24
25 entrepreneurial process, such individuals would be better enabled to successfully exploit opportunities (Davidsson and Honig, 2002).
Agricultural growth, as well as entrepreneurship, is constrained by the absence of appropriate technology and related tacit knowledge3. Tacit knowledge refers to know-how, the often non- codified components of activity (Davidsson and-and Honig, 2002). The know-how consists of the explicit type4 of information normally conveyed in procedures, processes, policies, formal written documents and educational materials. These constraints have resulted in misguided perception concerning appropriateness and a bias favouring large farmers among agriculturalists (Groenewald, 1993).
One way to overcome some of the constraints the smallholder farmers may face is to acquire knowledge and resources by outsourcing knowledge existing outside their own farm. Prior studies have shown that an entrepreneur’s personal network allows access to resources that are not possessed internally (Liao and Welsch, 2005). Social capital may also help with the entrepreneurial exploitation process, by providing and distributing critical information and other essential resources. Social capital assists emerging entrepreneurs as individuals by exposing them to new and different ideas and global views. Entrepreneurs frequently make decisions as a result of associations based on friendship or advice often consisting of social capital based on weak ties (Davidsson and Honig, 2002).
Previous knowledge plays a critical role in intellectual performance. It assists in the integration and accumulation of new knowledge, as well as integrating and adapting to new situations. This network of resources and information may represent a rich source of explicit and implicit knowledge, experience and privileged access to physical resources. Such networks may offer a solution to the limitations of the infinite supply of internal resources for the new or growing venture (Anderson and Jack, 2002). Solving complex problems and making entrepreneurial decisions requires combining both tacit and explicit knowledge, as well as social structures and belief systems. Therefore, farmers may be able to increase their knowledge as a result of formal education, such as university education, informal education and non-formal education, such as adult education (Davidsson and Honig, 2002).
3 Tacit knowledge can be expanded through an individual’s experiences (Scar, 2012).
4 Explicit knowledge can be learned from books or other similar sources (Scar, 2012).
26 Social networks are regarded as critical for opening up entrepreneurial possibilities, providing access to useful, reliable, exclusive and less redundant information. It is increasingly recognized that interpersonal relationships have a crucial role to play in the success of individuals (Anderson and Jack, 2002). Although an entrepreneur is regarded as an individualist, there is sample evidence that entrepreneurship is, in fact, socially embedded in network structures (Casson and Guista, 2007).
Understanding how collective action can help address the inefficiencies, coordination problems or barriers to market access is particularly important (Markelova et al., 2009). Farmers in SIS have previously acted in isolation of each other, with beneficiaries seeking support from separate projects and programmes. In the former homelands, a number of SIS were planned and established following a centralised estate design whereby control over farming activities and decision making was strictly enforced by central management with minimal or no input from farmers (Sikelwa and Mushunje, 2013). According to this study, this then resulted in high levels of dependency among farmers in the schemes and poor performance when farmers were left to manage the schemes on their own. Research conducted elsewhere in sub-Saharan Africa has shown that SIS can succeed if farmers participate in the planning, design and management (FAO, 2012).
Successful farmer-entrepreneurs are technically competent, innovative and plan ahead. They can manage their farm businesses through the stages of enterprise development from establishment and survival to rapid growth and maturity (McElwee, 2005). The results of a study conducted by Davidsson and Honig (2002) suggest that entrepreneurs would be well advised to develop and promote networks.
Research has demonstrated that individuals who are high in psychological capital tend to attract other like-minded persons to them, which in turn, increases the likelihood of creating long- lasting friendships and networks (Fredrickson, 2001). These strong emotional connections with both their work and individuals within their social networks help those rich in psychological capital to broaden their emotional capacity. This then enables them to be particularly resilient to stress and other health disorders (Fredrickson and Levenson, 1998), and to thrive in situations in which others may find to be overwhelming (Corey et al., 2003).
Psychological capital, which focuses on who individuals perceive themselves to be, is a particularly important individual characteristic for smallholder farmers to possess in leading
27 their farms through the entrepreneurial process. It empowers the capability to persevere through uncertain conditions and to bounce back from failure. Psychological capital tends to be self- perpetuating. As individuals accumulate psychological capital, they tend to form a reputation for mental power that attracts to them individuals and situations that reinforce this capacity within them (Fredrickson, 2001). Smallholders who build psychological capital should not only increase their general level of well-being but also tend to develop the tenacity necessary to endure through the entrepreneurial process. Considering the increased emotional demands involved in leading new ventures within dynamic industries (Hmieleski and Ensley, 2007;
Hmieleski and Carr, 2008)