Modelling values, entrepreneurial competencies and sustainable development : a case of small, medium and micro enterprises in eThekwini Municipal area

Abstract

There is a universal call to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. This must be done in such a way that the needs of the present must be met without compromising the ability of future generations to meet their own needs. This is what sustainable development is all about. Broadly stated, it refers to programmes, initiatives and actions aimed at the preservation of distinct areas such as human, social, economic and environmental. Governments at all levels are expected to be in the forefront of such initiatives. At the heart of economic development is the business world, in particular, Small, Medium and Micro Enterprises. There is overwhelming evidence that these categories of business are very responsive to societal needs and are thus able to mitigate the effects of afflictions such as poverty and unemployment. As such, the South African Government has some initiatives in place to assist them to grow. The kind of assistance that is mainly focussed on is financial and skills training. However, even with all that assistance, the two main ills of poverty and unemployment have not been dented. This observation gave rise to this study, to examine the behavioural competencies of entrepreneurs to see how values impact competence so that sustainable development is achieved. The research area was eThekwini Municipality, which is a Metropolitan City in KwaZulu-Natal, South Africa. Its size and economic activity make it attractive to job seekers even from rural areas. The main aim of this research has thus been to determine the extent to which values and entrepreneurial competencies can impact sustainable economic development in the eThekwini Municipal Area of South Africa. To establish the set objectives, a descriptive research design was employed, using a quantitative research strategy. Data was collected using a structured questionnaire which was administered to the entrepreneurs through convenience sampling, yielding a sample of 400. The data was captured and analysed on SPSS (version 26) and SEM was used to test the structural relationships of the variables, these being Honesty; Integrity; and Transparency as these emerged as the key values that entrepreneurs should have while Accountability; Social Interaction and Personal Identity were conceptualised as key competencies. The main measures of sustainable development were Poverty Alleviation and creation of employment opportunities. Pertinent observations came out of the structural model which showed that honesty and transparency do not have an effect on accountability. Similarly, personal identity does not have an impact on integrity whereas integrity has a significant effect on social interaction. Furthermore, accountability does not have a significant impact on neither poverty alleviation nor creation of employment opportunities. The finding that integrity weighs more to society than anything else is to be taken seriously.