An exploratory study on entrepreneurial mindset in the small and medium enterprise (SME) sector: A South African perspective on fostering small and medium enterprise (SME) success

Abstract

Business success in the new economy is merely not a function of relevant skills; but also requires people who have entrepreneurial mindsets. As much as entrepreneurial mindset is important for business success, it is also vital to understand the current level of entrepreneurial mindsets in each entrepreneurial community by identifying which factors are lacking that needs to be improved as a means to foster the success of entrepreneurs. This study’s objective is to understand the level of entrepreneurial mindset in the small and medium enterprise (SME) sector in South Africa. The population for the study comprised of entrepreneurs in the SME sector in Bloemfontein area. The questionnaire, answered by 86 entrepreneurs, was designed with the aid of an entrepreneurial mindset tool and Mind Prober 3.0. The respond and result gotten from the questionnaires distributed indicated a low level of entrepreneurial mindset in South Africa. This deduction led to the establishment of the fact that the lack of an entrepreneurial mindset contributes to the high failure rate of SMEs in South Africa. Further observation on this study also established that entrepreneurs with an entrepreneurial mindset performed better in certain factors (creativity, risk taking propensity, growth mindset etc) which are considered vital for business success. A culmination of these briefly exemplified elements thus makes it necessary to look into means and the need of fostering SME success in South Africa.   Key words: Entrepreneurial mindset, small and medium enterprises, success, South Africa.