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Maurice Khosa, Risimati, and Vivence Kalitanyi. "Defining success of African immigrant-owned small businesses in Cape Town, South Africa." Problems and Perspectives in Management 14, no. 3 (July 29, 2016): 46–54. http://dx.doi.org/10.21511/ppm.14(3).2016.04.
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Taking Cape Town, South Africa as a case, this paper seeks to investigate the factors that define the success of small businesses owned by African immigrants. The paper reviews literature on immigrant entrepreneurs, immigrant-owned ventures and social capital. A random sample of available immigrant small businesses owners was taken where semi-structured interviews were conducted, as well as the use of self-administered questionnaires. Secondary data (literature review) have unveiled that social networks are vital in the formation and growth stages of an immigrant-owned business, as networks provide the necessary support. Ultimately, social networks supplement the survival chances of an immigrant-owned venture. Furthermore, primary data (empirical results) have revealed that most of the businesses are mainly run by males, while longevity and employment creation are defining factors of success to African immigrant-owned small businesses in Cape Town. Following the empirical findings and their analysis, recommendations have been formulated
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N. Ngcobo, Raphael. "Credit provision by banks: a case study analysis of small businesses in South Africa." Banks and Bank Systems 12, no. 4 (November 30, 2017): 65–74. http://dx.doi.org/10.21511/bbs.12(4).2017.06.
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Small business sector is considered as an important economic driver by many countries. In South Africa, small business sector has been acknowledged as the driving force to boost the economic growth and an important source of job creation. This article aims at identifying factors that are a challenge in obtaining bank finance by small businesses in South Africa.Primary data for this study involved a survey questionnaire directed to owners of small businesses operating in Ekurhuleni Metropolitan area, Gauteng, South Africa. Factors that were deemed to influence bank loan decision were examined. The research findings revealed that factors such as age of business, business plans availability, educational background of business owner, experience of business owner and availability of a collateral have an influence on the bank loan decisions. This research also found that the accessibility of loan funding from banks was a constraint on business operations and growth. The findings of this study indicate that the mentioned factors are a challenge for small businesses in accessing bank loans to fund their operations.The findings of this study will be of great value to small business owners and policy makers in finding solutions to address the identified barriers.
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Lose, Thobekani, Robertson K. Tengeh, Eugine Tafadzwa Maziriri, and Nkosivile Welcome Madinga. "Exploring the critical factors that hinder the growth of incubatees in South Africa." Problems and Perspectives in Management 14, no. 3 (November 10, 2016): 698–704. http://dx.doi.org/10.21511/ppm.14(3-3).2016.13.
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In as much as entrepreneurial action fosters job creation and economic growth, entrepreneurs encounter the significant risk of failure, and community bears the brunt. Though business incubators were designed to provide support and hope to ailing businesses, evidence suggests that not all on these programs succeed. Going on the assumption that even businesses on incubation programs do not seem to be immune to failure, this study sought to determine the key factors that hinder the growth of incubatees in South Africa. Adopting a quantitative approach, the questionnaire was utilized as the primary data collection tool, and the snowball sampling method was employed resulting in a sample size of 93 respondents. The research participants for this study were limited to firms that were registered on the databases of two business incubators who promote small business development strategy and programs in Cape Town and Johannesburg, respectively. The findings indicated that lack of funding, lack of credit facility, competition, crime, lack of access to external market, lack of business skills and lack of product selection and design were the key factors that hinder the growth of incubatees. Given the substantial resources invested in business incubation programs, the fact that business incubators are entrepreneurial ventures in themselves, understanding and finding sustainable solutions to the factors that hinder the growth of their clients (incubatees) would be a win-win solution for the relevant stakeholders. Keywords: business incubatees, business incubators, entrepreneurship, growth, South Africa. JEL Classification: M1, L84
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Litheko, Alpheaus. "Small Tourism Business Growth Through Eco-tourism in Mahikeng, South Africa." African Journal of Hospitality, Tourism and Leisure 10(1), no. 10(1) (February 28, 2021): 256–69. http://dx.doi.org/10.46222/ajhtl.19770720-100.
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Small business enterprises are renowned worldwide as vehicles for economic growth and development. The small business sector in South Africa has encountered numerous obstacles and government agencies responsible for their development have come across challenges, and as a result, they have not been able to adequately develop a large number of small businesses. Product diversification is one of the growth strategies that can be developed by small tourism businesses to break into new markets and off-set the challenges associated with one sub-sector of tourism. The primary objective is to determine the business support required by small tourism businesses to enter and participate in the eco-tourism sector. A non-probability judgemental sampling method was used to identify participants. In-depth face-to-face interviews were utilised to collect data from small tourism businesses located in Mahikeng, South Africa. There are many limitations that hinder the sustainable development and growth of small tourism businesses in Mahikeng, and for government to implement a series of growth reforms they firstly need to gather information on those factors that impede small tourism business’ sustainable development. The findings of the study can be utilised to inform policy-making processes, and its recommendations can contribute towards strategy development that provides assistance intended for small tourism businesses to enter and participate in the eco-tourism market.
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A. Abisuga-Oyekunle, Oluwayemisi, and Mammo Muchie. "Handicraft small enterprises as an instrument for rural economic growth and poverty eradication." Problems and Perspectives in Management 18, no. 4 (October 29, 2020): 25–36. http://dx.doi.org/10.21511/ppm.18(4).2020.03.
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In South Africa, exploiting economic opportunities in the handicraft sector could create livelihood and employment for ordinary citizens living in rural areas. The potential contribution of handicraft small enterprises to sustainable livelihoods and poverty alleviation is yet to be fully exploited. It is also regarded as a sector with great growth potential, but the degree of support provided to the handicraft sector is low. The study aims to evaluate the socioeconomic factors influencing the viability of handicraft small businesses operating in KwaZulu-Natal. Data collection was drawn from a stratified random sample of 196 handicraft practitioners operating in different areas of KwaZulu-Natal Province with a structured questionnaire. Data analysis was performed with the STATA statistical package. The results obtained from the study have shown that 84 enterprises (42.86%) were not viable, whereas 112 of the 196 handicraft enterprises (57.14%) were viable. The percentage of overall correct classification for this procedure was equal to 77.96%. Percentage sensitivity for the fitted logistic regression model was equal to 60.71%. Percentage specificity for the fitted logistic regression model was equal to 82.14%. The p-value obtained from Hosmer-Lemeshow goodness-of-fit test was equal to 0.0884 > 0.05. This indicates that the fitted logistic regression model is fairly well reliable. The findings from the analysis showed that two factors significantly influenced the viability of handicraft enterprises. These two factors were the belief that handicraft business could sustain the handicraft practitioner, and the level of support for handicraft businesses from non-governmental organizations is decreasing. AcknowledgmentSouth Africa SarChi Chair, Nation Research Fund and Department of Science and Technology, South African, for providing funding for this research.
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Gervase Iwu, Chux. "Sustaining small businesses in emerging economies: an examination of the pre and post startup ramifications." Problems and Perspectives in Management 15, no. 1 (May 11, 2017): 227–36. http://dx.doi.org/10.21511/ppm.15(1-1).2017.10.
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Set in the Western Province of South Africa, this study is centred on a group of small business owners who received financial support from a leading South African business developer. The main aims were to obtain from the recipients what they envisaged as their main challenges, and to compare those challenges at a later stage to get a better understanding of the real challenges of small business pre and post startup. The ultimate benefit will be to report on these to inform practitioners and researchers so that every stakeholder can have a fresher insight into this phenomenon with the hope that much more concrete discussions and interventions may emerge. This longitudinal study adopted the mixed method, specifically the use of a questionnaire and a semi-structured interview schedule. This method enabled the researcher to gain a better understanding of the issues at play with respect to first time recipients of funds, as well as engage intimately with them in order to obtain salient information regarding challenges of small business pre and post business startup. Interestingly, most participants indicated that almost all the items in the questionnaire were major challenges. This study should not only generate the necessary discussions among practitioners and scholars on small business growth constraints in South Africa, but, at the same time, uncover through such discussions, some of the undocumented challenges of small businesses in emerging markets so that the chances of survival of small businesses beyond the 2-3 year mark are improved.
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Chidinma Maduekwe, Caroline, and Peter Kamala. "Performance measurement by small and medium enterprises in Cape Metropolis, South Africa." Problems and Perspectives in Management 14, no. 2 (May 11, 2016): 46–55. http://dx.doi.org/10.21511/ppm.14(2).2016.05.
