterns can be easily
interpreted and understood” (Yong and Pearce 2013: 79). A researcher can use
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statistical procedures to simplify a set of complex variables or items, typically
through factor analysis, allowing enhanced comprehension of the relationships
items in a scale have and those of “the underlying factors the items may have in
common” (Tavakol and Wetzel 2020: 245). For instance, as part of a national
service delivery survey, four separate questions related to load shedding may be
asked of participants that address issues at the three levels of government - local,
state and national. On its own, each question is not enough to measure
perceptions concerning load shedding, however, they may offer a better measure
the perception, together. Factor analysis aids in understanding whether the same
thing was adequately measured by the four measures. Should this be the case,
combining them will create a new variable, a factor score variable containing a
score for each factor, per respondent. The researcher is also able to identify which
factors have more weight than others.
According to Tavakol and Wetzel (2020: 245) there are two important types of
factor analysis: Exploratory Factor Analysis (EFA) and Confirmatory Factor
Analysis (CFA). EFA is usually used to uncover complex patterns by exploring the
dataset and testing predictions, whereas CFA is used to confirm hypotheses and
develop path analysis diagrams to represent variables and factors (Yong and
Pearce 2013: 79). For this study, the EFA helps the researcher to build evidence
based on internal structure by retaining only those items with appropriately high
factor loading, as the factor loading determines the correlation between the item
and the factor (Tavakol and Wetzel, 2020: 245). In addition, the CFA is used to
create the proposed model to show the theoretical and hypothesized relationships
between the social entrepreneurships and the factors affecting its contribution to
sustainable development.
4.10 RELIABILITY
There are two central concepts crucial to developing useful research
measurement instruments, namely, reliability and validity – to demonstrate the
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rigour and trustworthiness of the research (Bannigan and Watson 2009: 3237;
Roberts and Priest 2006: 41). Reliability refers to the error-free degree of
measurement and the measuring device or procedure “consistently assigns the
same score to individuals or objects with equal value” (Lakshmi and Mohideen
2013: 2753; Golafshani 2003: 599). LoBiondo-Wood and Haber (2014: 298) and
Price, Jhangiani, and Chiang (2015b) describe a reliable measure as one that can
produce the same results when the behaviour is measured again by the same
scale – it measures the proportion of consistency to inconsistency. Consistency
is a key element when reliability is measured. Reliability allows a researcher to
make interpretations and predict with confidence that given repeated
administrations with the same or similar group of people, the results should be
consistent, assuming the accessed conditions have not changed (Salmond 2008:
28).
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4.11 VALIDITY
Validity is described as the degree of accurate measurement through a method
measuring what it planned to measure (Middleton 2019). Considered very
important in quantitative research, validity is used to check whether the results,
when measuring a property in a particular set of objects, are in keeping with those
objects and their ensuing behaviour (Hammersley 2008: 43). Sürücü and
Maslakçı (2020: 2696) add that validity depends on the meaningful and
appropriate interpretation of the data obtained from the measuring instrument as
a result of the analysis. Therefore, a data collection instrument is believed to be
valid when it accurately measures what it claims to measure (Da Costa and
Schneider 2016: 182). Morgan and Hodge (2015: 295) advise that for validity of
an instrument to be established, the researcher must carefully and thoughtfully
develop studies likely to yield trustworthy information about the relevant
population, construct(s), and relationship(s) of interest, or, differently stated, the
applicable research question.
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respect and dignity, justice and beneficence, alongside that of non-maleficence”
(seeking to do no harm). This means the researcher needs to adopt ethical
principles that help “to protect individuals, communities and environments, and
offer the potential to increase the sum of good in the world” (Israel and Hay 2006:
2).
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4.12.1 Anonymity and Confidentiality
Anonymity, confidentiality, and protecting participant rights and welfare were
guaranteed in a letter supplying information and obtaining consent (Appendix 2).
As advised by Kaiser (2009: 1636), to maintain confidentiality in a study,
researchers must ensure no participant identifying information in the data set, for
example, respondents’ names or addresses. Thus, participant names were not
required and, as such, they all remained anonymous throughout the study. The
assurance of anonymity and confidentiality given to the participants enabled them
to freely engage with the study and provide honest and truthful information
regarding factors affecting the contribution to sustainable development made by
social entrepreneurs.
4.13 CONCLUSION
This chapter discussed the methodology adopted during the study as well as the
reliability and validity of data. Research steps, instruments used in data gathering,
sampling method and data analysis were also explained. The chapter further
provided the ethical considerations for the study.
The subsequent chapter will provide and in-depth presentation, analysis, and
summation of the research results.
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CHAPTER FIVE
DATA ANALYSIS, INTERPRETATION AND DISCUSSION
5.1 INTRODUCTION
The research design adopted for this study was presented and discussed in the
previous chapter. In this chapter, the main purpose is to provide a thorough
analysis report of the collected quantitative primary data, interpreted and
discussed in relation to the research objectives. Therefore, the results from the
questionnaire findings are presented and discussed in this chapter. As the
previous chapter highlighted, distribution of the questionnaire as the primary tool
used to collect data, was to 90 participants. Analyses of the data collected from
respondents was achieved using SPSS version 27.0. To illustrate the results of
the quantitative data collected, descriptive statistics is applied, using graphs,
cross-tabulation, and other figures. “Inferential techniques include the use of Chi-
square test values; which are interpreted using p-values” (Howell 2011; Onchiri
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2013: 1238). The literature review formed a strong foundation for this study,
providing a wide overview of those factors and challenges that affect social
entrepreneurship as a sustainable development tool in the KZN province
townships. Thus, the literature aided in the development of the objectives and
research questionnaire.
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Chi-square, with a reliability test also conducted, based on the questionnaire
sections.
N of Cronbach's
items Alpha
B8 The characteristics of social entrepreneurs in the KZN townships 5 0.759
Society's perception as it relates of social entrepreneurs in the KZN
B9 4 0.886
townships
Social networking as it relates to social entrepreneurs in the KZN
B10 4 0.808
townships
Social impact measurement as it relates to social entrepreneurs in the
B11 4 0.895
KZN townships
Financial resources as it relates to social entrepreneurs in the KZN
B12 4 0.726
townships
The environmental factor (internal and external) that affects social
B13 14 0.906
entrepreneurs' contribution to sustainable development
The reliability test was conducted on all statements in the questionnaire, which
was designed and divided into research themes in accordance with the research
aim. Table 5.1 above shows the reliability scores for all sections exceeded the
acceptable Cronbach’s alpha value for a newly constructed construct. This
therefore indicates a degree of acceptance, with consistent scoring for this section
of the research, in its entirety.
148
KZN on seven main critical variables, namely; characteristics of social
entrepreneurs, society’s perception of social entrepreneurs, social networking,
social impact measurement, financial resources, internal and external
environment. Prior to the matrix tables, a summarised table is presented that
shows the Kaiser-Meyer-Olkin (KMO) Measure and Bartlett’s Test results. “The
requirement is that the KMO Measure of Sampling Adequacy should be greater
than 0.500 and Bartlett’s Test of Sphericity less than 0.05” (Levine 2016; Traynor
and Andrews 2015: 479). When these conditions are satisfied, a factor analysis
procedure is allowed.
Factor analysis is only done for the Likert-scaled items. Selected components,
illustrated in the rotated component matrix below, are divided into finer
components.
149
As shown in table 5.2, all conditions have been satisfied to allow factor analysis.
This means a greater than 0.500 KMO Measure of Sampling Adequacy and a less
than 0.05 significance value for Bartlett’s Test of Sphericity (Levine 2016). The
results show “sampling, and all the variables under the [category] themes, are
adequate and statistically significant in measuring the same thing” (Traynor and
Andrews 2015: 479). The test, furthermore, indicates a 0.826 KMO measure of
sampling adequacy indicating, for example, there is a very strong significant
impact (0.000) by social networking on social entrepreneurship’s contribution to
sustainable development in the KZN townships.
150
Others 1 1.1 1.1 100.0
Total 90 100.0 100.0
Highest qualification
40 34.4
35 31
30
25 19 21.1 17 18.9
20
15 10 11.1 10 11.1
10
5 2 2.2 1 1.1
0
Frequency Percentage
The highest qualifications of the majority of the respondents (31 or 34.4 percent)
are shown to be a diploma/certificate, followed by 19 (21.1 percent) with degrees.
In addition, 17 (18.9 percent) of the respondents have honours, with 10 (11.1
percent) having masters, while 10 (11.1 percent) of the respondents have a matric
certificate, with two (2.2 percent) having PhD and one (1.1 percent) did not have
any form of educational qualification. Interestingly, these figures illustrate that a
significant number of social entrepreneurs are educated (Table 5.3 and figure
5.1).
151
Cumulative
Frequency Percent Valid Percent Percent
Valid 18 - 25 16 17.8 17.8 17.8
26 - 32 33 36.7 36.7 54.4
33 - 39 25 27.8 27.8 82.2
40 - 49 9 10.0 10.0 92.2
50+ 7 7.8 7.8 100.0
Total 90 100.0 100.0
Age group
40 36.7
35 33
30 27.8
25
25
20 17.8
16
15
9 10
10 7 7.8
5
0
18 - 25 26 - 32 33 - 39 40 - 49 50+
Frequency Percentage
It is indicated in table 5.4 and figure 5.2 that most respondents (33 or 36.7 percent)
were aged between 26-32 years, with 25 (27.8 percent) respondents between 33-
39 years of age. The ages of 16 (17.8 percent) respondents were between 18-25
years, with nine (10.0 percent) between 40-49, while seven (7.8 percent percent)
were 50 years and above. Remarkably, this figure shows a significant number of
young social entrepreneurs operating within the social sector.
5.6.3 Gender
152
Please indicate your gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 39 43.3 43.3 43.3
Female 51 56.7 56.7 100.0
Total 90 100.0 100.0
Gender
60 56.7
51
50 43.3
39
40
30
20
10
0
Male Female
Frequency Percentage
As shown in table 5.5 and figure 5.3, the majority of the respondents 51 (56.7
percent) were females, while 39 (43.3 percent) were males. This indicates that
many SEs are owned or managed by females. This is supported by many studies
(for example, Dickel and Eckardt, 2020: 196-218; Marín et al. 2019: 1-16), women
tend to show more desire for social entrepreneurial intention and are motivated
by being self-employed in order to escape weak economic systems in their
countries.
5.6.4 Location of SE
153
Cumulative
Frequency Percent Valid Percent Percent
Valid Inanda 30 33.3 33.3 33.3
Ntuzuma 30 33.3 33.3 66.7
KwaMashu 30 33.3 33.3 100.0
Total 90 100.0 100.0
32
31
30 30 30
30
29
28
Inanda Ntuzuma KwaMashu
Frequency Percentage
Table 5-6 and figure 5-3 illustrate where the SEs surveyed where situated, which
as previously stated, has the focus area of this study as basis, with 30 (33.3
percent) of the respondents from Inanda, 30 (33.3percent) from Ntuzuma, and 30
(33.3percent) from KwaMashu.
154
Valid Non-Governmental 16 17.8 17.8 17.8
Organisation (NGO)
Not-for-Profit Organisation 26 28.9 28.9 46.7
(NPO)
Hybrid 13 14.4 14.4 61.1
Profit oriented 33 36.7 36.7 97.8
Others 2 2.2 2.2 100.0
Total 90 100.0 100.0
20 17.8
16
14.4
15 13
10
5 2 2.2
0
Non-Governmental Not-for-Profit Hybrid Profit oriented Others
Organisation (NGO) Organisation (NPO)
Frequency Percentage
The majority of the respondents 33 (36.7 percent) are shown to operate a profit
oriented social enterprise, followed by 26 (28.9 percent) who were NPOs. 16 (17.8
percent) of the respondents operated as NGOs, while 13 (14.4 percent) operated
as hybrid, and two (2.2 percent) are in the ‘others’ category (Table 5.7 and figure
5.4).
155
Table 5.8: Type of ownership
Please indicate type of ownership
Cumulative
Frequency Percent Valid Percent Percent
Valid Partnership 16 17.8 17.8 17.8
Manager and sole owner 42 46.7 46.7 64.4
Manager and jointly owned 19 21.1 21.1 85.6
Others 13 14.4 14.4 100.0
Total 90 100.0 100.0
Type of ownership
50 46.7
45 42
40
35
30
25 21.1
17.8 19
20 16 14.4
13
15
10
5
0
Partnership Manager and sole owner Manager and jointly Others
owned
Frequency Percentage
Table 5.8 and figure 5.6 show that 42 (46.7 percent) of the respondents were
managers and sole owners of the SEs, while 19 (21.1 percent) were managers
and the SE was jointly owned. A total of 16 (17.8 percent) of the enterprises were
owned in the form of partnership and 13 (14.4 percent) are in the ‘others’ category,
indicating corporations. This indicates that many social entrepreneurs believe in
managing and being sole owners of their SE, as it enables them to have control
of the business and there is no need to obtain consensus before making
decisions.
156
5.6.7 Years of operation
Years of operation
45
38.9
40
35
35 31.1
30 28
25
20 15.6
14
15
9 10.0
10
4 4.4
5
0
1 - 2 years 3 - 5 years 6 - 8 years 9 - 11 years > 11 years
Frequency Percentage
It is illustrated in Table 5.9 and figure 5.7 that the majority social entrepreneurs
targeted (35 or 38.9 percent) had been operating for three to five years, while 28
(31.1 percent) had been operating for six to eight years with 14 (15.6 percent)
being in their easiest stage of one to two years. Nine (10.0 percent) had been
operating for more than 11 years, while only four (4.4 percent) had been operating
157
for nine to 11 years. Evidently, from the findings above, many of the social
entrepreneurs have identified their target market and have sufficiently developed
strategies that are sustainable. However as indicated by many studies (for
example Worku 2013: 67; Choto, Tengeh and Iwu 2014: 94; Msomi and Olarewaju
2021: 103) many SMEs in SA, including SEs, do not survive for more than five
years because of numerous factors that affect their operations.
The primary aim in this section, is the dissection and understanding of various
critical factors affecting the contribution made by social entrepreneurship to
sustainable development. These factors were categorised into six themes, with
theme one consisting of five statements; theme two comprises four statements;
theme three consists of four statements; theme four is made up of four
statements; theme five consists of four statements; and theme six comprises 14
statements.
