Assessing the corporate entrepreneurial climate in accounting small and medium enterprises

M.Com. (Business Management)Abstract: The purpose of the study is to assess the corporate entrepreneurial climate in accounting small and medium enterprises (SMEs) in South Africa. Only limited empirical research exists in South Africa on the subject of corporate entrepreneurship (CE) in SMEs. The present study addresses the management problem that exists in South Africa on how to foster and implement CE. An environment conducive to CE is characterised by five antecedents, namely, management support, work discretion, rewards or reinforcement, time availability and organisational boundaries. The propositions were developed using these five antecedents of corporate entrepreneurship. Based upon a positivist research philosophy, the study adopts a deductive approach, which uses data to test theory. A non-probability, purposive sampling technique was used to collect the data through a Corporate Entrepreneurship Assessment Instrument (CEAI) questionnaire. The findings of the study indicate that the internationally developed CEAI can successfully be used to assess the corporate entrepreneurial climate in accounting SMEs. The CEAI has also been tested on a South African sample and was proved a valid and reliable instrument. The data was analysed using the Statistical Package for the Social Science (SPSS) programme. The empirical findings of the study indicate the five antecedents, except for time availability, that were used to populate the CEAI questionnaire used in this study support the existence of an entrepreneurial climate in accounting SMEs. It is recommended that the gaps identified by the CEAI be addressed through an appropriate training programme. Other recommendations include increasing awareness of the value of CE, creating environments and structures that foster CE and supporting and motivating employees in their CE endeavours. Additional measures could include setting aside specific budgets for CE activities, making time available for CE initiatives as well as CE incentives. These measures could further be supported by the avoidance of harsh criticism in the event of failure and flexible policies that reduce bureaucratic procedures...