n Acta Commercii - On the business cycle and new business ventures : a panel analysis of selected Southern African Development Community countries - research

Volume 19 Number 2
  • ISSN : 2413-1903
  • E-ISSN: 1684-1999



Orientation: This article investigates the relationship between entrepreneurial activities and the business cycle for selected countries in Southern African Development Community (SADC).
Research purpose: The purpose of the study was to understand how business cycle affects the supply of small businesses in the selected SADC countries.
Motivation of the study: The regional block has been witnessing low economic growth patterns accompanied by high unemployment rates, poverty and inequality leading policymakers to start looking at small business supply as a possible solution.
Research design, approach and method: The article used panel data spanning from 2000 to 2016. It also used random and fixed-effects estimation techniques.
Main findings: The study found a negative relationship between entrepreneurial activities and business cycle. Interestingly, our findings did not show either a bidirectional or unidirectional relationship between the variables of interest although they maintained an expected sign relationship as per a priori expectations. The findings also showed a negative relationship between inequality and new entrepreneurial activities and the variable is significant at the 1% level.
Practical/managerial implications: The implications of this article are that governments in these selected SADC countries prioritise nurturing small businesses so that they can grow to significantly contribute to economic growth.
Contribution/value-add: The contribution of this study is in finding the nature of the relationship that exists between the business cycle and supply of small businesses in selected SADC countries.

Loading full text...

Full text loading...


Article metrics loading...


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error