An investigation of the entrepreneurial orientation, context and entrepreneurial performance of inner-city Johannesburg street traders

Abstract

3Increasingly, attention is being paid to the entrepreneurial potential of the informal sector, which participants perceive to be rich in opportunity. Yet, little has been done to investigate the entrepreneurial orientation, and indeed, the contribution of entrepreneurial orientation to the entrepreneurial performance of informal traders. Entrepreneurial orientation (EO) is particularly useful because it contributes to a fundamental understanding of what entrepreneurship is. The focus of this study is an examination of the EO of inner city traders in the City of Johannesburg, South Africa. Data relating to EO, contextual factors and entrepreneurial performance were collected from 308 street traders and analysed to investigate, fi rstly, the factors that shape EO, and secondly, the potential contribution of EO to entrepreneurial performance. The fi ndings indicate that EO is associated with certain contextual and learning factors, suggesting that the provision of entrepreneurial training might contribute to the empowerment of informal entrepreneurs. At the same time, higher levels of proactiveness and competitive aggressiveness were found to be positively associated with continuance satisfaction.