Human, P.
A icle
Bu eauc acy and he need o en ep eneu ship in Sou h
A ica
Sou h A ican Jou nal o Business Managemen
P o ided in Coope a ion wi h:
Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica
Sugges ed Ci a ion: Human, P. (1984) : Bu eauc acy and he need o en ep eneu ship in Sou h
A ica, Sou h A ican Jou nal o Business Managemen , ISSN 2078-5976, A ican Online Scien i ic
In o ma ion Sys ems (AOSIS), Cape Town, Vol. 15, Iss. 4, pp. 212-219,
h ps://doi.o g/10.4102/sajbm. 15i4.1130
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/217875
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
Bu eauc acy
and
he
need
o
en ep eneu ship
in
Sou h
A ica
P.
Human
School o Business Leade ship, Uni e si y o Sou h A ica, P e o ia
The g ow h o bu eauc a ic o ganiza ion is
seen
as
a cha ac-
e is ic inhe en in capi alism.
The
concen a ion o economic
powe in Sou h A ica is used
as
a measu e o he ex en o
bu eauc a iza ion in his coun y. I is a gued ha his
de elopmen is inc easing
and
ha such a de elopmen is
s uc u ally de e mining bu eauc a ic
ways
o hinking. Such
an
e hos is dys unc ional o he i ali y o economic de elopmen ;
his p oblem hus wa an s ou a en ion. I is sugges ed ha
he en ep eneu ial spi i is he p ime mo e
in
economic
de elopmen ; his
way
o hinking is,
mo eo e ,
desc ibed
and
explained. I is u he sugges ed ha his
way
o hinking could
be
p omo ed
and
ce ain me hods
a e
p oposed. I
is,
howe e ,
a gued ha much o he a en ion gi en o he en ep eneu has
been
misdi ec ed o sec o s o he economy which
a e
in ac
pe iphe al o economic de elopmen .
The
de elopmen o he
small business sec o is ce ainly o some impo ance; his
sec o canno ,
howe e ,
sol e ou majo p oblem,
and
ha is he
lack
o
eal
i ali y o big business which g ows by
ake-o e s
and me ge s a he han by p oducing
and
dis ibu ing mo e
weal h.
This sho coming, i is
a gued,
is a unc ion o he
ep oduc ion o he bu eauc a ic
way
o hinking.
S.
A .
J.
Bus. Mgm .
1984,
15:
212-219
Die g oei
an
die bu ok a iese o ganisasie wo d gesien
as
inhe en o die kapi alisme.
Die
konsen asie
an
ekonomiese
mag in Suid-A ika wo d
as
'n indika o
an
die ma e
an
bu ok a ise ing in hie die land geb uik.
Daa
wo d gea gumen ee
da hie die e skynsel
aan
die oeneem is in Suid-A ika
en
da
hie die e wikkeling die bu ok a iese denkwyse s uk u eel
bepaal.
Hie die denkwyse is dis unksioneel o ekonomiese
g oei
en
hie die p obleem behoo onde soek
e
wo d.
Die
en ep eneu
wo d
gesien
as
die p iml! e s imulus o
ekonomiese on wikkeling
en
hie die e skynsel
wo d
besk y
en
e klaa .
Daa
wo d gesugge ee da die denkwyse
an
die
en ep eneu
in
die ekonomie be o de
kan
wo d
en
seke e
oo s elle en opsig e
an
me odes om di e doen wo d
oo ges el.
Daa
wo d eg e ook ges el da die
aandag
wa op
die en ep eneu ge es ig is misplaas is deu da
aandag
ne
geskenk
wo d
aan
die en ep eneu
in
sek o e
an
die ekonomie
wa
pe i e ies is o die sen ale ekonomie.
Die
on wikkeling
an
die kleinsake-ondememing is seke lik belang ik maa di
sal
nie
ons p iml! e p obleem oplos nie; naamlik die
on e m~
an
die
g oo besigheidso ganisasie
om
by
e
d a o ekonomiese g oei.
Die besighede g oei deu oomames ee de
as
die skepping
en
e sp eiding
an
wel aa
en
di is
'n
unksie
an
die ep oduksie
an
die bu ok a iese denkwyse binne ons g oo ins ellings.
5.-A .
T)'dsk .
Bed y sl.
1984,
15:
212-219
P.
Human
School
o
Business
Leade ship,
P.O.
Box
392,
Uni e si y
o
Sou h
A ica,
P e o ia,
0001
Republic
o
Sou h A ica
Accep ed
June
1984
In oduc ion
We
some imes ind in he a ai s
o
people ha exac ly he
opposi e
o
wha hey belie e in, happens. This uneasiness
be ween ideas and eali y
is
pe haps mos p e alen
in
he
wo ld
o
business.
Take,
o example, he s a k con as be-
ween he idealism exp essed in glossy managemen maga-
zines and he
g ey
eali y
o
he shop loo ;
o
he mo alis ic
sen imen s exp essed
by
he chai man in his annual epo
and he numbe
o
un ai labou p ac ice cases his company
loses
in
he indus ial cou ; o , o ha ma e , he wa m h
o
heo y simpli ying
ou
business wo ld in he books on
ou
lib a y shel es and he con usion which eigns 'back
a he anch'. This gap be ween ideas and eali y
is,
one mus
admi , a eal p oblem o mos people.
We
know wha
is
igh ; wha
we
should do; bu , like habi ual animals, a e
compelled in a nea -au oma ic ashion o
do
he opposi e.
One example
o
such a con adic ion
is
ha be ween 'big
is
bad' and 'small
is
beau i ul';
we
a e all
o
some deg ee
wa y
o
he dange s inhe en in he la ge-scale bu eauc acy
wi h i s s i ling e ec on social li e and indi idual eedom.
We
a e a he same ime a den disciples
o
ideas
o
human
c ea i i y, independence
and
eedom. I
is,
howe e , as
we
will
see
la e
in
his a icle, he bu eauc a iza ion
o
li e
a he han he e en ion
o
indi iduali y which cha ac e izes
mode n li e. I would like o a gue ha 'big'
is
no necessa -
ily
'bad' bu an ine i able p e equisi e o he ep oduc ion
o
human
li e,
and ha i
is
no so much he idea
o
bu eauc acy bu i s applica ion which equi es e ision.
'Small
is
beau i ul', I would also a gue,
is,
i he idea
is
in-
e p e ed w ongly, eac iona y.
The
small p oduc ion uni ,
he 'socie y
o
shopowne s', and he backya d business a e
his o y; he e
is
e y li le sense in ying o e e se his o y,
o he demise
o
small-scale compe i i e capi alism hap-
pened
as
a esul
o
speci ic his o ical o ces. The e
was
hus
good eason o i s diminishing impo ance; his phase
should be seen as a phase in he de elopmen
o
capi alism
a he han
as
i s
ideal o m. The small business has i s place
in mode n capi alism, bu hen no in he cen e bu
on
he
pe iphe y
o
economic
li e.
I hus a gue ha capi alism
is
apidly mo ing in o a phase
cha ac e ized
by
he de elopmen
o
he la ge bu eauc acy,
he concen a ion
o
powe ,
he massi ica ion
o
consume ism
and p oduc ion. The e a e ce ainly eno mous dange s in-
he en in his o m
o
economic o ganiza ion, bu
i
would
be
w ong o assume ha his p ocess
is
e e sible
We
should,
o his o y
gi es
us
no o he al e na i e, excep ha which
e ges
on he changing
o
e en s
by
ca as ophe, accep he
S.
A .
J. Bus. Mgm . 1984, 15(4)
de elopmen
o
bu eauc acy as human des iny, and a he
ask
ou sel es: How can
we
e ain some emnan s
o
humani y
in
he ligh
o
ou
des iny?
The answe o his ques ion, acco ding o his a icle,
lies
pa ly in he phenomenon
o
he en ep eneu ial spi i .
I
is
a gued ha he en ep eneu ial spi i
is
no necessa ily ela ed
o he size and o m
o
o ganiza ions, and ha
i
is
a
way
o
hinking necessa y o he i ali y
o
economic o ganiza-
ion. This
is
ue in all o ms
o
economic o ganiza ion o-
day,
socialis ic
o
capi alis ic. This idea can
e en
be ex ended
o he i ali y
o
labou unions, eligious o ganiza ions, and
all o he o ms
o
social o ganiza ion.
