3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item The effect of business development services and human capital on the performance of SMMEs in Gauteng(2019) Shezi, VeronicaBusiness development services (BDS) represent a broad variety of non-financial services offered to small, medium and micro enterprises (SMMEs) to improve their performance. BDS are part of enterprise development which seeks to give support to SMMEs. They can be offered by government or private institutions. Human capital plays a role in addressing the lack of education and skills that the SMMEs are faced with. The study is motivated by the high failure and challenges facing SMMEs in South Africa. These challenges range from lack of education, lack of skills, lack of access to markets, lack of support. The purpose of this research is to determine the empirical effect of business development services (BDS) and human capital (HC) on the performance of SMMEs in Gauteng Province in South Africa. The research design was a quantitative research method and used a survey in the form of an online questionnaire, using a software called Qualtrics to collect the data and used SPSS for data analysis. The main findings in the study revealed that there was no statistically significant relationship between BDS and performance of SMMEs. Human capital was so insignificant for this study due to the sig value greater than 0,05. This regression analysis could not be performed. The implications of the study could help small business owners/managers to know what the challenges facing the sector are and what help is available in mitigating the challenges. The study contributes to the literature of BDS, HC and SMME performance. The entrepreneurs can learn from the study. Government, policy makers and BDS providers can find lessons on how to support SMMEs better to ensure competitivenessItem Determinants of the performance of construction SMEs in South Africa(2017) Tubane, NicholineThis research focuses on determinants that contribute to Small and Medium Enterprises’ (SMEs) performance in the construction industry. The post-apartheid South African government continues to experience challenges of unemployment in general. A 2011 census revealed that South Africa faces a number of economic challenges including unemployment, a lack of capital investment and a lack of Skills Development. In order to address these challenges, the South African government introduced the Skills Development Act (No. 97 of 1998) with the aim of improving skilled workforce competency, as well as reducing unemployment in the country. SMEs in South Africa were identified as a major role in the economy and a critical source of job creation. In South Africa, SMEs account for about 91% of formal business entities, contributing between 51% and 57% of gross domestic product (GDP), and providing almost 60% of all employment (Kongolo, 2010). The significance of SMEs in contributing to the economic growth of South Africa was recognised by the government and, as such, a framework for SME support and development was established. The National Small Business Act (No. 102 of 1996) regulates SMEs in South Africa and also serves to establish the National Small Business Council. This study includes a review of specific literature with respect to regulatory compliance and the challenges faced by SMEs within the construction industry, as well as research methodology that includes research results from the construction industry. The South African Register of Contractors (RoC) was established by the Construction Industry Development Board (CIDB) in terms of the CIDB Act (No. 38 of 2000). The register was designed as a tool to measure construction companies’ performance in relation to growth, service delivery, and enterprise development, as well as to create sustainable enterprises. The study focused on how the RoC may be used by the construction industry to measure performance amongst contractors that are graded from one to six. Furthermore, the study demonstrated the correlation between the contractors’ competency and their ability to be competitive in developing their value proposition within the built environment. The CIDB keeps records of construction companies that are active. Qualitative methods were used in this study to understand determinants that contribute to SME performance within the construction industry. A conceptual model was drawn to measure the control variables against the independent variables. The main findings of the study reveal that many construction SMEs have technical skills challenges which inhibit them from reaching their financial goals. Furthermore, there is a lack of technical skills training which affects their project management skills and use of technology. Sub-contracting is one of the elements that affect the performance of many of these SMEs and needs to be regulated by governing bodies to avoid their exploitation. Sub-contractors are found to be more reliant on main contractors when it comes to strategic management and organisation of projects (White & Marasini, 2014). The study concludes that government should enforce the new B-BBEE Codes more effectively to ensure that big construction companies develop small contractors so that they can acquire the necessary skills and experience required to participate in the industry.Item Collaboration between state-owned enterprises and technology-based small medium enterprises: assessing the impact on SME performance(2019) Tarusarrira, CockyThe importance of technology-based Small and Medium Enterprises (SMEs) in most economies cannot be