Dinkum Journal of Economics and Managerial Innovations (DJEMI).

Publication History

Submitted: June 02, 2023
Accepted: June 20, 2023
Published: July 01, 2023

Identification

D-0064

Citation

Mostafizur Rahman Mustafa, Shahir Ahmmed (2023). Critical reflection to broaden the conversation about generating employment across entrepreneurship in South Africa. Dinkum Journal of Economics and Managerial Innovations, 2(07):406-415.

Copyright

© 2023 DJEMI. All rights reserved

Critical Reflection to Broaden the Conversation about Generating Employment Across Entrepreneurship in South AfricaReview Article

Mostafizur Rahman Mustafa 1 *and Shahir Ahmmed 2

  1. Department of Economics, North South University, Dhaka; mustafamm12@gmail.com
  2. Department of Economics, International Islamic University Chittagong, Chittagong; ahmadshahir@yahoo.co.uk

*             Correspondence: mustafamm12@gmail.com

Abstract: Particularly for marginalized areas, the current conceptual structure of entrepreneurship is frequently viewed as the solution to economic development, employment creation, and income generation. EDA, which is the execution of programms to foster entrepreneurship in economically disadvantaged communities, has fallen short of expectations. According to critical entrepreneurship studies (CES), the meta-theoretical foundations of conventional entrepreneurship theory fail to take into account the value-laden reality of entrepreneurship appropriately. This study claims general entrepreneurial activity and lacks the capacity to articulate precisely why EDA has been so insufficient in economic expansion and employment creation. It evaluates South African entrepreneurial activity discussions and shows EDA as an advancement tool. The research separates EDA from additional phenomena which come outside the business ownership cover and asks to dismiss it as a kind of entrepreneurial activity that seeks to strengthen the discourse on economic growth, job creation, and the empowerment of marginalized people in the developing world.

Keywords: entrepreneurship, employment, South Africa, critical reflection

  1. INTRODUCTION

South Africa has one of the worst unemployment rates in the globe, at 29.1%, and ranks first among the members of the BRICS (Brazil, Russia, India, China, and South Africa). Practically, the unemployment rate in South Africa stands about 38.5% when the effects of unhappy workers are considered into account (Bowmaker-Falconer & Herrington, 2020). In order to reduce unemployment to 6% by 2030, the GDP growth rate would need to be raised to 5.4%, according to the national development strategy for 2030 [1]. Nevertheless, there’s currently no indication that the jobless rate would decrease in the following years given that GDP growth rates were as low as 1.7% in 2019 (before to the global outbreak) and decreased by 7% in 2020. Excessive impoverishment and joblessness are issues, both in South Africa especially and throughout the rest of the developing world [2]. The problem of creating opportunities for employment requires immediate responses from the government. Journalism, policymakers, and academics all tout innovative entrepreneurship as a panacea for boosting economic growth and generating employment. Programmes and initiatives to promote entrepreneurship also aim to boost the business-building abilities of disadvantaged communities due to the evident connection between innovation and expanding the economy. South Africa continues to have lower-than-average levels of early-stage enterprise activity (TEA) compared to the rest of Africa. In addition, the rate of acknowledged ownership in businesses is far lower than it is for all continents of Africa [3]. Additionally, for a comparable duration, South Africa’s companies’ withdrawal rate was higher than the authority rate of established businesses, demonstrating that “there are as many businesses shutting downwards, exchanged, or haphazardly dismissed as the number of businesses bringing maintained”. In South Africa, less than 25% of newly established businesses continue to be in business after three years [4]. Some actions now classed as “entrepreneurship” have a negligible effect on economic expansion and employment creation. Government stakeholders in the Global South consistently encourage and endorse entrepreneurial advertising programmes, encompassing education and development, notwithstanding the obvious inability of new companies to make it throughout the first year of operation or advance outside simple independent contractors [5]. The conversation regarding possible solutions for the shockingly high rate of unemployment seems to be restricted throughout the confines of the common innovative attempts idea, regardless of the reality that entrepreneurial activities has failed to live subject to its guarantee of generating effective business opportunities which contribute to monetary development and the development of employment opportunities throughout the developing world [6].