In he i s sec ion
o
his pape , I discuss he na u e and
de elopmen
o
capi alism and bu eauc acy as a o m
o
o -
ganiza ion common o capi alis ic de elopmen . In he second
pa
o
he pape I look a he ex en
o
bu eauc a iza ion
in Sou h A ica. In he las pa
o
he pape I examine he
na u e
o
he en ep eneu ial spi i .
The na u e o capi alism
and
he g ow h o bu eau-
c acy
One
o
he ou s anding cha ac e is ics
o
capi alism
is
ha
i akes on a g ea a ie y
o
o ms in di e en epochs and
si ua ions. This cha ac e is ic usually leads o some deg ee
o
con usion as o he na u e
o
capi alism and makes he
concep
o
capi alism qui e di icul o de ine.
I
is
o his
eason, as
well
as o he s, ha capi alism
is
called any hing
bu capi alism. 'The F ee-Ma ke Sys em', 'The P i a e En e -
p ise Sys em', 'F ee En e p ise Sys em', o 'The Ma ke Econ-
omy' a e popula
ways
o
desc ibing capi alism. W i e s hus
de ine a whole sys em in e ms
o
only one
o
i s cha ac-
e is ics. The eason o his
is
no always clea bu such de i-
ni ion su ely impedes
ou
unde s anding
o
capi alism.
Capi alism
is
a o m
o
o ganiza ion o he p o ision
o
needs. This o m
o
o ganiza ion
is
in no
way
a 'na u al' one;
i
is
a p oduc
o
his o y and his o y,
as
we
all
know,
esul s
om people's ideas and ac ions. Economic o ganiza ions a e
p ima ily conce ned wi h he ans o ma ion
o
ma e ial
eali y in o de o sa is y human needs. The e a e a ious
ypes
o
o ganiza ions wi h which such ans o ma ion has
been a emp ed in his o y; o example, he p imi i e hun ing
and la e ood-ga he ing g oups, he ag a ian-subsis ence so-
cie ies, he eudal socie ies, he ci y-s a e ading socie ies
o
An iqui y and, oday, capi alism and socialism. Mode n
capi alism
is
a ai ly young o m
o
o ganiza ion o he p o-
ision
o
needs. Indeed, capi alism only exp essed i sel as
a
new
o m
o
o ganiza ion du ing he middle
o
he
19 h
cen u y. The essen ial ea u es
o
capi alism
(Webe ,
1961:208)
in
an ideal ypical sense, can be said o
be:
(i)
The p i a e (as opposed o public o collec i e) owne -
ship
o
he means
o
p oduc ion;
(ii)
a ee ma ke , ee om i a ional o adi ional
cons ain s;
(iii) a a ional echnology o ensu e he mos e ec i e p oduc-
ion
and
dis ibu ion
o
goods and se ices;
(i )
a calculable
law
( ha
is
o say a a ional and p edic a-
ble legal sys em
'abo e'
i a ional and adi ional
sen imen s);
( )
ee labou (a class
o
wo ke s
ee
o
sell
hei labou
on he ma ke ; ha
is,
eed
om all o he binding
o ces
such as land
and
only ha ing hei labou o sell).
This o m
o
o ganiza ion o he p o ision
o
human
needs by p i a e en e p ise implies he exchange
o
goods and
se ices ca ied ou o p o i , a he han o ced con ibu ion,
213
plunde ing,
o
adi ionally
ixed
gi s. The p o i mo i e sub-
sequen ly became an ex emely impo an mo i e
in
business
and
is
s ill, howe e much some w i e s y o diminish i s
impo ance
oday,
he p ima y mo i a ing o ce
in
capi alism.
Bu p o i -making
is
a highly isky business and he bes
way
o
ealizing
p o i
is
o
ha e
a highly s able and/o p edic-
able en i onmen . The calculabili y
o
all p oduc i e o ces
hus became
e y
impo an
in
capi alism. The need o a
calculable
law,
a calculable supply
o
labou , a a ional ma -
ke ,
a ional consume s and a ional echnology a e all
es-
sen ial cha ac e is ics
o
capi alism. Capi alism can he e o e
be said o
be
a highly a ional o m
o
o ganiza ion and
i
is
also pe haps o his eason ha he p oduc i e capaci ies
o
capi alism ou s ip hose
o
any o he known o m
o
need-sa is ac ion o ganiza ion. Capi alism
is,
howe e , ai ly
weak
in
dis ibu i e capaci ies. Bu lea ing hese p oblems
aside o he momen , i
is
clea ha he a ionalis ic e hic
became a
e y
impo an ea u e
o
mode n socie y.
The
key
hen o an unde s anding
o
capi alism - his
wo ld
in
which
we
all
li e
and unc ion -
is
a ionali y. Bu
wha
do
we
mean
by
a ionali y?
Supe icially,
we
can
say
ha a ional ac ion
is
ac ion which
is
me hodical
and
e icien .
This
means
ha
a
pe son
will
apply he mos e icien means
in
his pu sui
o
a goal. This
is
he
s anda d
explana ion
o
a ional
ac ion.
Bu
we
know
ha he sho es dis ance be ween wo poin s
is
no neces-
sa ily
he
s aigh
line
be ween
hese
wo
poin s,
and
we
also
know ha he e a e
e y
e icien
ways
o
a aining ou goals
(such as p o i )
by
me hods qui e i a ional and some imes
appa en ly ine icien .
I
is
also ue ha one can pu sue a
goal
in
a
me hodical
way
whils
being
a he
i a ional
a
he
same ime, A case in hand
is
pe haps he me hodical s a ing
in o
a
c ys al
ball
whils
playing
he
s ock
ma ke .
Ra ionali y is a he he deg ee
o
con ol
o
li e by con-
scious
ideas.
This
excludes
he
emo ions,
he
magical,
he
anscenden al, he ins inc i e; hose ideas which one does
no ully unde s and and which one canno de ine in clea
e ms, and hose ideas which one
is
no always comple ely
awa e
o
o
conscious o ,
as
ideas
gi ing
ise
o a ional
ac-
ion. I
is
hus he delibe a e, de ined and conscious ideas
ha
we
ha e,
as a as
ou
goals and
ou
means o a ain-
ing hose goals a e conce ned, which lead o a ional ac ion.
Ou
ac ions hen, in a a ional wo ld, a e con olled
by
con-
scious ideas. Ra ional ac ion
is,
as
we
ha e seen ea lie ,
o
c ucial impo ance o he a ainmen
o
p o i and hus he
main enance and g ow h
o
he business en e p ise. This also
means he his o ical e olu ion
o
a
way
o
hinking which
gi es
ideas con inui y, s abili y, and au onomy.
I
is
by
he
p ocess
o
a ionaliza ion ha
ou
images
o
he wo ld be-
come a ional amewo ks
o
unde s anding
in
e ms
o
which
we
can ac
in
a sys ema ic and p edic able
way.
Ideas, hen,
achie e some o m
o
au onomy
o
independence; hey
be-
come he guiding p inciples by which
we
ac , and, a he same
ime
ecei e
some deg ee
o
c edibili y (by being au onomous)
o ensu e con inui y and s abili y
in
social
li e.
This
way
o
hinking
is
his o ically
exp essed
on
a
mo e
conc e e
le el,
and ha
le el
is
he
le el
o
o ganiza ion. The
bu eauc a ic o m
o
o ganiza ion is, as a as
we
can ell
om his o y, he mos a ional and e icien o m
o
o gani-
za ion ye , in he sense ha i
is
he mos e ec i e way
o
exe cising con ol o e human ac ion. I s capabili ies
o
co-
o dina ing
he
olun a y
ac ions
o
as
numbe s
o
people
owa ds a goal a e immense. Such coo dina ed mass-ac ion
has
only
been
possible
in
ea lie
his o y
by
o ce.
