The adoption and effect of Enterprise Development (ED) initiatives on SMME's in the Construction, Mining and Financial Sectors in South Africa
Date
2018
Authors
Ndlovu, Queen
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Abstract
The research focuses on the Enterprise Development initiatives (ED) given to South African Small, Medium, Micro Enterprises (SMMEs) by large corporates, particularly in the Sector of Mining, Construction and Finance. The study assessed the impact of ED on SMMEs’ business performance, specifically in relation to growth in the form of the number of jobs created, and improved turnover. This is in response to the promulgation of the revised codes of 2013. The study envisaged that since the SMMEs are reported as net job creators in South Africa, through the government enabling environment and large corporates extending monetary and non-monetary support, consequently, the SMMEs will become more sustainable and be in a position to generate more anticipated and needed jobs. This study made use of empirical and quantitative research in order to examine the hypothesised relationship between the independent variable, namely, the ED initiative and the dependent variable, namely, SMMEs’ growth. Kolmogorov-Simonov (KMO) was applied to assess the normality of variables and the validity of the constructs was tested using exploratory factor analysis (EFA). The main findings of the research were that there is a positive and significant relationship between ED nonmonetary initiatives and SMMEs growth, monetary Initiatives and SMME growth. Finally, the results showed a positive and significant relationship between the constructs, which confirmed the main hypothesis of the study, which asserts that the adoption of Enterprise Development (ED) initiatives for SMMEs will encourage growth in the Construction, Mining and Financial Sectors in South Africa. Therefore, ED initiatives could be an answer to boost economic growth and employment creation in South Africa.
Description
A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management specialising in Entrepreneurship and New Venture Creation (MMENVC), 2018
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Citation
Ndlovu, Queen Nomasonto, (2018) The adoption and effect of Enterprise Development (ED) initiatives on SMMEs in the construction, mining and financial sectors in South Africa, University of the Witwatersrand, Johannesburg, https://hdl.handle.net/10539/28662