158
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 13 14.4 14.4 14.4
Agree 31 34.4 34.4 48.9
Neutral 24 26.7 26.7 75.6
Disagree 15 16.7 16.7 92.2
Strongly disagree 7 7.8 7.8 100.0
Total 90 100.0 100.0
Frequency Percentage
As stated by Ip et al. (2022: 1), highlighting and recognition of the values of social
entrepreneurs is important, as well as educating the society about social
entrepreneurs to attract more young people to engage in social entrepreneurship.
Young people are usually bombarded with information regarding social and
environmental issues, making them more likely to develop a passion for providing
solutions to many of the challenges threatening their future (Bouronikos 2021).
Furthermore, young people have the attitudinal and behavioral qualities that
situate them in the best position to assist in addressing issues regarding
development that impact their fellow youths and other community members with
less access to opportunities (United Nations 2020b). Engaging young people in
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social entrepreneurship leads to a positive identity development that will impact
the founder, employees, volunteers and recipients of SE offered products and
services (Abdullah et al. 2022: 189). Hence, young people involvement in social
entrepreneurship is considered an important characteristic that could enhance
change in communities.
As table 5.10 and figure 5.8 show, many respondents (31 or 34.4 percent) agreed
social entrepreneurs’ activities are influenced by age while 13 (14.4 percent)
strongly agreed with the statement. Neutral was indicated by 24 (26.7 percent) of
the respondents, while 15 (16.7 percent) disagreed and strong disagreement was
indicated by only seven (7.8 percent) of the respondents. A Chi-square test was
conducted, to establish whether the observed findings were those expected. The
result shows (χ2 = 20.000; df = 4; P =0.000) for this variable, this shows that age
influences social entrepreneurs’ activities in the KZN townships. These findings
are in line with the study conducted by GIBS (2018), which found that young
people are more influenced by social entrepreneurship in SA.
160
Social entrepreneurs' activities are influenced by
unemployment
40
31.1 30.0
28 27
30
20 16 17.8 16 17.8
10
3 3.3
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
The Quarterly Labour Force Survey (QLFS) presented by Stats SA (2022), for the
first quarter of 2022, showed an unemployment rate for those aged 15-24 of 63.9
percent and for those aged 25-34 years at 42.1 percent, while the official national
rate is currently at 34.5 percent. Consequently, social entrepreneurship is a
necessary alternative for many who are able and willing to work, but cannot find
any employment (Raudsaar and Kaseorg 2013: 120).
As reflected in table 5.11 and figure 5.9, many respondents (28 or 31.1 percent)
were in agreement and 16 (17.8 percent) were in strong agreement that
unemployment is one of the characteristics that makes most people to start a
social enterprise. A total of 16 (17.8 percent) of the respondents remained neutral,
with 27 (30.0 percent) that disagreed, while three (3.3 percent) indicated strong
disagreement with the statement. To determine the closeness of the fit between
this variable and the expected findings, a Chi-square test was conducted showing
results that (χ2 = 23.000; df = 4; P =0.000), showing the hypothesis is valid.
Furthermore, according to the findings, for the development of society and gainful
employment of as many people as possible to be reached, social
161
entrepreneurship provides economic coping, possibility to utilise one’s skills and
talent to feel involved in society (Raudsaar and Kaseorg 2013:124).
30
20 17 18.9 15 16.7
12 13.3
7 7.8
10
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
According to Bernardino, Freitas Santos and Cadima Ribeiro (2018: 61), both
male and female social entrepreneurs have personalities characterised by high
levels of openness to experience, conscientiousness, extraversion and emotional
stability. A study conducted by Nicolas and Rubio (2016: 61) reveals that the
162
gender gap in the case of SE is considerably smaller than in the commercial
enterprise. Hence, the difference in gender is not an important characteristic when
considering the number of people that should be involved in creating social value
that will contribute to sustainable development.
The findings in table 5.12 and figure 5.10 also confirm that respondents believed
this, as 39 (43.3 percent) disagreed and seven (7.8 percent) strongly disagreed
that social entrepreneurs’ activities are influenced by gender. Of the respondents,
15 (16.7 percent) were neutral while 17 (18.9 percent) agreed and 12 (13.3
percent) strongly agreed with the statement. A Chi-square test determined the
goodness of fit of this variable, where results illustrate (χ2 = 33.778; df = 4; P
=0.000).
163
Social entrepreneurs' activities involves more females than
males
40 34.4
31
30 24.4 24.4
22 22
20
9 10.0
10 6 6.7
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
As shown in table 5.13 and figure 5.11, some respondents (31 or 34.4 percent)
disagreed and six (6.7 percent) strongly disagreed that there are more women
social entrepreneurs than men social entrepreneurs. Whereas 22 (24.4 percent)
respondents remained neutral, a further 22 (24.4 percent) agreed, while nine
(10.0 percent) strongly agreed with the statement. To determine the significance
of this variable a Chi-square test was conducted and once again a good fit was
established. The results indicate that (χ2 = 23.667; df = 4; P =0.000), which means
it contradicts the findings highlighted by GIBS (2018:8) of the likelihood that males
are more likely to be social entrepreneurs in SA. However, this finding supports
GEM (2016) that found less of a gender gap in SSA, with some areas reflecting
its non-existence for operational social entrepreneurship. Hence, a crucial
characteristic that will enable social entrepreneurs to address social problems
collectively and effectively in communities should comprise a more gender
balanced approach to funding, support and practice (Carty 2020).
164
Table 5.14: Social entrepreneurs’ activities are influenced by level of
education
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 22 24.4 24.4 24.4
Agree 34 37.8 37.8 62.2
Neutral 12 13.3 13.3 75.6
Disagree 14 15.6 15.6 91.1
Strongly disagree 8 8.9 8.9 100.0
Total 90 100.0 100.0
Frequency Percentage
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capacities for effectively and practically engaging in a social business venture
(Shahid and Alarifi 2021).
In view of this, the findings illustrate by table 5.14 and figure 5.12, are a clear
indication that respondents agreed education level is an important characteristic
that will enable effective social value creation by social entrepreneurs and making
a sustainable development contribution. Agreement was indicated by the largest
group of respondents (34 or 37.8 percent) with 22 (24.4 percent) that indicated
strong agreement with the statement. In addition, while 12 (13.3 percent)
respondents remained neutral, 14 (15.6 percent) disagreed and eight (8.9
percent) indicated strong disagreement with the statement. To determine whether
social entrepreneurs’ activities are influenced by level of education, a Chi-square
test was conducted. As indicated by the results, (χ2 = 23.556; df = 4; P =0.000) for
this variable, which shows level of education is an important characteristic for
social entrepreneurship. These findings similarly corroborate GEM (2016)
research findings that highlighted level of education tends to be more significant
in operational social entrepreneurs in SSA than in commercial social
entrepreneurs.
166
a. 1 components extracted.
These components are a further statistical analysis of the figures (figure 5.8 to
5.12) as mentioned above. A component test was performed on important
characteristics that influence social entrepreneurship in KZN townships. One
category of component was responded to, where the statement whether gender
has an influence on who becomes a social entrepreneur shows a strong positive
significance of 0.866. Respondents who indicated no gender gaps for social
entrepreneurs in the KZN townships, a figure of 0.819 is reflected. With regard to
the variable regarding most people starting a SE because they could not find
employment, a positive significance 0.651 is shown by the component test, which
indicates the unemployment situation in SA requires an entrepreneurship
alternative be explored. The other variables, on whether the age group and the
level of education are significant characteristics that influence social
entrepreneurship in the KZN townships showed, respectively, 0.625 and 0.603.
The tested variables above, therefore, indicated a strong significance on the
characteristics that influence social entrepreneurship and enhance their
contribution to sustainable development in KZN townships. This also means that
the high component measured in the aforementioned table further supports the
reliability of the research instrument.
167
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 25 27.8 27.8 27.8
Agree 31 34.4 34.4 62.2
Neutral 17 18.9 18.9 81.1
Disagree 11 12.2 12.2 93.3
Strongly disagree 6 6.7 6.7 100.0
Total 90 100.0 100.0
20 17 18.9
11 12.2
10 6 6.7
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
168
entrepreneurship, as such affecting their motivational intention (Ashrafi et al.
(2020: 88).
In view of this, the findings in table 5.16 and figure 5.13 indicate clear agreement
by respondents that social entrepreneurs’ activities are affected by society not
comprehending the social entrepreneur’s role. The largest group of respondents
(31 or 34.4 percent) agreed or strongly agreed (25 or 28.7 percent) with this. A
further 17 (18.9 percent) respondents remained neutral regarding the statement,
with only 11 (12.2 percent) that disagreed and six (6.7 percent) that indicated they
strongly disagreed. Thus, most (63,1 percent) respondents perceived society’s
lack of understanding of the role of social entrepreneurs as a determinant of their
activities. A Chi-square test, which was conducted to determine whether society’s
lack of understanding the social entrepreneur’s role affects their activities,
supported these findings. Result indicated that for this variable (χ2 = 28.889; df =
4; P = 0.000), showing society’s understanding of the social entrepreneur’s role is
an important component to these entrepreneurs contributing to sustainable
development in the KZN townships. These findings align with those by GEM
(2019), which concluded that social entrepreneurship supports or constraints are
influenced by the attitudes, perceptions and intentions set within a context.
169
Strongly disagree 12 13.3 13.3 100.0
Total 90 100.0 100.0
Frequency Percentage
As depicted in table 5.17 and 5.14 many (58.8 percent) of the respondents either
agreed (32 or 35.6 percent) or strongly agreed (20 or 22.2 percent that inadequate
information about social entrepreneurs’ activities influences society’s perception
of them. A Chi-square test supported these findings, with the test conducted to
determine whether society’s inadequate information of their activities affects
social entrepreneurs’ activities. The results show that for this variable (χ2 = 16.000;
df = 4; P =0.003), which indicates social entrepreneurs’ activities are affected by
society’s inadequate information about their activities.
There were some respondents 14 (15.6 percent) who were neutral, while 12 (13.3
percent) disagreed with the statement and 12 (13.3 percent) indicated strong
disagreement. The literature endorsed these findings, as Ngatse-Ipangui and
Dassah (2019) show quite conclusively that social entrepreneurs can improve and
170
generate society’s support when local people are well informed of their
programmes, through means such as door-to-door distribution of flyers, social
media or through events. İlter (2017: 117) mentions that SEs are considered very
important for the formation of social transformation, but cannot be successful by
underestimating public relations and adequately informing the target audience of
their activities. However, Littlewood and Holt (2018) argue that having a varied
legislation will significantly help in assisting social entrepreneurs to provide
adequate information about their activities in SA. Therefore, providing adequate
information of social entrepreneurs’ activities can be seen as a significant means
of enhancing society’s perception and generating support to improve their
activities.
171
Social entrepreneurs' activities are influenced by society's
poor awareness of their contributions
35 33.3
30
30 25.6
25 23
20
13 14.4 13 14.4
15 11 12.2
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
Ignoring this, according to Andriyansah and Zahra (2017; 461), creates a setback,
as it discourages stakeholders in society to educate and socialise social
entrepreneurship to the younger generation. As a result of the newness of the
field in SA, less is known about social entrepreneurs and their activities and how
172
they can positively impact communities (Dzomonda 2021: 5). Hence, more
awareness of social entrepreneurs’ contributions in the communities where they
operate is needed to change society’s perception about them and generate more
support.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly Agree 14 15.6 15.6 15.6
Agree 33 36.7 36.7 52.2
Neutral 16 17.8 17.8 70.0
Disagree 15 16.7 16.7 86.7
Strongly disagree 12 13.3 13.3 100.0
Total 90 100.0 100.0
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
173
As table 5.19 and figure 5.16 illustrate, many respondents (33 or 36.7 percent and
14 or 15.6 percent) agreed or strongly agreed, respectively, that social
entrepreneurs’ activities are affected by inadequate involvement of the society in
their activities. These findings are supported by a Chi-square test that was
conducted to establish whether social entrepreneurs’ activities are affected by
inadequate involvement of the society in their activities. The results for this
variable show that (χ2 = 16.111; df = 4; P =0.003), illustrating this understanding
as valid. This means respondents viewed involving members of society in their
activities as very important in order for society members to have a better
understanding of social entrepreneurs and what exactly their operations entail.
This is also crucial in generating positive society perceptions concerning social
entrepreneurs that will help them contribute to sustainable development (Ngatse-
Ipangui and Dassah 2019). However, 16 (17.8 percent) respondents remained
neutral to the statement, whilst disagreement was indicated by 15 (16.7 percent)
with the statement and 12 (13.3 percent) respondents strongly disagreed.
174
Extraction Method: Principal Component Analysis.
a. 1 components extracted.
175
5.6.17 Social entrepreneurs’ activities are affected by lack of partnership
with other social entrepreneurs
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 24 26.7 26.7 26.7
Agree 36 40.0 40.0 66.7
Neutral 11 12.2 12.2 78.9
Disagree 13 14.4 14.4 93.3
Strongly disagree 6 6.7 6.7 100.0
Total 90 100.0 100.0
30 24 26.7
20 11 12.2 13 14.4
10 6 6.7
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
The majority of respondents (36 or 40.0 percent) are shown (Table 5.21 and figure
5.17) to have agreed and 24 (26.7 percent) respondents further strongly agreed
social entrepreneurs’ activities are affected by lack of partnership with other social
entrepreneurs. A small number of the respondents were neutral (11 or 12.2
percent), while 13 (14.4 percent) indicated disagreement with the statement and
176
six (6.7 percent) indicated strong disagreement. a Chi-square test supported
these findings and was conducted to ascertain whether lack of partnership with
other social entrepreneurs affects social entrepreneurs’ activities and their
contribution to sustainable development in the KZN townships. The results for this
variable indicate that (χ2 = 32.111; df = 4; P =0.000), signalling the partnership
lack with other social entrepreneurs was seen to affect social entrepreneurs’
activities.
Frequency Percentage
177
Figure 5.18: Social entrepreneurs' activities are affected by lack of support
and partnership from corporate organisations
Most respondents (36 or 40.0 percent) are shown to have agreed with a further
32 (35.6 percent) that strongly agreed social entrepreneurs’ activities are affected
by lack of support and partnership from corporate organisations. Fewer
respondents were neutral (12 or 13.3 percent), while only seven (7.8 percent)
disagreed and three (3.3 percent) indicated strong disagreement with the
statement (Table 5.22 and figure 5.18). To ascertain whether lack of support and
partnership from corporate organisations affect social entrepreneurs’ activities
and their sustainable development contribution, a Chi-square test was conducted.
