Using a grounded theory approach in a developing a taxonomy of entrepreneurial ventures in South Africa: A case study of Limpopo Province

Abstract

The questions of what constitutes entrepreneurship and, in turn, who an entrepreneur is, have dominated entrepreneurship discourse in recent times. Over the years, a multiplicity of definitions of entrepreneurship has been proffered. However, most of these definitions to be either Eurocentric or Western-oriented and largely devoid of (South) African socio-economic imperatives. Naturally, the manner in which entrepreneurship in South Africa is conceptualised derives from the former definitions. Furthermore, the classification of entrepreneurship ventures in the country is also problematic. A Eurocentric classification regime is, on the one hand, too simplistic; and, on the other hand, it fails to fully capture the true essence of entrepreneurial activity within the South African economy. It is, therefore, not surprising that entrepreneurship development policies and interventions are not successful in stimulating entrepreneurship. This problem, this study argues, is a result of the lack of localised research aimed at understanding entrepreneurship classification dynamics in South Africa. This constitutes a research gap, which this study seeks to address. It is against this background that the aim of this study is to develop a taxonomy of entrepreneurial ventures in the Limpopo Province of South Africa. To achieve this purpose, which is pre-paradigmatic, the proposed study was designed along the dictates of a qualitatively grounded theory research. This facilitated the application of multiple methods of data collection. The study sampled 5 entrepreneurs in the Limpopo Province who were interviewed using an in-depth format. The value of this work is among the first in seeking to propose a framework (i.e. taxonomy) for classifying entrepreneurship ventures within the South African context. The implication of the study is that it potentially provides policymakers with valuable tools to understand South African entrepreneurship and the channels of intervention for small business ventures.