Bureaucracy and the need for entrepreneurship in South Africa

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. 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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.