Investigating alternative social funding instruments for SMMEs in South Africa

dc.contributor.authorXaba, Prudence
dc.contributor.supervisorSibanda, Tonderai
dc.date.accessioned2024-09-17T09:17:07Z
dc.date.available2024-09-17T09:17:07Z
dc.date.issued2020
dc.descriptionResearch report submitted in partial fulfillment for the degree of Master of Business Administration to the Faculty of Commerce, Law, and Management, University of the Witwatersrand, Johannesburg 2020
dc.description.abstractSmall Medium and Micro Enterprises (SMMEs) are key drivers of economy, innovation, job creation and the biggest contributor of the GDP. In 2015 there were 2 251 821 SMMEs, with only 667 433 in the formal sector and registered, the rest operating in the informal sector. South Africa today is faced high rates of poverty, unemployment and poor education levels. The current legislative framework has been unable to transform the skewed discrimination in the economic sector. Several government strategies and interventions have not yielded any positive results. The study explored the conversion of stokvels into an alternative social funding instrument for SMMEs. Stokvel is a centralised collective savings scheme, where monthly periodic contribution are paid. Stokvels are referred to as Rotating Savings and Credit Association (ROCSAs), with a membership of between 5-30 members. The study employed qualitative multi method approach, using focus groups observations, individual interviews and document analysis to collect data. Semi structured questionnaires were used for the five stokvels focus groups and three individual interviews with government executives. Data analysis was conducted using the three theories; phenomenology, ethnography and interactionism. The findings show that stokvel members are willing to convert into formal investment instruments, to manage risks and having access to better control management systems. They also stated that they would like to maintain their independence, unique identity and control of their savings. It also found that stokvels need financial training in order to make informed decisions on the available platforms. It was also found that all this is impossible without government’s intervention in transforming the sector and introduce flexible legislation accommodating stokvels. It is also stated that retail banks could hinder the introduction of progressive and flexible legislation regulatory framework as they recognise that stokvels could be disruptors in the financial sector.
dc.description.submitterMM2024
dc.facultyFaculty of Commerce, Law and Management
dc.identifier.citationXaba, Prudence. (2020). Investigating alternative social funding instruments for SMMEs in South Africa[Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.
dc.identifier.urihttps://hdl.handle.net/10539/40865
dc.language.isoen
dc.publisherUniversity of the Witwatersrand, Johannesburg
dc.rights© 2020 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg.
dc.rights.holderUniversity of the Witwatersrand, Johannesburg
dc.schoolWITS Business School
dc.subjectSmall Medium and Micro Enterprises (SMMEs
dc.subjectEconomy
dc.subjectInnovation
dc.subjectJob creation
dc.subjectGDP
dc.subject.otherSDG-8: Decent work and economic growth
dc.titleInvestigating alternative social funding instruments for SMMEs in South Africa
dc.typeDissertation

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