  1. LITERATURE REVIEW

Entrepreneurs, in the words of Richard Cantillon, are “basically taking chances administrators of manufacturing and commerce, with competitiveness striving to minimise the compensation they receive to the average cost associated with their amenities,” as he put it in 1755.  Jean-Baptiste Say combined the manufacturing components, and Schumpeter referred to this as a “novel combination.” According to [7], it is today used to determine individuals whom develop, start innovative companies, initiate actions, instigate shifts, and commit to chances. The qualities of entrepreneurs and their description and assessment of entrepreneurship are hotly debated topics. Conventional data sets only permit an approximation, prompting investigators to employ indirect indicators assumed to be connected with entrepreneurship, according to [8]. The self-employment and employer establishment rates of birth, while not optimal, are often used measures because the information is easily accessible. The entrepreneurial traits of the firm proprietor, such as creative thinking, ingenuity, and opportunity-seeking conduct, are not sufficiently captured by either assessment. These metrics nevertheless capture two key categories of business owners: those who choose self-employment as a means of generating income and/or seeking opportunities [9]. The sort of entrepreneurship that occurs throughout the community varies significantly, according to the data. Nonmetropolitan areas have the greatest self-employment rates. This discrepancy may be due to the characteristics of the business mix; for example, technologically advanced or additional capital-intensive companies situated in metropolitan areas may face higher entry barriers. It might also be an example of people founding enterprises out of need because they have no other options for income. These businesses might not have much potential for future expansion, but they do significantly augment revenue. According to [10], the self-employed in urban areas produce greater earnings and offer more value to the economy as a whole. In contrast, the employer establishment birth rate is lowest in the most rural areas and highest in metro areas. An essential research topic would be to determine whether there are any differences between rural and urban settings with regard to opportunity, resources, and/or incentive to transition from self-employment to employing others. Although the industrial sector has grown rapidly during the previous ten years, its contribution to GDP has remained constant at 4%. Many other problems, such as a limited base, insufficient amenities, and an absence of financing in this industry, are responsible for the inadequate output. Industry’s contribution to overall jobs is significantly less than its contribution to GDP (Figures 1 and 2).

Figure 1 Sectoral GDP (100%) | DJEMI

Figure 1: Sectoral GDP (100%) (Source: Central Bank of South Africa; National Bureau of Statistics)

Figure 2 Sector-specific Employment (100%)

Figure 2: Sector-specific Employment (100%)(Source: Central Bank of South Africa; National Bureau of Statistics)

