Problems facing governance of small business in South Africa: non-owner perspective
- Authors: Mabotha, Mathipe Pontsho Ramakgahlele
- Date: 2021-04
- Subjects: Small business -- Management , New business enterprises -- South Africa , Corporate governance -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51787 , vital:43372
- Description: Small businesses have been perceived to have governance problems in South Africa. The problem is that in SA there is a limited amount of research available regarding these complex investigations into the problems of governance of SMEs in South Africa. The objectives of this study were to conduct an extensive literature review on governance of small businesses, and the factors which affect the governance of such small businesses and what key resources could be identified and built up for the successful adoption of innovations in the sector, to lead to an understand of weaknesses in the current capacity-building of SMEs. It also sought to determine the current situations contributing to the weaknesses of SMEs; to understand challenges in the governance of small businesses in South Africa, to determine the types of financial support that exists and the contribution of financial support to the development of SMEs and to understand the ways government can help and develop SMEs. Qualitative research was used because it is more subjective and relies on experiences and opinions of participants. The study used exploratory research. An interview protocol for semi-structured face-to-face interviews was designed and used to obtain the views of SME owners and managers. The findings of the study showed that a lack of financial support is one of the challenges in the current capacity-building of small businesses. Moreover, the findings of the study showed that access to information on available markets and on the creation of new opportunities is another weakness in the current capacity-building of small businesses. SMEs need access to buyers, information on product demand, pricing knowledge and standards. The findings of the study also showed that the lack of support through business management knowledge is one of the weaknesses in the current capacity-building of small businesses. The findings showed that, most small business owners do not have the needed business management knowledge to transform their businesses. The study recommends that the government assist small businesses with financial support. It is also suggested that small businesses have human resource management knowledge to manage people who help them develop their businesses. Moreover, the study recommends that small businesses embrace new technology to boost their business by easy operations using new technologies. Moreover, the study recommends that small businesses owners use the same strategies, approaches and novel technology to compete with other businesses all over the world since there is fierce competition due to globalization. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business Administration, 2021
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- Date Issued: 2021-04
Best practices to create an enabling environment for SME incubation in South Africa
- Authors: Dames, Ricardo Shane
- Date: 2012
- Subjects: Business incubators -- South Africa , New business enterprises -- South Africa , Small businesses -- South Africa -- Management
- Language: English
- Type: Thesis , Doctoral , DBA
- Identifier: vital:9301 , http://hdl.handle.net/10948/d1015031
- Description: The humble beginnings of business incubators date back to the 1970s in the USA and United Kingdom, where abandoned industrial buildings were converted to rent out to small businesses. South Africa (SA) was first introduced to business incubation in the 1980s when the Small Business Development Corporation (SBDC) established a number of business ‘hives’ and provided business space to entrepreneurs to operate their businesses. In their most basic form, business incubators provide a safe and nurturing environment for entrepreneurs to establish their small businesses. While in incubation, the Small and Medium Enterprises (SMEs) are supported with a number of services which assist their growth and development until they are able to exit the incubator as sustainable and viable businesses. Global incubator models have matured significantly, and now include assisting with business idea generation, accelerating business start-ups and commercialisation processes, and identifying high-growth orientated SMEs to assist them with gaining market access. The establishment of business incubators was a government-driven initiative, and more than 33 SME incubators exist in SA. Most of the incubators are government-funded, and have focused on the establishment and growth of SMEs to act as a catalyst to promote economic development and alleviate socio-economic challenges such as unemployment and poverty. Despite these noble objectives, incubation in SA has not been fully utilised, and a high SME failure rate still prevails in the country. One of the reasons for SME failure may be ascribed to the lack of an enabling SME incubation environment in SA. When compared to other developing countries such as Brazil with as many as 400 incubators, it is clear that the SA incubation industry still needs further development. The purpose of this study therefore was to ascertain the best practices of global business incubators in both developed and developing countries, and how SA incubators could learn from these best practices to create a more conducive and enabling SME incubation environment. Background literature on business incubation with a specific focus on best practices in world incubators in both developed and developing countries, was reviewed. Some of the literature