The
214
bu eauc a ic o m
o
o ganiza ion is a p ecise, s able, dis-
ciplined and eliable o m
o
o ganiza ion and, as ~uch,
well-
sui ed
o
he
capi alis en e p ise. I eally goes wi hou
~ay-
ing ha he p oduc ion
and
dis ibu ion
o
goods
an~
se~ices
canno be a ec ed e ec i ely wi hou a sound o ga uza lonal
H uc u e.
...
The supe io i y
o
bu eauc a ic o ga~1za 1on
l~es,
~ s ly,
in he
highly
specialized
onge
o
echmcal
unc wns
1
can
accommoda e. Bu eauc a ic o ganiza ion can, secondly, exe-
cu e
huge
asks
by 'b eaking he ask up' in o a
~
_num-
be
o
e y specialized asks. Following
o~
om
~1s,
_m
he
hi d ins ance, is he abili y
o
bu eauc a ic o ganiza ion
o
ac
much
as e
and
mo e
cohe en ly
h~n any
o _he
o m
o
o ganiza ion. I s py amidal s uc u e
1s
c~nduci e
o
~e
low
o
in o ma ion, i s hie a chy
o
au hon y
ensu es dis-
cipline and con ol,
and
i s size makes i di icul
o
com-
pe e wi h (Webe ,
1978:225).
. .
Clea ly
he
de elopmen
and
g ow h
o
cap1 al1sm a e
closely ela ed
o
bu eauc a ic o ganiza ion; hey sha e ~e
same way
o
hinking, namely, a ionalism; his mo eo e
1s
he
undamen al p inciple unde lying bo h phenomena.
Bu eauc a ic domina ion has, in gene al, a numbe
o
con-
sequences o social li e: . .
(i)
The
smoo h unc ioning
o
he bu eauc a ic o ganiza-
ion p esupposes a spi i
o
o malis ic impe sonali y -
a spi i ' . . . wi hou ha ed
o
passion,
and
hence
wi hou a ec ion
o
en husiasm' (Webe .
1978:225).
(ii) I c ea es specialis s wi hou a clea concep ion
o
he
o ali y
o
hei asks -o , o ha ma e , a concep ion
o
li e as a whole.
The
indi idual
is
d awn in o he de-
ails
o
a small,
and
seemingly, unimpo an ask. This
p oduces people 'na ow' in hei iews
and
sec ional in
hei in e es s.
(iii)
The
g ea e demand o mo e specialized echnical
knowledge p oduces a class
o
people in socie y who
we
may call ' echnoc a s'. 1 Thei unc ion
is
only
o
apply
hei knowledge,
no
o
ques ion
o
o
hink.
Ou
ins i-
u ions
o
highe lea ning ha e esponded
o
his demand
by eaching only echniques, he eby neglec ing hei
mos impo an unc ion
and
ha
is eaching people
o
hink,
o
inno a e,
and
o
c ea e.
(i ) Bu eauc a ic o ganiza ions a e, by hei e y na u e,
ex-
emely e icien
and
consequen ly di icul
o
compe e
wi h.
I
is o his eason ha hey end
o
g ow
by
a
p ocess
o
elimina ing he smalle , less e ec i e o gani-
za ion.
The
eason o he powe
o
he bu eauc a ic o -
ganiza ion
is
i s con inui y
and
s abili y. Such o ganiza-
ions acqui e a as
amoun
o
special knowledge
and
ac s peculia
o
hei unc ion
and
also ha e he abili y
o
s o e his in o ma ion. This in o ma ion, much
o
i
'o icial sec e s', no only inc eases he o ganiza ion's
abil-
i y
o
p edic business pa e ns
and
' o
know one's busi-
ness'
bu
also s imula es he con inui y
o
he alue sys-
em
and
cul u e
o
he o ganiza ion.
( ) A las ,
bu
no necessa ily he leas , consequence he
bu eauc a ic o ganiza ion may ha e o social li e is
he
secu i y
o
employmen i o e s he employee.
The
la ge
i m is less a ec ed
by
economic luc ua ions
and
can
' ide
ou
he
s o ms' by he me e ac
o
he g ea e
esou ces
i
con ols and can mobilize.
Le
us now look
a
he Sou h A ican capi alis sys em in
e ms
o
ou
heo e ical discussion. Sou h A ica
is
basically
capi alis ic because
o
he p edominance
o
he essen ial ea-
u es
o
capi alism p esen in
ou
socie y. The idea ha Sou h
S.-A . Tydsk . Bed y sl. 1984,
15(4)
A ica has a 'dual economy'
is
apidly losing all alidi y
by
i ue
o
he mass
o
e idence e u ing his
iew.
The
majo i y
o
he popula ion pa icipa e (as wo ke s
and
consume s) in
he cen al economy. Mo eo e ,
he
exis ence
o
he
so-called
u al-subsis ence economy is ques ionable in e ms
o
he
s anda d
o
li ing in
he
'homelands'
and
he
a e
o
mig a-
ion
o
he
u ban a eas. 2
The
ee-ma ke p inciple, p i a e
owne ship, a ional echnology, a calcula_ble law
and
_ ee
labou a e all ea u es i mly en enched m
Sou h
A ncan
socie y.
Sou h
A ica
is
in
no
way unique, excep
i
one ab-
solu izes some
o
i s idiosync a ic ea u es
a
he
expense
o
he whole; economic de elopmen hus ollows ends _si~il~
o
hose expe ienced in
o he
mo e
ad anced
cap1 al1s 1c
coun ies.
In his sec ion i has been a gued
ha
he
a ionalis ic e hos
unde lying capi alism de e mines
he
na u e
o
capi alis ic
g ow h.
One
o
he
ends in his g ow h
is
he
g ?w h
~
la ge-scale bu eauc a ic o ganiza ion.
In
he nex sec ion, his
de elopmen in
Sou h
A ica
is
discussed.
Bu eauc a iza ion
in
Sou h
A ica
The e has been a conside able inc ease in
he
concen a ion
o
business powe in
Sou h
A ica o e
he
las ew yea s.
John
Sco
(1979:16)
w o e
ha
' he
majo
end in ad anced
indus ial capi alism has been owa ds
he
concen a ion
o
mo e
and
mo e a eas
o
economic ac i i y in
he
hands
o
he la ges companies'. This
end
has
been shown
o
exis
in
Sou h
A ica by a ious w i e s using di e en indica o s
o
economic concen a ion.
The
(Mou on)
Commission
o
Inqui y in o he Regula ion
o
Monopolis ic Condi ions
~
o
1955
used he u no e con olled by
he
la ges i ms m
selec ed indus ies as a measu e
o
economic concen a ion
and
ound, o example,
ha
a me e
lOOJo
o
all i ms in
manu ac u ing con ol
75,70Jo
o
he
u no e in his sec o
(Sa age,
1984:3).
Lomba d
(1983:3)
has shown
ha
12
g oups
o
companies (Anglo-Ame ican,
SANLAM,
Ba low Rand,
SA Mu ual, Volkskas, Ba clays, S annic, Remb and , Uni ed
Building Socie y, Libe y Li e, S.A. B ewe ies
and
Anglo-Vaal)
con ol
800Jo
o
g oss asse s
o
companies lis ed
on
he s ock
exchange in
1982.
I
one
looks
a
he
concen a ion
o
em-
ploymen in manu ac u ing i would
appea
ha
me ely
3,540Jo
o
manu ac u e s employ
50,50Jo
o
employees
~Du
Plessis,
1978:14).
Du
Plessis
(1978:14)
a gues
ha
'In
he
hgh
o
he size dis ibu ion based
on
( hese) h ee a iables, u n-
o e ,
employmen
and
ixed
asse s,
one
mus come
o
he con-
clusion ha he Sou h A ican manu ac u ing scene
is
cha ac-
e ized by
an
o e whelmingly la ge p opo ion
o
small i ms
whils a ela i ely small
numbe
o
e y la ge i ms domina e
he indus y as a whole'. These ea u es a e also alid o
he o he sec o s
o
he
economy. 3
I
one
looks
a
he
dis ibu ion
o
ixed asse s
in
he
Sou h
A ican economy
we
ind
an
in e es ing
pa e n
which u -
he subs an ia es
ou
a gumen (Table
1).
