Maria Eggink

Having the proper infrastructure is crucial because it fosters prosperous enterprise and a skilled labor force capable of solving environmental issues. There are worries about the potential negative effects of human capital centered on innovation, despite studies showing benefits. This study examines how contextual factors such as business environment, infrastructure, and human capital, influence South Africa’s entrepreneurial ecosystem. Multiple Regression Technique was used for analysis. Findings showed that each of the three factors has a remarkable impact, with business environment showing the highest positive relationship to the Ecosystem Index. The results highlight the significance of focusing on sustainable activities when developing human capital. To promote a more sustainable entrepreneurship environment, the study suggests that policymakers should implement incentives, allocate finances for infrastructure, and establish educational and knowledge-sharing initiatives to encourage the sustainability of the entrepreneurial ecosystem. Future research directions will focus on investigating how additional contextual factors affect ecosystems in various regions and industries. The study also suggests the evaluation of gender equality in access to financial and business assistance.

The issue of income disparity has long plagued South Africa because of the political environment that existed before the country’s 1994 democratic transition. Based on the widely used Gini index, which gauges global inequality, the nation routinely has some of the highest rates of income disparity in the world. Income inequality in South Africa keeps rising even after a number of frameworks and policies have been put in place, which has a big influence on society. Thus, it is essential to comprehend the causes of income disparity and put suitable policies in place to remedy it. The purpose of this study is to look into the relationship between South Africa’s income disparity and its determinants. Using the Vector Error Correction Model (VECM) approach, this study empirically examines the effects of government spending on social grants, gross savings, population growth, and economic growth on income inequality from 1975 to 2017. Data on the Gini index are sourced from the Standardized World Income Inequality Database (SWIID). Findings reveal a statistically significant negative correlation between government spending on social grants and income inequality. Moreover, income inequality demonstrates a negative relationship with both gross savings and economic growth. However, population growth exhibits a positive correlation with income inequality. This study highlights the significance of implementing a comprehensive strategy to address income inequality in South Africa. This strategy should involve augmenting government expenditure on social grants, cultivating a savings culture within households, and enacting policies that incentivize job creation, particularly in areas with rapid population growth. In addition to making a substantial contribution to the body of evidence already available on income disparity, this study offers insightful information to policymakers working to improve the socioeconomic climate in South Africa.

Finance support and other forms of business support have been recognized as key factors in the entrepreneurial ecosystem in theoretical and empirical investigations. There is currently a knowledge gap regarding the combined impact of these two variables on the entrepreneurial ecosystem, even though much research has shown that both variables have a favorable influence on entrepreneurial ecosystems. The primary goal of this study is to determine whether the interactions between the two variables—finance support and other business support services—have an impact on the entrepreneurial ecosystem in South Africa. A second objective is to determine the main effects of these variables on the entrepreneurial ecosystem. A standardized questionnaire was used to conduct a study of 2000 SMEs in the South African province of Mpumalanga. To investigate the effects of business support services and finance on the ecosystem as measured by the test instruments, a two-way between-groups analysis of variance was carried out. Depending on their finance index, subjects were classified into three groups: low, medium, and high. There was a statistically significant main effect for finance and other business support services with F(2, 1478) = 26.109, p ≤ 0.001 and F(2, 1478) = 149.552, p ≤ 0.001 respectively. However, the effect sizes were small (partial eta squared = 0.034 and 0.168). Post hoc comparisons using the Tukey HSD test indicated that the mean scores differed for all the groups in finance support and other business support services. It was found that financial support and other business support would impact the SME ecosystem in South Africa positively if implemented separately but not if implemented interactively. The targets of financial support should be separated from other business support during policy formulation and implementation by the government.

Studies conducted in South Africa have revealed that despite SMEs’ contributions to economic growth, financing is still a problem, and business supports such as management and business development training and the creation of business plans are additional obstacles to their expansion and survival. This article specifically investigates the combined effects of financing and business support on the business environment of South African SMEs. We calculated a necessary sample size of 1937 using a sample size calculator, a margin of error of 2%, a confidence level of 95%, and a response rate of 20%. As a result, 2200 questionnaires were distributed, the target population was split into 3 strata, and then samples were chosen for the survey from each stratum. The SPSS version 25.0 was employed to analyze the data in three parts, namely, descriptive, correlation, and the outcome of the regression (coefficients/model summary/ANOVA). The level of significance was determined at 5%. The test–re-test reliability method (trustworthiness assessment of the questionnaire) and Cronbach Alpha test (internal constancy) resulted in values of 0.70 and 0.875, respectively, which were regarded as satisfactory. The SME business ecosystem in South Africa was positively and significantly impacted by each of these financial and business support components. The findings also give policymakers vital information about the need for more research into how money and business assistance interact throughout the business ecosystem. It is advised that the South African government intensify its current policies and programs on SMEs’ access to financing, particularly in the areas of grants, equity financing, and loan financing. Additionally, it is necessary to build an adequate information system that ensures unrestricted information flow to rural areas.