Theoretical Framework for Structured Incubators to Address Macroeconomic Problems (eBook, PDF)
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Diploma Thesis from the year 2023 in the subject Economics - Macro-economics, general, grade: Post Doc- Accepted., , course: Post Doc, language: English, abstract: This study aims to investigate the possibility of creating structured, entrepreneurial incubators to address macroeconomic problems. Various countries face Macro Economic problems such as energy, pollution, water shortage, and unemployment. Formal SMEs contribute up to 40% of GDP in emerging markets and provide 70% of employment. The possibility of incubating SMEs to address Macro Economic Problems should be investigated to stimulat...
Diploma Thesis from the year 2023 in the subject Economics - Macro-economics, general, grade: Post Doc- Accepted., , course: Post Doc, language: English, abstract: This study aims to investigate the possibility of creating structured, entrepreneurial incubators to address macroeconomic problems. Various countries face Macro Economic problems such as energy, pollution, water shortage, and unemployment. Formal SMEs contribute up to 40% of GDP in emerging markets and provide 70% of employment. The possibility of incubating SMEs to address Macro Economic Problems should be investigated to stimulate the Economic Emancipation of the youth. The principle of a "structured incubator" is born from the problem that the formal economy can no longer supply the required growth in "jobs" that our society needs. Instead, economies must create "marginal" capacity and new industries to facilitate the "economic emancipation" of its people. Business incubation is one of the most viable tools for increasing the number of small businesses. South Africa needs a new framework to develop the structured incubators' role in creating small businesses. Such structured incubators would need to capacitate themselves to take entrepreneurship to scale. New SMEs can be developed in construction, catering, water saving, e-waste, hairdressing, plastic recycling, retail, trade, solar, and many other industries if individuals can be capacitated in cohorts to become SMEs. The need for structured incubators is supported by a literature review, a survey of youth needing economic emancipation, an industry analysis and the researcher's experience in training young entrepreneurs. The grounded theory approach is used to identify concepts and categories that inform the themes in support of structured incubators. Given the above, we must equip people with skills to become less dependent on the state. Macroeconomic problems should be viewed as the source from where SME opportunities emerge. A framework for capacitating structured incubators that can develop large numbers of young people in cohorts must be developed. Such incubators must be capacitated, as current incubators are not developing entrepreneurs at scale. Individuals in need of economic emancipation could be trained to operate as SMEs and provide more employment. The study suggests that structured incubators could solve macroeconomic problems, like poverty, unemployment, and the need for economic growth. A new structured incubator framework should aim to identify and develop young people into successful small enterprises.
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