On the business cycle and new business ventures: A panel analysis of selected Southern African Development Community countries
Acta Commercii
| Field | Value | |
| Title | On the business cycle and new business ventures: A panel analysis of selected Southern African Development Community countries | |
| Creator | Maduku, Harris | |
| Description | Orientation: This article investigates the relationship between entrepreneurial activities and the business cycle for selected countries in Southern African Development Community (SADC).Research purpose: The purpose of the study was to understand how business cycle affects the supply of small businesses in the selected SADC countries.Motivation of the study: The regional block has been witnessing low economic growth patterns accompanied by high unemployment rates, poverty and inequality leading policymakers to start looking at small business supply as a possible solution.Research design, approach and method: The article used panel data spanning from 2000 to 2016. It also used random and fixed-effects estimation techniques.Main findings: The study found a negative relationship between entrepreneurial activities and business cycle. Interestingly, our findings did not show either a bidirectional or unidirectional relationship between the variables of interest although they maintained an expected sign relationship as per a prioriexpectations. The findings also showed a negative relationship between inequality and new entrepreneurial activities and the variable is significant at the 1% level.Practical/managerial implications: The implications of this article are that governments in these selected SADC countries prioritise nurturing small businesses so that they can grow to significantly contribute to economic growth.Contribution/value-add: The contribution of this study is in finding the nature of the relationship that exists between the business cycle and supply of small businesses in selected SADC countries. | |
| Publisher | AOSIS | |
| Date | 2019-04-15 | |
| Identifier | 10.4102/ac.v19i2.661 | |
| Source | Acta Commercii; Vol 19, No 2 (2019); 14 pages 1684-1999 2413-1903 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://actacommercii.co.za/index.php/acta/article/view/661/1118
https://actacommercii.co.za/index.php/acta/article/view/661/1120
https://actacommercii.co.za/index.php/acta/article/view/661/1119
https://actacommercii.co.za/index.php/acta/article/view/661/1111
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