**Abstract**

The number of entrepreneurs in South Africa and, therefore, the Total Entrepreneurial Activity is lower than expected. The absence of entrepreneurial orientation is not the problem but, rather, instead of focusing on the innovative products and services, we should focus on innovative business models that change the processes. This chapter conceptualises an appropriate conceptual framework for effectively researching disruptive innovation and innovative business models at subnational level. We employ systems thinking to interrogate literature to realise three objectives. First, to understand the root causes and consequences of low innovation in new business ventures in South Africa and more specifically Gauteng Province. Second, to uncover the knowledge gap on this subject generally and specifically Gauteng Province. Lastly, to establish the most appropriate framework in innovation and entrepreneurship studies for interpreting anticipated empirical results. Eventually, this research will detail innovativeness in new business ventures after interrogating the theoretical material and empirical data and information on disruptive innovation and innovative business models. We have sufficient theoretical grounding on this subject but not empirical grounding to support some of our assertions. Even though most of the interrogations are general, it is within the context of Gauteng Province and, therefore, we may not generalise our conclusions and proposals. We do not address how innovativeness influences policies in general and we do not restrict ourselves to any specific sector.

**Keywords:** 4th industrial revolution, business models, disruptive innovation, innovative business models, research problem analysis, research knowledge gap analysis, theoretical frameworks, conceptual framework