underestimated. Their contribution, through high impact growth that is brought about by their innovative ability is felt through the job creation, contribution to the gross domestic product (GDP) and it is evident that support of such enterprises by government to ensure sustained growth is not only beneficial to the individual businesses but also to the growth of the economy. Existing literature points to the fact that government support through policy, financial and other factors result in improved performance of these firms which in turn, assist in their sustainability in the long run. In the American, Asian and European environments a lot of literature exists on the study of the performance of these tech-based SMEs. In Sub-Saharan Africa, however, the study of these enterprises is sparse and the technology-based industry is still in its infancy. This may be due to the fact that most of the economies are subsistence and most of the SMEs in these countries are survivalist in nature, unlike in the more technologically-advanced economies. In the South African economy, the country recognises the importance of these enterprises and appreciates the need to support them to ensure that their growth and sustainability are protected and maintained. The promulgation of policies aligned to supplier development and localisation is evidence for that. This study focuses on the performance of technology-based SMEs that are doing business with state-owned enterprises (SOEs). The variables examined are SMEs Entrepreneurial Capacity and Technological Capacity of these firms and their impact on the performance of the technology-based SMEs doing business with SOEs in South Africa. The study involved diligent selection of technology-based SMEs on the Treasury Department’s customer supplier database, commonly referred to as the CSD, that are actually doing business with SOEs. A total of 263 firms responded to the survey. Exploratory factor analysis was performed to estimate the underlying variables and factor loadings. The correlations between Entrepreneurial Capacity and Technological Capacity and SME performance measurements were examined. The mediating effect of Absorptive Capacity on the relationship between Technological Capacity and SME performance is also examined. The findings indicate that Entrepreneurial Capacity does have an impact on the performance of technology-based SMEs in the South African SOE environment. This is consistent with existing literature. The study also found that there is a positive impact of SME technological Capacity on SME performance as a result of doing business with SOEs. This is also consistent with existing and reviewed literature, together with the researcher’s preliminary assumptions during the course of the study. The findings of the study, however, did not find any mediating effect of Absorptive Capacity on the relationship between Technological Capacity and the SME performance. The results do not support the researcher’s assumed position that there is a mediating role of Absorptive Capacity on the relationship between Technological Capacity and technology-based SME performance. The evidence generated from this study contributes to the sparse extant literature on the performance of technology-based SMEs in South Africa. The study will assist policy makers who use SOEs to implement SME growth and sustainability policies.Item The role of small, micro and medium enterprises in job creation in South Africa(2017) Jakuja, NomahlubiThe role of SMMEs in job creation in developed countries has been studied extensively. These studies do not include micro firms in their research. There is a scarcity of literature when it comes to the role SMMEs play in job creation in developing countries. This study adds to the literature gap by incorporating micro firms in its research. The study explored the ability of SMMEs in addressing unemployment in South Africa by looking at their ability to create jobs. The study is a qualitative analysis of existing literature combined with interviews of 16 SMME owners. The role SMMEs play in job creation is not only measured by the number of people employed (labour intensiveness) but also by the potential of SMMEs to grow and thus create jobs in the future. The interview respondents were largely comprised of microenterprises. The paper also found business owners to have low and negative sentiments towards the government. Cash flow and funding remained the major challenges facing the sector in 2016/17. The findings from the interviews are aligned with the empirical findings of the study.Item Workplace training in small and medium-sized enterprises (SMEs): apprenticeship and learnership training in South African manufacturing SMEs(2019) Msomi, Sindiswa Hazel MandyThis report critically examines the views of human resource (HR) managers and training supervisors in selected manufacturing small and medium enterprises (SMEs) and skills development practitioners in the Manufacturing, Engineering, and Related Services Sector Education and Training Authority (MERSETA). The purpose of this report is to identify and examine the barriers to workplace training in the South African manufacturing SMEs. The study is qualitative in nature, comprising a set of interviews with HR managers, training supervisors and skills development practitioners through semi-structured interview schedules. The analysis of the transcribed data is referenced against the international and local (South African) literature on skills development, workplace training (particular apprenticeships), and perceptions by firms