The paper investigates motivations, challenges and success factors experienced by an incubator company and panel shop owners during transformation from a non-registered to a registered panel shop. Since 2006 the company has assisted six black owned panel shops in upgrading their businesses through an annual grant of R1.5 million per business. The objective is to develop and empower disadvantaged black owned motor body repairers. The study was conducted through multiple case studies and in-depth interviews with owners and staff of these panel shops including incubator company personnel. The study revealed that noticeable improvements were in better infrastructure, improved management skills, registration with the repair authority, access to work from the insurance industry and better turnover. Challenges faced were in building of trust among panel shop owners and support agencies seconded to their businesses by the incubator company during the incubation process.
1. Gedeon,S., What is Entrepreneurship? Entrepreneurial practice review. Volume 1 Issue 3, (2010).
2. Hytti,U., Stenholm,P. and Heinonen,J. Perceived learning outcomes in entrepreneurship education. The impact of student motivation and team behaviour. Education +Training. Vol.52 No.8/9.pp.587-606, (2010).
3. Shook,C.L., Priem,R.L., McGee,J.E., Venture creation and the enterprising individual:a review and synthesis. Journal of Management. Vol.29 No.3,pp.379-99, (2003).
4. Heinonen, J. An entrepreneurial-directed approach to teaching corporate entrepreneurship at university level. Education + Training, Vol. 49 No. 4, 310-24, (2007).
5. Matlay,H., Researching entrepreneurship and education, Part 2:what is entrepreneurship and does it matter? Education + Training. Vol.48 No.8/9,pp.704-18, (2006)
6. Oosthuizen. J., van Tonder E., An Exploratory Study of the Critical Managerial Skills-Set for Formal Sector Venture Success in Townships and Disadvantaged Communities, First Annual International Conference on Entrepreneurship and Small Business Development” SOWETO-South Africa: 27-28 January (2010).
7. International Development Research Centre, IDRC. “Some Reflections on SMMEs: Past Support and Future Directions,” (1996), http://idl-bnc.idrc.ca/dspace/bitstream/10625/31515/1/114452pgf [Accessed 14/04/2012]
8. Nicolaides,A., Entrepreneurship-the role of Higher Education in South Africa. Educational Research International Research Journals,pp.1043-1050,. (2011).
9. Nel, E.L., Rogerson, C.M., “Local Economic Development in the Developing World: The Experience of Southern Africa”, Transactions Press, New Brunswick. ISBN 0-7658-0249-X, 358 pp, (2005).
10. Chalera. J., An Impact Analysis of South Africa’s national strategy for the development and promotion of SMMEs PhD Thesis—University of Pretoria; AAT 0819487. unpublished PhD thesis. Pretoria: University of Pretoria, (2007).
11. Smilor, R., Gill, M. D., The new business incubator: Linking talent, Technology, Capital, and know-how, Lexington: Lexington Books, (1996).
12. Hackett, S.M., Dilts, N.M., A systematic review of business incubation research, Journal of Technology Transfer, 29, pp.55-82, (2004).
13. Peters, L., Rice, M., Sundararajan, M., The role of incubators in the entrepreneurial process, The Journal of Technology Transfer, 29(1), pp. 83-91, (2004).
14. Small Enterprise Development Agency (SEDA), “South Africa: Business Incubators Commended for Growing Enterprises”, http://allafrica.com/stories/201203110290.html [Accessed 7/6/2012]
15. Lee, S.S., Osteryoung, J.S., A Comparison of Critical Success Factors for Effective Operations of University Business Incubators in the United States and Korea, Journal of Small Business Management, 42(4), pp.418-426, (2004).
16. Panel-beating owners in race row. (2009, February 14). Cape Argus from http://www.businessowner.co.za/Article.aspx?Page=28&ty pe+28 &item=2967, (2009).
17. Panelbeaters forced out of market place. (2010, February 15), Retrived from http://www.businessowner.co.za/Article.aspx?Page=28&ty pe+28 &item=2967, (2010).
18. Niewman, G.H., Nieuwenhuizen, C., Entrepreneurship: A South African Perspective. Second Edition. Pretoria, Van Schaik, Pretoria, South Africa, (2009).
19. McCraw, T.K., Prophet of Innovation: Joseph Schumpter and Creative Destruction: Belknap Press ISBN 978-0-674-02523-3, (2007).
20. Kirzner, M.I., Entrepreneurial discovery and the competitive market process: An Austrian approach. Journal of Economic Literature, (1997).
21. Kruger, http://upetd.up.ac.za/thesis/available/etd-08242004-145802/unrestricted/02chapters2. pdf, (2004). [Accessed 05/ 04/ 2012]
22. Cassim, S., The South African Business Incubation Experience: An exploratory Assessment, University of Natal, pp. 2-10, (2001).
