Impact of social entrepreneur's education and business skills training on the success of non-profit organisation

The social problems that exist within South Africa cannot be ignored. The magnitude of poverty, unemployment and crime that exist are ever increasing while HIV/Aids has left 10 percent of the children within this country orphaned. Discrepancies in the access to proper healthcare and education between the private sector and the public sector is evident, mainly due to the failure of the public sector (government) to effectively implement and manage the healthcare and education systems in South Africa. In the last decade, there has been a significant increase in the number of registered non-profit organisations which can be attributed to a greater awareness of the social problems that exist, as well as the inability of the government and the public sector to address the social problems on their own. Social entrepreneurs are attempting to find innovative solutions to these problems by starting non-profit organisations and then implementing projects and programmes that will help alleviate these social problems. Social entrepreneurship is a fairly new concept, particularly within the realm of academic research. Previous studies on social entrepreneurship have highlighted the need for social entrepreneurs and have also emphasised the many challenges these social entrepreneurs face, one of which is the lack of education and business skills training. Research indicates that a non-profit organisation should be run like a small business in order to be successful, which highlights the importance for social entrepreneurs to be equipped with the appropriate business skills. The impact that a social entrepreneur’s education and business skills training has on the success of a non-profit organisation is however still largely unknown. The purpose of this study was three-fold: firstly, to study the relationship between the education and business skills training of a social entrepreneur and the successful functioning of their non-profit organisations; secondly, to develop recommendations for social entrepreneurs on how to more effectively manage their non-profit organisations and guide them in what business training will benefit them as a social entrepreneur; and lastly, to add to the already existing knowledge on social entrepreneurs, particularly within a South African context. The main research methodology used to conduct the empirical investigation in this study was qualitative in nature. Elements of quantitative data collection were adopted in the instruments in order to ensure standardisation when measuring a social entrepreneur’s education and business skills training, as well as the success of their respective non-profit organisation. In-depth interviews were conducted with fourteen social entrepreneurs who work in a variety of social developmental sectors within South Africa. An interview guide was developed to record the formal levels of education and business skills training received by the respondents and to discuss the impact of other types of education and business skills training on their capabilities as managers of non-profit organisations. A tool was developed to measure the success of the respective non-profit organisations and the results were compared to the social entrepreneur’s levels of education and business skills training. Global analysis was the data analysis technique adopted in this study and was used to identify common themes among the transcripts as well as possible relationships between different variables. There were two main findings with regard to the impact a social entrepreneur’s education and business skills training has on the successful functioning of his/her respective non-profit organisation. Firstly, the formal types of education and business skills training of a social entrepreneur have a direct impact on the success of a nonprofit organisation. Secondly, once a social entrepreneur has completed school level education, informal types of education and business skills training play a bigger role than formal types in the effective management and success of his/her respective non-profit organisation. The findings of the empirical investigation showed that the most valuable three types of informal education and business skills training include workshops and conferences, business experience and networks. The most important recommendation for social entrepreneurs is that their school level education should be completed, in order to access further education and business skills training opportunities. The social entrepreneurs must equip themselves with certain skills and knowledge, namely: financial management, legal knowledge, human resource management, strategic management, monitoring and evaluation skills, technical skills and research skills, in order to ensure the successful functioning of their respective non-profit organisatio