The results for this variable indicate that (χ2 = 50.111; df = 4; P =0.000), signalling
a significant impact by corporate organisations’ lack of support and partnership
on social entrepreneurs’ activities, thus, their contribution to sustainable
development in the KZN townships is affected.
178
Social entrepreneurs' activities are affected by lack of
support and partnership from government
40 36.7 35.6
33 32
30
20 13 14.4
7 7.8 5.6
10 5
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
Many respondents (32 or 35.6 percent) indicated they agreed (Table 5.23 and
figure 5.19), with 33 (36.7 percent) that indicated they strongly agreed social
entrepreneurs’ activities are affected by lack of support and partnership from
government. Fewer of the respondents (13 or 14.4 percent) were neutral while
only seven (7.8 percent) disagreed and five (5.6 percent) respondents indicated
strong disagreement with the statement. A Chi-square test, which was conducted
to determine whether lack of government support and partnership affects social
entrepreneurs’ activities. The results for this variable show that (χ2 = 40.889; df =
4; P =0.000), signalling social entrepreneurs’ activities and their contribution to
sustainable development in the KZN townships are significantly impacted by the
lack of support and partnership from government. This is an indication that
government support is needed for social entrepreneurs to create social values
effectively and efficiently, to enhance their sustainable development contribution.
This finding supports Prasetyo, Setyadharma and Kistanti (2021: 2569), who
argue that the role played by “social entrepreneurship collaboration” and
networking with public institutions is “a new model of innovation that optimizes
existing resources to improve productivity, entrepreneurial business
179
opportunities, and security [of] sustainable regional development”. Furthermore,
Gigauri and Damenia (2020) suggest start-up funds can be provided by
government in support of social entrepreneurial initiatives that could also aid in
acquiring media attention to publicise social initiatives.
Table 5.24: Social entrepreneurs' activities are affected by the lack of use of
platforms for social networking
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 20 22.2 22.2 22.2
Agree 39 43.3 43.3 65.6
Neutral 12 13.3 13.3 78.9
Disagree 12 13.3 13.3 92.2
Strongly disagree 7 7.8 7.8 100.0
Total 90 100.0 100.0
Frequency Percentage
Figure 5.20: Social entrepreneurs' activities are affected by the lack of use
of platforms for social networking
180
As table 5.24 and figure 5.20 illustrate, many respondents (39 or 43.3 percent)
agreed and 20 (22.2 percent) further strongly agreed that social entrepreneurs’
activities are affected by the lack of use of platforms for social networking. In
addition, 12 (13.3 percent) respondents remained neutral, with 12 (13.3 percent)
that disagreed with the statement, while seven (7.8 percent) strongly disagreed.
A Chi-square test was conducted in order to determine whether lack of the use of
platforms for social networking impacts social entrepreneurs’ activities and their
contribution to sustainable development in the KZN townships was further
conducted. The results for this variable indicate that (χ2 = 35.444; df = 4; P
=0.000), signalling the lack of platforms use for social networking affects social
entrepreneurs’ activities.
This finding supports the claim of Abi-Aad (2015) that for better results, and long-
lasting initiatives, social entrepreneurs can take advantage of the audience, reach
and potential virality of the vast array of social networking platforms. Furthermore,
Scuotto, Del Giudice and Carayannis (2017) suggest the use of social networking
platforms can help entrepreneurs to engage external actors actively, including
customers, public institutions, and other businesses, to attain and take up external
knowledge, to then produce innovation.
Component Matrixa
Component
B10 1
Social entrepreneurs' activities are affected by lack of partnership with .701
other social entrepreneurs
181
Social entrepreneurs' activities are affected by lack of support and .835
partnership from corporate organisations
Social entrepreneurs' activities are affected by lack of support and .824
partnership from government
Social entrepreneurs' activities are affected by the lack of use of .831
platforms for social networking
Extraction Method: Principal Component Analysis.
1 component extracted.
These components are drawn from additional statistical analysis of the figures
discussed above (figure 5.17 to 5-.0). One category of component was indicated
to by the respondents, showing a strong positive significance of 0.835 on the
statement whether social entrepreneurs’ activities are affected by lack of support
and partnership from corporate organisations. On the variable on whether social
entrepreneurs’ activities are affected by lack of support and partnership from
government, a positive significance of 0.824 was shown, while the other variables
on whether social entrepreneurs’ activities are affected by the lack of use of
platforms for social networking and social entrepreneurs’ activities affected by
lack of partnerships with other social entrepreneurs showed a figure of 0.831 and
0.701 respectively. This means all variables tested revealed a strong significance
to social networking, indicating that the underlying construct loaded perfectly and
reliably measured the underlying construct.
182
Table 5.26: Lack of understanding of social impact measurement affects
social entrepreneur's activities
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 29 32.2 32.2 32.2
Agree 29 32.2 32.2 64.4
Neutral 15 16.7 16.7 81.1
Disagree 11 12.2 12.2 93.3
Strongly disagree 6 6.7 6.7 100.0
Total 90 100.0 100.0
Frequency Percentage
It is illustrated by table 5.26 and figure 5.21 that the majority respondents (29 or
32.2 percent) agreed and 29 (32.2 percent) further strongly agreed that lack of
understanding of social impact measurement affects social entrepreneur’s
activities. Further to this, 15 (16.7 percent) respondents remained neutral, with 11
(12.2 percent) respondents that disagreed and six (6.7 percent) that indicated
they strongly disagreed with the statement. These findings were supported by a
Chi-square test that was performed to ascertain whether social entrepreneur’s
183
activities are affected by lack of understanding of social impact measurement. The
results for this variable indicate that (χ2 = 24.667; df = 4; P =0.000), which shows
a lack of social impact measurement understanding affects social entrepreneur’s
activities. According to Buckland and Hehenberger (2021), social impact
measurement offers improved comprehension of the aggregate impact by SEs
that engage in similar social issues or in similar geographical areas to achieve
greater results.
Frequency Percentage
184
Figure 5.22: Social entrepreneurs’ activities are affected by lack of applying
appropriate social impact measurement methods/techniques
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 27 30.0 30.0 30.0
185
Agree 32 35.6 35.6 65.6
Neutral 11 12.2 12.2 77.8
Disagree 11 12.2 12.2 90.0
Strongly disagree 9 10.0 10.0 100.0
Total 90 100.0 100.0
Frequency Percentage
Table 5.28 and figure 5.23 illustrate that most respondents (32 or 35.6 percent)
agreed and 27 (30.0 percent) further strongly agreed that lack of social impact
measurement affects social entrepreneurs’ identifying other opportunities to solve
social problems. A further 11 (12.2 percent) respondents remained neutral, with
11 (12.2 percent) respondents that disagreed with the statement and nine (10.0
percent) that indicated strong disagreement. A Chi-square test was conducted to
ascertain whether social entrepreneurs’ identifying other opportunities to solve
social problems is affected by lack of social impact measurement was further
conducted. The results for this variable indicate that (χ2 = 25.333; df = 4; P
=0.000), which signals lack of social impact measurement impacts social
186
entrepreneurs from identifying other opportunities to solve social problems in the
KZN townships.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 25 27.8 27.8 27.8
Agree 33 36.7 36.7 64.4
Neutral 13 14.4 14.4 78.9
Disagree 10 11.1 11.1 90.0
Strongly disagree 9 10.0 10.0 100.0
Total 90 100.0 100.0
20
13 14.4
10 11.1 9 10.0
10
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
187
According to So and Capanyola (2016), due diligence is required from investors
to access the potential social return prior to committing to an investment, and
measuring the social impact after the programme concludes, to assess portfolio
performance in order to know whether to reinvest. Many SE funders are beginning
to experience “budgetary constraints and need to allocate their resources more
carefully than in the past”, thus making social impact measurement an important
requirement to access funding from impact investors (European commission
2015: 4).
This supports the findings, as a majority of the respondents (33 or 36.7 percent)
indicated agreement and 25 (27.8 percent) further strongly agreed the lack of
social impact measurement affects the willingness of investors to invest in social
entrepreneurs’ activities. A smaller number of 13 (14.4 percent) respondents
indicated neutral, while 10 (11.1 percent) disagreed, with nine (10.0 percent)
respondents that strongly disagreed with the statement. A Chi-square test,
conducted to determine the impact on investors’ willingness to invest in social
entrepreneurs’ activities affects their lack of social impact measurement. For this
variable, the results indicate that (χ2 = 24.667; df = 4; P =0.000), which shows lack
of social impact measurement influences investor willingness to invest in social
entrepreneurs’ activities in the KZN townships.
188
Social entrepreneurs’ activities are affected by lack of applying appropriate social .914
impact measurement methods/techniques
Lack of social impact measurement affects social entrepreneurs’ from identifying other .904
opportunities to solve social problems
Lack of social impact measurement affects the willingness of investors to invest in .808
social entrepreneurs' activities
Extraction Method: Principal Component Analysis.
a. 1 components extracted.
These components are drawn from additional statistical analysis of the figures
discussed above (figure 5.21 to 5.24). One category of component was indicated
to by the respondents, showing a very strong positive significance of 0.914 on the
statement whether lack of applying appropriate social impact measurement
methods/techniques affects social entrepreneurs’ activities. On the variable
whether lack of social impact measurement affects social entrepreneurs’ from
identifying other opportunities to solve social problems, a strong positive
significance of 0.904 is indicated, while the other variables on lack of
understanding of social impact measurement affects social entrepreneurs’
activities and lack of social impact measurement affects the willingness of
investors to invest in social entrepreneurs' activities, showed a figure of 0.865 and
0.808, respectively. This means all variables tested revealed a very strong
significance as to social impact measurement and loaded perfectly along a single
component.
189
Table 5.31: Lack of access to financial resources affects social
entrepreneurs' activities
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 44 48.9 48.9 48.9
Agree 25 27.8 27.8 76.7
Neutral 10 11.1 11.1 87.8
Disagree 6 6.7 6.7 94.4
Strongly disagree 5 5.6 5.6 100.0
Total 90 100.0 100.0
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
According to the ILO (2016: 13), access to finance in any country is crucial for
social entrepreneurs’ growth, including SA. Increased access to finance can help
social entrepreneurs resolve some of their challenges and ensure they realise
their full potential (European Commission 2019: 1). However, one of the major
challenges of SEs in SA remains access to finance (GIBS 2018).
As reflected in table 5.31 and figure 5.25, a significant number of respondents (44
or 48.9 percent) indicated strong agreement, with a further 25 (27.8 percent)
190
respondents that agreed lack of financial resource access affects social
entrepreneurs’ activities. Ten (11.1 percent) respondents remained neutral, with
six (6.7 percent) that disagreed and five (5.6 percent) that disagreed strongly with
the statement. To ascertain whether social entrepreneurs’ activities are influenced
by non-existent or insufficient access to financial resources, a Chi-square test was
conducted. The results for this variable show that (χ2 = 61.222; df = 4; P =0.000),
this shows social entrepreneurs’ activities are affected by lack of access to
financial resources.
5.6.26 Many social entrepreneurs depend on family and friends for finance
to survive
Table 5.32: Many social entrepreneurs depend on family and friends for
finance in order to survive
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 19 21.1 21.1 21.1
Agree 32 35.6 35.6 56.7
Neutral 13 14.4 14.4 71.1
Disagree 13 14.4 14.4 85.6
Strongly disagree 13 14.4 14.4 100.0
Total 90 100.0 100.0
191
Many social entrepreneurs depend on family and
friends for finance in order to survive
40 35.6
32
30
19 21.2
20 13 14.4 13 14.4 13 14.4
10
0
Strongly agree Agree Neutral Disagree Strongly
disagree
Frequency Percentage
Figure 5.26: Many social entrepreneurs depend on family and friends for
finance in order to survive
As table 5.32 and figure 5.26 illustrate, many respondents (32 or 35.6 percent)
agreed and 19 (21.2 percent) further strongly agreed that many social
entrepreneurs depend on family and friends for finance to survive. In addition, 13
(14.4 percent) respondents remained neutral, with 13 (14.4 percent) that
disagreed with the statement and another 13 (14.4 percent) that strongly
disagreed. A Chi-square test, performed to ascertain whether many social
entrepreneurs depend on family and friends for finance to survive, reflect results
for this variable showing that (χ2 = 15.111; df = 4; P =0.004). According to Arregle
et al. (2013: 313), family feature strongly in relation to entrepreneurial resources,
but both positive and negative outcome can arise. Uzialko (2022) mentions that
many small business owners, including social entrepreneurs, rely on friends and
family for social, financial and sometimes, even operational support.
192
Table 5.33: Lengthy processes required by financial institutions to obtain
financial resources affects social entrepreneurs’ activities
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 25 27.8 27.8 27.8
Agree 38 42.2 42.2 70.0
Neutral 14 15.6 15.6 85.6
Disagree 8 8.9 8.9 94.4
Strongly disagree 5 5.6 5.6 100.0
Total 90 100.0 100.0
Frequency Percentage
Table 5.33 and figure 5.27 show most respondents (38 or 42.2 percent) indicated
their agreement, while 25 (27.8 percent) respondents further indicated strong
agreement that lengthy processes required by financial institutions to obtain
financial resources affects social entrepreneurs’ activities. A further 14 (15.6
percent) respondents remained neutral, with eight (8.9 percent) respondents that
disagreed with the statement and five (5.6 percent) that disagreed strongly. A Chi-
square test was performed to determine this variable, with a good fit once again
established, where the results indicate that (χ2 = 40.778; df = 4; P =0.000).
193
According to Aktas and Barbetta (2022: 1), social entrepreneurs increase their
production significantly, along with “fixed assets, properties and employment”
when they are able to access financial resources and are not constrained by
access to credit processes.
Frequency Percentage
194
As table 5.34 and figure 5.28 illustrate, the majority of respondents (37 or 41.1
percent) agreed and 27 (30.0 percent) further strongly agreed that social
entrepreneurs’ activities are affected by lack of government’s financial assistance.
Furthermore, 13 (14.4 percent) respondents remained neutral, with seven (7.8
percent) respondents that disagreed and six (6.7 percent) that indicated strong
disagreement. To determine whether lack of government financial assistance
affects social entrepreneurs’ activities, a Chi-square test was conducted. The
results for this variable indicate that (χ2 = 40.667; df = 4; P =0.000), which shows
social entrepreneurs’ activities and their contribution to sustainable development
are impacted by insufficient financial assistance from the government.