23. Ramluckan, S., Thomas, W., How are South Africa’s government-subsided small business incubators doing at nurturing start-up enterprises?, http://www.usb.ac.za/Media/thoughtleadership/LeadersLab_Raising_Business.pdf, (2011). [Accessed 04/07/2012]
24. Oosthuizen, J.H., van Tonder, E., “An Exploratory Study of the Critical Managerial Skills-Set for Formal Sector Venture Success in Townships and Disadvantaged Communities, 2010, First Annual International Conference on Entrepreneurship and Small Business Development” SOWETO-South Africa: 27-28 January 2010
25. Kroon, J., Entrepreneurship 4th. Potchefstroom, PU. FOCHE, (1992).
26. Van der Waal, J.W.H., Micro and small enterprise dvelopment in Rural Tanzania. Sebokeng: Vista, (MSc Dissertaion), (2001).
27. Yin R.K., Case study research: Design and methods 3RD ed. Thousand OAKS: Sage, (2003).
28. Denscombe M., The Good Research Guide for small-scale social research projects, 2nd ed, ISBN 0 335 21303 0 pb, (2003).
29. Scandura, T.A.and Williams, E. A.. Mentoring and transformational leadership: the role of supervisor career mentoring. Journal of Vocational Behaviour. Vol.65 No.3.pp.448-68, (2004).
30. Dobbs, M., and Hamilton, R.T., “Small business growth: recent evidence and new directions”, International Journal of Entrepreneurial Behaviour and Research, Vol. 13 No.5 pp. 296-322, (2007).
31. O’Neal, T., Evolving a successful university-based incubator, Engineering Management Journal, 17(3), pp. 11-25, (2005).
32. Bessant, J., Phelps, B., Adams, R., External knowledge: a Review of the Literature Addressing the Role of External Knowledge and Expertise at Key Stages of Business Growth and Development, Advanced Institute of Management, London, (2005).
33. Campbell C., Kendrick, R.C., Samuelson, D.S., Stalking the latent entrepreneur: Business incubators and economic development, Economic Development Review, 3(2), pp. 43-48, (1985).
34. Kelly, D.J., Nakosteen, R.A., “Technology resources alliances and sustained growth in new technology-based firms”, IEEE Transactions on Engineering Management, Vol. 52 No. 3, pp. 315-30, (2005).
35. Freel, M.S., Robson, P.J.A., “Small firm innovation, growth and performance,” International Small Business Journal, Vol. 22, No.6, pp 561-75, (2004).
36. Maas, G., Herrington, M., Global Entrepreneurship Monitor South African Report, Cape Town: GEM, (2006).
37. Littunen H., Networks and local Environmental Characteristics in the Survival of New Firms, Small Business Economics, Vol. 15, pp. 59-71, (2000a).
38. Jenssen, J.I., Koeing, H.F., The effect of social networks on resource access and business start-ups, European Planning Studies, Vol. 10 (8), (2002).
39. Hynes, B. Growing the social enterprise-issues and challenges, Social Enterprise Journal, Vol. 5, Number 2, pp. 114-125, (2009).
40. Heinonen, J., Nummela, N., Pukkinen, T., “To grow or not to grow? An Analysis of internationally growth orientated Finnish SMEs”, paper presented at the EIBA Annual Conference, Slovenia, 5-8 December, (2004).
41. Kangasharju, A., “Growth of the smallest: determinants of small firm growth during strong macroeconomic fluctuations,” International Small Business Journal, Vol. 19 No.1, pp. 28-43, (2000).
42. Omerzel, D.G., Antoncic, B. Critical entrepreneur knowledge dimensions for the SME performance, Industrial Management & Data Systems, Vol 108, pp. 1182-1199, (2008).
43. Chuang, T.T., Rutherford, M.W., Lin, B., “Owner/manager characteristics, organisational characteristics and IT adoption in small and medium enterprises”, International Journal of Management and Enterprise Development, Vol. 4 No. 6, pp. 619-634, (2007).
44. Robson, P.J.A., Bennet, R.J., “SME growth: the relationship with business advice and external collaboration”, Small Business Economics, Vol. 15 No. 3, pp. 193-205, (2000).
45. O’Neill, H.M. “How Entrepreneurs Manage Growth” Long Range Planning, V16:1 pp. 116-233, (1983).
46. Sussman, D., ‘Barriers to job-related training’, Perspectives, Statistics Canada Catalogue, 75-001-XIE, Ottawa, 5-12, (2002).
47. Griffin, R.P. Workplace learning evaluation: a coneptual model and framework. Industrial and Commercial Training. Vol. 43 No. 3, pp 172-178, (2011).
48. Eirich, R., “Small business to medium enterprise”, CMA Management, Vol. 77 No. 9, pp. 16-18, (2004)