Effects of a growth mindset and reinvesting in South African small businesses.

Abstract

Background: It is generally acknowledged that thoughts are the foundation of physical materials, that action tends to be trailed by intent. If this be true, it is bias to account to only the extrinsic factors as sole causality for the inadequacy of SMMEs, while retreating all individual accountability, responsibility from the owners of businesses. For a long time, studies have overly emphasised extrinsic factors primary referable to the crippling failure rate or lack of growth in the SMMEs sector. Nonetheless, there is no question as to the high rate of failure in SMMEs due to external factors, but there is a grave question as to the amount of actual failure contributed by the “mindset” possessed by owners, managers, and inventors of SMMEs, here-forth to be will be referred to businesspersons. Objective: The purpose of this study is to understand what personal virtues affect the growth mindset of businesspersons relating to the performance of SMMEs. Methods: This research is exploratory in nature, using qualitative methods to collect and analyse data, which gave this research an interpretative character/attitude. Online Survey and in-depth open interviews were used. Using a stratified purposeful and convenience sampling, nine SMMEs participated in this study. Interviews were carried out with six businesspersons and analysed using the thematic analysis. Findings: The interpretative analysis of this exploratory study revealed that personal virtues of SMMEs businesspersons does affect the performance of SMMEs. Conclusion: Based on the findings of the study, the entire subject matter is, it is proper to educe from the mind-set the attitude to grow businesses. The South African Government from primarily schooling, communities from early childhood should educe the attitude of entrepreneurial character to its citizens. Support in dealing with the psychological entrepreneurial growth mental attitude first, could help to create an external atmosphere that support an already ready mindset responding to the demand to improve SMMEs performance.