This means, gi en he highly bu eauc a ic
na u e
o
he
public sec o
and
hus
he
ela i ely high concen a ion
o
powe in his sec o ,
ha
63,IOJo
o
he
asse s
o
his coun y
a e in he hands
o
he
s a e
and
he
12
la ges co po a ions.
I
is
also a gued
ha
he
concen a ion
o
economic powe
is inc easing o e
he
yea s.
Lomba d
(1984:4)
no es
ha
he
g oss
asse s
o
he i e la ges companies
HHed
inc eased om
22% in
1973
o
35070
in
1982.
This inc ease has esul ed om
in e nal g ow h
as
well as om ake-o e s
and
me ge s. A
gene al end owa ds bigge i ms
and
a dec ease in he
sp ead
o
economic powe
is
hus
isible in
ou
da a.
S. A . J. Bus. Mgm . 1984, 15(4)
Table
1 The dis ibu ion o ixed
as-
se s in Sou h A ica (1982,a
Public Sec o
Public Sec o
Public Co po a ions
Big Twel e
P i a e Sec o
Lis ed
O he
lis ed
No lis ed
11/o
31,3
15,7
16,I
4,4
32,S
Cumula i e
11/o
31,3
47,0
63,I
67,5
100,0
•sou ce: Adap ed om Lomba d (1984).
The
pe cen age change in
he
majo
occupa ional ca e-
go ies in
Sou h
A ica is shown in Table 2.
The
g ea es inc eases ha e occu ed in hose ca ego ies
which can be said
o
be ela ed o in ellec ual
o
men al ene gy
(specialized knowledge) a he
han
physical labou .
The
ela-
i ely lowe inc eases in he lesse skilled
job
ca ego ies mean
ha he economy
is,
in he i s ins ance, becoming inc easing-
ly
capi al in ensi e, 5 and, in
he
second ins ance, ha o ganiz.a-
ions in indus y a e demanding a g ea e numbe
o
special-
ized skills.
The
s uc u al changes in employmen indica e
he ela i e concen a ion
o
economic ac i i y in la ge o -
ganiza ions
and
hus
he g ea e bu eauc a iza ion
o
eco-
nomic ac i i y in
Sou h
A ica.
F om hese da a,
we
can
deduce
ha
he
Sou h
A ican
economy is apidly mo ing om small scale compe i i e
capi alism
o
monopoly capi alism.
The
concen a ion
o
eco-
nomic powe ,
he
inc easing bu eauc a iza ion
o
o ganiza-
ions
and
he concomi an demand o specialized knowledge,
he e olu ion
o
a bias owa ds capi al in ensi y as
well
as
he inc easing e ec i eness in con ol
and
s anda diza ion
o
ac ion a e all implied by
ou
empi ical in o ma ion. This s a e
o
a ai s subs an ia es
ou
heo e ical discussion
o
he na-
u e
and
g ow h
o
capi alism.
The e
is,
howe e ,
one
pa icula issue a ising om his
s a e
o
a ai s which wa an s
some
discussion; his issue
e ol es
a ound
whe he
he
inc ease in
he
concen a ion
o
economic ac i i y does in ac imply he bu eauc a iza ion
o
economic li e
as
well
as
he
concen a ion
o
economic
powe in ewe hands.
The
g ow h
o
bu eauc a iza ion
is
ob-
iously easie
o
de e mine empi ically
han
he concen a ion
o
powe . Bu
hen
again
one
can
a gue
ha
powe
can
bes
be de ined by i s means
and
ha he bu eauc acy
is
he means
21S
o
powe . I is hus assumed
ha
he
amoun
o
powe is
a di ec unc ion
o
he size
o
he means
o
powe ( he
bu eauc a ic o ganiza ion). This ype
o
powe 6
is
exe cised
legi ima ely by i ue
o
holding
an
'o ice'.
The
sou ce
o
legi imacy does no lie wi h
he
pe son himsel bu in
he
legali y
o
he
sys em
o
ules which de ines his 'o ice'. This
sys em
o
ules
is
a esul
o
he a ionaliza ion
o
ac ions
in
an o ganiz.a ion and ecei es legali y by i s own cons i u ion
which
is
sanc ioned, in
ou
case, by
Company
Law.
Powe ,
ha
is
he abili y
' o
ge hings done' in he bu eauc a ic o -
ganiza ion,
is
hie a chically a anged
so
ha
we
can
say
ha
he
pe son
on
he
op
o
he
o ganiza ion has powe 'o e '
hose below him. In his sense, he la ge o ganiza ion cons i-
u es
bo h
he
basis
o
powe
and
he
means
o
execu ing
ha powe .
I
is
on
his basis
ha
we
can
a gue
ha
he
concen a ion
o
economic ac i i y also implies
an
inc ease in
he
size
o
he o ganiz.a ion and hus he concen a ion
o
powe in ewe
hands.
The
s uc u e
o
business powe in
Sou h
A ica is
becoming mo e complex (as a esul
o
me ge s
and
ake-
o e s) bu such inc easing complexi y su ely does no de ac
om he ac
ha '
...
ne e be o e has he limi s
(o
powe )
been so b oad, o ne e be o e ha e
he
means
o
powe
been
so
eno mous'
(Mills, 19S6:25).
Le
us
look a some
o
he ad an ages
and
disad an ages
o
he g ow h
o
he la ge-scale bu eauc acy in Sou h A ica.
This exe cise is
impo an
in iew
o
he
ac
ha
I
do
no
wan o ake a s ance
on
ei he he 'big
is
bad'
o
he 'small
is beau i ul' side
bu
a he accep
he
g ow h
o
he
la ge
o ganiza ion as
an
ine i abili y
and
y
o
show how
we
can
'li e wi h i '.
Ad an ages
(i)
The
economies
o
scale a e, in
one
sense, ele an in
ha his kind
o
sys em can, heo e ically, p oduce mo e
a
a cheape a e.
(ii) Imp o ed capabili y o in e na ional compe i ion.
(iii) Inc eased abili y o s imula e
and
main ain esea ch
and
de elopmen unc ions.
(i ) Abili y
o
secu e in es men capi al
and
o eign loans.
( ) G ea e powe
o
in luence
he
socio-poli ical
and
eco-
nomic en i onmen s. (Social Responsibili y
o
Business.)
(yi) G ea e abili y
o
he business sec o
o
ac cohe en ly
as a uni in i s dealings wi h
labou
and
he
s a e.
McG ego 7 s a ed las yea ha :
'The
P ime
Minis e
had
o
hi e he Ca l on Cen e in 1979 o his con e -
ence wi h
ou
leade s
o
indus y. Th ee
mon hs
ago
he could ha e conduc ed
i
a ound
his dining
oom
Table
2 Changes in he occupa ional s uc u e o he Sou h A ican economy (1960-1980)4
11/o
Change in o al
1960 1970 1980
occupa ional s uc u e
Occupa ional ca ego y (000)
11/o
(000)
0/o
(000)
0/o
1960-1980
P o essional and echnical wo ke s
205
(3,6) 360 (4,4)
622
(7,2) + 3,6
Adminis a i e and manage ial wo ke s
68
(1,1)
86
(1,1)
137
(1,6)
+ 0,5
Cle ical wo ke s
312
(5,4)
S59
(6,9)
828
(9,5) +
4,1
Sales wo ke s
159
(2,8)
268
(3,3) 437 (5,0) + 2,2
Se ice wo,
ke s
902 (IS,8)
1261
(IS,S)
1428
(16,4) + 0,6
Fa ming, o es y and ishe ies
wo ke s
1731
(30,3)
2525
(31,1)
1363
(15,8)
-14,5
Mining, p oduc ion and anspo wo ke s
1948
(34,2)
2535
(31,3) 3068 (35,4) +
1,2
Non-classi iable
390
(6,8)
491
(6,0) 779 (9,0)
Economically ac i e popula ion
5719
(100,0)
8109
(100,0) 8665 (100,0)

216
able.
He
could now do i ound a ca d able. And
i
he ake-o e s con inue a hei p esen a e he
will
soon
be able o do i in a lo e-sea '.
( ii) The g ea e concen a ion
o
wo ke s
on
he shop loo
c ea es a basis o he uni y and o ganiza ion
o
he
wo ke s
on
a la ge scale (Innes,
1983:181).