195
component category, with a positive significance of 0.794 illustrative of the
statement on whether social entrepreneurs’ activities are influenced by
inadequate financial assistance from the government. On the statement whether
lengthy processes required by financial institutions to obtain financial resources
affects social entrepreneurs’ activities a score of 0.779 was shown. A positive
significance of 0.736 is reflected with regard to the statement on whether lack of
financial resources affects social entrepreneurs’ activities. The statement to
indicate whether many social enterprises depend on family and friends for finance
in order to survive, reflects a positive significance of 0.668. The above variable
thus showed a very strong relationship, indicating financial resources are
necessary to enable adequate social value creation by social entrepreneurs and
allow them to contribute to sustainable KZN townships development. This implies
that the statement that constituted the sections measured what they set out to
measure.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 28 31.1 31.1 31.1
Agree 38 42.2 42.2 73.3
196
Neutral 11 12.2 12.2 85.6
Disagree 8 8.9 8.9 94.4
Strongly disagree 5 5.6 5.6 100.0
Total 90 100.0 100.0
Frequency Percentage
As shown in table 5.36 and figure 5.29, a majority of respondents (38 or 42.2
percent) indicated agreement and 28 (31.1 percent) respondents further strongly
agreed that lack of management competence and skills affects social
entrepreneurs’ activities. In addition, 11 (12.2 percent) of the respondents were
neutral, whilst only eight (8.9 percent) disagreed with the statement and five (5.6
percent) indicated strong disagreement. These findings are supported by studies
conducted by Ncube and Chimucheka (2019) and Iskandar and Kaltum (2022),
which assert that SMME performance, including SEs, is influenced by
management competence.
197
that (χ2 = 45.444; df = 4; P =0.000), which indicates social entrepreneurs’ activities
are affected by lack of management competence and skills.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 25 27.8 27.8 27.8
Agree 38 42.2 42.2 70.0
Neutral 10 11.1 11.1 81.1
Disagree 10 11.1 11.1 92.2
Strongly disagree 7 7.8 7.8 100.0
Total 90 100.0 100.0
Frequency Percentage
Table 5.37 and figure 5.30 show a majority of the respondents (38 or 42.2 percent)
were in agreement, while a further 25 (27.8 percent) respondents strongly agreed
lack of technical skills affects social entrepreneurs’ activities. These findings are
supported by a Chi-square test that was performed to ascertain whether social
entrepreneurs’ activities are affected by lack of technical skills. For this variable,
198
the results indicate that (χ2 = 38.778; df = 4; P =0.000), signalling social
entrepreneurs’ activities are affected by lack of technical skills. A further 10 (11.1
percent) respondents remained neutral, with 10 (11.1 percent) respondents that
disagreed with the statement and seven (7.8 percent) that strongly disagreed.
According to Javani et al. (2017), technical skills provide the requisite knowledge,
skills and practical competencies that enable an entrepreneur, including social
entrepreneurs, to perform their duties effectively. In SA, one of the major
challenges affecting the performance of SEs is still a lack of technical skills,
inclusive of entrepreneurs (Mbaile 2020).
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 26 28.9 28.9 28.9
Agree 37 41.1 41.1 70.0
Neutral 10 11.1 11.1 81.1
Disagree 12 13.3 13.3 94.4
Strongly agree 5 5.6 5.6 100.0
Total 90 100.0 100.0
199
Lack of education and training development affects social
entrepreneurs' activities
50 41.1
37
40
30 26 28.9
20 12 13.3
10 11.1
10 5 5.6
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
As table 5.38 and figure 5.31 show, most respondents (37 or 41.1 percent)
indicated their agreement, with 26 (28.9 percent) that further strongly agreed the
lack of education and training development affects social entrepreneurs’ activities.
A Chi-square test was conducted to ascertain whether social entrepreneurs’
activities are affected by lack of education and training development, with the
results supporting the findings. For this variable, the results indicate that (χ2 =
38.556; df = 4; P =0.000), which show the lack of education and training
development affects social entrepreneurs’ activities and their contribution to
sustainable development. In addition, 10 (11.1 percent) of the respondents were
neutral, whilst 12 (13.3 percent) of the respondents disagreed with the statement
and five (5.6 percent) indicated strong disagreement.
According to Waghid and Oliver (2017), education and training development helps
to build and strengthen the entrepreneurial capacity of individuals to develop new
ventures that will have positive implications for society. Littlewood and Holt (2018)
concur and further find that education and training development is an important
mechanism that will enable social entrepreneurs in SA to contribute effectively to
200
finding solutions to some broader social problems, for instance unemployment
and crime.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 21 23.3 23.3 23.3
Agree 40 44.4 44.4 67.8
Neutral 9 10.0 10.0 77.8
Disagree 12 13.3 13.3 91.1
Strongly disagree 8 8.9 8.9 100.0
Total 90 100.0 100.0
Frequency Percentage
201
finds one of the major factors in SA is the lack of adequate marketing strategies
and skills, which still contribute to business failure on an ongoing basis.
Table 5.39 and figure 5.32 depict agreement by the majority of respondents (40
or 44.4 percent), while a further 21 (23.3 percent) strongly agreed that lack of
marketing skills affects social entrepreneurs’ activities. A smaller number of the
respondents (nine or 10.0 percent) were neutral to the statement, whilst only 12
(13.3 percent) disagreed and eight (8.9 percent) strongly disagreed with the
statement. These findings clearly show that marketing skills are critical in ensuring
the effective operations of social entrepreneurs. A Chi-square test was performed
to ascertain whether social entrepreneurs’ activities are affected by lack of
marketing skills, which supported these findings. The results for this variable show
that (χ2 = 39.444; df = 4; P =0.000), signalling inadequate marketing skills affect
social entrepreneurs’ activities.
202
a. 1 components extracted.
An additional statistical analysis was performed for the figures mentioned above
(figure 5.29 to 5.32). A component test was, furthermore, performed on the section
related to internal environmental factors that impact the contribution of social
entrepreneurs to sustainable development. The respondents indicated to only one
category of components, where all components tested reflected a positive
significance. On the statement on whether social entrepreneurs’ activities are
affected by lack of technical skills, a very strong positive significance of 0.911 is
shown. This means respondents felt the lack of technical skills affects social
entrepreneurs’ activities. Another variable, on whether social entrepreneurs’
activities are affected by lack of education and training development, showed a
strong positive significance of 0.899. With regards to social entrepreneurs’
activities being affected by lack of management competence and skills, indicating
a strong positive significance of 0.874. Regarding whether lack of marketing skills
affects social entrepreneurs’ activities, this statement reflected a strong positive
significance of 0.791. It is clear, based on the component test that all the variables
tested had a positive significance and the underlying constructs loaded perfectly
and reliably measured in the aforementioned table further supports the reliability
of the research instrument.
203
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 29 32.2 32.2 32.2
Agree 38 42.2 42.2 74.4
Neutral 7 7.8 7.8 82.2
Disagree 10 11.1 11.1 93.3
Strongly disagree 6 6.7 6.7 100.0
Total 90 100.0 100.0
Frequency Percentage
Table 5.41 and figure 5.33 show that a majority respondents (38 or 42.2 percent)
agreed and 29 (32.2 percent) further strongly agreed that lack of adequate legal
framework for social entrepreneurs is affecting their activities. A small number of
the respondents (seven or 7.8 percent) were neutral to the statement, whilst 10
(11.1 percent) stated their disagreement with the statement and six (6.7 percent)
indicated strong disagreement. A Chi-square test supported these findings and
was conducted to ascertain whether social entrepreneurs’ activities are affected
by lack of an adequate legal framework. The results for this variable indicate that
(χ2 = 47.222; df = 4; P =0.000), signalling the lack of an adequate legal framework
204
affects social entrepreneurs’ activities. These findings are supported by a study
conducted by Dzomonda (2021: 1-17) that finds lack of adequate policy and
regulation to be a major problem for social entrepreneurs in SA. Moreover, a study
by GIBS (2018) reveals an appropriate legal framework does not exist for social
entrepreneurship in SA to guide its operations and activities. Therefore, for
effective and efficient social value creation by social entrepreneurs and
successfully play their role in the country, appropriate policy and regulations need
to be in place.
Table 5.42: Adequate government rules and regulations will improve social
entrepreneurs’ activities
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 30 33.3 33.3 33.3
Agree 38 42.2 42.2 75.6
Neutral 9 10.0 10.0 85.6
Disagree 7 7.8 7.8 93.3
Strongly disagree 6 6.7 6.7 100.0
Total 90 100.0 100.0
Frequency Percentage
205
Figure 5.34: Adequate government rules and regulations will improve social
entrepreneurs’ activities
As depicted in table 5.42 and figure 5.34 The majority of respondents (38 or 42.2
percent) agreed with strong agreement indicated by 30 (33.3 percent)
respondents that adequate government rules and regulations will improve social
entrepreneurs’ activities. Neutrality to the statement was indicated by a small
number of the respondents (nine or 10.0 percent), whilst seven (7.8 percent)
respondents disagreed with the statement, with six (6.7 percent) that strongly
disagreed. To ascertain whether social entrepreneurs’ activities will improve with
less government rules and regulations, a Chi-square test was conducted. For this
variable, the results show that (χ2 = 49.444; df = 4; P =0.000), which illustrates
that less rules and regulations by government will improve social entrepreneurs’
activities. According to Stephan et al. (2015: 308-331), the rules and regulations
developed by government could serve as a motivation for social entrepreneurs or
a deterrent to engage in social value creation activities.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 33 36.7 36.7 36.7
Agree 38 42.2 42.2 78.9
Neutral 7 7.8 7.8 86.7
Disagree 7 7.8 7.8 94.4
Strongly disagree 5 5.6 5.6 100.0
206
Total 90 100.0 100.0
Frequency Percentage
The majority of respondents (38 or 42.2 percent) agreed and a further 33 (36.7
percent) strongly agreed that increased government support will improve social
entrepreneurs’ activities. Seven (7.8 percent) of the respondents were neutral,
whilst seven (7.8 percent) stated their disagreement and five (5.6 percent)
indicated strong disagreement with the statement (table 5.43 and figure 5.35). To
establish whether social entrepreneurs’ activities will improve with increased
government support, a Chi-square test was conducted. The results for this
variable indicate that (χ2 = 57.556; df = 4; P =0.000), signalling increased
government support will improve social entrepreneurs’ activities.
207
5.6.36 Political instability affects social entrepreneurs’ activities
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 34 37.8 37.8 37.8
Agree 30 33.3 33.3 71.1
Neutral 11 12.2 12.2 83.3
Disagree 10 11.1 11.1 94.4
Strongly disagree 5 5.6 5.6 100.0
Total 90 100.0 100.0
20
11 12.2 10 11.1
10 5 5.6
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Perentage
According to Shumetie and Watabaji (2019: 1), “political instability has significant
negative effects” on a country’s enterprise innovativeness and special attention
needs to be given to it in order to enhance enterprises’ innovativeness. Political
instability such as “violence, civil war, strike, coup d’état and the collapse of
government can affect business and investments in a country”, as no business
prefers to operate in an unstable, which also does not draw investment (Jalloh,
Djatmika and Adi Putra 2017: 380). In SA, as mentioned by Cilliers and Aucoin
(2016: 7), “economic inequality, frequency of protests and trust in government”
208
are among the drivers of instability that could affect any business, including social
entrepreneurs.
As table 5.44 and figure 5.36 show, the majority most respondents (34 or 37.8
percent) strongly agreed and 30 (33.3 percent) further agreed that political
instability affects social entrepreneurs’ activities. Eleven (12.2 percent)
respondents remained neutral to the statement, whilst 10 (11.1 percent)
disagreed with the statement and a smaller number (five or 5.6 percent) strongly
disagreed. To determine whether social entrepreneurs’ activities are affected by
political instability, a Chi-square test was performed. For this variable, results
reveal that (χ2 = 37.889; df = 4; P =0.000), which shows that political instability
affects social entrepreneurs’ activities.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 28 31.1 31.1 31.1
Agree 28 31.1 31.1 62.2
Neutral 15 16.7 16.7 78.9
Disagree 10 11.1 11.1 90.0
Strongly disagree 9 10.0 10.0 100.0
Total 90 100.0 100.0
209
Social enterpreneurs' activities are affected by corruption
40
31.1 31.1
28 28
30
20 15 16.7
10 11.1 9 10.0
10
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
Table 5.45 and figure 5.37 show many respondents (28 or 31.1 percent) agreed
while a further 28 (31.1 percent) strongly agreed that corruption affects social
entrepreneurs’ activities. In addition, 15 (16,7 percent) respondents indicated
neutral to the statement, whilst 10 (11.1 percent) disagreed with the statement
and nine (10.0 percent) strongly disagreed. To determine whether social
entrepreneurs’ activities are affected by corruption, a Chi-square test was
conducted. The results for this variable show that (χ2 = 19.667; df = 4; P =0.001),
illustrating corruption influences social entrepreneurs’ activities.
210
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 25 27.8 27.8 27.8
Agree 35 38.9 38.9 66.7
Neutral 17 18.9 18.9 85.6
Disagree 8 8.9 8.9 94.4
Strongly disagree 5 5.6 5.6 100.0
Total 90 100.0 100.0
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
As depicted, the majority respondents (35 or 38.9 percent) were in agreement and
a further 25 (27.8 percent) respondents strongly agreed social entrepreneurs’
activities are affected by social factors. A further 17 (18.9 percent) of the
respondents were neutral, whilst eight (8.9 percent) indicated their disagreement
with the statement and five (5.6 percent) strongly disagreed (table 5.46 and figure
5.38). A Chi-square test to ascertain whether social factors affect social
entrepreneurs’ activities was conducted. For this variable, the results show that
(χ2 = 33.778; df = 4; P =0.000), which indicates social entrepreneurs’ activities are
affected by social factors.
211
5.6.39 High crime rate affects social entrepreneurs’ activities
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 30 33.3 33.3 33.3
Agree 38 42.2 42.2 75.6
Neutral 9 10.0 10.0 85.6
Disagree 7 7.8 7.8 93.3
Strongly disagree 6 6.7 6.7 100.0
Total 90 100.0 100.0
20
9 10.0 7 7.8 6.7
10 6
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
As table 5.47 and figure 5.39 show, a majority of respondents (38 or 42.2 percent)
indicated agreement, while a further 30 (33.3 percent) strongly agreed that the
high crime rate affects social entrepreneurs’ activities. Neutrality to the statement
was indicated by a small number of the respondents (nine or 10.0 percent), whilst
seven (7.8 percent) respondents disagreed with the statement and six (6.7
percent) strongly disagreed. A Chi-square test was conducted to determine
212
whether social entrepreneurs’ activities are affected by high crime rate. The
results for this variable reveal that (χ2 = 49.444; df = 4; P =0.000), showing the
high crime rate affects social entrepreneurs’ activities and their contribution to
sustainable development.
