3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Examination of the relationship between entrepreneurial capital and the profitability of smallholder farmers in Analamanga’s rural areas(2019) Ratsimanetrimanana, RadomalalaApprehending the role of entrepreneurship in economic success and poverty eradication is a fascinating topic, at the centre of scholars’ cares when inquiring into the field of new venture creation. This one-of-a-kind, ground-breaking study sought out to examine the nature of the relationship between entrepreneurial capital (entrepreneurial competence x entrepreneurial commitment) and the profitability of smallholder farmers in Analamanga’s rural areas. The use of a non-experimental cross-sectional survey was deemed to be most suitable for the purpose of the research. A cluster sampling method with a quota approach was adopted to determine the sample size and select the survey participants. The survey participants were questioned by a team of trained interviewers, equipped with a structured questionnaire, which served as a way to generate data that would be processed. Simple and multiple linear regression were the major statistical tests performed to analyse and interpret the data. The ensuing observations revealed a partially significant relationship between entrepreneurial competence and the profitability of smallholder farmers in Analamanga’s rural areas. A similar result was observed when testing the correlation between entrepreneurial commitment and profitability. Finally, the multiplicative interaction between entrepreneurial competence and entrepreneurial commitment - engendering the entrepreneurial capital paradigm - was proven to feature a significantly positive relationship with the dependent variable i.e. profitability. Considering the alarming magnitude of rural poverty in Madagascar, the outcomes of the study could function as the foundation of research-based policies and services delivered to smallholder farmers in the central region of the island to authentically satisfy their needs as a means to ensure their economic success and alleviate rural poverty in the country.Item Settling up the provisions of start-up capital for contractors as opposed to performance guarantees and retention fees(2018) Huma, Moremi PhillipThis study investigates the feasibility of introducing the start-up capital system for contractors as opposed to demanding performance guarantees and retention fees to municipal contractors in infrastructure projects. A qualitative research method was used to collect data from a cross-section of key stakeholders from major municipalities in South Africa. The results are drawn from the interviews that were conducted accordingly and Atlas-ti version 7 was used to analyse the qualitative data. The analysis is based on the current contract requirements of performance guarantees and retention fees as well as the likelihood of start-up funds for SMMEs in construction within the respective municipalities. The results illustrate that, in general, waiving of performance guarantees and retention fees is possible if there is joint project management, risk management structures; and related policies with regards to waiving guarantees are in place. Furthermore, it is drawn from the results that providing start-up funds would be possible but that may face serious challenges and that was always bound to fail. This study accordingly recommends some options as well as a model for start-up funding. However, there is a need for exploring such a model further and any other options that could be considered instead of performance guarantees and retention fees.Item Understanding the information considered in private equity buying decisions in South Africa(2016) Olivey, WarrenThe South African Private Equity Industry collects billions of Rands from investors locally and abroad and utilises this cash to purchase controlling shares in companies operating within Africa. Within 5 to 10 years of purchase, these companies are purposefully altered, upgraded and moulded prior to resale. Each Private Equity firm has different growth targets, but the generally expected result should be a multiplication of the funds invested over that time. The mechanism by which these firms accomplish such a result was of strategic importance for business people whom wish to decode the route to success and apply the same actions in their organisations, or those they wish to evaluate for purchase. This research aims to bridge a particular aspect of this process by acknowledging that the choice of company to purchase was critical to the overall ability to grow and dispose of the company in the allotted timeframe. In the run up to purchasing a company, Private Equity will contract external firms to delve into a potential Target Firm. These Service Firms will report into the Private Equity client on particular aspects of operations, finance and legality that would affect future running and risk profiles. These reports would inform the buying decision, potential pricing structures and legalities of ownership transfer right up to the point of sale. The evaluation stages are graphically modelled as three distinct but sequential Phases at the end of an extensive literature review. This Conceptual Model is tested against the results of a series of semistructured interviews held with industry experts. The opinions of local Private Equity and Service Firm respondents are sorted, refined and presented as a more detailed Modified Model at the end of the report. It was found that through substantial refinement of disconnected data, the available literature largely agreed with expert opinion in practice. The research concludes that the proposed evaluation Models constitute a useful starting platform from which to conduct future research into specific aspects of Private Equity activity.Item A