Olawale Fatoki and Obey Dzomonda

DOI: https://doi.org/10.6000/1929-7092.2019.08.106

Published: 23 December 2019

Abstract: Most new small and medium enterprises (SMEs) cannot borrow funds from commercial banks in South Africa. Inaccessibility to bank credit is one of the major causes of the failure of new SMEs as most of them are resource constrained. The mobilisation of resources through bricolage may be of vital importance to the success of new SMEs at the individual and firm levels. The aim of the study is to investigate the effect of entrepreneurial bricolage on the subjective wellbeing of entrepreneurs and the financial performance of new SMEs. The study used the quantitative research approach and the causal research design. The cross-sectional survey method was used for data collection. Questionnaire was distributed to 400 owners of new SMEs. 175 respondents participated in the survey. Descriptive statistics, Pearson correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used as the measure of reliability. The results indicate a significant positive relationship between entrepreneurial bricolage and subjective wellbeing and financial performance of new SMEs. The paper concludes that entrepreneurial bricolage can reduce the need to borrow from commercial banks. Bricolage is important in reducing resources constraints and improving the performance of new SMEs in South Africa.

Keywords: Entrepreneurial bricolage, new, small and medium enterprises, financial performance, subjective wellbeing, South Africa.

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