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High failure rate of small and medium enterprises (SMEs) has been partly attributed to the use of inappropriate performance measures. This study seeks to determine the types of performance measures employed by SMEs, purpose for which performance measures are used, perceived effectiveness of performance measures used and factors that may inhibit SMEs from using both financial and non-financial performance measures. Data are collected using a questionnaire and analyzed using descriptive and inferential statistics. The findings of this study reveal that most of the sampled SMEs measure their performance using both financial and non-financial performance measures, albeit financial performance measures are used more frequently than the non-financial ones. Of the financial performance measures, the most popular ones are sales growth, cash flows, operating income and net profit margin. The most popular non-financial measures are customer focused. These include response time, customers’ satisfaction, percentage of repeat customers and customers’ complaints. The findings also reveal that performance measurement reports are used by the sampled SMEs mostly for monitoring the business, gauging the performance of the business, improving business processes, identifying problems and optimizing the use of resources. The findings further reveal that the performance measures used are perceived to be effective but that the lack of awareness, qualified personnel, top management support, required resources such as computers, had, to some extent, inhibit SMEs from using the appropriate performance measures. This study not only fills in the gap in the literature on performance measurement by SMEs, but also provides invaluable insights on the extent to which these entities use different performance measures. These insights could inform future government interventions meant to avert the high failure rates of these entities and also aid SMEs to gauge their performance measurement practices with a view to adopt the best practices or avoid factors that could inhibit them from using these practices
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J. Schmidt, Holger, Roger B. Mason, Juan-Pierré Bruwer, and Jonathan Aspeling. "Access to finance problems for small retail businesses in South Africa: comparative views from finance seekers (retailers) and finance providers (banks)." Banks and Bank Systems 12, no. 2 (June 23, 2017): 20–30. http://dx.doi.org/10.21511/bbs.12(2).2017.02.
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Small retail businesses are essential for the growth of the South African economy. Though many of these business entities need more assets to seize business opportunities, previous research studies suggest that their overall access to finance through banks and other finance providers seems to be limited. In general, small retail businesses are usually managed by entrepreneurs who lack financial knowledge, but banks, when deciding on credit applications, rely heavily on financial information, which is provided by these entrepreneurs. Notwithstanding the aforementioned, this study aimed to explore barriers that limit access to finance for South African small retailers, from the perspectives of finance providers (banking institutions) and finance seekers (small retailers). Additionally, measures were highlighted to show how those hurdles could be overcome. Qualitative research was conducted, whereby data were collected via semi-structured interviews with management personnel at banks and other financial institutions, as well as independent experts and small retail business owners and managers. The findings show that many financing opportunities are available to small retail businesses, but access to these opportunities is limited mainly owing to, inter alia, strict bank regulations and factors that are inherent to small retail business owners.
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Mwila, Natasha Katuta, and Mabel Ironn Sky Turay. "Augmenting talent management for sustainable development in Africa." World Journal of Entrepreneurship, Management and Sustainable Development 14, no. 1 (February 12, 2018): 41–49. http://dx.doi.org/10.1108/wjemsd-03-2017-0012.
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Purpose With the steady overall development of the continent, the African business landscape over the last decade has witnessed increased growth through numerous avenues. Growth has been through the emergence of formalised small and medium enterprises, the growth of business and transition from one scale to another as well as inward foreign direct investment. The purpose of this paper is to investigate how this business growth can be sustained, particularly in the area of talent management, within the framework of the United Nations Sustainable Development Goals. Design/methodology/approach This paper presents the findings of a narrative inquiry conducted in 2016 on an expert panel of talent managers in businesses based in South Africa. Findings The focus of the inquiry was the challenges in talent currently faced by South African businesses and what possible solutions, that address the question of sustainable development, may lie in talent management practices. The study finds that there may be scope for the augmentation of current practice in psychometric testing which may address a plethora of problems currently defining the talent context in African business. Originality/value The growth of African businesses has presented interesting challenges in managing the African business particularly in the area of human resources and talent management. A persistent notion is the question of sustaining this growth on the continent. As enterprise grows, the need for talent is ever more pressing. This paper seeks to present pathways to sustainability in this regards.
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Moyo, Busani. "Crime, security and firm performance in South Africa." Corporate Ownership and Control 9, no. 4-2 (2012): 241–52. http://dx.doi.org/10.22495/cocv9i4c2art5.
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We use cross sectional data from the World Bank enterprise surveys gathered in 2007 in South Africa’s four cities (Johannesburg, Cape Town, Durban and Port Elizabeth) to assess the impact of business related crimes on firm performance proxied using firm sales. Using Ordinary Least Squares (OLS) and Tobit model, we find that crime in the form of theft, robbery, arson and vandalism has a negative effect on sales and hence firm performance. However the impact of domestic shipment crime is mixed and varies from city to city depending on the magnitude of losses incurred by firms in each city. Results also show that crime is regressive in nature because crime related losses are relatively higher among small firms than large firms. The prevalence of crime amongst small firms and its negative effect on firm performance suggest the need for government and the business community to come together and develop security systems that are effective and affordable to small businesses. This is because, supporting small businesses is important for growth and employment creation
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Madzimure, Jeremiah. "THE COMPLIANCE CHALLENGES OF SMALL, MEDIUM AND MICRO ENTERPRISES IN SOUTH AFRICA." EURASIAN JOURNAL OF BUSINESS AND MANAGEMENT 8, no. 3 (2020): 182–90. http://dx.doi.org/10.15604/ejbm.2020.08.03.002.
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The Small, Medium and Micro Enterprises (SMMEs) play a crucial role in the development of South African economy through job creation and improving the standard of living. Despite their importance, majority of these SMMEs are facing compliance challenges. The study seeks to identify compliance challenges of SMMEs in terms of the company act and the impact on their ability to conduct business while remaining competitive and legal in South Africa. This study was conducted in Gauteng province of South Africa. The study applied a qualitative, interpretive approach. The thematic analysis through inductive process was used to analyze the interview responses collected from the participants. The main findings reveal that the uneven business environment has rendered the prosperity and growth of small business impossible. That impossibility is attributed to the lack of capacity and skill to comply with the burden of the company act, given the uneven ground of competition on which large enterprises are more experienced and resourceful. The value of this study is the proposed solution to the current compliance challenges which most SMMEs face and impede their growth. The study recommends that the government offer tax rebates and incentives for SMMEs.
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Sitharam, Sharmilee, and Muhammad Hoque. "Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa." Problems and Perspectives in Management 14, no. 2 (June 13, 2016): 277–88. http://dx.doi.org/10.21511/ppm.14(2-2).2016.03.
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Small and medium enterprises (SMEs) have an important role to play in the development of the country. A strong SME sector contributes highly to the economy, contributing to the gross domestic product, by reducing the level of unemployment, reduction in poverty levels and promotion of entrepreneurship activity. In South Africa (SA), the growth of SMEs and prevalence of SMEs is significantly low. Therefore, the aim of the study is to identify the internal and external factors affecting the performance of SMEs in KwaZulu-Natal, SA. This was a cross-sectional study conducted among 74 SMEs owners/managers who were members of the Durban Chamber of Commerce via online using anonymous questionnaire. The results revealed technological advancement would improve the performance of the business. With regards to challenge, the majority of the respondents viewed competition as a major challenge. Almost all the respondent indicated that crime and corruption affecting business performance. Competition was the only factor amongst the studied internal and external factors that revealed a significant association with the performance of SMEs in KwaZulu-Natal (p = 0.011). SMEs need to recognize they must prepare for both domestic
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Masutha, Mukhove, and Christian M. Rogerson. "Small enterprise development in South Africa: The role of business incubators." Bulletin of Geography. Socio-economic Series 26, no. 26 (December 1, 2014): 141–55. http://dx.doi.org/10.2478/bog-2014-0050.
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Abstract Business incubation is a relatively new phenomenon in scholarship and policy development for small enterprise development. Business incubators offer targeted business support and technical support services to accelerate the growth of emerging and small start-up business enterprises into financially and operationally independent enterprises. South Africa has adopted business incubation as one vehicle for upgrading the SMME economy. This article examines the evolution of policy towards business incubation, current progress, institutional issues and emerging geographies of business incubators as part of the unfolding and dynamic SMME policy landscape in South Africa. Considerable differences are observed between the activities of the network of state-supported incubators as opposed to private sector operated incubators.