of the importance of workplace training to their operations. The findings of the report supported by the available literature indicate that barriers to workplace training in manufacturing SMEs relate to various factors. These factors are lack of funding, students’ attitude, trainer and trainee relationships, and students’ low mathematics and science grades. Overall, the report identifies two key barriers to workplace training in the manufacturing SMEs: the embedded gender and racial inequality in the apprenticeships system and the information and communication disconnection between SETAs and manufacturing SME employers. The analysis suggests that overcoming these barriers requires effective government policies that support the relationship between the SETAs, employers, and the learners; and address the history of the apprenticeship system and its implications for workplace training in the manufacturing SMEsItem Business incubators and SMMEs performance in South Africa(2018) Tembe, FaithDeveloping SMMEs has become a growing phenomenon within emerging economies. This is because enterprise development is designed to achieve a positive socioeconomic impact by encouraging and investing in entrepreneurship (Peters et al., 2004). Therefore, understanding the performance of business incubators, and how they enable SMMEs to contribute to economic development, is critical for policy makers who have an urgent mandate of growing the South African economy (AlMubaraki & Busler, 2011). This study argues that business development strategies that adopt a blanket approach towards supporting SMMEs operating in different sectors and levels may not be appropriate, given the dynamics of different ventures. This study investigates and compares the effect of sector specific business incubators versus mixed sector business incubators in improving SMME performance to inform policy makers about the state of entrepreneurship of enterprises that engage with incubating organisations. The methodology used in this study was quantitative and cross sectional in nature. One hundred and five responses were received from SMMEs that graduated from a business incubator to assess how their performance has improved over time. The findings revealed that relationships do exist between sector specific business incubators and job creation as well as turnover, but this relationship is not significant. The findings also suggest that there was no significant statistical difference when comparing sector specific to mixed sector business incubators in job creation and turnover. Business incubators should have specific touch points and interventions targeted at different levels of the entrepreneurial process, thus, working towards addressing the diverse needs and challenges pertinent to emerging businesses operating in different industries. The findings which emerged from this study provide a decent base to further explore how sector specific and mixed sector business incubators improve SMME performanceItem Factors constraining development of small sized construction contractors in Mafikeng(2018) Diko, Sifiso IsaacIn this dissertation, the factors constraining the development of small sized construction contractors in Mafikeng were examined. Although it is submitted that small sized construction contractors play an important role to the economy of developing countries like South Africa, they however face lots of challenges constraining their development. These challenges vary from the unfriendly legislation regulating their establishment to corrupt nature of government officials assigned to facilitate their development. It is imperative mention that, Small construction contractor sector is not well developed in South Africa. As a result, there is not much in terms of literature in this area. Therefore this study is done to add to body of knowledge about small construction contractors. As stated above, the study set to examine the factors constraining the development of small sized construction in Mafikeng. It is revealed that, development of small construction contractors in Mafikeng is constrained by internal factors such as entrepreneurial skills, marketing and technology and external factors such as access to finance, corruption, legal and regulatory framework and the political environment. The study makes use of primary and secondary sources of data. Interviews and questionnaires were also administered to get first-hand knowledge about the challenges faced by those concerned in the sector. As a summary of the study therefore, it is submitted that external and internal factors constrain the development of small construction contractors in Mafikeng.Item Barries to growth and development of lower CIDB grade contractors(2017) Kuju, AdetayoLiterature is replete with what constitutes barriers and challenges to the development of small, midsized and micro enterprise (SMME) contractors, often referred to as emerging contractors. The International Labour Organization (1987) proposed three solutions geared towards contractor development in developing countries. This research alludes to the importance of understanding the South African context wherein these proposed solutions are operational. The research begins with efforts made by the new democratic government, post 1994, to addressing the institutionalised inequalities - legacies of the previous regimes (colonization and apartheid) - via black economic empowerment, preferential procurement and construction industry development board (CIDB) legislations amongst others. The CIDB was instituted to promote amongst others the