Mahofa, Sundaram and Edwards (2016: 3) find crime imposes a cost and
negatively affects expected profits of small firms such as SEs, as “they may have
to spend on security systems such as alarms, trackers on vehicles, electric
fences, or armed guards to keep their property and staff secure”. This supports
the findings of Dzomonda (2021: 5) that a high crime rate increases the cost of
doing business and retards growth and performance of social entrepreneurs in
SA.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 26 28.9 28.9 28.9
Agree 36 40.0 40.0 68.9
Neutral 14 15.6 15.6 84.4
Disagree 10 11.1 11.1 95.6
Strongly disagree 4 4.4 4.4 100.0
Total 90 100.0 100.0
213
Lack of understanding of taxation for social enterprises
affects their activities
50 40.0
40 36
30 26 28.9
20 14 15.6
10 11.1
10 4 4.4
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
Table 5.48 and figure 5.40 show the majority respondents (36 or 40.0 percent)
agreed with a further 26 (28.9 percent) that strongly agreed a lack of
understanding of taxation for social enterprises affects their activities. A total of
14 (15.6 percent) respondents remained neutral to the statement, with 10 (11.1
percent) that disagreed with the statement while four (4.4 percent) strongly
disagreed. To determine whether social entrepreneurs’ activities are impacted by
insufficient understanding of taxation, a Chi-square test was conducted. The
results for this variable show that (χ2 = 36.889; df = 4; P =0.000), signalling lack
of understanding of taxation for social enterprises affects their activities.
According to Killian and O’Regan (2018: 1), the fact that SE “combines for-profit
and social impact aim in a single entity, a tax system that anticipates a binary
world of charities and capitalism may be unable to accommodate them, and as
such becomes a constraint for their common good”. Hence, the confusion and
lack of understanding of the tax system for SEs is a critical factor limiting their
effective operation. The challenge of SEs not having a specific legal form in SA
and having to adopt any available legal structure as for-profit entities has a
significant implication in terms of taxation and the ability to benefit from different
tax incentive schemes (Ker 2014: 17)
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5.6.41 High interest rates affect social entrepreneurs’ activities
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 33 36.7 36.7 36.7
Agree 31 34.4 34.4 71.1
Neutral 12 13.3 13.3 84.4
Disagree 10 11.1 11.1 95.6
Strongly disagree 4 4.4 4.4 100.0
Total 90 100.0 100.0
Frequency Percentage
The majority respondents (33 or 36.7 percent) indicated that they strongly agreed,
with another 31 (34.4 percent) respondents that agreed high interest rates affect
social entrepreneurs’ activities (table 5.49 and figure 5.41). Further to this, 12
(13.3 percent) respondents indicated neutral to the statement, with 10 (11.1
percent) that disagreed with the statement and four (4.4 percent) that strongly
215
disagreed. To determine whether social entrepreneurs’ activities are affected by
high interest rates, a Chi-square test was conducted. For this variable, the results
show that (χ2 = 38.333; df = 4; P =0.000), indicating high interest rates affect social
entrepreneurs’ activities.
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Social entrepreneurs' activities are affected by rapid
technological changes
37.8
40 34.4 34
31
30
20 13 14.4
7 7.8 5.6
10 5
0
Strongly agree Agree Neutral Disagree Strongly
disagree
Frequency Percentage
As table 5.50 and figure 5.42 reflect, most respondents (34 or 37.8 percent)
agreed and 31 (34.4 percent) further strongly agreed that social entrepreneurs’
activities are affected by rapid technological changes. In addition, 13 (14.4
percent) of the respondents remained neutral, while seven (7.8 percent)
respondents disagreed with the statement, with five (5.6 percent) that strongly
agreed. To determine whether rapid technological changes affect social
entrepreneurs’ activities, a Chi-square test was conducted. For this variable, the
results show that (χ2 = 41.111; df = 4; P =0.000), which shows social
entrepreneurs’ activities are affected by rapid technological changes.
The new technology surge, for example “3D printing, cloud computing, digital
platform modularisation, social media, data analytics and digital” artefacts, are
some of the rapid changes in technology disrupting the ways of creating business
(Mortensen 2021: 18). According to Tendai, Nicole and Tafadzwa (2018), any
business, including social enterprises that does not adjust to the rapid
technological changes, may not survive the competition in the business
environment.
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5.6.43 Social entrepreneurs’ activities are affected by lack of government
support to technological changes
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 33 36.7 36.7 36.7
Agree 34 37.8 37.8 74.4
Neutral 10 11.1 11.1 85.6
Disagree 8 8.9 8.9 94.4
Strongly disagree 5 5.6 5.6 100.0
Total 90 100.0 100.0
20
10 11.1 8 8.9
10 5 5.6
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
As illustrated by table 5.51 and figure 5.43, many respondents (34 or 37.8 percent)
indicated they agreed, while a further 33 (36.7 percent) strongly agreed social
entrepreneurs’ activities are affected by lack of government support to
218
technological changes. Furthermore, 10 (11.1 percent) respondents indicated
neutral, whilst eight (8.9 percent) disagreed with the statement and five (5.6
percent) respondents strongly disagreed. To ascertain whether lack of
government support to technological changes affects social entrepreneurs’
activities a Chi-square test was conducted. The results for this variable reveal that
(χ2 = 45.222; df = 4; P =0.000), which shows social entrepreneurs’ activities are
affected by lack of government support to technological changes.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 30 33.3 33.3 33.3
Agree 35 38.9 38.9 72.2
Neutral 10 11.1 11.1 83.3
Disagree 11 12.2 12.2 95.6
Strongly disagree 4 4.4 4.4 100.0
Total 90 100.0 100.0
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Social entrepreneurs' activities are influenced by
competition from other businesses
50
38.9
40 33.3 35
30
30
20
10 11.1 11 12.2
10 4 4.4
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
SEs operate under resource scarcity conditions, which create competition that
could jeopardise the enterprise’s long-term sustainability (Walkenhorst et al.
2021). Social enterprises like commercial enterprises are faced with the challenge
of competition, as such it is important for a SE not to compromise on its business
competitiveness because it contributes to the achievement of it mission (Seferian
2020).
As table 5.52 and figure 5.44 show, most respondents (35 or 38.9 percent)
indicated their agreement, with 30 (33.3 percent) that further strongly agreed
social entrepreneurs’ activities are influenced by competition from other
businesses. A small number of the respondents (10 or 11.1 percent) remained
neutral to the statement, with 11 (12.2 percent) that disagreed with the statement
and four (4.4 percent) that strongly disagreed. To ascertain whether competition
from other businesses influences social entrepreneurs’ activities and their
contribution to sustainable development, a Chi-square test was conducted. For
this variable, the results indicate that (χ2 = 41.222; df = 4; P =0.000), which show
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social entrepreneurs’ activities are influenced by competition from other
businesses.
Table 5.53: Social entrepreneurs' activities have been affected by the Covid-
19 pandemic
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 39 43.3 43.3 43.3
Agree 35 38.9 38.9 82.2
Neutral 10 11.1 11.1 93.3
Disagree 3 3.3 3.3 96.7
Strongly disagree 3 3.3 3.3 100.0
Total 90 100.0 100.0
Frequency Percentage
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Closure by many governments of non-essential businesses, including the South
African government, to curb the effects of the Covid-19 pandemic, hindered and
in many cases eradicated opportunities for many small business owners, such as
social entrepreneurs to generate profit (Weaver 2020: 1). Table 5.53 and figure
5.45 show that the majority respondents (39 or 43.3 percent) stated their strong
agreement, with a further 35 (38.9 percent) that agreed social entrepreneurs’
activities have been affected by the Covid-19 pandemic. A further 10 (11.1
percent) respondents remained neutral to the statement, with disagreement
indicated by a very small number of respondents (three or 3.3 percent) and strong
disagreement with the statement by three (3.3 percent) respondents. To
determine whether the Covid-19 pandemic affected social entrepreneurs’
activities a Chi-square test was conducted. The results for this variable indicate
that (χ2 = 69.111; df = 4; P =0.000), which shows the Covid-19 pandemic impacted
social entrepreneurs’ activities.
Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 44 48.9 48.9 48.9
Agree 28 31.1 31.1 80.0
Neutral 11 12.2 12.2 92.2
Disagree 5 5.6 5.6 97.8
Strongly disagree 2 2.2 2.2 100.0
Total 90 100.0 100.0
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Social entrepreneurs' activities has been affected by lack
of government support from the effects of Covid-19
60
48.9
50 44
40 31.1
28
30
20
11 12.2
10 5 5.6
2 2.2
0
Strongly agree Agree Neutral Disagree Strongly disagree
Frequency Percentage
As illustrated, the majority respondents (44 or 48.9 percent) strongly agreed and
28 (31.1 percent further agreed that social entrepreneurs’ activities have been
affected by lack of government support from the effects of Covid-19. In addition,
11 (12.2 percent) respondents remained neutral to the statement, whilst
disagreement with the statement was indicated by a small number (five or 5.6
percent) and two (2.2 percent) respondents strongly disagreed (table 5.54 and
figure 5.46). To ascertain whether lack of government support from the effects of
Covid-19 affected social entrepreneurs’ activities, a Chi-square test was
conducted. For this variable, the results show that (χ2 = 69.444; df = 4; P =0.000),
illustrating social entrepreneurs’ activities have been affected by lack of
government support from the effects of Covid-19.
Social entrepreneurs have a vital role to play, according to Bacq and Lumpkin
(2020: 4), “despite the many unknowns and considerable challenges surrounding
Covid-19”, as the glue that holds cross-sector solutions together. However, this
will require support from all stakeholders, particularly the government, which
needs to build an enabling environment that will promote highly enthusiastic social
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entrepreneurs who are imaginative and revolutionary to develop solutions for the
socio-economic effects of Covid-19 (Adedeji and Olanipekun 2022). A report by
the British Council (2020c) reveals the lack of government support for social
entrepreneurs from the effects of Covid-19 is most acute in SSA.
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Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
225
5.7 DISCUSSION OF KEY FINGINGS IN LINE WITH THE LITERATURE
REVIEW AND RESEARCH OBJECTIVES OF THE STUDY
This section discusses the primary findings aligned to the review of literature and
research objectives. As outlined in the first chapter, the study objectives include
the following:
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attractive working world entry. Findings in the GEM (2016) report support findings
that a greater younger generation representation is needed in operational social
entrepreneurship in SSA, in comparison to that of entrepreneurship that is
commercially operational. The empirical findings of this study agree with the
literature, in that many respondents (49 percent) agreed young people make up
the majority social entrepreneurs. The empirical findings further show that many
of the respondents (49 percent) agreed most people started a social enterprise
because they could not find employment. This means age and unemployment are
motivational factors impacting KZN township social entrepreneurship.
The study findings further revealed many respondents (51 percent) disagreed
gender has an influence on who becomes a social entrepreneur. The findings also
reveal many of the respondents (41 percent) disagreed there are more female
social entrepreneurs than male. This is supported by a GEM (2016) report, which
suggests in SSA less of or no gender gap exists for operational social
entrepreneurship, as opposed to that of operational commercial entrepreneurship.
This means social entrepreneurship in the KZN townships should not be about
gender, instead, embracing every innovation and capacity to solve pressing social
issues.
The findings also revealed many respondents (62 percent) agreed the level of
education influences who becomes a social entrepreneur. This supports the
findings by GEM (2016), which indicate in SSA, a higher education level is found
among operational social entrepreneurs than operational commercial
entrepreneurs. The findings by GIBS (2018) and the British Council (2020a) are
also supported, as they indicate level of education is an important characteristic
of social entrepreneurs in SA. This means that a higher level of education is
required by social entrepreneurs in the KZN townships in order to have the
required skills and expertise to identify opportunities and create social value out
of social problems.
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5.7.2 Key findings on Objective 2
To investigate society’s perception of social entrepreneurship as it affects
its contribution as a tool for sustainable development in the townships in
KZN
According to Urban (2015), there is a research gap around the perception of social
entrepreneurship in SA, while Fatoki (2019) highlights that perceived social
support is a predictor of social entrepreneurial intention in the country. Urban and
Kujinga (2017), Dzomonda (2021: 5), GEM (2019) and Littlewood and Holt (2018),
as well as the GIBS (2018), all agree that in SA, the perception of social
entrepreneurship in society is one of the problems hindering its effective
operations. Ashrafi et al. (2020: 88) and Omorede (2014: 239) maintain better
knowledge and understanding of the social entrepreneurship contribution to the
development of society will help promote social entrepreneurial intention.
According to the literature review and the empirical study findings, society’s lack
in understanding the role social entrepreneurs play, affects their activities. Hence,
enriching and enlightening society to comprehend the importance of the role
played by social entrepreneurship in sustainable development, is an approach
that can enhance social entrepreneurial intention. This approach will further
enhance social innovation and social value creation that will help solve many
social problems in the KZN townships. The findings of this study supported
adoption of this approach, with many respondents (56 percent) that identified
society’s lack of understanding of the role of social entrepreneurs is one critical
factor affecting social entrepreneur’s activities.
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developing a positive perception will serve as excellent support for social
entrepreneurship that will enhance its contribution to sustainable development in
the KZN townships.
According to Seelos and Mair (2005: 241-246), the interfaces and social
networking “between social entrepreneurship, CSR [programmes] and public
institutions (such as governments and IOs) provide great potential for developing
various ways of collaboration that will create social value in support of sustainable
development”. Niño (2015), Saebi, Foss and Linder (2019) and Crisan-Mitra and
Borza (2012) believe social entrepreneurship can be sustained by companies, as
it is a “trigger factor”, not only of social entrepreneurship but also cross-
collaboration between companies and social entrepreneurs, which will enhance
the potential of positively impacting the social problem-solving process.
This is supported by the study findings, with 75.6 percent of respondents having
indicated social entrepreneurs’ activities are impacted by lack of support and
partnership from corporate organizations. Gigauri and Damenia (2020) and
Prasetyo et al. (2021) mention the potential collaboration and networking between
social entrepreneurs and government has to optimise existing resources that will
enhance productivity, as well as opportunities for entrepreneurial business and
sustainable development that is secure. The study findings support this, with 72.2
percent of respondents indicating social entrepreneurs’ activities are affected by
lack of support and partnership with government. Vijayann (2013) mentions that
the use of social networking platforms is very important for social entrepreneurs,
as any disconnect will create a huge challenge in terms of building networks and
interaction with audience. Furthermore, the study findings also revealed that 65.6
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percent of the respondents cited lack of the use of social networking platforms
affects social entrepreneurs’ activities.