This would
ob iously s eng hen he posi ion
o
wo ke s
in
indus y.
The numbe
o
egis e ed ade unions in Sou h A ica
has emained ai ly cons an o e he las
10
yea s bu
he a e age membe ship inc eased om 3
581
in
1972
o 6
163
in
1982
(Lomba d,
1984:5).
I
is
a gene al social
law
ha he s uc u e
o
labou o ganiza ions
will
o
a la ge ex en ollow he con ou s
o
he s uc u e
o
capi alism. F om his
i
ollows ha labou o ganiza-
ions
in
small-scale compe i i e capi alism will be highly
agmen ed and diso ganized.
( iii) A second ad an age o labou
is
he inc ease in semi-
skilled and skilled
job
ca ego ies unde monopoly
capi alism. This means ha labou
is
becoming inc eas-
ingly expensi e (in e ms
o
in es men s in aining and
wages)
and his would consequen ly s eng hen he ba -
gaining posi ion
o
labou . Innes
(1983:182)
a gues ha
'This ansi ion
in
um
opens up he need o a massi e
laye
o
semi-skilled wo ke s (machinis s, assembly line
wo ke s,
e c.)
who in e ene be ween he skilled and he
unskilled and who de elop in o he la ges g oup wi hin
he labou p ocess'.
Disad an ages
(i) The concen a ion
o
powe would imply g ea e in-
equali y
in
he dis ibu ion
o
powe in socie y. This
is
dys unc ional, as
we
all know, o s abili y in socie y
and c ea es condi ions conduci e o up ising and e ol .
Collec i e ba gaining, o example, can only be success-
ul
i some deg ee
o
equi y
o
powe exis s be ween he
wo nego ia ing pa ies. This
is
ob iously a se ious
p oblem endemic o capi alism.
(ii) The possession
o
undue powe could lend i sel o
abuse. The mos dange ous ype
o
abuse
is
when powe
becomes an end in i sel . This happens when he o gani-
za ion, as he basis
o
powe ,
is
g owing, no o p oduce
mo e goods a cheape cos s,
o
o sa is y he p ima y
needs
o
socie y mo e e ec i ely, bu only o main ain
i sel o i s own
sake.
Such an o ganiza ion would hen
be de imen al o he es
o
socie y and such powe
would be abusi e by na u e.
(iii)
The ise in unemploymen as a esul
o
he mo emen
owa ds capi al in ensi y8 and inc eases in he demand
o mo e highly skilled wo ke s
a e,
as
we
ha e seen
abo e, consequences
o
monopoly capi alism. Cha les
Simkins
(1982)
s a es ha he unemploymen igu e o
A icans ose om
11,8%
in
1970
o
21,IOJo
in
1981.
The
ise in unemploymen has been una ec ed
by
he
1978-1981 upswing
in
he economy (Keenan,
1983:189)
which means ha he unemploymen a e in Sou h
A ica
is
no so much ela ed o gene al mo emen s
in
he economy as o changes
in
he s uc u e
o
he econ-
omy.
I
has also been said ha almos a hi d
o
he
A ican popula ion
is
engaged
in
he so-called in o -
mal economic sec o and ha his may inc ease o 55%
by
he yea
2000.
This end
is
a esponse
o
he A i-
can popula ion o hei economic and social pligh . The
consequence
o
such a de elopmen
is
he sh inking
o
he supply
o
labou
on
he labou ma ke and hus
S.-A . Tydsk . Bed y sl. 1984, 15(4)
he g ea e independence
o
he A ican popula ion
om he o mal sec o .
(i ) The e
is
some e idence in he li e a u e (Keenan,
1983:188)
ha he g ea e concen a ion
o
economic
powe may con ibu e o a highe in la ion a e. This
happens in wo
ways,
namely, he impo a ion
o
machines o inc ease p oduc i i y and he phenomenon
o
p ice- ixing ag eemen s among he la ge companies.
( ) Monopoly capi alism may also c ea e ba ie s o
new
en an s o he economy (Du Plessis,
1978:13).
( i) Las ly, he mos impo an consequence o us in his
a icle,
is
he supp ession
o
en ep eneu ial
ways
o
hinking by he huge demand o and, consequen ly,
inc ease in echnoc a ic
ways
o
hinking.
The a ionalis ic e hos p oduces a
way
o
hinking which
is
closed, agmen ed and unable o anscend phenomenal
o ms.
We
ha e a gued ea lie ha a ionali y
is
ac ion-
con olled and shaped
by
conscious ideas. This e hos has been
accep ed as he only alid
way
o
hinking, p obably bo h
because 'i wo ks' and because i has assumed some deg ee
o
au onomy in i s de elopmen . This e hos, and he know-
ledge c ea ed
by
i , became he dominan pa adigm
in
modem
capi alis ic socie y. This pa adigm has wo ked
well
and
is,
o his eason, as
well
as i s au onomy
o
'objec i e'
exis-
ence, de ended a den ly
by
i s suppo e s. Any non- a ional
ideas
we e
ejec ed om science and hough ; his esul ed,
in
um,
in he closedness
o
his
way
o
hinking.
New
ideas
could no be de eloped because
new
ideas would cons i u e
non- a ional ideas. The li le de elopmen ha did ake place
in
he his o y
o
ideas in he las
ew
decades was always
agains he onslaugh
o
he de ende s
o
he 'old' sys em.
Consequen ly, many so-called 'new' ideas a e me e e ine-
men s
o
old ideas.
This
way
o
hinking
is
agmen ed because
o
he demand
o specialized knowledge. This cons i u es a s uc u al p e-
equisi e
o
bu eauc a ic o ganiza ion and leads o a ame-
wo k de oid
o
a clea concep ion
o
eali y as a whole. This
agmen a ion
o
eali y
is
enhanced by he accen ua ion
o
phenomenal o ms (empi ical eali y) as he only alid sou ce
o
knowledge. This
is,
in
um,
a p oduc
o
he dominance
o
he ma ke place in capi alism because li e
is
educed o
ma ke able ' hings' a he ma ke place.
I
is
he alue in
Rands
o
hings, human and ma e ial, which
is
o
impo ance
in comme cial li e and no he hings hemsel es.
Ou
con-
sciousness
in
capi alism
is
la gely shaped
by
his absolu ism
o
phenomenal o ms a he han he o ces
and
dynamics un-
de lying hese phenomena.
Such a
way
o
hinking, which
is
s uc u ally de e mined,
u ns people in o he se an s a he han he mas e s
o
s uc-
u es.
I
is
he e o e a gued ha he g ea es p oblem acing
capi alism
is
how o become mas e
o
he wo ld again.
I
is
ou
inabili y o con ol
ou
wo ld; he dominance
o
s uc-
u es (which ha e become ends in hemsel es) o e people
which cons i u es ou g ea es p oblem. Ou inabili y o c ea e
a wo ld acco ding o
ou
belie s (as s a ed in
ou
in oduc-
ion) and he unin ended consequences
o
ou
ideas need a
cen al place in ou agenda o socie al e o m.
The
en ep eneu
in
capi alism
We
ha e a gued hus a ha a ionali y
is
he unde lying
de e minan
o
capi alism and ha he p inciple
o
a ionali y
exp esses i sel
on
bo h he s uc u al
le el
in he o m
o
bu eauc a ic o ganiza ion and
on
he ideas
le el
in he o m
o
echnoc a ic
ways
o
hinking. I ha e also illus a ed ha
S.
A .
J.
Bus. Mgm . 1984,
15(4)
he inc easing concen a ion
o
economic powe and he
implied de elopmen
o
la ge co po a e economic ins i u ions
as
well
as he inc ease in he bu eauc a iza ion
o
li e (on
bo h he s uc u al and 'ideas' le els) may ha e di e conse-
quences o he u u e
o
his coun y. The c ux
o
he a gu-
men
is
ha capi alism in i s de elopmen c ea es he condi-
ions o i s own des uc ion. This p edic ion has been made
equen ly in he his o y
o
capi alism by some
e y
epu able
people. Capi alism has, howe e , su i ed all
o
he s o ms
i has aced h oughou i s his o y and has shown an amazing
capaci y
o
adap ,
and
e en lou ish, in all so s
o
heo e i-
cally hos ile condi ions. I
do
no wan o de ide he in ellec-
ual abili ies
o
hose p edic ing he collapse
o
capi alism,
because such au ho s ha e con ibu ed eno mously o
ou
unde s anding
o
capi alism.