reviewed included Aernoudt (2004), Buys and Mbewana (2007) and Chandra (2009). From the literature review, four main best practice areas were identified, namely strategic focus, sources of funding, incubator services, and the role of government. The study followed a qualitative approach, and an interview schedule was developed to seek the perceptions of incubator managers on how the four identified best practices can be utilised to create an enabling SA incubation environment. A survey was conducted by interviewing 14 incubator managers (twelve government and two private) in SA. Data was collected over a six-month period, using face-to-face and telephonic interviews. Data was analysed using the content analysis, constant comparison, grounded theory and case study methods. The biographical profiles of the incubator managers and incubators were presented in case studies. An initial analysis was made to identify themes and sub themes within the four best practices explored, using the constant comparison method. Thereafter a provincial comparative analysis was made, as well as a comparison of government funded versus privately funded incubators. The findings suggested that there is a relatively high turnover in incubator management, and that they often do not have incubator management experience. A provincial comparison of SA incubators revealed that their strategic focuses are greatly influenced by the industry prevailing in the various provinces. All SA incubators provide pre- and post incubation services, but few are utilising virtual incubation. Most SA incubators are government-funded, and some use a hybrid funding model. It was evident that most SA incubators are aware of government policies and programmes available to assist them on local, provincial and national levels. A comparison of the best practices of two developing countries and three developed countries, as well as suggestions made by SA incubator managers indicated that SA has indeed followed best practices from both developing and developed countries, but there are areas of non-alignment which provide scope for improvement, to create a more conducive and enabling incubation environment. This study recommends that incubators should have an entrepreneurial focus, and reposition and align their strategic focus with government policies and instruments. SA incubators must pursue opportunities for virtual incubation as well as linkages with academic institutions, in order to offer value-added services such as research, development and commercialisation of the product ideas. Incubators in SA must pursue a hybrid funding model with a combination of government and private funding, and generate some or their own income. With regard to the role of government, it is recommended that the roll-out of more industry-specific incubators be privatised, and that an overseeing body for incubation be established.
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- Date Issued: 2012
Employee perceptions of self-employment
- Authors: Gongxeka, Vuyokazi
- Date: 2012
- Subjects: Entrepreneurship -- South Africa , Self-employed -- South Africa , New business enterprises -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9276 , http://hdl.handle.net/10948/1603 , Entrepreneurship -- South Africa , Self-employed -- South Africa , New business enterprises -- South Africa
- Description: The perception that someone has of an entrepreneurial career ultimately influences his/her decision to pursue such a career path. By investigating employees' perceptions of owning a business, this study provides insights regarding the question of why so few South Africans embark on this path. Entrepreneurship is regarded by many as the solution to South Africa’s employment and economic problems. As such, an understanding of the reason why some people become entrepreneurs and others do not could provide solutions on how to stimulate entrepreneurship among all South Africans, and hopefully increase the levels of entrepreneurship in the country. The purpose of the study was to contribute to the field of entrepreneurship by investigating the perceptions and attitudes that employees have regarding an entrepreneurial career, that is, to ask employees what they think having their own business might be like. By investigating these perceptions, the researcher looked for reasons why many individuals remain in the employment of others rather than embarking on an entrepreneurial career, as well as establishing whether these employees had intentions of starting their own businesses, Therefore the primary objective of this study was twofold, namely to establish the perceptions that employees have regarding self-employment, running their own business or following an entrepreneurial career, and to establish the influence of these perceptions on their entrepreneurial intentions. After conducting a comprehensive literature study and examining the various models of intentions, attitude towards the behaviour was identified as having the strongest influence on entrepreneurial intentions. Attitude towards the behaviour is the extent to which an individual makes a favourable or unfavourable evaluation of the behaviour in question, and additionally is a function of beliefs applicable to the behaviour. Attitude towards the behaviour is closely related to perceived desirability, and “desirability” is a form of value. More specifically, work values have the propensity to significantly predict career choice. For the purpose of this study, the 14 work values identified by Farrington et al. (2011) served as the factors to be investigated in establishing the perceptions of an entrepreneurial career. The independent (work values) and dependent (entrepreneurial intentions) variables investigated in this study were defined and