According to [11], positivism is based on the ontological tenet that the universe is governed by unchanging laws and principles of causality and exists independently of its observers. The researcher can neutrally and unbiasedly discover these principles and laws by watching and measuring the natural world. Due to this, social scientists are emphasising impartiality, measurement, objectivity, and repeatability more and more when using quantitative approaches to develop value-free, objective knowledge [12]. Quantitative approaches are so closely related to the positivist paradigm since positivists believe that the “science” produced by these approaches is preferable [13]. This objectivist strategy has regulation at its core [14]. Management studies, according to [15], rarely consider epistemology and ontology and, when they do, they are “limited to restricted issues of method and statistical technique.” One of the management research’s most promising areas is commonly regarded as being entrepreneurship. It is improbable that the area of entrepreneurship will do anything other than keep expanding as a branch of management research [16]. Numerous theoretical currents have arisen as a result of extensive research and theory development about the factors that drive entrepreneurship [17]. The majority of this research adheres to a similar meta-theoretical paradigm that sees entrepreneurship as an individualistic phenomenon based on the market [18]. The too-optimistic picture of entrepreneurship is surrounded by ideological mystification [19]. This mysterious view of “the businessman” is supported by lawmakers, journalists, and academia alike [20]. It is unreasonable to use so much “mathematician because the investigation concerning entrepreneurship remains in the beginning stages [21]. A study [22] claim that the field needs analytical variety and integrity. The intricacy and beneficial background that drive the entrepreneurial phenomena are ignored in the pursuit of findings that are thought to be more significant scientific discoveries. Although the methods of analysis were appropriately applied, this disregard for the complexity of the occurrence casts doubt on the conceptual reliability of the results [23]. Ironically, according to [24], positivistic techniques fall short of understanding and accounting for the entrepreneurship phenomena. As stated by [25], it is inadequate to address the “differences and contentious consequences” of business. Qualitative investigations continue to lack representation in the top publications in the globe, notwithstanding numerous requests for entrepreneurial studies to incorporate more varied research methods and approaches to analysis. In spite of the fact that investigation might be competent in technology, it has grown increasingly monotonous and tiresome [26]. Additionally, it does not question the “flimsy” premises that support the body of previous research. The general positivistic methodology that today governs administration theorising, as stated by researchers who reject orthodox managerial theory, actually results in “hindering our evaluation of where it is leading society” [27]. Owing to these researchers [28], it is essential to implement new perspectives on managerial and entrepreneurial issues and to recapture the discourse versus predictability. Global research regulation is handled by a number of entities, including higher education institutions, business colleges, and funding institutions. Researchers are discouraged from conducting original research by these organisational environments, which urge them to submit numerous publications as they can. Giving up qualitative investigation methods in favour of research output becomes a certainty if researchers undergo demand to appear in specific institutions that tend to exclusively accept quantitative studies from a positivist perspective.In order to ensure career mobility, research is being undertaken in the interest of the researcher rather than the general public [29]. Additionally, PhD programmes place a premium on technical expertise while inhibiting creativity and innovation [30]. In addition, numerous PhD learners throughout South Africa are part-time workers who can only devote evenings and after-work hours to their studies.They have limited time to think independently and little room to come up with original ideas because they are under pressure to complete their PhD within a particular period of time according to an established procedure. A study [31] asserts that the goal of entrepreneurship scholar should be to advance entrepreneurship practises through novel ideas and high-impact research, rather than to increase research output. A positivistic framework is required for works to be judged scientifically valid, according to [32].A 2016 analysis of the three main open-access management journals published in South Africa shows this predilection for quantitative methodologies. 69.7% of articles published during the 10 years between 2005 and 2014 are quantitative, 26.7% are qualitative, and 3.7% are mixed-method studies, according to the results [33].Additionally, [34] finds that the dominant methodology approach in studies on the administration of human resources is positivist.In South African management educational institutions, this is referred to as the “fetishization of positivism” by h. Ruggunan.t. The hypotheses and essentials relating to supervisors and leadership form the foundation of more comprehensive concepts concerning leadership [35]. Another such presumption is the notion that “the management” possesses special skills as well as inside information that qualify them to preserve democracy and fairness in the workplace [36]. Administrators are hallowed with an air of mystique and magnificence because they represent the pinnacle of topical competence and the execution of righteousness in the working environment [36]. The knowledge claim is now regarded as the sole option since it has grown so entrenched in management and organisations [37]. In recent decades, more academics have begun to question the underlying assumptions and ideologies of mainstream management theory with the goal of emancipating and liberating people from the hegemony and ideologies that are fostered by these assumptions [38].The phrase “critical management studies” (CMS) was first used by Alvesson and Willmott in 1992. According to [40], CMS “presents a methodological and epistemological challenge to the objectivism and scientism of mainstream research where there is an assumption and/or masquerade of neutrality and universality”. It encourages academics to question the presumptions that underpin mainstream research.d. Although critical management studies existed prior to 1992 (e.g., the so-called Frankfurt School theorists), the term CMS has developed a conceptual framework that connects previously disparate research [41]. Since Alvesson and Willmott’s groundbreaking article in 1992, CMS has witnessed a surge in publications, conferences, and academic networks [42].   Despite being a relatively new field overall, it has recently established itself as a mainstay of management study [43]. However, CMS is still mostly unheard of in South Africa [44]. Three fundamental positions of CMS have been developed by [45]. First and foremost, CMS attempts to de-naturalize the accepted premises that are currently considered to be common sense in management research. These tacit or explicit taken-for-granted presumptions imply that some imperatives (such “globalisation” or “competitiveness”) have no alternatives. CMS believes that these claims of conventional wisdom are unreliable and is dedicated to “uncovering the alternatives that have been effaced by management knowledge and practise” [46]. The subaltern classes can be freed from the exploitation brought on by these presumptions and ideologies if academics take a critical stance [47]. Additionally, CMS adopts a non-performative approach. Performativity is the guiding principle for knowledge and study in mainstream, uncritical management research. This suggests that research is only considered valuable if it can be used to increase the efficacy of managerial practise. The need for “management” is assumed to be desirable rather than being questioned [48]. This is because there are a number of reasons why theAsking for strong evidence to back up this alleged worth has become politically unacceptable since the distinctively good influence of everything and anything called “entrepreneurship” has been so established in the mainstream discourse [49]. Mainstream management research is based in a Global North environment that is “explicitly and implicitly supportive of the institutions and values of corporate capitalism” [50]. This includes entrepreneurship research.The majority of empirical research on the relationship between entrepreneurship and economic development has been done in countries in the Global North, such as North America and Europe, and its findings are only marginally applicable to questions about economic development in the Global South [51]. According to [52], there appears to be a specific lack of scholarly discussion regarding African entrepreneurship, and policies and interventions are based on research and findings from the US and EU. In fact, there is no evidence to support the claim that entrepreneurship promotes economic growth in the African context [53], and the results in the Global North are likewise unclear. However, the significant contextual distinctions between Western and non-Western settings are frequently ignored [54]; entrepreneurial activities are socially ingrained in reality [55].  A crucial contribution by [56] demonstrates how entrepreneurship has the ability to exploit, destroy, and overthrow by promoting the idea that capitalism is the most-favorable economic system for creating wealth and value in a society. The authors also show how entrepreneurship is systematically linked to environmental pollution, corruption, and human exploitation in addition to showing how it consistently and pervasively hinders emancipation from occurring. However, they discover that mainstream research downplays this negative aspect of entrepreneurship in favour of an idealistic interpretation of the phenomenon.” Entrepreneurship” has developed into a complicated phenomena that transcends a number of disciplinary distinctions and encompasses a complex array of continuous and overlapping conceptions. However, the term has grown to mean both everything and nothing in the process of constructing an inclusive definition [58]. The term “entrepreneur” has come to mean so many different things that it now runs the risk of including everyone [59]. In reality, this search for a “one-size-fits-all” general theory attempts to bring together the practises, behaviours, styles, and personalities of very different groups, in very different environments, and in very different contexts [60]. Critical scholars contend that the entrepreneurship narrative has transformed everyone and everything into an entrepreneur [61]. It is evident that the term “entrepreneurship” covers a wide range of diverse, heterogeneous phenomena, including opportunity-motivated, necessity-motivated, and survivalist entrepreneurs, small- to medium-sized and micro-enterprises, rural entrepreneurship, corporate entrepreneurship, and social entrepreneurship, to name just a few.However, it is criticised for portraying “entrepreneurship” as a uniform umbrella in mainstream entrepreneurship studies.a term, and constantly apply to all concepts encompassed under the umbrella the presumptive features elicited by the term. This strengthens the argument that all entrepreneurial activity is essentially the same [62]. Entrepreneurial success is still elusive and failure is likely [63]. According to [64], by conceptualising entrepreneurship as a standard phenomena, academics actually shield a number of widely held beliefs from being challenged.It is becoming clear that the term “entrepreneurship” cannot be used as a catch-all, supposing that all types of business owners would equally contribute to economic growth and employment creation [65]. There is ambiguity around what entrepreneurship is as opposed to what it can be [66]. A flawed paradigm for entrepreneurship theory is supported by the lack of a clear definition of the boundaries in the field of entrepreneurship [67].