The
eally impo an ques ion
o ask,
i
we
wan
o
unde s and capi alism,
is
no why i
will
collapse
o
when i will collapse bu why does
i
su i e?
The e a e many answe s
o
his ques ion. This a icle con-
cen a es
on
one, ha
is
he ole
o
he en ep eneu in capi al-
ism. The en ep eneu ial phenomenon has ecei ed conside -
able a en ion in he li e a u e
by
many
o
ou mos impo an
commen a o s
on
he de elopmen
and
na u e
o
capi alism.
Schumpe e and McClelland a e pe haps he wo 20 h cen u y
w i e s who sp ing immedia ely o mind. I
do
no wan o
discuss he wo ks
o
hese w i e s in de ail, bu would a he
discuss some gene al ea u es
o
he en ep eneu ial phenome-
non in capi alis socie y.
One way
o
de ining
an
en ep eneu would be o say ha
he
is
he con e se
o
ou
implied de ini ion
o
he bu eauc a .
Bu eauc a ic o ganiza ion,
and
he
way
o
hinking peculia
o i ,
is
a ional, me hodical, o malis ic, echnoc a ic, ou -
inized,
and
sys ema ic; i
is
ci cula 9
and
caugh in i s own
'i on cage'. 10
Man
becomes subjec ed o he i esis ible o ces
o
a ionaliza ion and he bu eauc a ic o ganiza ion becomes
an
end in i sel ; whe eas
he
o ganiza ion once se ed man,
man
is
now he se an
o
he bu eauc acy. The en ep eneu-
ial spi i can bes be desc ibed
by
concep s such as inno a-
ion, indi idualism, independence, c ea i i y, non- adi-
ionalism, isk- aking
and
de elopmen . En ep eneu s ha e
been desc ibed as illains, he oes, men wi h ision, ad en-
u e s, hedonis s, ego is s, men
o
ac ion, ou side s
and
so
o h.
Al hough he en ep eneu ial spi i
is
so as ly di e en
om,
and
in a sense di ec ly opposed o he bu eauc a ic
spi i , i
is
he en ep eneu ial spi i which e o ms and
e olu-
ionizes capi alism, hus c ea ing he condi ions o i s su -
i al. The en ep eneu e olu ionizes om wi hin; om he
le el
o
ideas
and
human
ac ion;
and
om he indi idual,
whe eas he bu eauc acy can only change
by
adap ing s uc-
u al a angemen s slowly
and
sluggishly. The bu eauc a ic
o ganiza ion would,
by
i s e y na u e, supp ess and esis
he en ep eneu ial spi i ;
i
would, as
we
well
know, mould
i s se an s in i s own image.
The
eason o his
is
ha he
bu eauc a ic o ganiza ion
is
good a main aining i sel ; i
is
a mas e
o
he a
o
doing wha
i
se
ou o do and
i
c ea es
people who mus con o m o i s own logic. I
will
hus, like
an o ganism, ejec any ' o eign ma e ', no because i does
no wan o adap in imes
o
en i onmen al change, bu pu e-
ly
because ha ma e
is
' o eign'; i
is
no pa
o
he logic
o
bu eauc a ic o ganiza ion.
His o y has shown, as Schumpe e illus a es, ha hese
' o eign' ideas a e he 'p ime mo e s
o
p og ess' in capi alis
socie ies.
The
i ali y
o
a business en e p ise and he econ-
omy
is
no ela ed o he ca e ul applica ion
o
managemen
217
sys ems ( hey a e impo an o main enance, no i ali y) bu
a he o he p esence
o
he en ep eneu ial spi i . Li esay
(1977:420)
epo s om his esea ch in he Uni ed S a es ha
a company's li e
cycle
is
mo e a unc ion
o
he human
li e
cycle
han ex e nal economic
o
social condi ions.
The en ep eneu and he bu eauc a ic o ganiza ion a e,
o say he leas , an
odd
couple, bu hey a e des ined o co-
habi a ion o as long as hey wan o su i e. They a e each
o he s' wo s enemy; li ing in comple ely di e en and in-
compa ible wo lds.
To
de ine he en ep eneu ial spi i
is
a di icul ask. I
does make gene al sense o see he en ep eneu ial spi i as
he con e se
o
he bu eauc a ic spi i , bu he e a e some
impo an p oblems wi h such a de ini ion. Fi s ly, a de ini-
ion
o
his ype igno es he indi idualis ic
and
unique na-
u e
o
he en ep eneu ial phenomenon. Bu eauc acies a e
collec i e and ela i ely s able objec i e phenomena and hus
ai ly easy o de ine in con as o he uniquely indi idualis-
ic na u e
o
he en ep eneu . Ano he p oblem
is
ha all
people ha e en ep eneu ial endencies;
we
all ake isks, in-
no a e, a e ad en u e s,
e c.;
only some
o
us
do
i
mo e o en
han o he s!
I
would he e o e appea ha en ep eneu ship
is
pa ly a ma e
o
deg ee; he p oblem
is
hen whe e o
d aw he line; when does one become
an
en ep eneu ?
I
is,
howe e ,
necessa y o ha e some wo king de ini ion
o
an en ep eneu so ha
we
can p oceed wi h ou a gumen .
The gene ally accep ed de ini ion
o
an en ep eneu
is
ha
he is a pe son who ini ia es some new en u e o who de-
elops
an
exis ing one so ha his pe sonali y is clea ly ex-
p essed
in
ha en u e and he
is
a some pe sonal isk
in
doing
so.
This de ini ion
is
a wo king de ini ion i one only
wan s o iden i y en ep eneu s; i ells us e y li le, howe e ,
abou he easons why a pe son
is
o
becomes
an
en e-
p eneu . The answe o his ques ion lies in an analysis
o
he
way
o
hinking
o
an en ep eneu o , in o he wo ds,
an analysis
o
he en ep eneu ial spi i .
The
en ep eneu ial
spi i
Kei h Wickenden (1980:70), a B i ish en ep eneu , said ha
o be an en ep eneu , '
...
one needs o be sligh ly nu y,
because you ha e o look a hings om a a he di e en
angle om mos people . . . and no only
do
you need a g ea
deal
o
luck, you need he ype
o
men ali y ha u ns bad
luck in o success. Ano he B i ish en ep eneu , Nigel Vin-
son (1980:63), sees he en ep eneu as someone who wan s
o be ee
o
o he people's powe , has a lo
o
sel
con i-
dence and a gi
o
sel -c i icism; ' o lea n om you mis-
akes, o kick you own backside, because nobody else will'.
Li esay
(1977:442)
concludes his s udy
o
Ca negie, Fo d
and
S odda d, h ee g ea Ame ican en ep eneu s,
by
saying ha
'All
o
hem saw a ma ke oppo uni y and mo ed o ex-
ploi
i .
All
o
hem e ained a con olling owne ship
...
Each
o
hem exe cised a cen alized di ec ion
o
his i m's poli-
cies (and) gene a ed new ideas.
I
would appea ha he en ep eneu ial spi i basically
combines wo e y simple cha ac e ai s; he i s
is
c ea i e
hinking; he abili y
o
in elligence o unde s and business
well;
in ac , so
well
ha one
is
able o see any a ailable op-
po uni ies, gaps,
o
challenges.
I
is
a his poin ha he
en ep eneu lea es his bu eauc a ic colleagues behind. They,
he bu eauc a s, spend hei li es s uggling o unde s and
hei own jobs and a e con inuously eminded no o e en
y o unde s and business as a whole. One only becomes
he mas e
o
some hing once one unde s ands i . En ep e-
_
218
neu s a e he mas e s
o
hei wo ld.
