MOTIVATION FOR STARTING A BUSINESS: OPPORTUNITY OR SURVIVAL? A SOUTH AFRICAN PERSPECTIVE

Abstract

Labour and trade union disputes and political uncertainty continue to negatively affect the South African economy. Strike action hampers productivity in many industries, affecting foreign investment. These factors all contribute to a slower economy, weakening the exchange rate and increasing cost of imports (Anon1 2014:1). A struggling electricity supply is also adding to current South African economic woes. The above factors add to the reasons why small businesses (SMEs) are being started as a means for South Africans to establish their own forms of income during these tough economic times. SMEs often form the backbone of national economies and have lately increased in importance (Hove & Tarisi 2013:57). This research paper aims to explore the reasons why small businesses are started in South Africa by focusing on intrinsic and extrinsic driving forces. Once the reasons are known as to why small businesses are started, researchers can begin to develop interventions and strategies for the successful establishment and long-term survival of these SMEs.