An investigation into problems facing small-to-medium sized enterprises in achieving growth in the Eastern Cape : enhancing the strategy for developing small 'growth potential' firms in the Eastern Cape
- Authors: Sha, Shafeek
- Date: 2006
- Subjects: Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1173 , http://hdl.handle.net/10962/d1002789 , Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Description: As the world economy continues to move towards increased integration, some of the greatest opportunities for Small-to-Medium Sized Enterprises (SMEs) will derive from their ability to participate in the global marketplace. It is generally accepted that SMEs are becoming increasingly important in terms of employment, wealth creation, and the development of innovation. However, there are considerable doubts about the quality of management in this sector with policy-makers suggesting that there are particular weaknesses in innovation, a lack of financial acumen, marketing, entrepreneurial flair, practical knowledge, and human resource management. As a result, many firms do not reach their full potential and fail to grow. According to organisational life cycle models, the introductory phase is particularly important since it is generally known and accepted that there is a high mortality rate of SMEs within the first two years. Given this high failure rate, it becomes vital to research the factors/characteristics/management abilities that are required to enable the SME to survive and indeed progress to the growth phase of the organizational life cycle. This research seeks to investigate the internal and external factors that are consistent in the success of SMEs who have reached the growth phase. A significant contribution to the enhancement of the growth potential of a firm will be made through the understanding of these factors.
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- Date Issued: 2006
The entrepreneurial orientation of small businesses in the Eastern Cape
- Authors: Matchaba-Hove, Mtonhodzi
- Date: 2013
- Subjects: Small business -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Job creation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9304 , http://hdl.handle.net/10948/d1017139
- Description: 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 the entrepreneurial orientation of small businesses in the Eastern Cape and their level of business success. Entrepreneurial orientation was assessed in terms of the 5 dimensions of entrepreneurial orientation, namely Innovativeness, Proactiveness, Competitive aggressiveness, Risk-taking and Autonomy. Business success was assessed in terms of profitability and growth. A literature overview was firstly conducted. The nature and importance of small businesses were described, and the important contributions they make to economic growth, job creation and innovation, as well alleviating poverty and redistributing income were highlighted. The various challenges faced by small businesses were also discussed. Among these challenges, the lack of entrepreneurial orientation was specifically highlighted as a major barrier to small business success. The nature of entrepreneurial orientation and the five dimensions thereof were described. A theoretical framework was proposed illustrating the relationships between the 5 dimensions of entrepreneurial orientation and business success that were to be empirically tested. A positivistic research paradigm was followed and a quantitative approach was implemented. Convenience sampling was used and a total of 350 questionnaires were distributed to small businesses in the Eastern Cape; 317 usable questionnaires were yielded. A measuring instrument was developed based on reliable and valid items from existing studies. Statistical techniques including descriptive statistics, Pearson's product moment correlations, Structural Equation Modelling and an Analysis of Variance were performed on the gathered data. Demographic data relating to the gender, age and race of the respondents, as well as data relating to the number of employees, the tenure of the business, and nature of industry in which the small businesses operate, were collected. An exploratory factor analysis was undertaken, and Cronbach‟s alpha coefficients were calculated to assess the validity and reliability of the measuring instrument. The independent variables, Innovativeness and Proactiveness, could not be confirmed by the factor analysis and a new dimension emerged which was named Proactive innovativeness. As a result of the factor analysis the operational definitions were rephrased. The Cronbach‟s alpha coefficients reported were all greater than 0.7, deeming the scales measuring the various dimensions reliable. Descriptive statistics were calculated to summarise the sample data, and Pearson's product-moment correlation coefficients were established to investigate the associations between the variables. Significant positive correlations were reported between all of the variables. SEM was performed to determine the significance of the relationships hypothesised between the independent and dependent variables in this study. The results of this study showed that the independent variables Competitive aggressiveness, Proactive innovativeness and Autonomy have a significant positive influence on the dependent variable Business success, while Risk-taking was found to have a significant negative influence on Business success. Furthermore, the results showed that Proactive innovativeness was higher in larger-sized small businesses, Autonomy was reported to be higher in small businesses where the owner was in possession of a tertiary qualification, and Risk-taking was found to be higher in small businesses owned by people of colour than in businesses owned by White respondents. In a business environment where change is constant, small business owners need to be able to adapt their operations and strategies to these changes and the consumer demands these changes may bring. Small business owners need to be able to strategically reinvent their businesses if they are to survive over the long term. The level of entrepreneurial orientation has been identified as having a positive influence on business success. The more small businesses implement Proactive innovativeness, Competitive aggressiveness, calculated and cautions Risk-taking and Autonomy, the better the chances are that they will be successful
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- Date Issued: 2013