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Peters, Ricardo Martin, Garth Van Gensen, Eslyn Bleighnaul Hugh Isaacs, Mark Jonathan Botha, and Visvanathan Naicker. "Education And Small Business Growth: A Gender Perspective Of Two Divergent Provinces In South Africa." International Business & Economics Research Journal (IBER) 13, no. 5 (August 23, 2014): 1127. http://dx.doi.org/10.19030/iber.v13i5.8779.
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The article attempts to identify whether the level of education and gender has an impact on the business growth of SMMEs in a developing economy. The study furthermore looks at the contribution made by the SMME sector from a spatial perspective. The Western Cape is seen as a more affluent province and a bigger contributor to the countrys GDP as opposed to KwaZulu-Natal, which comprises of the former province of Natal and the Zululand homelands. Entrepreneurship can be considered as one of the means of creating an enabling environment conducive to reducing poverty, stimulating economic growth, and creating employment opportunities, particularly in a South African context. Hence, activities in the SMME sector are often considered to be the bedrock of an economy and a key driver of growth and development. This holds most true for women assuming the role of entrepreneur, especially in developing countries. This study aims to explore and test this delicate relationship between women entrepreneurs and SMME sustainability, and to conduct empirical investigations into high-density SMME operations in two South African provinces. Survey data were collected from SMME owners/managers in the Western Cape and KwaZulu-Natal provinces of South Africa. In building on previous academic literature on SMME sustainability and women in business, various measures are developed and tested for reliability and validity. The study is cross-sectional in design, making use of trained fieldworkers to administer face-to-face surveys to a diverse set of SMMEs. A structured questionnaire was used to collect data from 465 owners/managers in the two provinces. The findings show (i) a positive relationship between a business owners/managers level of education and business growth, (ii) no correlation between a business owners/managers education and employment, and (iii) no relationship between gender and business growth. The findings of the study can benefit the South African Government in directing policy, SMME owners, educators and women in business by increasing awareness of the nature of sustainable SMMEs, and the effect of operational skills, gender and education on the development thereof. This study focuses on the growing sector of women in business and the impact of education in SMMEs linked toward business sustainability. A contribution is made toward theory development through empirical research.
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Simon Chili, Nsizwazikhona, and Simiso Lindokuhle Mabaso. "The challenges of developing small tourism enterprises in townships: case of Umlazi, South Africa." Problems and Perspectives in Management 14, no. 1 (April 11, 2016): 201–5. http://dx.doi.org/10.21511/ppm.14(1-1).2016.08.
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Township tourism in South Africa has grown in popularity since 1994 and is considered by some researchers to be an appropriate mechanism for stimulating local economic development. Opportunities for the development of black-owned enterprises in South Africa began for the first time when the country integrated into the global tourism economy after many years of international sanctions. The growth of township tourism thus can provide the context for potential economic opportunities for local entrepreneurs to enter the business, an activity that traditionally has been the domain of established white South African entrepreneurs. The main objective of the study is to present findings on the challenges that face a certain group of small tourism enterprises in townships with more attention being specifically paid to Umlazi as the second biggest township in the Southern hemisphere. The main reason for the choice of the study is due to the fact that there is only a limited literature that explores the conditions of small-scale and informal tourism entrepreneurs operating in South Africa’s black townships. The focus falls upon the challenges of developing small tourism entrepreneurs for black owners in the township, especially because South African tourism industry is highly concentrated and dominated by small elite group of large, mostly locally owned, tourism organizations which drive the tourism economy that unfortunately excludes and sidelines that of the townships
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Sephapo, Catherine Mpolokeng, Johannes Arnoldus Wiid, and Michael Colin Cant. "The perception of sponsorship usefulness among South African small business owners." Corporate Ownership and Control 11, no. 4 (2014): 475–88. http://dx.doi.org/10.22495/cocv11i4c5p6.
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Sponsorship is a powerful marketing tool that organisations in South Africa are embracing. From the evaluation of the sponsorship growth over the years, the industry in South Africa has developed from a R63 million industry in 1985 to the value of just under R7 billion in 2011 (City Press, 2012). Small businesses in South Africa are faced with the challenge of effectively reaching target segments. These small businesses are restricted in terms of limited marketing budgets and therefore need alternative ways of improving their brands in the eyes of the consumer. Theoretically, sponsorship is considered to improve the brand image of an organisation and ultimately improve sales. However, the question that this study aims to answer is whether small business owners perceive sponsorship to be a useful tool that even they can utilise. The study made use of a quantitative approach whereby a web-based questionnaire was distributed to small business owners. The findings indicated that the general attitude towards sponsorship as a marketing tool is positive. The correlation between sponsor sincerity and sponsorship usefulness was found positive; however, average in strength. Although sponsorship is seen as a useful tool, 15.4% of the respondents indicated that they would not consider using this marketing tool. This response may provide an opportunity for further research to be conducted which may shed some light on the strategies small business owners perceive to be most effective for their unique circumstances
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Matchaba-Hove, Tony, Shelley Farrington, and Gary Sharp. "The entrepreneurial orientation - Performance relationship: A South African small business perspective." Southern African Journal of Entrepreneurship and Small Business Management 7, no. 1 (July 1, 2015): 36. http://dx.doi.org/10.4102/sajesbm.v7i1.6.
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<p>The high failure rate among small businesses in South Africa has created an urgent need to identify strategies that will improve their levels of performance. The purpose of this study was to investigate the relationship between entrepreneurially orientated strategies implemented by small businesses in the Eastern Cape and the influence of these strategies on business performance. Entrepreneurial orientated strategies were assessed in terms of the five dimensions of entrepreneurial orientation, namely innovativeness, proactiveness, competitive aggressiveness, risk-taking and autonomy. Business performance was assessed in terms of profitability and growth. A measuring instrument was developed based on valid and reliable items. Statistical techniques including descriptive statistics, Pearson’s product moment correlations and structural equation modelling, were performed on data gathered from 317 small business enterprises. The results of this study showed that the more small businesses implement the strategies of proactive innovativeness, competitive aggressiveness, and autonomy, and the less risk-taking their strategies are, the more likely their businesses are to be successful.</p><p><strong>Key words:</strong> Small business, Entrepreneurship, Entrepreneurial orientation</p>
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Willemse, Leonard C. "A critical analysis of the barriers to entry for small business owners imposed by Sections 12E(4)(a)(iii) and (d) and paragraph 3(b) of the Sixth Schedule Of The Income Tax Act, No. 58 of 1962." Journal of Economic and Financial Sciences 5, no. 2 (October 31, 2012): 527–46. http://dx.doi.org/10.4102/jef.v5i2.298.
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According to National Treasury’s Explanatory Memorandum on the Revenue Laws Amendment Bill, 2008, small businesses in South Africa are instrumental in the growth of the South African economy as they are a source of job creation and a counter to poverty. Research, however, indicates that small businesses face many obstacles, such as relatively high tax compliance costs. It was, therefore, proposed in the 2008 Budget Review that a turnover tax system be implemented for micro businesses with a turnover of up to R1 million per annum to simplify the tax compliance process. Similarly, section 12E was introduced earlier in the Income Tax Act No. 58 of 1962 to offer additional income tax relief to small business owners. Sections 12E(4)(a)(iii) and (d) and paragraph 3(b) of the Sixth Schedule, however, prevent certain small business owners from making use of these concessions. This article investigates these barriers to entry and explores possible solutions to the problems presented by them.
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Jere, Mlenga, Albertina Jere, and Jonathan Aspeling. "A study of small, medium, and micro-sized enterprise (SMME) business owner and stakeholder perceptions of barriers and enablers in the South African retail sector." Journal of Governance and Regulation 4, no. 4 (2015): 620–30. http://dx.doi.org/10.22495/jgr_v4_i4_c5_p7.
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Despite the support extended to the small business sector in South Africa, the growth and survival rates of small, medium, and micro-sized enterprises (SMMEs) are lower than expected. This paper investigates business owner and stakeholder perceptions of barriers and enablers of the start-up, survival, and growth of SMMEs in the South African retail sector. A qualitative research design using semi-structured interviews was employed for data collection from samples of stakeholders and business owners. Framework analysis was used to analyse both sets of data. The findings show that the stakeholders and business owners consider the lack of support, competition, skills shortages, and poor internal controls as the key barriers to the start-up, survival, and growth of SMMEs. Stakeholders considered the business environment as the key enabler while the business owners regarded increasing demand as the key enabler. To address the barriers, recommendations relating to skills development, funding, shelter and services, and other business development resources are presented.
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Elliott, R., and C. Boshoff. "The utilisation of the Internet to market small tourism businesses." South African Journal of Business Management 36, no. 4 (December 30, 2005): 91–104. http://dx.doi.org/10.4102/sajbm.v36i4.646.