I
is
o his eason ha
hey can be c ea i e; ha hey can 'b ing in o exis ence o
he i s ime'. C ea i i y, I would a gue,
is
seldom a magical
gi om he gods; i
is
mos ly a unc ion
o
he indi idual's
mas e y o e he ools
o
his
ade and
his
unde s anding
o
his job
in
a holis ic sense. The second impo an elemen
in
he en ep eneu ial spi i
is
he p opensi y o ac swi ly and
wi h sel -con idence as an indi idual. The e a e many c ea i e
people, many swi ac o s, bu
ew
en ep eneu s.
Explaining
he
en ep eneu ial
spi i
Mos w i e s on he en ep eneu a e ained psychologis s.
The eason o his a ini y be ween en ep eneu and
psy-
chology
is
he uniqueness and indi idualis ic na u e
o
he
en ep eneu . I would,
howe e ,
like
o a gue ha a lo
o
he con usion eigning
in
he li e a u e on en ep eneu s
is
due o his psychological bias
in
he li e a u e.
To
illus a e his poin ,
le
us
u n o McClelland's Need
Achie emen explana ion o he en ep eneu . This heo y
has been dis o ed beyond ecogni ion
by
many psychologis s.
The p oblem
in
hei app oach
is
hei ixa ion
on
he in-
di idual pe sonali y; hey a e p o icien in hei desc ip ions
o
he pe sonali y
o
he en ep eneu (mainly as sco ing high
on
he n
Ach
es ) bu unable o explain
why
hese pe sonali y
ai s exis
in
some social g oups mo e han
in
o he s. They
a e hus weak on he ela ionship be ween social s uc u e
and pe sonali y.
To
ell
us
ha pe sons wi h a high n Ach
a e likely candida es o en ep eneu ship leads
us
nowhe e.
They hus canno eally explain he causes and consequences
o
en ep eneu ship; ha , mo eo e ,
is
wha eally needs o
be explained.
I
we
can es ablish some links be ween social
s uc u e and en ep eneu ship, hen
we
can also do some-
hing abou gene a ing en ep eneu ial alen . I know
o
no
en ep eneu being c ea ed on he psychologis 's couch; I do,
howe e ,
know
o
many c ea ed
by
social condi ions.
I
will
now,
b ie ly, ela e some socio-s uc u al elemen s
which explain he en ep eneu ial spi i . This exposi ion in-
ol es
he iden i ica ion
o
ce ain social g oups as p oducing
mo e en ep eneu s han o he g oups and iden i ying ce ain
social condi ions in his o y as excep ionally conduci e o he
g ow h
o
an en ep eneu ial spi i .
Social g oups
Ce ain mino i y g oups in socie y end o be ma ginal
o
o 'lack ela i e cen ali y' (Young and
Kilby,
1971:142)
wi h
espec o he dominan socie al s uc u e. This ma ginali y
is
usually a esul
o
a nega i e a i ude
on
he pa
o
he
dominan g oup owa ds he mino i y g oups' cul u e, ace
o
eligion. Some
o
hese g oups end o de elop s ong
eel-
ings
o
solida i y owa d hei own g oup and hus ' eac '
o hei exclusion om he dominan socie y. This p ocess
o
inding a
new
g oup iden i y implies he ejec ion
o
adi-
ional
o
socie ally dominan
ways
o
hinking and hus he
de elopmen
o
'new
ways
o
hinking and looking a he
wo ld'. The exclusion
o
hese g oups om he cen al co e
o
socie y may also inhibi hei pa icipa ion
in
he economic
s uc u es
o
socie y. They
will
he e o e de elop me hods
o
o e coming hese ba ie s and
will
become mas e s in play-
ing he sys em; iden i ying loopholes and exploi ing oppo -
uni ies. This
is,
ob iously, a e ile b eeding g ound o
en ep eneu s.
The mig a ion
o
g oups
o
people o
new
en i onmen s
is
conduci e o he de elopmen
o
en ep eneu s in wo
ways:
The i s
is
he possibili y
o
he
new
g oups being mino i y
S.-A .
Tydsk .
Bed y sl. 1984,
15(4)
g oups and hus de eloping
new
ways
o
hinking. A second,
and mo e impo an ac o ,
is
ha he immig an
is
aced
wi h a
new
and o eign wo ld. He
will
hus look a
his
new
en i onmen
in
a di e en
way
om he pe son who has
g own up in ha en i onmen . He will also ha e he ad an-
age
o
a b oade expe ience;
o
his place
o
o igin as
well
as his
new
habi a , and
will
hus a emp o syn hesize
his
own
iews
o
eali y wi h he o eign
iews.
Such p ac ice
in-
ol es
hinking and c ea i i y -quali ies usually absen
in
hose 'na owed' in hei
iews
by exis ing social a ange-
men s.
Socie al condi ions
The e a e ce ain imes in his o y when socie y expe iences
momen s
o
change and ea angemen . One
o
he esul s
o
change
is
he ques ioning
o
adi ional alues and he
ela-
i e 'no mlessness'
o
socie y. This 'di used es lessness'
in
socie y c ea es he condi ions o c ea i e hinking and en e-
p eneu ial ac i i y. The opposi e - a ixed and s able socie y
-would ob iously supp ess his kind
o
ac i i y. An
im-
po an lesson
we
can lea n om his o y
is
ha
ou
socie al
s uc u es as
well
as
ou
ways
o
hinking should always
be
'open' and ' lexible' o s imula e en ep eneu ial
ways
o
hinking.
Conclusion
F om he a gumen p esen ed abo e, i can be deduced ha
he en ep eneu ial spi i
is
o
c i ical impo ance o he de-
elopmen
o
ou
socie y. The de elopmen
o
he en ep e-
neu ial spi i can only be achie ed, howe e , h ough he
so ening
o
he dominan pa adigms cha ac e izing
ou
so-
cie y.
The dominan pa adigm
is,
by
i s e y na u e, supp ess-
ing possible answe s o p oblems
o
i s own making. In ad-
d essing his p oblem, I would like o sugges ha
we
need
o look a wo a eas in which his pa adigm
is
pe pe ua ed.
These a eas consis
o
ou
ins i u ions
o
highe lea ning and
in
ou
s yle
o
managemen .
Ou ins i u ions
o
highe lea ning a e easonably sensi i e
o he demands
o
business and he s a e ( o i
is
by
hei
g ace ha hese ins i u ions can su i e inancially) and
ha e
hus become me e p oduce s
o
he knowledge demanded
by
business and he s a e.
We
know ha he demands o
knowledge om hese bu eauc a ic ins i u ions would be ech-
noc a ic
by
na u e. The bu eauc a ic e hos
is
hus de eloped
and ep oduced, o a g ea ex en ,
by
ou ins i u ions
o
highe
lea ning.
I
is
he e o e small wonde ha academic ins i u-
ions a e in p ac ice poo e lec ions
o
he ideal academic
ins i u ion; ha
is,
an au onomous collec i i y
o
c ea i e and
ee- hinking pe sons. One can unde s and such dependence
bu canno accep o e collabo a ion. The me hod
o
c ea i i y
is
c i ique;
i
is
only
by
applying he c i ical me hod
ha one can a i e a 'new' knowledge; he accep ance
o
e e y hing can lead o nowhe e.
I
is,
howe e , basically he
c i ical acul y which
is
supp essed in
ou
academic ins i u-
ions. I
is
hus a gued ha
ou
academic ins i u ions should
p omo e a ce ain deg ee
o
'di use es lessness' and
iew
hemsel es as lacking in cen ali y
is-a- is
he dominan alue
sys em (o pa adigm)
o
socie y. The di ec consequences
o
his kind
o
ac ion may be nega i e in he sho un bu so-
cie y
will,
when i ma u es, ecognize he alue inhe en
in
he c i ical me hod.
The s yle
o
managemen domina ing Sou h A ican bus-
iness can be educed o business adminis a ion; ha
is,
main-
aining he bu eauc acy h ough he implemen a ion
o
ech-
S. A . J. Bus. Mgm . 1984, 15(4)
niques. This
is
a necessa y unc ion which should
be
execu ed
by
a la ge p opo ion
o
managemen .
