Browsing by Author "Ngcobo, Makhosazana Nomcebo"

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    The administrative impact of Black Economic Empowerment certification on tourism enterprises in South Africa
    (2012-09-12) Ngcobo, Makhosazana Nomcebo
    The Broad-Based Black Economic Empowerment (B-BBEE) Act 53 of 2003 sought to redress the socioeconomic imbalances caused by South Africa’s apartheid laws. The Act included different strategies to give preference to previously disadvantaged individuals on such aspects as ownership, management, employment, enterprise development, preferential procurement, skills development and socio-economic development. This thesis does not explore the plausibility of the regulations but rather the possible gap between intended benefits and the impact of B-BBEE. It is intended to establish the administrative impact of Black Economic Empowerment (BEE) certification,1 using a case study of a medium-sized tourism enterprise. The findings of this administrative impact are juxtaposed with the policy intentions as established through policymakers. The primary question is ‘What is the administrative impact of BEE certification on tourism enterprises in South Africa?’ The main propositions are that the administrative costs of BEE certification have had a significant negative impact on the profitability and competitiveness of medium-sized tourism enterprises; that tourism enterprises are not aware of the full extent of the administrative costs of BEE certification; and that policymakers are not aware of the unintended impacts caused by BEE certification on tourism enterprises. The research was undertaken through two interrelated phases, the first of which was exploratory in nature and sought to establish the administrative impact of BEE certification through the case study organization. The second phase sought to present the findings regarding the administrative impact of BEE certification to policymakers, with the aim of establishing policymakers’ awareness of the gap between policy intentions and policy impacts. Multiple methods have been used in order to gather data that informs this thesis. Primary data was obtained through semistructured interviews. The thesis focused on a case of one medium-sized organization, which was selected using convenience sampling. An in-depth interview was conducted with the Head of Administration and Finance in the organization, as the key person responsible for overseeing the process of BEE certification. Since the thesis focuses on a single entity, the data pool was too small to allow for the generalization of findings, but sufficient for a series of in-depth explorations and assessments of the topic. Secondary data was obtained from various sources such as journals, periodicals, and reports, particularly in relation to regulatory impact assessments as well as on certification issues in the tourism sector. The main findings are that the administrative costs of BEE certification have had a minimal impact on the profitability and competitiveness of medium-sized tourism enterprises, especially from the second year of conducting the annual audits as the systems are already in place for oncoming audits. It is only about 0.01% of turnover. 1 An activity that stems from one of the regulations linked to B-BBEE Act. It is an annual certification to demonstrate the companies’ achievement as far as B-BBEE is concerned, and entails an audit process executed by South African National Accreditation System (SANAS) registered agencies. Page 3 of 3 However, the psychological burden associated with the stress of administrative preparations for audits makes it seem more costly. The tourism enterprises are unaware of the extent of the administrative costs of BEE certification in that they overestimate the cost implications by at least 75%. The policymakers are unaware of the unintended impacts caused by BEE certification on tourism enterprises, especially as they relate to the administrative costs. In conclusion, the administrative impact of BEE certification on medium-sized enterprises is minimal as far as costs are concerned; however the psychological burden, although not measurable, is substantial. Moreover, the policymakers are oblivious to any possible impacts that might have been caused by BEE certification on enterprises, thus making the gap between policy intentions and the policy impact more than it could have been had they had the awareness. Awareness at the least gives an option to rectify where possible, thus ignorance of situation can to a certain extent exacerbate the situation.
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    The ripple effect of demographics on the entrepreneurial behaviour-performance relationship in the South African tech sector
    (University of the Witwatersrand, Johannesburg, 2024) Ngcobo, Makhosazana Nomcebo; Murimbika, McEdward
    South Africa’s enduring inequality, stemming from the lingering effects of apartheid laws, disproportionately impacts entrepreneurs across various demographic dimensions, specifically race and age. This study adopts an intersectionality lens to examine how these demographic variables influence entrepreneur means, particularly the reliance on intangible resources, and consequently their impact on the entrepreneur behaviour - firm performance nexus within the South African tech sector. Despite some progress, this area of research remains relatively underexplored, necessitating this study to bridge the existing knowledge gap. Upholding the utmost confidentiality and anonymity of respondents, in accordance with the approved protocol (H21/10/34) sanctioned by the ethics committee at Wits Business School, the research meticulously explores how demographic variables influence entrepreneur means and the subsequent impact on firm performance. The main objectives of this study are as follows: 1. To investigate the relationship between effectual entrepreneur behaviour and firm performance among technology founders. 2. To examine the relationship between effectual entrepreneur behaviour and firm performance through entrepreneur means (intangible resources). 3. To examine the mediating effect of entrepreneur means in the relationship between effectual entrepreneur behaviour and firm performance, with a specific focus on how this mediating effect might be moderated by race and age. 4. To establish and validate a measurement model for entrepreneur means (intangible resources). iii In this quantitative study, a cohort of 159 technology firm founders in South Africa, each with a minimal operational tenure of three years, participated in this study through self-administered online structured questionnaires. To unravel the intricate relationships within the data, the analysis utilised Partial Least Squares Structural Equation Modeling (PLS-SEM) complemented by Statistical Package for Social Sciences (SPSS) alongside SPSS Amos. The findings shed light on the intricate interplay between effectual entrepreneur behaviour, entrepreneur means, and firm performance, supporting several hypotheses (H). First, a positive correlation was established between effectual entrepreneur behaviour and entrepreneur means, and firm performance, supporting several hypotheses (H). A significant positive association between effectual entrepreneur behaviour and firm performance validated H1, underscoring the critical role of intangible resources in driving firm performance. However, the study’s examination of the mediating effect of entrepreneur means on the relationship between effectual entrepreneur behaviour and firm performance yielded only partial support. While the mediation was observed to be positive, its strength was moderate, suggesting the presence of unexplored variables beyond the scope of this study, influencing firm performance and providing partial support for H2. Regarding H3, the combined influence of race and age did not directly affect reliance on entrepreneur means, but it significantly affected firm performance. Nonetheless, the interaction among race, age, and entrepreneur means demonstrated the potential for a negative influence on firm performance. Lastly, a positive correlation was established between effectual entrepreneur behaviour and entrepreneur means, affirming H4. iv In conclusion, while this study highlighted the crucial role of effectual entrepreneur behaviour and intangible resources for technology founders, it also suggests the presence of unexamined variables that may exert significant influence on firm performance within South Africa’s highly unequal landscape. Despite the influence of race and age on firm performance, their combined impact with entrepreneur means was not as pronounced as anticipated. Further research is warranted to identify and understand these additional factors, thus enriching our understanding of entrepreneur means, behaviour, and firm performance within South Africa’s unequal landscape.