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The tourism sector has been identified as an industry that has the potential to make a substantial contribution to the growth of the South African economy. The majority of tourism ventures are, however, small businesses, which differ from their larger counterparts not only in terms of size, but also in regard to access to resources and marketing expertise. Not surprisingly, one of the issues identified as preventing this sector from reaching its full potential is access to markets. The Internet has been identified as tool which may assist small businesses in both their global and domestic marketing.The focus of this study was to identify the factors specific to the Internet (rather than the technology per se or organisational factors) driving the success of the use of the Internet for marketing purposes in small businesses operating in the tourism sector in South Africa. If these factors can be identified and their relative influence on Internet marketing success be determined, it will allow small tourism businesses utilise the capabilities of the Internet more effectively.The results indicate that having a product champion in the business, having a network of effective alliances, a high level of owner-manager involvement in the Internet marketing strategy as well as a clear owner-manager vision are important to the successful use of the Internet for the marketing of small tourism businesses in South Africa.
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Coldwell, David Alastair Lindsay, and Tasneem Joosub. "Corporate social responsibility in South Africa: quo vadis?" African Journal of Economic and Management Studies 6, no. 4 (December 7, 2015): 466–78. http://dx.doi.org/10.1108/ajems-11-2013-0102.
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Purpose – Strategies and policies aimed at alleviating poverty in Sub-Saharan African countries usually depend on capitalistically driven economic growth. However, the view that capitalism needs to reinvent itself to survive the crisis of confidence brought about by the recent global financial collapse depends on the extent to which such a shared value oriented, sustainable capitalist reinvention is embraced by emergent business leaders. A sustainable system of capitalism driven by business and community shared value can only take root if the hearts and minds of future business leaders are convinced of their cogency and appropriateness. The paper aims to discuss these issues. Design/methodology/approach – This paper reports the findings of an empirical study utilizing a Likert-type scale designed to measure corporate shared value (CSV) and corporate social responsibility (CSR) among a sample of fourth year accountancy students at a leading South African university. Findings – Preliminary findings suggest that perceptions of this group of emergent leaders generally regard CSR rather than CSV as the “correct” business model for companies to follow. Although the sample is limited to one South African university and is relatively small, it contributes to the literature by offering insight into emergent business leaders’ perceptions and their view of the direction of CSR in South Africa should take. Research limitations/implications – Implications of the paper are that by offering insight into emergent business leaders’ perceptions of South African society and specifically their view of the direction South African CSR should take, the paper suggests prescriptive remedial steps in policy that educational and other learning institutions could take to engender appropriate social values in learners. Originality/value – The study contributes to the literature by offering devised and tested measuring instruments for CSR and CSV in the South African context and gives insight into emergent business leaders’ perceptions and their view of the direction of CSR in South Africa should take.
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Sibindi, Athenia Bongani, and Augustine Oghenetejiri Aren. "Is good corporate governance practice the panacea for small-to-medium businesses operating in the South African retail sector?" Corporate Ownership and Control 12, no. 2 (2015): 579–89. http://dx.doi.org/10.22495/cocv12i2c6p1.
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The small, micro and medium business enterprises (SMMEs) sector is universally acclaimed for fostering economic growth in many economies. The health of this sector is largely premised on the observance of good corporate governance tenets. The purpose of this paper is to determine whether good corporate governance practice has been firmly embedded in the small-to-medium enterprise (SMMEs) sector in South Africa. In this study we interrogate the influence of good internal control systems, with a special focus on cash flow management practices on the survival or growth of the SMMEs. This paper utilised qualitative research methods and employed the survey technique amongst the SMMES operating in the retail sector of Pretoria in South Africa. We find evidence that good corporate governance practices enhance cash flow management processes. This is extremely important to the survival of a business, particularly small businesses, and poor corporate governance practices lead to weak cash flow management systems, which can thus lead to small business failure. We also proffer policy advice as to the remedial actions needed to safeguard this sector
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Mpele Lekhanya, Lawrence. "Business characteristics of small and medium enterprises in rural areas: a case study on southern region of KwaZulu-Natal province of South Africa." Problems and Perspectives in Management 14, no. 3 (July 29, 2016): 108–14. http://dx.doi.org/10.21511/ppm.14(3).2016.11.
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This paper reports on the small and medium enterprises (SMEs) business characteristics in rural places of Southern KwaZulu-Natal (KZN) province. It was intended to identify and discuss the various characteristics and the implications they have on the survival and growth of rural enterprises. The study was conducted in five areas (uMuziwabantu, Ubuhlebezwe, Sisonke, Zingolweni and uMzimkhulu) Southern Region of KZN province. The sample consisted of 127 SMEs owners/managers operating in the selected areas using a quota sampling method, with respondents completing a five-point Likert scale questionnaire with the assistance of an interviewer. The findings indicated that most employees within the business are unskilled; the business operations are run by using modern facilities; most of business investment strategies are hindered by a lack of finance; and the local market is very small in selling rural SMEs’ products. SPSS (23.0) version was used for data analysis. The findings presented in the figures and tables. Statistical analysis revealed that business characteristics of SMEs in rural were tested and found to be significant (P = .000*). The paper will be useful tool for the policy-makers, business financial support institutions, and business stakeholders, government policy agencies in underlining a new way to consider future growth of SMEs in rural places, to understand challenges properly and to adjust growth strategies for the remote and under-developed areas. Most work has been focusing on SMEs in the urban and metropolitans areas with less emphasis on the rural SMEs with specific reference to KZN. The findings are limited by the quantitative nature, small sample and exploratory study. Therefore, generalization of these results should be done with care and more research with larger samples extended to other provinces is highly recommended
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Aren, Augustine Oghenetejiri, and Athenia Bongani Sibindi. "Cash flow management practices: An empirical study of small businesses operating in the South African retail sector." Risk Governance and Control: Financial Markets and Institutions 4, no. 2 (2014): 87–100. http://dx.doi.org/10.22495/rgcv4i2c1art1.
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The small, micro and medium business enterprises (SMMEs) sector is universally acclaimed for fostering economic growth in many economies. The health of this sector is largely premised on the observance of prudent financial management tenets, mainly cash flow management. In this study we interrogate the influence of cash flow management practices on the survival or growth of the SMMEs by conducting a survey amongst the SMMES operating in the retail sector of Pretoria in South Africa. We find evidence that cash flow management is extremely important to the survival of a business, particularly small businesses, and poor cash flow management can also lead to small business failure. We also proffer policy advice as to the remedial actions needed to safeguard this sector.
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Worku, Zeleke. "Barriers to the development of entrepreneurial activities in newly established small, micro and medium sized enterprises in Tshwane." Corporate Ownership and Control 12, no. 3 (2015): 317–31. http://dx.doi.org/10.22495/cocv12i3c3p4.
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The purpose of the study was to identify and quantify differential factors that are known to adversely affect sustained growth and development in newly established Small, Micro and Medium Sized Enterprises (SMMEs) conducting business in and around Tshwane in South Africa. The study is based on a 5-year follow-up study (2007 to 2012) of a random sample of 349 small business enterprises that operate in and around the City of Pretoria in South Africa. Data was gathered from each of the businesses on socioeconomic factors that are known to affect the long-term survival of small businesses. The objective of the study was to identify and quantify key predictors of viability and long term survival. The study found that 188 of the 349 businesses that took part in the study (54%) were not viable, and that the long-term survival and viability of small businesses was adversely affected by lack of entrepreneurial skills, lack of supervisory support to newly established businesses, and inability to operators running newly established businesses to acquire relevant vocational skills
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John Nyide, Celani, and Sharon Zunckel. "Interplay between capital structure choice and survival and growth of small, medium, and micro enterprises: A South African context." Problems and Perspectives in Management 17, no. 4 (November 26, 2019): 121–30. http://dx.doi.org/10.21511/ppm.17(4).2019.10.
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It is essential for small, medium, and micro enterprises (SMMEs) to become established, be sustainable and grow. These firms play a vital role in the economy of both developed and developing countries. Empirical studies have acknowledged the contribution of SMMEs to the economy, as well as to the gross domestic product. However, the failure rate of these firms has also been emphasized in the same studies. SMME survival is critical for economic growth, which is measured by increases in profits. Capital structure decisions are significant to the survival and growth of these entities. This study was conducted to examine the interplay between capital structure and SMMEs` survival and growth in a developing economy. A sample size of 103 SMMEs was chosen on a non-probability basis using convenience sampling within the eThekwini area, KwaZulu-Natal, South Africa. The statistical tool used for analysis in this study was the Partial Least Squares Structural Equation Modelling (PLS-SEM) 5.0 software. Capital structure was found to have a significant influence on the growth and survival of small, medium, and micro enterprises. The study concludes that utilizing retained earnings, personal savings, trade credit and funds from friends and family has a significant influence on the growth and survival of the firm. Debt and external equity financing, on the other hand, have an insignificant influence on the growth the firm.
