The role of the institutional environment as a barrier or an enabler to entrepreneurial and innovation activity; the case of the South African green economy industry

This thesis examines the relationship between the institutional environment and entrepreneurial and innovation activity within SMEs operating in South Africa's green economy, with a focus on the energy, agriculture, water and sanitation, and waste and recycling sectors. The aim is to investigate how entrepreneurs navigate the institutional environment by utilising entrepreneurial orientation and managerial discretion to achieve entrepreneurial output. By examining the implications of South Africa's post-apartheid legacy on present-day entrepreneurship in these sectors, the study yields valuable insights from the entrepreneurs' perspectives. The methodology adopted in this study is phenomenological, which utilises qualitative research methods, cross-validated with some quantitative evidence in the form of statistical analysis and case studies. The study includes 55 participants, comprising 47 entrepreneurs and 8 stakeholders from government departments, government agencies, NGOs, and incubators. The study highlights the regulatory mechanisms in place to promote small business participation in South Africa's economy and transition to a more environmentally conscious one. However, the outcomes suggest that these measures may not be achieving their intended objectives, and the institutional environment and cultural views may pose significant obstacles to entrepreneurship and the adoption of greener practices. The research emphasises the importance of addressing these issues to promote sustainable economic growth in South Africa. The study recommends a more coordinated effort by all stakeholders to target pertinent socio-economic challenges specific to South Africa's context.