Global Journal of Commerce & Management Perspective
Open Access

Abstract

The Impact of Entrepreneurship on Economic Growth in South Africa

Vincent Kagame Sebikari

Studies on the relationship between entrepreneurship and economic mainly uses situation analysis and surveys. Most of these studies have not considered the endogenous relationship between the two. To address such situation, the paper develops an econometric model: log =log    α+βlog +φlogL+ log +ε  The paper consists of two fundamental questions regarding the link between entrepreneurship and economic growth. The first deals with the endogenous relationship between entrepreneurship and growth. Suggesting more entrepreneurship could mean more economic growth; economic growth in turn could affect the individual arbitrage between different occupations including entrepreneurship and expect payoffs. The second question is concerned with the types of activities to which the individual directs talent in South Africa. Approximately 500 face-to-face interviews with the entrepreneurs in an attempt to ascertain “how entrepreneurship is good for growth?” were carried out in Gauteng province.