Howe e ,
as
we
ha e
a gued abo e, he i ali y
o
capi alism
is
p ima ily a
unc ion
o
he en ep eneu ial spi i . I , he e o e,
ollows
ha a ce ain p opo ion
o
manage s should be en ep eneu-
ial in hei s yle
o
managemen . Pe e s and Wa e man
(1982:134)
sugges ha 'A i udes, clima e, and cul u e mus
ea ad hoc beha io
as
mo e no mal han bu eauc a ic
be-
ha io ' and elsewhe e ha 'chao ic ac ion
is
p e e able o o d-
e ly inac ion'. Such a s yle
o
managemen can be said o
be 'o ganic'; ha
is,
lexible, open and ad hoc, sensi i e o
bo h he cul u al and s uc u al aspec s
o
he o ganiza ion
and i s en i onmen . I
is
only in such an o ganiza ion ha
po en ial en ep eneu ial spi i
will
mani es i sel .
Thus, a need exis s o a ce ain deg ee
o
'open-minded-
ness' and ' lexibili y' in he
way
we
hink
as
well
as in he
s uc u es
we
c ea ed. This
is
no p omo ing ana chy; he im-
po ance
o
sound pe o mance
is
ce ainly acknowledged
wi h espec o he undamen als
o
he a ional-bu eauc a ic
managemen s yle. This model should howe e no be seen
as
a bluep in o he o ali y
o
li e;
i
is
no a inal answe .
In conclusion, I wish o e u n o he poin a which I com-
menced. The concep 'en ep eneu '
is
mos ly employed in
conjunc ion wi h he concep
o
small business. This
is
an
unhappy conjunc ion inasmuch
as
we
he eby exclude he
mos impo an sec o
o
ou economy, ha
is,
big business
om he en ep eneu ial phenomenon. This esul s om
blaming he ic im. The small man su e s he mos du ing
imes
o
economic ecession when
he
is
old o be en-
ep eneu ial; he p oblem
is
hen placed i mly in his lap.
I
we
assume he alidi y
o
ou
analysis
o
he concen a-
ion
o
economic powe
in
Sou h A ica, hen i would be
ue o say ha he p oblem in ac lies 'wi hin' big business.
I
we
look
a
manu ac u ing, o example,
we
ind ha
he la ges 5,3%
o
all companies employed 54,4%
o
he
labou o ce and con ibu ed 60,2%
o
he g oss ou pu
in
his sec o in
1979,
whe eas he smalles
82,90/o
o
all com-
panies employed only
22,60Jo
o
he labou o ce and con-
ibu ed
18,00Jo
o
he g oss ou pu in he same yea (Cen-
al S a is ical Se ices,
1982).
The ou pu pe wo ke in he
la ge companies
is
hus much highe han in he small com-
panies and he o e all con ibu ion
o
la ge companies o
he o al economy
is
also much highe .
I would hus be a mis ake o spend a disp opo iona e
amoun
o
ene gy and money on a sec o
o
ou economy
which can only be said o be pe iphe al. Ou eal a en ion
should be di ec ed o he p oblem
o
bu eauc acy, his
is
whe e he i ali y
is
eally needed.
No es
I. A echnoc a is de ined as a pe son managing
o
con olling his
en i onmen
by
only applying echniques a he han panicipa ing
in
he p ocess
o
echnique o mula ion. This hen sugges s a
s ong dis inc ion be ween concep ualize and applie . This dis inc-
ion
is
exp essed in he s uc u e
o
e ia y educa ional ins i u ions
wi h he dis inc ion be ween uni e si ies (places whe e people con-
cep ualize and heo ize) and echnikons (whe e people apply hese
concep ualiza ions and heo ies).
2.
I
one
is
o speak
o
a dual economy in Sou h A ica hen
i
would be wi h e e ence
o
he o mal-in o mal dicho omy a he
han he mode n-subsis ence economy dicho omy. The in o mal
sec o
is,
howe e ,
i mly capi alis ic
in
i s o ien a ion.
I
is
claimed ha almos
300Jo
o
he A ican popula ion
is
in ol ed in
his sec o .
3.
Fo example:
219
Table
3 Dis ibu ion o u no e
in
ou majo di i-
sions
in
he Sou h A ican economy,
1972
Wholesale &
Manu ac u ing e ail Cons uc ion T anspo
OJo
o
Tu no e Tu no e Tu no e Tu no e
Fi ms
0/o
OJo
0/o
0/o
s
63,1
68,5 63,2 72,6
10
75,7 77,0 74,6
81,S
IS
82,7
81,8
80,8 85,9
20
87,I 85,2 84,9 88,9
25
90,3 87,8 87,9 91,0
Sou ce: Sa age (1984:3).
4. Adap ed om Bulle in o S a is ics (1982).
S.
Lomba d
(1984)
ound a s ong in e se co ela ion be ween labou
in ensi y and he concen a ion
o
economic
powe .
He epo s
ha whils 20%
o
i ms
in
he manu ac u ing sec o con ibu ed
92%
o
he g oss p oduc
in
his sec o in 1979, hey only em-
ployed
81%
o
he employees
in
his sec o .
6.
Max
Webe
(1978)
called his ype
o
powe 'Ra ional-legal
Au ho i y'.
7.
Robin McG ego quo ed
in
The S a ,
10
Augus
1983.
8. The Manpowe Su ey
(1982)
epo ed ha he capi al: labou a-
io
in
he non-ag icul u al sec o s ose om a base
o
100
in
1970
o
143,I
in
1980.
See
also Je emy Keenan
(1983:189).
9.
J.A.
Schumpele
(1950)
con as ed he 'ci cula -now' economic sys-
em wi h he 'de eloping sys em'. This con as ela es di ec ly 10
he bu eauc a ic-en ep eneu ial dicho omy.
10.
Webe
(1978)
uses he e m 'i on cage' wi h e e ence o a
way
o
hinking esul ing om he adical a ionaliza ion
o
li e.
Re e ences
Du Plessis,
P.G.
1978.
Concen a ion
o
Economic
Powo:
in S.A.
Manu ac u ing. 1 S ud.
Econ.
Econome ics, ol.3.
Innes,
0.
1983.
Monopoly Capi alism
in
Sou h A ica.
S.
A .
Re .,
ol.I.
Keenan,
J.
1983.
T ickle Up: A ican Income and Unemploymen .
S.
A .
Re .,
ol.I.
Li esay,
H.
1977.
En ep eneu ial Pe sis ence Th ough he Bu eauc a ic
Age.
Bus.
His .
Re .,
ol.51.
Lomba d,
J.
1984.
Powe in he Ma ke Economy. Focus
on
Key Eco-
nomic Issues
No.
34.
Johannesbu g: Me cabank.
Mills,
C.W.
1956.
The Powe Eli e. Ox o d: Ox o d Uni e si y P ess.
Pe e s,
T.
& Wa e man,
R.
1982.
In
Sea ch
o
Excellence.
New
Yo k:
Ha pe and
Row
Publishe s.
Sa age.
M.
1984.
Owne ship
and
Con ol in Sou h A ica: Themes in
Domina ion. Pape deli e ed a
ASSA
Con e ence, Johannesbu g.
Schumpe e , J.A.
1950.
Capi alism, Socialism
and
Democ acy.
New
Yo k:
Ha pe .
Sco ,
J.
1979.
Co po a ions, Classes and Capi alism. London: Hu ch-
inson,
16.
Simkins,
C.
1982.
S uc u al Unemploymen Re isi ed,
SALDRU
Fac
Shee
I.
Cape
Town:
Sou h A ican Labou
and
De elopmen
Resea ch Uni .
Sou h A ican S a is ics.
1982.
P e o ia: Cen al S a is ical Se ices.
The Manpowe Su ey.
1982.
P e o ia: Depanmen
o
Manpowe .
Vinson,
N.
1980.
In The P ime Mo e . London: Ins i u e
o
Economic
A ai s.
Webe ,
M.
1961.
Gene al Economic His o y. London: Collie Books,
208.
Webe ,
M.
1978.
Economy
and
Socie y.
Be keley:
Uni e si y
o
Cali o nia P ess,
225.
Wickenden,
K.
1980.
In The P ime
Mo e .
London: The Ins i u e
o
Economic A ai s.
Young,
FW.
&
Kilby,
P.
(Eds.).
1971.
En ep eneu ship and Economic
De elopmen .
New
Yo k:
The F ee P ess.