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Lekhanya, Lawrence Mpele. "Leadership and corporate governance of small and medium enterprises (SMEs) in South Africa: Public perceptions." Corporate Ownership and Control 12, no. 3 (2015): 215–22. http://dx.doi.org/10.22495/cocv12i3c2p1.
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The main, underlying constraint to the growth of Small and Medium Enterprises (SMEs) is a lack of corporate governance (CG) structure (Mahmood 2014). In considering the UK- Department for Business Innovation and Skills report (2012), this constraint is described as one of the fundamental problems holding back the growth of SMEs. The report states it is this lack of leadership and management capability that should be present, to drive performance and enable them to succeed. However, statistics support the indispensable role that SMEs perform in a country’s economy and when the significance of this sector is taken into account, the role that CG and its practices play within SMEs has to be clearly understood (Le Roux, 2010). Due to SMEs survival and growth being dependant on their good business leadership and corporate governance, the ability to lead, manage, and take full advantage of the resources available have, in recent years, been highlighted on global public platforms and the media. It has further been acknowledged, through prior research studies on SMEs that, for a business to be successful, the critical role of leadership and good CG has to be fully understood. The purpose of this paper is to report on South African public perceptions of leadership and corporate governance of SMEs. The study aimed to analyse and evaluate these perceptions towards SME owner/managers and their consequences, on the survival and growth of SMEs. A mixed method approach allowed for qualitative and quantitative techniques in collecting data from individual participants, with primary data collected from nine provinces of South Africa, and 180 participants as the sample. The research instrument consisted of closed-ended, questionnaires made up of 5-point Likert scale responses and 20 questionnaires were distributed to each province. Delivery of the questionnaires was done through email to individual respondents, with follow–up via telephone calls. The research findings indicate that most respondents believed that the growth and survival of SMEs is, due to the lack of business leadership and poor CG. In addition, respondents agreed that SME owners/managers are just average entrepreneurs, as they do not have leadership qualities or skills and that CG does not exist in many SMEs, particularly in South Africa. The paper’s benefit will be to the owners/managers of SMEs, as well as, policy makers and financial agencies for SMEs. It is recommended that further research, with a larger sample size, be drawn from various townships
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Peters, Ricardo M., and Pradeep Brijlal. "The Relationship between Levels of Education of Entrepreneurs and Their Business Success." Industry and Higher Education 25, no. 4 (August 2011): 265–75. http://dx.doi.org/10.5367/ihe.2011.0048.
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The small, medium and micro enterprise (SMME) sector has been widely recognized as an engine of economic growth in South Africa. The implementation of the National Small Business Strategy (NSBS) in 1995 established important objectives for the sector to address such problems as lack of access to markets and procurement, lack of access to finance and credit, low skills and education levels, lack of access to information and a shortage of effective support institutions. In response, the South African government established institutions and programmes designed to improve access to sources of finance, market opportunities, technology, training and development and education. This paper examines whether there is a relationship between the level of education of SMME owners and the growth of their businesses, using labour force and turnover as success indicators. The study adopted a mixed method approach, including questionnaire surveys, observations and face-to-face interviews. The results indicate that in the two years preceding the study there had been a relationship between the owner/manager's level of education and the business's ability to grow by increasing its labour force and annual turnover. This study, conducted in a developing economy, therefore supports the findings of similar studies in developed economies, that the level of education of an entrepreneur and the success of their business are related.
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Msomi, Thabiso, and Odunayo Olarewaju. "Evaluation of access to finance, market and viability of small and medium-sized enterprises in South Africa." Problems and Perspectives in Management 19, no. 1 (March 15, 2021): 281–89. http://dx.doi.org/10.21511/ppm.19(1).2021.24.
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Access to finance and market has been described as a predominant challenge confronting small and medium-sized enterprises (SMEs). Hence, this paper seeks to evaluate access to finance, market access and viability of SMEs. A quantitative research method and a purposive sampling technique were used to select the participants for this study. Respondents from retail, manufacturing, construction and agricultural SMEs operating in Durban, KwaZulu-Natal, were selected to complete the structured questionnaires. 310 questionnaires were returned out of 321 distributed. The study revealed a significant effect of access to finance (absolute value 0.425) and access to market (absolute vale 0.373) on SMEs’ viability with a 5% level of significance. Thus, it was concluded that access to finance uniquely accounted for the larger proportion of the variance in the regression model. Thus, this study suggests that owners of SMEs should pay greater attention to access to finance in running their businesses, and the Government should aid SMEs to market their products and keep their businesses viable. Public loans or the government supported loans should be made available for SMEs with soften requirements in order to stimulate economic growth.
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E T, Maziriri, and Chinomona E. "Modeling the Influence of Relationship Marketing, Green Marketing and Innovative Marketing on the Business Performance of Small, Medium and Micro Enterprises (SMMES)." Journal of Economics and Behavioral Studies 8, no. 3(J) (July 3, 2016): 127–39. http://dx.doi.org/10.22610/jebs.v8i3(j).1294.
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Small, Medium and Micro Enterprises (SMMEs) are considered as economic engines for many countries. In South Africa, the Small, Micro and Medium Enterprises (SMMEs) sector has been acknowledged as the driving force to foster economic growth and job creations. This paper aimed at examining how relationship marketing, green marketing and innovative marketing influence the business performance of Small, Medium and Micro Enterprises (SMMEs) in Southern Gauteng, South Africa. The study utilized a quantitative research paradigm. A structured questionnaire consisting of validated scales for relationship marketing, green marketing, innovative marketing and business performance was administered to a sample of 231 SMMEs managerial employees in the Southern Gauteng region of South Africa. Smart PLS was used to analyze the data and the results indicated that there are positive relationships between the posited research variables. Implications of the findings are discussed and limitations and future research directions are alluded to.
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Maas, G. J. P., P. Court, and J. Zeelie. "Accelerating Entrepreneurial Development in South Africa." International Journal of Entrepreneurship and Innovation 2, no. 1 (February 2001): 27–33. http://dx.doi.org/10.5367/000000001101298756.
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The worldwide trend towards outsourcing non-core, company-specific activities has a number of positive macroeconomic implications. The most notable of these is the contribution that this trend will have in promoting the growth of small, micro- and medium-sized enterprises. This, in turn, should stimulate the socioeconomic development of the environment by adding value at the lower levels of production. This paper sets out to document how the successful implementation of an outsourcing project was achieved in a developing economy and makes recommendations as to its successful replication in other developing economies.
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C. Cant, Michael, Safura Mohamed Kallier, and Johannes A. Wiid. "SMEs and product mix decisions: fact or fiction." Problems and Perspectives in Management 14, no. 3 (November 10, 2016): 608–16. http://dx.doi.org/10.21511/ppm.14(3-3).2016.03.
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Research over the years has shown that in order for any business to survive, the correct product mix must be offered to the market. If the product does not satisfy the needs of the market, its reason for existence can be questioned. This principle applies to all businesses – big or small. The question arises if SMEs adhere to this fact and, if so, how they go about doing this. SMEs over the world make huge contributions to economic growth and job creation and are seen to be a driving force for economic growth and development in any economy. In the highly competitive environment that SMEs operate in, selecting the right merchandise for the right customer is important and, in most instances, its ability to survive or perish. This study aimed to determine if SMEs in South Africa make decisions regarding the product mix and, if so, if they conform to different profiles regarding the decisions that they make. A questionnaire was used to collect the data and was sent to SMEs around South Africa operating in different industries. The results indicated that SMEs in South Africa consider product characteristics, consumer behavior and strategic aspects when making product mix decisions. Keywords: merchandising, product, SMEs, product mix, business, South Africa. JEL Classification: M00, M300, M310
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Olarewaju, Odunayo, and Thabiso Msomi. "Factors Affecting Small and Medium Enterprises’ Financial Sustainability in South Africa." African Journal of Inter/Multidisciplinary Studies 3, no. 1 (2021): 103–17. http://dx.doi.org/10.51415/ajims.v3i1.893.