Ayala (2019) and Buckland and Hehenberger (2021) mention that clearly
displaying social impact, enables social entrepreneurs to attract investors and
create an avenue to access more funding. In addition, the study findings support
this is, as 64.4 percent of respondents indicated a lack of social impact
measurement affects the willingness of investors to invest in social entrepreneurs’
activities. Therefore, social impact measurement is crucial for social
entrepreneurs as it measures the social outcome and impact created by specified
230
activities and is an on-going process and integral part of the social entrepreneurs’
activities (OECD 2021)
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found to impact the growth/performance, as well as the effectiveness in social
entrepreneurs’ value creation (Islam 2016). The section that follows offers a
discussion of the internal and external environmental factors.
Marketing skills
Nowadays, no business will be able to survive the ever-changing business
environment without constantly upskilling their marketing abilities, including social
entrepreneurs. Satar et al. (2016) mentioned that social entrepreneurs need to
develop an innovative entrepreneurial approach to marketing for them to be
relevant in the present business environment and create social values. Urban and
Maphathe (2021) believe social entrepreneurs who do not use social media
platforms or do not have any online presence, will affect their ability to build
awareness, gain recognition and market their products and services. The study
findings support the literature, with a significant number of the respondents (67.7
percent) that agreed the lack of marketing skills is a critical internal environment
factor affecting many social entrepreneurs and their contribution to sustainable
development in the KZN townships.
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According to the literature, appropriate government policies and regulations are
fundamental in supporting and assisting social entrepreneurs in successfully
achieving their goals and objectives in a country. The GIBS (2018), Littlewood
and Holt (2018) and Dzomonda (2021) also maintained that lack of adequate
policies and regulations impinges on social entrepreneurs’ effective operation and
the growth and development of the social sector. The findings of this study support
the literature, as a significant number of respondents (74 percent) were in
agreement there not being an adequate legal framework for social entrepreneurs
in SA affects their activities. Although, many social entrepreneurs have
succeeded, despite all the limitations, while less red tape and restrictions will
enable social entrepreneurs to fulfil their potential (ILO, 2013). This supports the
study findings, as a significant number of the respondents (76 percent) agreed
that less government rules and regulations will improve social entrepreneurs’
activities.
Political instability
In terms of political instability, a considerable number of respondents (71 percent)
showed political instability affects social entrepreneurs’ activities. These findings
are supported by literature, as Shumetie and Watabaji (2019) assert that FDIs
and cash flow, which are crucial for the effectiveness of social entrepreneurs in
any country, are deterred by political instability such as frequent social unrest,
protest and violence. This is also highlighted by Dutta et al. (2013: 130-143), who
maintain the rate of entrepreneurship and wealth creation increases in a politically
stable country where there is a high level of government transparency,
predictability and accountability.
Corruption
Tomaszewski (2017) asserts that activities in government institutions are usually
disrupted by corruption, which further become an obstacle that affects investment
and innovative activities, as well as the development of entrepreneurship.
233
Corruption is characterised by various barriers to entrepreneurial activities and
serves as an economic catalyst (Ceresia and Mendola 2019). These points are
justified by the study findings, with 62 percent of the respondents indicating that
social entrepreneur’s activities are affected by corruption. The effects of
corruption in SA are considered very harmful, since it could heighten
unemployment, reduced tax revenue, diminishing business operations and finally,
collapse of the economy (Ofusori 2020).
234
increase access to information, improve customer reach and optimise internal
efficiencies (Adeyemi 2019). Government support is required in terms of providing
adequate infrastructure to enhance entrepreneurs, including social
entrepreneurs, to adapt to the changes in technology (Mark and Putzschel 2014).
The study findings further show a substantial number of respondents (74 percent)
that believe the lack of government support for technological changes affects
social entrepreneurs’ activities.
Competition
A huge aspect of any business entity, competition is important for any business,
including SEs, to provide superior products and services in order to remain
competitive (Ullah 2020). Lin-Hi et al. (2020: 58-84) highlight customers are willing
to buy sustainable products offered by either social or commercial enterprises,
making it a very competitive environment for SEs. This supports the study findings
as a noteworthy number of respondents (72 percent) indicated social
entrepreneurs’ activities are influenced by competition from other businesses.
Therefore, social entrepreneurs can survive in a competitive environment, when
they are able to generate a balanced combination of excess financial returns and
excess social value (Walkenhorst et al. 2021).
COVID-19
The pandemic and related lockdown restrictions imposed by governments to
reduce the spread of the virus has had a damaging effect on many businesses,
including SEs (UNDP 2021). Covid-19 caused unprecedented damage that could
be persistent and threaten the survival of many businesses in Africa, including
SEs (Okuwhere and Tafamel 2022). This supports the findings of this study, with
a significant number of the respondents (82 percent) confirming that the Covid-19
pandemic have affected social entrepreneurs’ activities. As stated by Khambule
(2020), the amount of R500 billion the South African government provided to
stimulate economic activities, may not reach the businesses operating in the
235
informal economy, including social entrepreneurs. This further supports the study
findings, with a significant number of respondents (80 percent) that confirmed
social entrepreneurs’ activities have been affected by the lack of government
support from the effects of Covid-19.
The results of bivariate correlation show the relationship between the tested
variables is significantly positive at .444** (sig. 0.000) level. This indicates
rejection of the null hypothesis, concluding that society’s perception (awareness
of social entrepreneurs) and social networking (partnership among social
entrepreneurs) are related and impact the social entrepreneurship contribution to
sustainable development.
The results of bivariate correlation show the relationship between the tested
variables is significantly positive at .313** (sig. 0.003) level. Therefore, the null
hypothesis is rejected, concluding that social networking and social impact
measurement are related and impact social entrepreneurs’ contribution to
sustainable development.
236
Ha3: There is a relationship between social networking (the use of social
networking platforms) and internal environment (technical skills) towards social
entrepreneurship contribution to sustainable development.
The results of bivariate correlation show the relationship between the tested
variables is significantly positive at .475** (sig. 0.000) level. This, therefore,
indicates rejection of the null hypothesis, concluding that the use of social
networking platforms and technical skills are related and impact social
entrepreneurship contribution to sustainable development.
The results of bivariate correlation show the relationship between the tested
variables is significantly positive at .525** (sig. 0.000) level. Therefore, it indicates
the null hypothesis is rejected, concluding that social impact measurement and
management competence and skills are related and impact social
entrepreneurship contribution to sustainable development.
The results of bivariate correlation show the relationship between the tested
variables is significantly positive at .480** (sig. 0.000) level. This means rejection
of the null hypothesis, concluding that government financial assistance and
corruption are related and impact social entrepreneurship contribution to
sustainable development.
237
opportunities) towards social entrepreneurship contribution to sustainable
development.
The results of bivariate correlation show the relationship between the tested
variables is significantly positive at .328** (sig. 0.002) level. Therefore, rejection
of the null hypothesis allows the conclusion that government support to rapid
technological changes and social impact measurement are related and impact
social entrepreneurship contribution to sustainable development.
According to Drucker (1985) and SE theory, social entrepreneurs are people who
have the ability to “search for change, respond to it and exploit it as an
opportunity”. This means social entrepreneurs are people with innovative
capabilities, with their main objective the creation of social value that solves social
problems in communities, and the nation as a whole. This study finds
characteristics of social entrepreneurs (age and level of education) as factors that
influence social entrepreneurs to generate innovative and creative ways of
addressing social problems and significantly contribute to sustainable
development in the KZN townships and SA. Furthermore, lack of awareness and
understanding of the important role social entrepreneurs play in communities
influences society’s perception and were also identified by the empirical findings
as critical components that affect social entrepreneurship’s contribution to
sustainable development.
238
findings of this study, inadequate policy and regulations, lack of support and
partnership with government, lack of access to financial resources, and high
interest rates were identified as critical factors that impact social entrepreneurship
as a sustainable development tool in KZN townships. This means for social
entrepreneurs to grow and thrive in SA, particularly in the KZN township, there
needs to be a formal institutional guideline that removes every form of ambiguity
on the operations of social entrepreneurs. As reflected in the literature review, the
institution creates the incentive structure and helps build the relationship between
social entrepreneurs and society at large.
Anthony Giddens’ (1984) structuration theory points out that human agency and
social structures cannot be separated and, as such, the human environment
created, influences their activities. According to the empirical study findings,
political instability, corruption, high crime rates, and rapid technological changes,
as well as lack of technical and marketing skills, and the effects from Covid-19 are
environmental factors identified by this study as factors that affect social
entrepreneurship as a sustainable development tool. Failure in adjusting to the
ever-changing environment proved to be a critical factor hindering the effective
operation of social entrepreneurs. Therefore, the adoption of Anthony Giddens’
structuration theory will greatly assist social entrepreneurs in effectively managing
social structures and provide critical steps that will ensure social value creation
and improve social entrepreneurs’ contribution to sustainable KZN township
development.
5.10 CONCLUSION
As highlighted in the data analysis and the study findings, it is evident social
entrepreneurs are faced with enormous challenges. A comprehensive picture is
provided by the tested variables, of these challenges and the factors that affect
social entrepreneurship as a sustainable development tool in KZN townships. The
findings illustrated society’s perception is a catalyst to social entrepreneurs’
239
growth and development. Social impact measurement also plays an important
role in ensuring social entrepreneurs better understand their activities and help
them attract investors. Environmental factors, social networking, resources and
the characteristics of the social entrepreneurs were also identified to be critical
factors influencing social entrepreneurs and their effective contribution to
sustainable development in the KZN townships. Overall, it is clear critical attention
is needed on these factors in order for social entrepreneurs to grow, thrive and
operate at their full potential in the KZN townships.
240
241
CHAPTER SIX
CONCLUSIONS AND RECOMMENDATIONS
6.1 INTRODUCTION
The aim of this study was to discover and analyse the critical factors affecting the
contribution of social entrepreneurs to sustainable development in townships, with
the KZN province as case study. Arising from the study, an integrated model was
developed to assist social entrepreneurs to enhance their social value creation
and improve their contribution to sustainable development in the KZN townships.
A rich foundation of secondary data was obtained from the comprehensive
literature review, while a detailed empirical study provided the primary data that
were broadly analysed to ascertain any significant correlation between the study
variables. In this chapter, conclusions will be provided to summarise the key
findings and show evidence that the research objectives were achieved.
Furthermore, the hypotheses will be discussed relative to the findings of the study.
Limitations and recommendations of the study linked to the findings are provided
and explained. Finally, recommendations for further study are provided.
242
• Most of the social entrepreneurs within the sample were managers and sole
owners.
243
be increased and strengthened, as with commercial entrepreneurship in society,
which will support them in identifying opportunities and enabling social
entrepreneurs to grow and thrive.
244
entrepreneurs depend on family and friends for finances in order to survive.
Moreover, of the respondents, 71.1 percent identified insufficient financial
assistance from government as a critical factor hindering social entrepreneurs’
value creation and contribution to sustainable development.
245
was a factor affecting social entrepreneurs’ activities. These findings are
confirmed in literature as resources are limited in any business environment, thus,
a competitive advantage is required when a social entrepreneur is to grow and
thrive. Additionally, of the respondents, 80 percent indicated lack of support by
government from effects of the Covid-19 pandemic is a major factor hindering
social entrepreneurs’ activities and their contribution to sustainable development.
6.3 CONCLUSIONS
The conclusions are formulated according to the study objectives.
After analysing the data, a host of challenges were reflected, along with critical
factors that impact social entrepreneurship as a sustainable development tool in
the KZN townships. The findings suggest that an integrated model for social
entrepreneurship, providing pointers to its effective contribution to sustainable
development, can be designed and applied to benefit social entrepreneurs and
other stakeholders in the social sector. The proposed integrated model is
presented and recommended in the section that follows.
246
The study concludes that there is a positive attitude among young people to be
social entrepreneurs. It further concludes that no gender gap exists for social
entrepreneurship, as both males and females equally play critical roles in
addressing social problems in the KZN townships. Level of education is believed
to significantly impact the ability of social entrepreneurs to identify a social
problem and turn it to an opportunity to contribute to sustainable development.
247
The study findings show in order for social entrepreneurs to effectively contribute
to sustainable development, social impact measurement is a requirement. It is
further concluded these entrepreneurs need social impact measurement to
comprehend the contribution of their activities, identify other opportunities to solve
social problems, as well as attract investors. social entrepreneurs must also be
familiar with and apply an appropriate method/technique in measuring their social
impact.
248
the activities of social entrepreneurs. It is, therefore, concluded that for social
entrepreneurship to make a contribution to sustainable development in the KZN
townships, more focus should be placed on the environmental factors.
6.4 IMPLICATIONS
The study outcome includes consequences, effects and suggestions for social
entrepreneurship in contributing to sustainable development in the KZN
townships.
249
As social entrepreneurs around the world are recognised and considered to have
great potential to sustain economies, including SA, the development of new
theories and conceptual frameworks depict that social entrepreneurs need to start
adopting and implementing social entrepreneurship theories for the purpose of
innovation, growth and development.
250
6.5 RECOMMENDATIONS BASED ON THE STUDY RESULTS
The study recommendations are constructed from its empirical findings and
discussed below.
251
Figure 6.1: Conceptual framework based on literature review
Source: Developed by the researcher
252
Development of this framework was based on both secondary and primary data
that were collected and thoroughly analysed, while insights were gained from the
conceptual framework of the study. Determining the primary (empirical) data was
achieved by examination of a broad range of variables that respondents
considered as having a significant impact on the social entrepreneurship
contribution to sustainable development in the KZN townships.
253
Characteristics of social entrepreneurs: Level of education and age have been
identified by the empirical findings as important characteristics that influence
social entrepreneurship. Therefore, the study recommends government be aware
of these characteristics and provide more sponsorship for social entrepreneurs
into tertiary level of education so they may acquire the knowledge and skills
necessary for identifying opportunities presented by social problems. Government
can also encourage more young people to become social entrepreneurs, as this
will help address the level of unemployment in the country.
254
effectiveness. Therefore, the study recommends social entrepreneurs become
aware of the importance of social impact measurement and how it impacts their
operations.
255
legal framework and ensure a conducive environment is provided for social
entrepreneurs to grow and thrive.
