Title page for ETD etd-03232010-140249


Document Type Master's Dissertation
Author Le Grange, Brendan
URN etd-03232010-140249
Document Title Promoting new venture formation by the unemployed
Degree MBA
Department Gordon Institute of Business Science
Supervisor
Advisor Name Title
Ms C Magner Supervisor
Keywords
  • entrepreneurship
Date 2008-04-01
Availability unrestricted
Abstract

Excessive levels of unemployment exist in many South African communities (www.statssa.gov.za) alongside low levels of entrepreneurial behaviour (GEM Report, 2006). This is true even when South African figures are compared to figures from similar developing countries (GEM Report, 2006; Urban, 2006).

This thesis looks for reasons why this situation exists and examines possible solutions by considering the motivation to create new ventures alongside contemporary theories of work motivation. It considers those theories in light of the known depressing effects that unemployment has on an individual (Darity et al, 1996; Feather, 1992; McKee-Ryan et al, 2005; Rodriguez, 1997; Shamir, 1986; Vansteenkiste et al, 2004; Vansteenkiste et al, 2005) in order to gain a better understanding of why entrepreneurship is not flourishing in South Africaís unemployed communities.

The motivation to form a new venture is vital to new venture formation (Herron & Sapienza, 1992; Douglas et al, 1994; Wennekers and Thurik, 1999; Wiklund et al, 2003; Segal et al, 2005) but is under-considered in many programmes aimed at encouraging entrepreneurship. Where the psychologically depressing effects of unemployment have reduced an individualís intrinsic motivation to form a new venture, a structured environment should be created to facilitate the early stages of new venture formation. Individuals should be extrinsically motivated to achieve goals until the benefits of accumulated achievements have countered those depressive effects and traditional venture formation theories once again become valid.

© 2007 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria

Please cite as follows:

Le Grange, B 2007, Promoting new venture formation by the unemployed, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03232010-140249/ >

G10/150/ag

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