Entrepreneurial resilience strategies for startups: A view from the VUCA paradigm

Abstract

Entrepreneurial resilience is a key factor in determining the long-term success and sustainability of startup businesses in a business environment that is characterised by a distinctive blend of opportunities and constraints. These startups operate in a dynamic environment characterised by rapid economic shifts, varying access to resources, and a mix of cultural diversity. In this context, the ability to withstand adversity, and adapt and thrive amid challenges, becomes paramount for entrepreneurs. The main aims of this study were to explore the South African entrepreneurship journey; investigate the meaning and significance of the VUCA (volatility, uncertainty, complexity, ambiguity) paradigm; identify the key factors that shape entrepreneurial resilience; and analyse entrepreneurial resilience strategies through a case study. A qualitative research approach using a traditional literature review technique was adopted to reach a deeper understanding of the intricate dynamics of small, medium, and micro-enterprises (SMMEs) in South Africa. Findings reveal that only 28 percent of South African startups survive for more than three years, compared to an average of 50% in other countries. The study confirmed that without a clear understanding of VUCA and the implementation of appropriate strategies to address its implications, startups in South Africa will continue to struggle to achieve sustainable growth and success.