6.7 RECOMMENDATIONS
6.7.1 Society’s perception
The study findings disclosed insufficient understanding by society along with poor
awareness of the role and contributions of social entrepreneurs affect their
activities:
256
community members in their activities. This will promote inclusivity and
remove any form of animosity from community members. Hence, creating a
conducive environment where everyone is involved in enhancing changes and
society’s development.
257
from high interest rates and from having to provide collateral to financial
institutions in order to acquire loans.
• Government should ensure periodic monitoring and evaluation of policies
regarding social entrepreneurs, to determine how they are coping in their
respective business environments. Registration fees should be eliminated and
taxes reduced or a probation period be provided to social entrepreneurs, as
these are considered some of the barriers affecting new entrants in the sector.
258
entrepreneurs’ development and growth. These individuals will be able to
provide field-related skills development and training workshops that are goal-
specific. This will enable social entrepreneurs to acquire a broader
understanding, which can influence their social innovation and improve
management competences for their activities.
• Social entrepreneurs need to collaborate, partner and network with other
social entrepreneurs, corporate organisations and government. This will help
the sharing of knowledge and expertise that will support social innovation and
growth. For instance, other social entrepreneurs can bring fresh ideas and
perspective on addressing social issues, while corporate organisations and
government can share their financial resources and expertise to support the
new ideas.
259
entrepreneurs to acquire the technical know-how that will help them adjust and
advance their operations to yield more profit.
The awareness and understanding level among members of society regarding the
social entrepreneurship concept. This will help to ascertain the level of
preparedness in society to embrace and be involved in social entrepreneurship.
It can also help policy makers to develop strategies that will grow social
entrepreneurship in our society.
Assessment by further research should focus on the impact social networking has
on social entrepreneurs’ profit and development. A better understanding will thus
be provided of the exact social networking contribution to SE sustainability, in
addition to its other roles of maintaining contact, interactions and collaborations.
260
Further research needs to be conducted to determine the effects of government
support mechanisms on social entrepreneurship growth and development in the
country. This type of research can provide a clearer understanding of the
significance of adequate policy and regulations and other ways government
support can nurture and promote social entrepreneurship in order for it to operate
at its full potential in SA.
Further research should critically analyse ways social entrepreneurs can adapt to
rapid technological changes. This will help social entrepreneurs to develop
strategies and invest in adequate and appropriate technological advances to
compete favourably in the dynamic business environment.
261
6.10 CONCLUDING REMARKS
This study has highlighted the applicability of social entrepreneurship to
sustainable development in the townships in KwaZulu-Natal. Key factors affecting
the social entrepreneurs’ value creation were discussed. It is believed that social
entrepreneurship can play a critical role in addressing many of the socio-
economic challenges in townships communities. With the increasing levels of
poverty and inequality in South Africa, providing a conducive environment for
social entrepreneurs to operate can be the critical difference in achieving the
sustainable development goals. The ever-changing business environment in
South Africa, SMEs, especially social enterprises face an ongoing challenge in
gaining a competitive advantage by creating social value. In order to accomplish
this value, social entrepreneurs have to constantly review their business
strategies.
The empirical data used during this study were based on questionnaires that were
self-administered amongst owners and managers of social enterprises in the
Inanda, NtuZuma and KwaMashu township communities in KZN province. The
recommendations and conclusions discussed this chapter represent some of the
actions that could possibly be taken to improve social entrepreneurship
contribution to sustainable development in the KZN townships. It is also hoped
that this study will enable government and other stakeholders to enhance their
approach and partnership with social entrepreneurs to create social value which
will help address various challenges in the society.
262
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APPENDICES
APPENDIX 1: QUESTIONNAIRE
QUESTIONNAIRE
Date: ____________________
Dear Participant
Please complete the questionnaire to enable me to gather data for my research. This
questionnaire is designed to gather critical factors affecting social entrepreneurship
contribution to sustainable development in the townships in KwaZulu-Natal. The information
you provide will kept strictly confidential. Please be assured that you will remain anonymous
throughout the research process and in any reporting or write-ups related to my research. Please
also be advised that participation is voluntary and you can withdraw from the study at any time
you no longer feel comfortable to participate. This questionnaire will take an estimate of 25 minutes
to be completed.
If you need any clarity on the study, please contact the researcher or the supervisor
334
________________
Mr E.I. Akoh
Email: [email protected]
Dr L. Lekhanya
Supervisor
Email: [email protected]
I hereby kindly request that you complete the following section by placing a cross (X) in
the appropriate box to reflect your answer.
Section one
Background information
Matric 1
Diploma/Certificate 2
Degree 3
Honors 4
Masters 5
PhD 6
Others, please specify 7
………………………………………………………
2) Age group:
18 - 25 years 1
26 – 32 years 2
33 – 39 years 3
40 – 49 years 4
More than 50 years, Please specify 5
………………………..……………………………………………..
335
3) Gender:
Male 1
Female 2
Others, Please specify 3
………………………………………………………………………
4) In which of the following KwaZulu-Natal Township is your social enterprise situated? (Please
tick one)
Inanda 1
Ntuzuma 2
KwaMashu 3
Partnership 1
Manager of the social enterprise and sole owner 2
Manager of the social enterprise and jointly owned 3
Others, please specify
………………………………………………………………………...
7) How many years have you been operating this social enterprise?
1 - 2 year 1
3 – 5 years 2
6 – 8 years 3
9 – 11 years 4
More than 11 years 5
336
Section Two: Factors affecting social entrepreneurship as a tool for sustainable
development
Please indicate your response to the following statement regarding social entrepreneurship
contribution to sustainable development in KZN townships.
Please place a cross (X) for each statement that truly reflects your response where:
1 = Strongly agree
2 = Agree
3 = Neutral
4 = Disagree
5 = Strongly disagree
Statement Strongly Agree Neutral Disagree Strongly
agree disagree
337
9c) Social entrepreneurs’ activities are
influenced by society’s poor
awareness of their contributions
338
of investors to invest in social
entrepreneurs activities
Internal factors:
External factors:
339
13f) adequate government rules and
regulations will improve social
entrepreneurs’ activities
340
APPENDIX 2: ETHICAL CLEARANCE LETTER
341
APPENDIX 3: GATEKEEPER’S LETTER
342
APPENDIX 4: FREQUENCY TABLES
Qualification
Valid Cumulative
Frequency Percent
Percent Percent
Matric 10 11.1 11.1 11.1
Age
Valid Cumulative
Frequency Percent
Percent Percent
18 - 25 16 17.8 17.8 17.8
26 - 32 33 36.7 36.7 54.4
33 - 39 25 27.8 27.8 82.2
Valid
40 - 49 9 10.0 10.0 92.2
50+ 7 7.8 7.8 100.0
Total 90 100.0 100.0
Gender
Valid Cumulative
Frequency Percent
Percent Percent
Male 39 43.3 43.3 43.3
Valid Female 51 56.7 56.7 100.0
Total 90 100.0 100.0
Location
Valid Cumulative
Frequency Percent
Percent Percent
Inanda 30 33.3 33.3 33.3
Ntuzuma 30 33.3 33.3 66.7
Valid
KwaMashu 30 33.3 33.3 100.0
343
Type
Valid Cumulative
Frequency Percent
Percent Percent
Non-
Governmental
16 17.8 17.8 17.8
Organisation
(NGO)
Not-for-Profit
Organisation 26 28.9 28.9 46.7
Valid
(NPO)
Ownership
Valid Cumulative
Frequency Percent
Percent Percent
Partnership 16 17.8 17.8 17.8
Manager
and sole 42 46.7 46.7 64.4
owner
Valid Manager
and jointly 19 21.1 21.1 85.6
owned
Others 13 14.4 14.4 100.0
Total 90 100.0 100.0
Operations
Valid Cumulative
Frequency Percent
Percent Percent
1-2 14 15.6 15.6 15.6
3-5 35 38.9 38.9 54.4
6-8 28 31.1 31.1 85.6
Valid
9-11 4 4.4 4.4 90.0
> 11 9 10.0 10.0 100.0
Total 90 100.0 100.0
344
Understanding
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
25 27.8 27.8 27.8
agree
Agree 31 34.4 34.4 62.2
Neutral 17 18.9 18.9 81.1
Valid
Disagree 11 12.2 12.2 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
Information
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
20 22.2 22.2 22.2
agree
Agree 32 35.6 35.6 57.8
Neutral 14 15.6 15.6 73.3
Valid
Disagree 12 13.3 13.3 86.7
Strongly
12 13.3 13.3 100.0
disagree
Total 90 100.0 100.0
Awareness
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
23 25.6 25.6 25.6
Agree
Agree 30 33.3 33.3 58.9
Neutral 13 14.4 14.4 73.3
Valid
Disagree 13 14.4 14.4 87.8
Strongly
11 12.2 12.2 100.0
disagree
Total 90 100.0 100.0
Involvement
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
14 15.6 15.6 15.6
Agree
Agree 33 36.7 36.7 52.2
Neutral 16 17.8 17.8 70.0
Valid
Disagree 15 16.7 16.7 86.7
Strongly
12 13.3 13.3 100.0
disagree
Total 90 100.0 100.0
345
Young
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
13 14.4 14.4 14.4
agree
Agree 31 34.4 34.4 48.9
Neutral 24 26.7 26.7 75.6
Valid
Disagree 15 16.7 16.7 92.2
Strongly
7 7.8 7.8 100.0
disagree
Total 90 100.0 100.0
Unemployment
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
16 17.8 17.8 17.8
agree
Agree 28 31.1 31.1 48.9
Neutral 16 17.8 17.8 66.7
Valid
Disagree 27 30.0 30.0 96.7
Strongly
3 3.3 3.3 100.0
disagree
Total 90 100.0 100.0
Influence
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
12 13.3 13.3 13.3
agree
Agree 17 18.9 18.9 32.2
Neutral 15 16.7 16.7 48.9
Valid Disagree 39 43.3 43.3 92.2
Strongly
7 7.8 7.8 100.0
disagree
Total 90 100.0 100.0
Activity
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
9 10.0 10.0 10.0
agree
Agree 22 24.4 24.4 34.4
Neutral 22 24.4 24.4 58.9
Valid
Disagree 31 34.4 34.4 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
346
Level
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
22 24.4 24.4 24.4
agree
Agree 34 37.8 37.8 62.2
Neutral 12 13.3 13.3 75.6
Valid
Disagree 14 15.6 15.6 91.1
Strongly
8 8.9 8.9 100.0
disagree
Total 90 100.0 100.0
Partnership
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
24 26.7 26.7 26.7
agree
Agree 36 40.0 40.0 66.7
Neutral 11 12.2 12.2 78.9
Valid
Disagree 13 14.4 14.4 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
Support
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
32 35.6 35.6 35.6
agree
Agree 36 40.0 40.0 75.6
Neutral 12 13.3 13.3 88.9
Valid
Disagree 7 7.8 7.8 96.7
Strongly
3 3.3 3.3 100.0
disagree
Total 90 100.0 100.0
Government
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
33 36.7 36.7 36.7
agree
Agree 32 35.6 35.6 72.2
Neutral 13 14.4 14.4 86.7
Valid
Disagree 7 7.8 7.8 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
347
Platforms
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
20 22.2 22.2 22.2
agree
Agree 39 43.3 43.3 65.6
Neutral 12 13.3 13.3 78.9
Valid
Disagree 12 13.3 13.3 92.2
Strongly
7 7.8 7.8 100.0
disagree
Total 90 100.0 100.0
Measurement
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
29 32.2 32.2 32.2
agree
Agree 29 32.2 32.2 64.4
Neutral 15 16.7 16.7 81.1
Valid
Disagree 11 12.2 12.2 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
Apply
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
21 23.3 23.3 23.3
agree
Agree 31 34.4 34.4 57.8
Neutral 18 20.0 20.0 77.8
Valid
Disagree 13 14.4 14.4 92.2
Strongly
7 7.8 7.8 100.0
disagree
Total 90 100.0 100.0
Identify
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
27 30.0 30.0 30.0
agree
Agree 32 35.6 35.6 65.6
Neutral 11 12.2 12.2 77.8
Valid
Disagree 11 12.2 12.2 90.0
Strongly
9 10.0 10.0 100.0
disagree
Total 90 100.0 100.0
348
Invest
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
25 27.8 27.8 27.8
agree
Agree 33 36.7 36.7 64.4
Neutral 13 14.4 14.4 78.9
Valid
Disagree 10 11.1 11.1 90.0
Strongly
9 10.0 10.0 100.0
disagree
Total 90 100.0 100.0
Access
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
44 48.9 48.9 48.9
agree
Agree 25 27.8 27.8 76.7
Neutral 10 11.1 11.1 87.8
Valid
Disagree 6 6.7 6.7 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
Family
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
19 21.1 21.1 21.1
agree
Agree 32 35.6 35.6 56.7
Neutral 13 14.4 14.4 71.1
Valid
Disagree 13 14.4 14.4 85.6
Strongly
13 14.4 14.4 100.0
disagree
Total 90 100.0 100.0
Process
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
25 27.8 27.8 27.8
agree
Agree 38 42.2 42.2 70.0
Neutral 14 15.6 15.6 85.6
Valid
