The influence of networking on small medium enterprise performance in Gauteng, South Africa
Date
2019
Authors
Mlotshwa, Semukele Hellen
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Abstract
SMEs are inherently more adventurous than big business. In South Africa, SMEs are
very important as they have the potential to address the unemployment and poverty
the country is experiencing.
It is thus critical to study ways which can enhance the performance of SMEs. This
study investigated the influence of networking on SME performance in Gauteng
province, South Africa. The study mainly focused on three forms of networking,
which are business networking, social networking and managerial networking.
Networking has been recognised as a vital element for enhancing competitiveness
among SMEs.
Data was collected from SME owners in Gauteng province, South Africa, using a
self-administered questionnaire and a total response of 304 was attained. In
analysing the data, factor analysis was used to reduce several variables and the
variables converged into two networking forms, which are business networking -
importance and managerial networking - management and a regression analysis
was performed on the variables.
From the findings of the study, it was established that there are two factors
responsible to motivate, influence or initiate networking activities in SMES. The
factors were business networking- importance and managerial networkingmanagement
which have an influence on business performance. Consequently, no
findings were available to make conclusions on social networking as it was not a
valid factor. The study recommended that SMEs should network more on business
networking to gain access to information, resources and contact sharing as this will
improve the performance of their SMEs.
Description
A research report submitted to the Faculty of Commerce, Law and
Management, University of the Witwatersrand, in partial fulfillment of the
requirements for the degree of Master of Management specialising in
Entrepreneurship and New Venture Creation
Johannesburg,
May 2019
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Citation
Mlotshwa, Semukele Hellen. (2019). The influence of networking on SME performance in Gauteng, University of the Witwatersrand, https://hdl.handle.net/10539/28423