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The dwindling growth of small businesses and their rate of failure in South Africa has been traced to poor financing. Thus, the factors affecting the financial sustainability of small and medium-sized enterprises in South Africa are examined in this study. Using purposive sampling, data were collected from 310 respondents, however six were incorrectly completed. The analysis was based on data collected from 304 respondents which cut across owners and/or managers from small and medium construction, manufacturing, retail, and agricultural enterprises. A quantitative research design that falls under the positivist paradigm was used. Specifically, through a descriptive and multivariate regression analysis, it was found that financial awareness, budgeting, accounting skills, and access to finance have positive and significant effects on the financial sustainability of SMEs with all the variables, having 0.005 probability values, respectively. Out of all the variables examined, budgeting and access to finance have the largest absolute values of 0.425 and 0.373, respectively. Thus, it was concluded that workshops, training, and seminars to improve the financial literacy of small and medium enterprises should be organised. This will improve owner’s ability to deploy the accounting and budgeting skills and they will be exposed to meeting loan criteria and conditions from financial institutions. Also, adequate funds should be allocated to cater for the regular training and development of small business owners using the services of financial experts.
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Zwane, Bonginkosi Keith, and Celani John Nyide. "Financial bootstrapping and the small business sector in a developing economy." Corporate Ownership and Control 14, no. 1 (2016): 433–42. http://dx.doi.org/10.22495/cocv14i1c3p3.
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The assumption in academic literature and public debate is that lack of financial resources generally restrains small businesses’ development and growth. With the constraints that small businesses face to access outside funding, there is a need to investigate bootstrapping as a means of obtaining resources which will lead to a reduction in the need for outside financing. The challenge facing small businesses in terms of obtaining finance from traditional sources has necessitated this study. A sample was chosen on a non-probability basis using convenience sampling of small business owners within the eThekwini Municipality, KwaZulu-Natal, South Africa. 83 participants completed the questionnaire. The data collected was analysed using descriptive and inferential statistics. The findings regarding awareness of financial bootstrapping as a source of funding remains unknown. The evidence in the study shows that a number of respondents unknowingly used some of the bootstrapping methods.
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Lekhanya, Lawrence Mpele. "Public outlook on small and medium enterprises as a strategic tool for economic growth and job creation in South Africa." Journal of Governance and Regulation 4, no. 4 (2015): 412–18. http://dx.doi.org/10.22495/jgr_v4_i4_c3_p7.
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In spite of the key role played by the Small and Medium enterprises in economic development, there has been little effort to look at what needs to be done to improve survival and growth of SMEs. There is still a general lack of in-depth understanding from policy makers and other relevant stakeholders of how SMEs can be used as a strategic tool for economic growth and job creation in South Africa. These misperceptions and misunderstand leads to continuous failure to SMEs survival and growth. This study seeks to address this research gap. The study investigates the public views on what needs to be done to grow South African economy through the development of SMEs. Quantitative research approach was used to collect and analyse data for the study. Primary data was collected from four (4) provinces of South Africa. 230 people participated in the study. Questionnaires were emailed to each respondent and follow-ups were made via telephone. It was found that many SMEs fail within five years of their existence due to the various reasons. The most critical of these were related to lack of access to finance, lack of management experience as well as human capital. Study further revealed that most the SMEs owners/managers do not have business management related skills but rather they are just ordinary entrepreneurs.
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Joubert, C. S., N. J. Schoeman, and J. N. Blignaut. "Small, Medium and Micro-Sized Enterprises (SMMEs) and the housing construction industry: A possible solution to South Africa's socio-economic problems." South African Journal of Economic and Management Sciences 2, no. 1 (March 31, 1999): 21–33. http://dx.doi.org/10.4102/sajems.v2i1.2561.
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South Africa as a developing country faces many socio-economic problems like high unemployment, low levels of working skills, poverty and rampant crime. In this paper it is argued that by targeting SMMEs both in general and specifically in the housing construction industry, there is meaningful scope for the creation of jobs in the South African economy. This is mainly because SMMEs are labour intensive. Using Endogenous Growth theory as a basis, it is argued that by employing greater numbers of workers the level of skills in the economy can be raised too.
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Sewell, William, Roger B. Mason, and Petrus Venter. "Financial growth and sustainability in retail SMMes: Study of work-integrated learning policy." Risk Governance and Control: Financial Markets and Institutions 7, no. 2 (2017): 204–13. http://dx.doi.org/10.22495/rgcv7i2c1p8.
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This evaluation of Work-Integrated Learning (WIL) with Small, Medium and Micro Enterprise (SMME) retailers in South Africa arose from observations that vocational education goals required in this sector are not being achieved. Qualitative methodologies were used, including dialogic interviews and questionnaire surveys of purposive samples of SMME retailers, tertiary vocational educators and retail students, as well as insights from large retailers and skills development facilitators. Findings indicate lack of consensus on WIL strategies, and that for WIL within retail SMMEs to succeed, small business management capacity and entrepreneurial competence need to be supported by pre-WIL processes and mentorship strategies. To promote work-based learning within SMMEs, recommendations are made for policy review by W&RSETA management, vocational educators and small business development organisations.
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Chisasa, Joseph. "Rural credit markets in South Africa: A review of theory and empirical evidence." Corporate Ownership and Control 12, no. 1 (2014): 363–74. http://dx.doi.org/10.22495/cocv12i1c3p6.
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The demand for and supply of financial services in general and credit instruments in particular by rural South Africa still remains a confounding problem. The aim of this paper is to determine the status of rural credit markets in South Africa by reviewing theory and evidence from empirical studies. It is observed that financial markets in South Africa are fragmented between formal and informal markets. Formal financial markets generally serve urban and peri-urban areas with a thin distribution of services to people living in rural areas. Rather, informal financial institutions such as savings clubs (stockvels), co-operatives, moneylenders (mashonisas) and village banks are the more dominant providers of financial services. Commercial banks and other formal financial institutions cite high operating costs such as information gathering, monitoring and enforcement as some of the reasons for limited participation in rural financial markets. Such attitudes have been observed to retard entrepreneurial innovation and growth among small to medium size enterprises and smallholder farmers. Results of this analysis have policy implications in the areas of reduction of unemployment, poverty and sustainable economic growth in South Africa. Policies directed at increasing financial intermediation via formal financial institutions are recommended
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BISCHOFF, Christine, and Geoffrey WOOD. "Selective informality: The self-limiting growth choices of small businesses in South Africa." International Labour Review 152, no. 3-4 (December 2013): 493–505. http://dx.doi.org/10.1111/j.1564-913x.2013.00190.x.
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M, Tirivangasi H. "Fostering Entrepreneurship Education among Women and Girls in South Africa: Destroying the Gendered and Encultured Patriachies." Journal of Economics and Behavioral Studies 9, no. 6(J) (January 15, 2018): 227–36. http://dx.doi.org/10.22610/jebs.v9i6(j).2019.
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Gender inequality has been in existence in as much as the humans themselves. The South African women and girls like many other societies around the world are also suffering from the lack of opportunities whilst men still receive favorable treatment. The government of South Africa engaged in the promotion of Small and Medium Enterprises (SMEs) as part of empowerment projects for the Black people since the attainment of democratic rule in 1994. Entrepreneurship continues to play an integral role in the South African economy as well as the economies of many developing countries around the world. The creation of new Small and Medium businesses activities contributes to economic growth, job creation, better livelihood of people involved and the communities which surround them. However, there has been a lack of women participation in entrepreneurship businesses in South Africa. Women continue to shy away from starting SMEs. Research reveals that an approximately 6, 2 percent of South African adult women were involved in SMEs in 2015. This is an appalling situation if South Africa is going to achieve Sustainable Development Goals (SDGs). The SDG, goal number five encourages States to ‘Achieve gender equality and empower all women and girls’. The aim of this paper is to identify challenges faced by female entrepreneurs in South Africa, which makes their survival difficult within a patriarchal society.The empirical analysis is based largely on data from information available from sources such as journals, dissertations, thesis, books, conference reports, internet sources, and policy briefs relating to women and entrepreneurship.
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M, Tirivangasi H. "Fostering Entrepreneurship Education among Women and Girls in South Africa: Destroying the Gendered and Encultured Patriachies." Journal of Economics and Behavioral Studies 9, no. 6 (January 15, 2018): 227. http://dx.doi.org/10.22610/jebs.v9i6.2019.