operationalised. Reliable and valid items were sourced from existing studies. Respondents were identified by means of convenience and snowball sampling, and a structured questionnaire was made available to the respondents. The data gathered from the 184 usable questionnaires was subjected to various statistical analyses. The validity and reliability of the measuring instrument were confirmed by means of an exploratory factor analysis and calculating Cronbach-alpha coefficients. Descriptive statistics were calculated to summarise the sample data distribution. Pearson’s moment product correlations were calculated to establish the correlations between the various work values and entrepreneurial intentions. Furthermore, a multiple regression analysis was undertaken to investigate whether relationships existed between the perceptions of an entrepreneurial career in terms of several work values and entrepreneurial intentions. The following work values were identified as influencing the entrepreneurial intentions of employees working in small businesses: - Stimulating; - Stability and advancement; - Flexibility; - Autonomy. The more the work values above were perceived to be experienced when following an entrepreneurial career, the more likely it was that the respondents in this study reported intentions of following such a career. In order to investigate the influence of the various demographic variables on the independent and dependent variables, an Analysis of Variance was performed. In addition, the post-hoc Bonferroni test was done to identify significant differences between the means scores of the various categories within each demographic variable. The practical significance of these differences was assessed by means of calculating Cohen’s d. The results showed a significant positive relationship between the demographic variable Population group and the dependent variable Entrepreneurial v intentions. In addition, relationships were identified between Population group and the intrinsic work values Challenging and Stimulating, the extrinsic-related work values Financial benefit and security and Stability and advancement, and the social-related work value Serving the community. A significant positive relationship was also reported between the demographic variable Entrepreneurial parents and the intrinsic-related work value Stimulating, the extrinsic-related work value Future prospects and the social-related work value Serving the community. The demographic variable Age showed a significant positive relationship with the extrinsic-related work value Financial benefit and security. This study has contributed to the field of entrepreneurship research by focusing on employee perceptions of entrepreneurship, and the influence of these perceptions on their intentions to become entrepreneurs. As far as can be established, no other study has adopted this perspective for understanding entrepreneurial behaviour in South Africa or abroad. Furthermore, no study has specifically focused on investigating entrepreneurial intentions among employees of small businesses.
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- Date Issued: 2012
The role of bank finance in small firm growth : a case study
- Authors: Musengi, Sandra
- Date: 2003
- Subjects: Banks and banking -- South Africa , Finance -- South Africa , Small business -- South Africa -- Finance , Small business -- South Africa -- Growth -- Case studies , Entrepreneurship -- South Africa , New business enterprises -- South Africa , Bank loans -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1176 , http://hdl.handle.net/10962/d1002793 , Banks and banking -- South Africa , Finance -- South Africa , Small business -- South Africa -- Finance , Small business -- South Africa -- Growth -- Case studies , Entrepreneurship -- South Africa , New business enterprises -- South Africa , Bank loans -- South Africa
- Description: The debate concerning small firm access to finance continues. The proliferation of research of the issue underlines the importance attached in promoting a strong entrepreneurial culture within a country. Small firms are significant to economic growth if they are growing. Central to this significance is ascertaining the role of finance and in particular bank finance in accelerating small growth potential. The case study, through its ontological, epistemological and methodological position, draws on a document review and interview material from small firm owners and key informants to explore the role of bank finance in small firm growth. Case study evidence reveals that small firm owners do not intend to finance firm growth with bank finance but prefer to finance growth with internally generated funds. The owners indicate that non-financial and behavioural factors, such as, maintaining decision-making control, experience accessing bank finance, the perception of the banking relationship and growth aspirations of owners may be more important in dertermining the finance structure for firm growth. From the bank's perspective, findings suggest that risk assessment, financial viability of the enterprise and provision of collateral are more important in the lending decisions; findings supported by an analysis of selected documents. The small sample of small firm owners, bank representatives, experts and documents makes it difficult to generalize the findings. However, the findings are significant because exploring the issue from different perspectives presents invaluable insights, which can be investigated further to assist small firm owners, to develop finance products geared for small firm operations, and in the development of the knowledge base on finance-related issues in the South African context.
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- Date Issued: 2003