comparitive study on the tax compliance burden and tax incentives for SMMEs in South Africa(2016-04-06) Ndlovu, MphagahleleSmall, medium and micro enterprises (SMMEs) play a key role in the development of the economy and are a significant contributor to employment. In South Africa (SA), SMMEs employ more than 68.2% of the work force in the private sector. To achieve the objective of economic growth, job creation as well as income redistribution, the government is actively promoting SMMEs. The SMMEs increase the average employment rate in SA by pulling into production unemployed low skilled labour, whose skills level is not sufficient to qualify for employment in larger firms. How do the South African tax compliance burden and tax incentives for SMMEs measure up in comparison to the tax compliance burden and tax incentives for SMMEs in the United Kingdom (UK) and the United States of America (USA)? The research reviews the tax compliance burden and tax incentives of SMMEs in SA in comparison to the tax compliance burden and tax incentives of the UK and the USA. The research was conducted through an extensive review of the literature. The literature review has indicated that tax compliance is one of the main burdens acting as a deterrent to the formalization of SMMEs for tax purposes. The review of the literature also indicated that National Treasury is trying very hard to ease the burden of tax compliance on SMMEs. Key words: Income tax, SMMEs, tax compliance costs, tax incentives, turnover tax, value-added tax, venture capital.Item Venture capital and initial public offerings: the prospects and impediments in African markets(2013-02-21) Nage, LeratoThe aim of this study is to present venture creation as an alternative form of alleviating poverty and contributing positively to the economic growth of every African government. This study draws to the attention of policy-makers, the importance of venture creation in emerging economies. The author goes on further to highlights the challenges with the current models used for financing/funding new ventures, in an emerging African economy. The objective of this paper is to also highlight what needs to be done by policy-makers, to create a thriving economic environment for emerging entrepreneurs. This study seeks to highlight some of the prospects, as well as some of the impediments, experienced by the venture capital industry and start-up enterprises. The environment in which the creation of new ventures operates under in emerging African markets is reviewed, and the exit of those enterprises when they mature and graduate from a small, private company, to a publicly held company - through an Initial Public Offering (IPO) process, is examined. The benefits of exiting these ventures through an IPO, versus the more aptly applied private placement exit method, are also discussed. The impact that the behaviour and psychology of investing have on the investment trends in African economies is also discussed. The author used the qualitative research methodology to achieve the results presented in this paper. The outcomes of the study are outlined in chapter four of this paper. The respondents to the survey indicated the importance of the venture capital sector and the critical role that policy makers should be playing. There were no clear responses around the human behaviour in determining the suitable exit platform. What came out clearly in this study; was that each region in the African economy will use a different exit platform driven mainly by the economic environment. The author goes on further to conclude on the outcomes of the study and suggest further research on the topic on venture capital and initial public offerings. The participants who responded to the survey agreed with the literature reviewed, in particular around the adequate form of financing for starting up new enterprises.Item Short, medium and long-term performance of Initial Public Offerings in South Africa: JSE Alt-X versus JSE Main Board: the post-JSE Alt-X evidence (2004-2007)(2011-11-24) Manikai, BothwellThis study has been prompted by the recent introduction of the JSE Alternative Exchange in South Africa, an alternative listing platform for smaller companies compared to the more established JSE Main Board Exchange. This new era has led to information asymmetry among current and prospective investors regarding the risk-return profile of the companies listed on the relatively new JSE Alternative Exchange and how this profile relates to the profile of firms listed on the long established JSE Main Board Exchange. In an attempt to fill the above information gap, this study sheds light on the short, medium and long-term performances of initial public offerings of companies listed on the JSE Alternative Exchange vis-a-vis that of JSE Main Board Exchange. This information is relevant for investment and financing decision making, principally for investors, venture capitalists and entrepreneurs. The findings of this research appear to be contrary to expectations and to corporate finance theory. The results indicate that on average, initial public offerings by larger JSE Main Board companies outperform the smaller JSE Alternative Exchange companies on a nominal and risk-adjusted bases in the short-medium and long-term. It must be noted however that the differences in performance are not statistically significant. On the other hand, in line with documented evidence in the literature, it was found that the risk of returns on the smaller capitalisation JSE Alternative Exchange companies was indeed higher than that of the JSE Main Board companies. A similarity identified between the average performances of the two listing platforms is that, the returns for companies decreased overtime between the short and long-term. This may be partly due to the impact of the 2007 economic recession.