Disagree 8 8.9 8.9 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
349
Assistance
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
27 30.0 30.0 30.0
agree
Agree 37 41.1 41.1 71.1
Neutral 13 14.4 14.4 85.6
Valid
Disagree 7 7.8 7.8 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
Management
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
28 31.1 31.1 31.1
agree
Agree 38 42.2 42.2 73.3
Neutral 11 12.2 12.2 85.6
Valid
Disagree 8 8.9 8.9 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
Technical
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
25 27.8 27.8 27.8
agree
Agree 38 42.2 42.2 70.0
Neutral 10 11.1 11.1 81.1
Valid
Disagree 10 11.1 11.1 92.2
Strongly
7 7.8 7.8 100.0
disagree
Total 90 100.0 100.0
Training
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
26 28.9 28.9 28.9
agree
Agree 37 41.1 41.1 70.0
Neutral 10 11.1 11.1 81.1
Valid
Disagree 12 13.3 13.3 94.4
Strongly
5 5.6 5.6 100.0
agree
Total 90 100.0 100.0
350
Marketing
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
21 23.3 23.3 23.3
agree
Agree 40 44.4 44.4 67.8
Neutral 9 10.0 10.0 77.8
Valid
Disagree 12 13.3 13.3 91.1
Strongly
8 8.9 8.9 100.0
disagree
Total 90 100.0 100.0
Legal
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
29 32.2 32.2 32.2
agree
Agree 38 42.2 42.2 74.4
Neutral 7 7.8 7.8 82.2
Valid
Disagree 10 11.1 11.1 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
Rules
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
30 33.3 33.3 33.3
agree
Agree 38 42.2 42.2 75.6
Neutral 9 10.0 10.0 85.6
Valid
Disagree 7 7.8 7.8 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
Improve
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
33 36.7 36.7 36.7
agree
Agree 38 42.2 42.2 78.9
Neutral 7 7.8 7.8 86.7
Valid
Disagree 7 7.8 7.8 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
351
Instability
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
34 37.8 37.8 37.8
agree
Agree 30 33.3 33.3 71.1
Neutral 11 12.2 12.2 83.3
Valid
Disagree 10 11.1 11.1 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
Corruption
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
28 31.1 31.1 31.1
agree
Agree 28 31.1 31.1 62.2
Neutral 15 16.7 16.7 78.9
Valid
Disagree 10 11.1 11.1 90.0
Strongly
9 10.0 10.0 100.0
disagree
Total 90 100.0 100.0
Social
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
25 27.8 27.8 27.8
agree
Agree 35 38.9 38.9 66.7
Neutral 17 18.9 18.9 85.6
Valid
Disagree 8 8.9 8.9 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
Crime
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
30 33.3 33.3 33.3
agree
Valid Agree 38 42.2 42.2 75.6
Neutral 9 10.0 10.0 85.6
352
Disagree 7 7.8 7.8 93.3
Strongly
6 6.7 6.7 100.0
disagree
Total 90 100.0 100.0
Taxation
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
26 28.9 28.9 28.9
agree
Agree 36 40.0 40.0 68.9
Neutral 14 15.6 15.6 84.4
Valid
Disagree 10 11.1 11.1 95.6
Strongly
4 4.4 4.4 100.0
disagree
Total 90 100.0 100.0
Interest
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
33 36.7 36.7 36.7
agree
Agree 31 34.4 34.4 71.1
Neutral 12 13.3 13.3 84.4
Valid
Disagree 10 11.1 11.1 95.6
Strongly
4 4.4 4.4 100.0
disagree
Total 90 100.0 100.0
Technology
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
31 34.4 34.4 34.4
agree
Agree 34 37.8 37.8 72.2
Neutral 13 14.4 14.4 86.7
Valid
Disagree 7 7.8 7.8 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
353
Change
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
33 36.7 36.7 36.7
agree
Agree 34 37.8 37.8 74.4
Neutral 10 11.1 11.1 85.6
Valid
Disagree 8 8.9 8.9 94.4
Strongly
5 5.6 5.6 100.0
disagree
Total 90 100.0 100.0
Competition
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
30 33.3 33.3 33.3
agree
Agree 35 38.9 38.9 72.2
Valid Neutral 10 11.1 11.1 83.3
Disagree 11 12.2 12.2 95.6
Strongly
4 4.4 4.4 100.0
disagree
Covid
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
39 43.3 43.3 43.3
agree
Agree 35 38.9 38.9 82.2
Neutral 10 11.1 11.1 93.3
Valid
Disagree 3 3.3 3.3 96.7
Strongly
3 3.3 3.3 100.0
disagree
Total 90 100.0 100.0
Effects
Valid Cumulative
Frequency Percent
Percent Percent
Strongly
44 48.9 48.9 48.9
agree
Agree 28 31.1 31.1 80.0
Neutral 11 12.2 12.2 92.2
Valid
Disagree 5 5.6 5.6 97.8
Strongly
2 2.2 2.2 100.0
disagree
Total 90 100.0 100.0
354
APPENDIX 5: DESCRIPTIVE STATISTICS
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Qualification 90 1.00 7.00 2.9556 1.34842
Age 90 1.00 5.00 2.5333 1.13375
Gender 90 1.00 2.00 1.5667 .49831
Location 90 1.00 3.00 2.0000 .82107
Type 90 1.00 5.00 2.7667 1.19032
Ownership 90 1.00 4.00 2.3222 .93410
Operations 90 1.00 5.00 2.5444 1.12341
Understanding 90 1.00 5.00 2.3556 1.20216
Information 90 1.00 5.00 2.6000 1.33071
Awareness 90 1.00 5.00 2.5444 1.34215
Involvement 90 1.00 5.00 2.7556 1.28353
Young 90 1.00 5.00 2.6889 1.14798
Unemployment 90 1.00 5.00 2.7000 1.17512
Influence 90 1.00 5.00 3.1333 1.21044
Activity 90 1.00 5.00 3.0333 1.12629
Level 90 1.00 5.00 2.4667 1.26491
Partnership 90 1.00 5.00 2.3444 1.21008
Support 90 1.00 5.00 2.0333 1.05415
Government 90 1.00 5.00 2.1000 1.15194
Platforms 90 1.00 5.00 2.4111 1.19826
Measurement 90 1.00 5.00 2.2889 1.22927
Apply 90 1.00 5.00 2.4889 1.22010
Identify 90 1.00 5.00 2.3667 1.30212
Invest 90 1.00 5.00 2.3889 1.27812
Access 90 1.00 5.00 1.9222 1.17299
Family 90 1.00 5.00 2.6556 1.35050
Process 90 1.00 5.00 2.2222 1.11957
Assistance 90 1.00 5.00 2.2000 1.15340
Management 90 1.00 5.00 2.1556 1.13089
Technical 90 1.00 5.00 2.2889 1.21085
Training 90 1.00 5.00 2.2556 1.17618
355
Marketing 90 1.00 5.00 2.4000 1.23434
Legal 90 1.00 5.00 2.1778 1.19529
Rules 90 1.00 5.00 2.1222 1.15950
Improve 90 1.00 5.00 2.0333 1.12629
Instability 90 1.00 5.00 2.1333 1.20112
Corruption 90 1.00 5.00 2.3778 1.30322
Social 90 1.00 5.00 2.2556 1.12740
Crime 90 1.00 5.00 2.1222 1.15950
Taxation 90 1.00 5.00 2.2222 1.11957
Interest 90 1.00 5.00 2.1222 1.15950
Technology 90 1.00 5.00 2.1222 1.13996
Change 90 1.00 5.00 2.0889 1.15772
Competition 90 1.00 5.00 2.1556 1.15058
Covid 90 1.00 5.00 1.8444 .98199
Effects 90 1.00 5.00 1.8111 1.00442
Valid N (listwise) 90
356
APPENDIX 6: CORRELATION ANALYSIS
357
APPENDIX 7: CHI SQUARE TEST
Test Statistics
Chi-Square df Asymp. Sig.
Qualification 51.244a 6 .000
b
Age 26.667 4 .000
c
Gender 1.600 1 .000
Location 1.000d 2 .000
Type 31.889b 4 .000
e
Ownership 23.333 3 .000
b
Operations 37.889 4 .000
Understanding 22.889b 4 .000
Information 16.000b 4 .003
b
Awareness 14.889 4 .005
b
Involvement 16.111 4 .003
Young 20.000b 4 .000
Unemployment 23.000b 4 .000
b
Influence 33.778 4 .000
b
Activity 23.667 4 .000
Level 23.556b 4 .000
Partnership 32.111b 4 .000
b
Support 50.111 4 .000
b
Government 40.889 4 .000
Platforms 35.444b 4 .000
Measurement 24.667b 4 .000
b
Apply 18.000 4 .001
b
Identify 25.333 4 .000
Invest 24.667b 4 .000
Access 61.222b 4 .000
b
Family 15.111 4 .004
b
Process 40.778 4 .000
Assistance 40.667b 4 .000
Management 45.444b 4 .000
b
Technical 38.778 4 .000
b
Training 38.556 4 .000
358
Marketing 39.444b 4 .000
b
Legal 47.222 4 .000
Rules 49.444b 4 .000
b
Improve 57.556 4 .000
b
Instability 37.889 4 .000
b
Corruption 19.667 4 .001
Social 33.778b 4 .000
Crime 49.444b 4 .000
b
Taxation 36.889 4 .000
b
Interest 38.333 4 .000
Technology 41.111b 4 .000
b
Change 45.222 4 .000
b
Competition 41.222 4 .000
b
Covid 69.111 4 .000
Effects 69.444b 4 .000
359
APPENDIX 8: RELIABILITY TEST
Reliability Statistics
Cronbach's
Alpha N of Items
.886 4
Reliability Statistics
Cronbach's
Alpha N of Items
.759 5
360
Scale: ALL VARIABLES
Reliability Statistics
Cronbach's
Alpha N of Items
.808 4
Reliability Statistics
Cronbach's
Alpha N of Items
.895 4
361
Reliability Statistics
Cronbach's
Alpha N of Items
.726 4
Reliability Statistics
Cronbach's
Alpha N of Items
.891 4
Scale: ALL VARIABLES
Reliability Statistics
Cronbach's
Alpha N of Items
.906 14
362
APPENDIX 9: FACTOR ANALYSIS
B8
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .816
Bartlett's Test of Sphericity Approx. Chi-Square 194.090
df 6
Sig. .000
Communalities
Initial Extraction
Understanding 1.000 .728
Information 1.000 .781
Awareness 1.000 .755
Involvement 1.000 .718
Extraction Method: Principal Component
Analysis.
Component Matrixa
Component
1
Understanding .853
Information .884
Awareness .869
Involvement .847
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
363
B9
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .727
Bartlett's Test of Sphericity Approx. Chi-Square 124.212
df 10
Sig. .000
Communalities
Initial Extraction
Young 1.000 .391
Unemployment 1.000 .424
Influence 1.000 .751
Activity 1.000 .671
Level 1.000 .364
Extraction Method: Principal Component
Analysis.
Component Matrixa
Component
1
Young .625
Unemployment .651
Influence .866
Activity .819
Level .603
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
364
B10
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .724
Bartlett's Test of Sphericity Approx. Chi-Square 130.414
df 6
Sig. .000
Communalities
Initial Extraction
Partnership 1.000 .491
Support 1.000 .697
Government 1.000 .680
Platforms 1.000 .691
Extraction Method: Principal Component
Analysis.
Component Matrixa
Component
1
Partnership .701
Support .835
Government .824
Platforms .831
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
365
B11
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .826
Bartlett's Test of Sphericity Approx. Chi-Square 218.760
df 6
Sig. .000
Communalities
Initial Extraction
Measurement 1.000 .748
Apply 1.000 .835
Identify 1.000 .817
Invest 1.000 .654
Extraction Method: Principal Component
Analysis.
Component Matrixa
Component
1
Measurement .865
Apply .914
Identify .904
Invest .808
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
366
B12
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .709
Bartlett's Test of Sphericity Approx. Chi-Square 76.010
df 6
Sig. .000
Communalities
Initial Extraction
Access 1.000 .542
Family 1.000 .446
Process 1.000 .607
Assistance 1.000 .630
Extraction Method: Principal Component
Analysis.
Component Matrixa
Component
1
Access .736
Family .668
Process .779
Assistance .794
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
367
B13 (Internal)
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .794
Bartlett's Test of Sphericity Approx. Chi-Square 220.516
df 6
Sig. .000
Communalities
Initial Extraction
Management 1.000 .764
Technical 1.000 .830
Training 1.000 .809
Marketing 1.000 .625
Extraction Method: Principal Component
Analysis.
Component Matrixa
Component
1
Management .874
Technical .911
Training .899
Marketing .791
Extraction Method: Principal
Component Analysis.
a. 1 components extracted.
368
B13(External)
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .809
Bartlett's Test of Sphericity Approx. Chi-Square 737.582
df 91
Sig. .000
Communalities
Initial Extraction
Legal 1.000 .683
Rules 1.000 .642
Improve 1.000 .613
Instability 1.000 .680
Corruption 1.000 .673
Social 1.000 .664
Crime 1.000 .568
Taxation 1.000 .614
Interest 1.000 .666
Technology 1.000 .700
Change 1.000 .714
Competition 1.000 .668
Covid 1.000 .821
Effects 1.000 .739
Extraction Method: Principal Component
Analysis.
369
Rotated Component Matrixa
Component
1 2 3
Legal .802
Rules .757
Improve .540 .555
Instability .720
Corruption .742
Social .774
Crime .715
Taxation .570
Interest .643
Technology .800
Change .785
Competition .714
Covid .748
Effects .669
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
370
Component Transformation Matrix
Component 1 2 3
1 .596 .582 .554
2 .195 .564 -.802
3 -.779 .586 .223
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
371
APPENDIX 10: BIVARIATE RESULTS OF HYPOTHESES
Correlations
Society's Social
perception networking
Society's Pearson 1 .444**
perception Correlation
Sig. (2-tailed) 000
N 90 90
**
Social Pearson .444 1
networking Correlation
Sig. (2-tailed) 000
N 90 90
**. Correlation is significant at the 0.00 level (2-tailed).
Correlations
Social
Impact
Measureme Social
nt networking
Social Impact Pearson 1 .313**
Measurement Correlation
Sig. (2-tailed) .003
N 90 90
Social networking Pearson .313** 1
Correlation
Sig. (2-tailed) .003
N 90 90
**. Correlation is significant at the 0.01 level (2-tailed).
Correlations
372
social Internal
networking environment
social Pearson 1 .475**
networking Correlation
Sig. (2-tailed) 000
N 90 90
Internal Pearson .475** 1
environment Correlation
Sig. (2-tailed) 000
N 90 90
**. Correlation is significant at the 0.00 level (2-tailed).
Correlations
Social
Impact
Managemen Internal
t environment
Social Impact Pearson 1 .525**
Management Correlation
Sig. (2-tailed) 000
N 90 90
Internal environment Pearson .525** 1
Correlation
Sig. (2-tailed) 000
N 90 90
**. Correlation is significant at the 0.00 level (2-tailed).
Correlations
Financial External
resources environment
Financial Pearson 1 .480**
resources Correlation
Sig. (2-tailed) 000
N 90 90
373
External Pearson .480** 1
environment Correlation
Sig. (2-tailed) 000
N 90 90
**. Correlation is significant at the 0.00 level (2-tailed).
Correlations
Social
Impact
External Measureme
environment nt
External environment Pearson 1 .328**
Correlation
Sig. (2-tailed) .002
N 90 90
Social Impact Pearson .328** 1
Measurement Correlation
Sig. (2-tailed) .002
N 90 90
**. Correlation is significant at the 0.01 level (2-tailed).
374
APPENDIX 11: TURNITIN REPORT
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
APPENDIX 12: EDITOR’S REPORT
396