An analysis of Fourth Industrial Revolution (4IR) and entrepreneurship in South Africa: opportunities and challenges

Abstract

Africa and the rest of the world have witnessed plethora of changes in the way we do things, by the introduction of the fourth industrial revolution. This is not just true for the way people live, for the fourth industrial revolution has also impacted the manner in which businesses operate and perform. Its introduction presented changes, challenges and opportunities on the operations of small businesses; these have not been sufficiently tested in the body of knowledge. It is against this background that this study investigates the changes, challenges and opportunities brought by the 4IR on entrepreneurship with special focus on small businesses. The study was guided by the radical humanists‘ paradigm, the phenomenological design and the qualitative research method. Data was collected from 10 small business owners purposively sampled from Gauteng at the Ekurhuleni Local Municipality and Mpumalanga at Bushbuckridge Local Municipality. A structured interview guide was used to collect data through face-to-face interviews while an audio recorder and a notebook were used to capture the responses of the participants. The collected data was transcribed using Microsoft Word version 26 and analysed thematically. Results indicate the fourth industrial revolution applicable technologies, potential changes, challenges and opportunities facing small businesses and entrepreneurship. The value of this dissertation is that it is among the first studies contributing towards understanding of the changes, challenges and opportunities presented by the 4IR to small businesses and entrepreneurship in South Africa. The scope of the study was restricted to Bushbuckridge Local Municipality and Ekurhuleni Local Municipality; therefore, findings might not be generalisable to other areas in South Africa, to the rest of Africa or other developing countries/emerging economies. There is an opportunity to conduct similar study with other municipalities in other provinces in South Africa to gain different views. The researcher recommended that entrepreneurs should search for more information from relevant and reputable sources in order to avoid misinformation and misunderstandings as well as enrolling on 4IR education and skills programme and policymakers should implement necessary tech-related policies that will work towards providing adequate tech-support to small businesses.