A systems' thinking approach to entrepreneurial leadership : an analysis of SMMES in the Gauteng Province

Abstract

Despite the efforts of the South African Government to stimulate entrepreneurial opportunities through policies, strategies, and programmes, many Small, Medium and Micro Businesses remain unsustainable. However, SMMEs often experience various challenges and studies have shown that SMMEs in South Africa rarely survive in their first year of existence. One problem SMMEs face in South Africa is poor leadership. Further, insufficient financial resources, lack of business knowledge and management, and inadequate institutional support thwart sustainable growth and have a negative effect on the overall performance of SMMEs. Thus, having an understanding and insight into the various leadership problems and dynamics encountered by the SMMEs could foster the development of strategies to improve the performance of SMMEs. This study evaluated the application of entrepreneurial leadership capabilities to respond to uncertainty, challenges, and opportunities in the entrepreneurial system and understand how the systems thinking approach can be applied in entrepreneurial leadership to address the complex dynamics of the entrepreneurial ecosystems. Overall, the study identified the pathways to entrepreneurial leadership and deepened the current understanding of the concept of entrepreneurial leadership in selected SMMEs operating in the Gauteng province. This study adopted a holism model underpinned by methodological pluralism and mixed- method strategy. It used a pragmatist philosophical approach and mixed-method case study to achieve its objectives. A three-tier research plan was used comprising semi-structured interviews, causal loop diagrams, and simulation modelling to address the research aim and the objectives.