Gender, environmental scanning and performance of micro enterprises in South Africa

Abstract

The current business environment for micro enterprises in South Africa is very competitive, turbulent and constantly changing. Micro entrepreneurs need to gain knowledge of the business environment through environmental scanning. The study examined the frequency of environmental scanning practices by micro enterprises. In addition, the study examined the effect of gender on the frequency of environmental scanning by micro enterprises. Also, the sources of environmental scanning information were investigated. Furthermore, the study investigated the impact of environmental scanning on the performance of micro enterprises. The study used the quantitative research approach with a descriptive and causal research design. Self-administered questionnaire was used to collect data in a survey. Convenience and the snowball sampling methods were used to select the participants in the survey. Data analysis included descriptive statistics, t-test, Pearson correlation and regression analysis. The results indicated that micro enterprises do scan the task environment. However, the scanning of the general environment is limited. There is no significant gender difference in the frequency of environmental scanning by micro enterprises. Scanning information is obtained from internal and external sources. The results revealed that there is a significant positive relationship between environmental scanning and the performance of micro enterprises.