Intrinsic motivation and business competences as predictors of small and medium growth : SME owner’s viewpoint

Abstract

Small and Medium-sized Enterprises (SMEs) account for a significant portion of job creation, business growth and economic activity in South Africa. Therefore, sustainable development of SMEs is important for job creation, poverty reduction and economic development. The high failure rate during the first years of SME start-up negatively affects South Africa’s economic development. Hence, this study examines the arbitrating effect of the SME owner’s intrinsic motivation factors and competences on SME growth. These factors include the utilisation of effort for business growth, finding new solutions to business problems aimed at achieving growth, growing business for recognition, the belief to produce the desired outcomes, taking responsibilities for business expansion, the need for advancement, as well as the growth aspiration that enables the business owner to take risks in order to grow the business. This study has generated multifaceted data on the effect of intrinsic motivation factors and competences of SME owner on business growth. The SSPS was used to analyse data obtained from 112 SME owners of the furniture manufacturing organisations operating in the eThekwini District Municipality. The results indicate that intrinsic motivation factors in SME start-ups influences the personality traits in SME owners for small and medium business growth. SME growth depends on the extent SME owners are equipped with business competences to establish and grow their businesses. There is a statistical significant link between business competences and the SME growth motivation. Furthermore, the results indicate that personality traits mediate the relationship between motivational variables for SME start-ups and business growth.