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Gender inequality has been in existence in as much as the humans themselves. The South African women and girls like many other societies around the world are also suffering from the lack of opportunities whilst men still receive favorable treatment. The government of South Africa engaged in the promotion of Small and Medium Enterprises (SMEs) as part of empowerment projects for the Black people since the attainment of democratic rule in 1994. Entrepreneurship continues to play an integral role in the South African economy as well as the economies of many developing countries around the world. The creation of new Small and Medium businesses activities contributes to economic growth, job creation, better livelihood of people involved and the communities which surround them. However, there has been a lack of women participation in entrepreneurship businesses in South Africa. Women continue to shy away from starting SMEs. Research reveals that an approximately 6, 2 percent of South African adult women were involved in SMEs in 2015. This is an appalling situation if South Africa is going to achieve Sustainable Development Goals (SDGs). The SDG, goal number five encourages States to ‘Achieve gender equality and empower all women and girls’. The aim of this paper is to identify challenges faced by female entrepreneurs in South Africa, which makes their survival difficult within a patriarchal society.The empirical analysis is based largely on data from information available from sources such as journals, dissertations, thesis, books, conference reports, internet sources, and policy briefs relating to women and entrepreneurship.
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Pooe, R., and C. Mafini. "Business development challenges in a rural District Municipality in South Africa: A case of Fezile Dabi District Municipality." Southern African Journal of Entrepreneurship and Small Business Management 5, no. 1 (December 31, 2012): 89. http://dx.doi.org/10.4102/sajesbm.v5i1.29.
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<p>Business development continues to be an important driver of economic growth in many rural settings. Some of the results of business development in rural areas include job creation, innovation, entrepreneurship, infrastructural development, and skills development, among others. Many developing countries have identified rural business development as a critical area in their development agenda. The purpose of this study was to explore business development challenges faced by enterprises in the Fezile Dabi District Municipality in rural South Africa. Using the survey method, a questionnaire was administered to a purposive sample composed of 143 business owners and managers located within the municipality. Data were assessed for frequencies and percentages on each item in the questionnaire. In addition, Cronbach’s coefficient alpha was used to test the reliability of the scale. The findings of the study indicate that there are gaps in four areas, namely, markets and business development (1), labour supply (2), business planning (3) and the local operational environment (4). These gaps hinder business growth in the municipality. Establishment of business incubators, improvement of networking between business leaders, and the implementation of an appropriate business retention and expansion program are some of the strategies that may be implemented to eliminate the identified gaps.</p><p><strong>Keywords:</strong> Business development, district municipality, economic growth, small to medium enterprises</p>
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Blake, Julian, Sonja Fourie, and Michael Goldman. "The relationship between sports sponsorships and corporate financial returns in South Africa." International Journal of Sports Marketing and Sponsorship 20, no. 1 (February 4, 2019): 2–25. http://dx.doi.org/10.1108/ijsms-12-2016-0088.
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Purpose Sponsorship is a major contributor to income in the South African sports arena, and is a critical component allowing sports unions to remain financially viable and sustainable. Sports sponsoring companies, however, have long questioned the financial returns generated from these ventures. The purpose of this paper is to understand whether financial returns of companies with sports sponsorship in South Africa are significantly different to those without. This research was conducted on Johannesburg Stock Exchange (JSE) listed companies that sponsored sport consistently between 2000 and 2015 for a period of two years. A quantitative methodology was employed whereby share price, revenue and earnings growth were analysed, comparing firms that did not adopt strategies involving sports sponsorships to those that did. Design/methodology/approach A quantitative methodology was employed, whereby share price, revenue and earnings growth were analysed, comparing firms that did not adopt strategies involving sports sponsorships to those that did. South Africa is an emerging market and a member of the BRICS Forum ranked 14th in the sport sponsorship market globally (Sport Marketing Frontiers, 2011), becoming increasingly dominant in the global sports industry (Goldman, 2011). The population consisted of JSE-listed Main Board and alternative exchange companies that participated in any form of consistent sports sponsorship in the given time frame: 2000-2015, where the company’s share price, revenue and earnings per share (EPS) data for the period were available from the INET BFA database. The JSE is ranked 17th in terms of market capitalisation (over $1 trillion) in the world, being the largest stock exchange on the African continent with over $30bn being traded on average monthly. Multiple journals today publish research done on the JSE, for example the International Journal of Sports Marketing and Sponsorship, Investment Analysts Journal and the South African Journal of Accounting Research. This stock exchange is 125 years old and has over 400 listed companies of which 358 are domestic (Kruger et al., 2014). Findings Results show that companies involved in sports sponsorship during the period analysed did not experience enhanced share price or revenue growth in excess of those companies not involved in sports sponsorship. As a whole, sports sponsoring companies did however experience greater income growth (EPS) than those companies not involved in sports sponsorship. Enhanced revenue growth was found in the consumer services sector, indicating that sport sponsorship in this sector drives brand image and recall resulting in enhanced revenues. These results though indicate that a multitude of differing objectives may exist for companies engaging with sports sponsorship, with increased sales not the singular objective. In general it is concluded that sports sponsorship is considered to achieve a broad spectrum of outcomes that are likely to contribute to increased profitability. Research limitations/implications The relatively small size of 40 firms on the JSE in the South African sports sponsorship market is a limitation for this research. The purely quantitative approach limited the ability to gain the required level of insight into those sectors with small samples, which a qualitative study would reveal. SABMiller as example could not be analysed against its sector peers, given that it is one of the most prominent and consistent sports sponsors in South Africa across all major sporting codes. The telecommunications sector was represented entirely by companies that were involved in sports sponsorship and, hence, no in-depth comparison could be conducted within this sector. Vodacom, a major sponsor of sport in South Africa, could not be compared with its peers utilising purely financial and statistical methods. Cell C is one of the most prominent sponsors of rugby in South Africa, through its title sponsorship of the Cell C Sharks, and was not included in this study as it is not listed on the JSE. It is suggested that such companies should be included in a qualitative study approach. Practical implications The results of the Mann-Whitney U test for the consumer services and financial sectors confirm no significant difference in EPS growth for companies utilising consistent sports sponsorship as part of their marketing mix to those that do not. The consumer services sector has seen above-average revenue growth from sports sponsorship compared with its sector peers; however, the sector was unable to convert this increased revenue growth into increased profits, suggesting that the cost of sponsoring, as well as the operating costs associated with sports sponsorship, counteract any growth in revenue. Social implications The sample of sports-sponsoring companies experienced a larger annual mean EPS growth rate of 30.6 per cent compared to the remaining JSE Main Board companies which grew EPS annually at 27.4 per cent. The results of the Mann-Whitney U test confirm a significant difference in EPS growth for companies utilising consistent sports sponsorship as part of their marketing mix. From a practical interpretive perspective, this result reveals that those companies in South Africa involved in sports sponsorship consistently attain greater than market-related profit growth. This poses some interesting points for discussion, given that revenue growth was not statistically different, which suggests that many sponsors are utilising the sponsorships for purposes other than sales growths that result in a profitable outcome. The potential range of options is large but would likely comprise the creation of stronger supplier relationships, resulting in optimised business inputs. Sponsors might be utilising sponsorships to improve corporate social status, which assists them in creating regulatory compliance, in some instances. Additionally, these sponsorships may be utilised to maintain key client relationships that provide the highest levels of profitability, and whilst this might not grow revenue through new business acquisition, it may result in higher profitability as a result of a loyal and stable customer base. Originality/value Much of the available research focusses on the sponsorship of specific sporting events and the share price impact thereof at specific occasions like the announcement, renewal and termination. Where research is conducted across a multitude of sporting events and codes, this predominantly focusses on share price performance only, with varying and somewhat inconclusive results. There is little research focussing on wider, more comprehensive sets of sponsored events and sporting codes, and that seeks to provide an understanding of financial returns for sponsoring properties. In a study of more than 50 US-based corporations it was found that, as a group, corporations which consistently invested in sports sponsorships outperformed market averages, and that those with higher sponsorship spend achieved higher returns (Jensen and Hsu, 2011). The study utilised descriptive statistics. More analysis, utilising detailed statistical analysis, is required to better understand the effects of sponsorship on the wider set of variables analysed. In this case, a five-year compound annual growth rate was calculated for stock price appreciation, total revenue, net income and EPS, and analysed descriptively with only means and standard deviation. Measurement of such variables assists with an understanding of the materialized results of sponsorship as opposed to much of the work in this field, which analyses market reactions to sponsorship announcements.
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Gstraunthaler, Thomas. "Corporate governance in South Africa: the introduction of King III and reporting practices at the JSE alt-x." Corporate Ownership and Control 7, no. 3 (2010): 149–57. http://dx.doi.org/10.22495/cocv7i3p11.