sustainable participation of emerging contractors in the construction industry; it is in this context that the national contractor development programme emerged. This research concerns itself with matters of knowledge or lack thereof as the underlying factor responsible for underdevelopment of emerging contractors. To do this, it looks at knowledge theories including its creation and transfer mechanism vis a vis organizational learning in an attempt to answer the question of nature and characteristics of learning in a specified contractor development programme (CDP). This research is a cross-sectional study that lends itself to an interpretivist paradigm and inductive logic with qualitative methods (semi-structure interviews). This research does not cover mentorship and its theories. It also does not cover issues of improvements to knowledge transfer between emerging contractors and mentor-engineers. The research concluded that much as knowledge transfer was observed within the contractor development programming, it occurred within a context and was content specific. However it is difficult to describe knowledge transfers in its entirety as it is multi-layered in nature and complexity of the make-up of emerging contractors and their interactionsItem Do tax incentives promote development of small medium enterprises that ultimately yield economic growth(2017) Makgalemele, Mohlomi Mc-HenrySouth Africa is young democratic country with just 22 years in democracy underpinned by the South African Constitution Act of 1996. Achievements and strides have been made to address the ills of the past but like any other emerging economy, major challenges remain. These challenges impact on business and the society at large. These challenges include lack of education, high rate of unemployment, high levels of inequality, lack of infrastructure and investment stimulate growth. This has been compounded by the slowdown in the world economy. The culmination of these issues has resulted in slow or very little economic growth. The South African Government remains instrumental in the development of the economy. Much is still required to ensure that there is prosperity for all that live in the country. The Government has come-up with the National Development Plan (NDP) 2030 as the economic growth strategy to address these major challenges. There are various programmes and plans set up by the Government to address these challenges. This research discusses some of the initiatives to address these challenges. As mentioned above, one of the critical issues facing South Africa is the lack of infrastructure and investment to boost the South African economy. The focus of this report is on tax incentives to support Small Medium Enterprises and industry at large with a view that development of Small Medium Enterprises will yield economic growth. Reputable institutions such as OECD share a view that development and growth of SMEs is quite critical to the economic growth, SMEs are equally important for South African economic growth. ‘SMEs (small and medium-sized enterprises) account for 60 to 70 per cent of jobs in most OECD countries, with a particularly large share in Italy and Japan, and a relatively smaller share in the United States. Throughout they also account for a disproportionately large share of new jobs, especially in those countries which have displayed a strong employment record, including the United States and the Netherlands.’ OECD publication, SMALL BUSINESSES, JOB CREATION AND GROWTH: FACTS, OBSTACLES AND BEST PRACTICE. One can argue that with 60 to 70 per cent of jobs for most OECD countries, Small Medium Enterprises are actually the economic drivers for these countries.Item Determinants influencing adoption of cloud computing by small medium enterprises in South Africa(2017) Matandela, WandaSmall Medium Enterprises (SMEs) are now recognized as the driving force behind most thriving economies. This is mainly attributed to the role they play in most economies in reducing unemployment and their contribution towards Gross Domestic Product. This means that SMEs should have the right resources to enable them to enhance performance. Choosing the right technology to support their businesses is one of the important decisions that SMEs should make. Understanding the benefits and challenges of different technologies is often a problem for most SMEs. One of the new technologies that has gained prominence in recent years is cloud computing. Even though the value associated with this technology has been widely researched especially for large enterprises, the rate at which SMEs adopt cloud computing still remains low. The purpose of this research sought to explore and describe the determinants influencing the adoption of cloud computing by SMEs in South Africa. The study used Technology Organization Environment (TOE) framework as the theoretical lens in understanding the adoption of Could Computing phenomenon. Further, this qualitative exploratory and descriptive study used semi-structured interviews to collect data from five SMEs based in Johannesburg, Gauteng Province, operating in different industries and belonging to the National Small Business Chamber. The main factors that were identified as playing an important role in the adoption of cloud computing by SMEs are, relative advantage, complexity, compatibility, awareness, trialability, culture, top management support, size, regulation and trade partner relationship. It is worth noting that there was not enough evidence that competitive pressure played a significant role in SME cloud adoption.