Perceived institutional obstacles in doing business: A comparative study of South Africa and the Philippines

Abstract

There is ample evidence indicating that institutional environments have a direct effect on the performance of small enterprises. Furthermore, perceptions of how the institutional environment will hinder or foster their respective firms shape the actions entrepreneurs take. This research investigates whether there are differences between South African and Filipino entrepreneurs in their perceptions of institutional obstacles in doing business - specifically the government-business interface. A sample size of 615 small and medium sized firm owners from different industries from both countries were provided with a list of 15 areas where the firm is confronted with government action and were asked to evaluate the degree to which these different areas create obstacles for conducting business. A discussion of the overall findings, as well as applicable lessons and future research follows.