South Africa as the Case Study on the Relationship between Entrepreneurship and Economic Development

Abstract

This essay explains how entrepreneurship and economic development relate with each other. It uses a qualitative case study, exploring data to explain the relationship between the two phenomena. In the findings, the relationship between entrepreneurship and economic development is two-way and it shows that the two phenomena are interdependent. Entrepreneurial activity affect socioeconomic development through its outcomes, which depend on the type of activity, sector and the phase of the organization cycle. Entrepreneurial activity are influenced by national framework conditions and entrepreneurial framework conditions, both directly and indirectly (through individual attitudes and social attitudes). The two conditions are in turn dependent on the level of economic development.