  1. CONCLUSIONS

The academic community is influencing development policy by repeatedly presenting this presumption as academic expertise, but the policy is not promoting upward mobility for those who are economically excluded. Therefore, policies that are ineffective and are not in turn, supported by claims of academic comprehension harm the unemployed and the poor. The academic community is charged with epistemic aggression in this sense. The community of scholars in South Africa must ethically respond to this charge by adopting an appropriate scepticism towards the idea that mainstream entrepreneurship theory can provide answers to issues about economic growth outside of the setting in which it was established. Discussions have the power to legitimate and naturalise particular views while making others unfathomable by repeatedly reiterating presumptions. Discourses can, however, also alter the current situation. Recognising naturally occurring insights that the dominant ideology has muted and integrating their contributions into the academic conversation in the developing nations are two ways to further the process of epistemological mending. According to orthodox entrepreneurial theory, adopting traits from the Global North will eradicate inequality and impoverishment in the countries of the Global South. As an outcome, entrepreneurship was adopted as an essential growth instrument. A critical scholarly discourse in the Global South must serve as the inspiration for this reconceptualization of entrepreneurship theory. It is argued that rethinking entrepreneurship within a development framework will provide fresh perspectives on why it hasn’t been able to deliver on its promise of fostering economic growth and the creation of jobs in South Africa and the larger Global South. In order to determine whether and how the assumptions and discursive practises in mainstream entrepreneurial activity philosophy are applied to the academic discussion in the Global South, this article builds on the emerging field that comprises critical entrepreneurship research by evaluating the scholarly entrepreneurship discussion in South Africa. It also suggests that redefining entrepreneurship as a development tool would be an appropriate response to the criticism arising from disputable research. This would free entrepreneurship from the limitations of conventional entrepreneurship theory.

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Publication History

Submitted: June 02, 2023
Accepted: June 20, 2023
Published: July 01, 2023

Identification

D-0064

Citation

Mostafizur Rahman Mustafa, Shahir Ahmmed (2023). Critical reflection to broaden the conversation about generating employment across entrepreneurship in South Africa. Dinkum Journal of Economics and Managerial Innovations, 2(07):406-415.

Copyright

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