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South Africa has experienced a tremendous growth in its economy since its first free elections in 1994. Politicians, however, consider the transformation of the society and more equally distributed wealth as one of their key goals. Thus, companies often find themselves under scrutiny as regards their contribution. A new corporate governance code (King III) will become effective in March 2010. This reworked code now tries to enhance the reporting practices of companies as to their sustainability and corporate social engagement and tries to link international standards of corporate governance with African values. This paper introduces the novelties of King III and examines the current reporting practices of 68 companies listed on the Alt-X segment of the Johannesburg Stock Exchange. The paper discusses issues like risk, board composition and remuneration and provides valuable insights into the structure of small cap companies in South Africa and analyses which parts are used by companies to enhance their legitimacy.
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Krugell, Waldo, and Marianne Matthee. "South African firm-level evidence of the links between finance and efficiency." Journal of Economic and Financial Sciences 5, no. 1 (April 30, 2012): 271–86. http://dx.doi.org/10.4102/jef.v5i1.317.
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Small and medium-sized enterprises are often seen as drivers of economic growth and development by generating employment opportunities. However, for SMEs to be successful they need finance. Access to finance has been found to be a major obstacle to SMEs’ ability to do business in South Africa. This paper takes a closer look at firms, their access to finance and output per worker in South Africa, by using data from the World Bank Enterprise Survey 2007. The results show that firms that are financially constrained are more vulnerable to shocks and competition, and are weaker contributors to employment creation and growth. These firms are typically small and less established. They hold less inventory, have lower capacity utilisation and are unlikely to be exporters or to introduce new products in response to competition. The results from the regression model confirm that access to finance and different sources of finance are drivers of productivity at firm level.
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Bick, Geoff, and Jeanné Odendaal. "UCOOK: growth challenges faced by a small- to medium-sized South African venture." Emerald Emerging Markets Case Studies 9, no. 3 (October 31, 2019): 1–33. http://dx.doi.org/10.1108/eemcs-02-2019-0042.
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Learning outcomes The learning outcomes are as follows: to understand how technology can be used to create innovative entrepreneurial opportunities; to develop analytical and critical thinking skills to understand organisations, industries and their dynamics; to analyse strategic options for an entrepreneurial organisations and motivate a proposed strategic direction; and to assess the inter-functional requirements for an entrepreneurship to successfully implement a strategy. Case overview/synopsis UCOOK, a successful emerging economy SME, is confronted with the threat of retail giants (e.g. Checkers and Woolworths) entering the meal kit space. No longer the only “new kid on the block”, UCOOK has to consider a sustainable growth strategy to remain competitive. The case provides the reader with a snapshot of experiences of a meal kit entrepreneurial venture and what it entails for them to grow in the South African milieu. Principally, this case is designed to impart knowledge and stimulate a practical understanding of entrepreneurship and strategic decision-making in the meal kit industry. Additionally, the purpose is to serve as inspiration for business students to see the opportunities that lie within strategically astute emerging market ventures. Complexity academic level The primary target audience for this teaching case is postgraduate business students, especially students of entrepreneurship, strategy and e-commerce. This teaching case is intended to be used as case study in post graduate business programmes such as Master of Business Administration (MBA), a specialist Masters programme such as MM (Entrepreneurship), post-graduate diploma in management (PGDip), as well as selected executive education programmes. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 3: Entrepreneurship.
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Krüger, L. P. "South African managers’ perceptions of black economic empowerment (BEE): A ‘sunset’ clause may be necessary to ensure future sustainable growth." Southern African Business Review 18, no. 1 (January 24, 2019): 80–99. http://dx.doi.org/10.25159/1998-8125/5646.
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Transformational policies in South Africa, such as black economic empowerment (BEE), have increasingly and inextricably become part of the everyday political, economic and social life of all South Africans since the founding of the new democracy in April 1994. In this regard, South African businesses are subject to a whole array of mandatory regulations which specifically influence their operational capabilities and competitiveness to compete effectively and efficiently in both national and global markets. In a survey among 500 individual managers in South African businesses ranging from small, medium to large multinationals companies, it was found that BEE is well integrated into most of these organisations. However, the mounting resistance to and rejection of BEE that exists at management level can also increasingly be seen at the intellectual level of the population through public discourse in the daily newspapers, in which BEE is essentially viewed as a perpetuation of past injustices. The African National Congress (ANC) government must take cognisance of the negative influence that BEE has had on South Africa over the last more or less ten years and accept that a ‘sunset’ or termination clause needs to be set before too much further damage is done to the economy of the country and its world competiveness ranking.
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Rambe, Patient, and Naledi Makhalemele. "Relationship Between Managerial Competencies Of Owners / Managers Of Emerging Technology Firms And Business Performance: A Conceptual Framework Of Internet Caf Performance In South Africa." International Business & Economics Research Journal (IBER) 14, no. 4 (July 14, 2015): 677. http://dx.doi.org/10.19030/iber.v14i4.9357.
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Despite the growing literature on the impact of entrepreneurial traits of managers/owners on the performance of small firms in developed economies, little is known about the contribution of managerial competencies (MC) of these managers/owners to the success of their firms. Since entrepreneurial literature attributes the failure of most emerging businesses (i.e. in their first three years of existence) to the paucity of MC among managers/owners of emerging businesses, an investigation into the effects of these competencies on the performance of small emerging internet businesses is critical to locating the strategic levers that potentially optimise the growth and sustainability of these businesses in emerging economies. This theoretical study, therefore, examines the relationship between managerial competencies of owners/ managers and the performance of emerging internet firms in South Africa. Extant literature and researchers reflective experiences were used to develop a conceptual model on the relationship between managerial competencies of managers/owners of small internet caf and the performance of their firms. The model suggests that an assortment of managerial competencies (human capital requirements, resources and individual capabilities) is critical to the improved performance of small internet businesses. The thesis of this paper is that understanding the appropriate constitution of managerial competencies ideal for emerging technology firms, organisational context of emerging technology firms including the broader business environment would positively impact small internet business performance.
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Fatoki, Olawale. "The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa." Sustainability 10, no. 7 (July 19, 2018): 2527. http://dx.doi.org/10.3390/su10072527.
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Small and medium enterprises (SMEs) have a significant role to play in a country’s sustainable development. The measures of a country’s sustainable development include economic and social factors. The sustainability of small and medium enterprises is vital to job creation, poverty reduction, and sustainable economic growth. The high failure rate of SMEs negatively impacts on South Africa’s sustainable development. The purpose of the study was to investigate the relationship between entrepreneurial resilience and the success of SMEs in South Africa. Success was measured using both organisational and individual criteria. The Connor–Davidson Resilience Scale 10 (CD-RISC 10) was used to measure entrepreneurial resilience. Data was collected from 170 small business owners through the survey method. The self-administered questionnaire method was used to collect data from the participants. Convenience and snowball methods were used for sampling. Descriptive statistics, confirmatory factor analysis, correlation, and regression analysis were used for data analysis. Cronbach’s alpha was used as a measure of reliability. The results indicated that there is a significant positive relationship between entrepreneurial resilience and individual and organisational success. Ways to enhance the resilience of small business owners in order to ensure the sustainability of SMEs are suggested.
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Mahadea, Darma, and Morgan Pillay. "Environmental conditions for SMME development in a South African province." South African Journal of Economic and Management Sciences 11, no. 4 (August 23, 2011): 408–30. http://dx.doi.org/10.4102/sajems.v11i4.269.
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The development of entrepreneurship is the focus of considerable policy interest in South Africa and many other countries. This is particularly in recognition of its contribution to economic growth, poverty alleviation and employment creation. In South Africa, various new strategies and institutions have recently been created with a view to empowering formerly disadvantaged members to enter the mainstream economy as entrepreneurs rather than job seekers. While the government directs considerable efforts to advancing Small, Medium and Micro Enterprises (SMMEs), certain environmental factors can favour or hinder the optimal development of these firms. According to the Global Entrepreneurship Monitor (GEM) reports, the level of entrepreneurial activity in South Africa is rather low in relation to that in other countries at a similar level of development. This paper uses factor analysis to examine the internal and external environmental conditions influencing the development of small ventures on the basis of a survey conducted in Pietermaritzburg, the capital of the KZN province. The results indicate that three clusters constrain SMME development in Pietermaritzburg: management, finance and external environmental conditions. In the external set, rising crime levels, laws and regulations, and taxation are found to be significant constraints to the development of business firms.