Abstract
Given the relative infancy and nature of the information communication technology (ICT
industry), there is a gap in research surrounding sustainability and financial success factors
driving the ICT industry sustainability practices. As an infant the industry is subject to overnight
success stories of small and medium sized enterprises becoming successes with their
innovative solutions to this ever-evolving industry. The aim of this study is to determine which
critical success factors are perceived to be dominant in small and medium sized enterprises
(SMEs) in the South African information communication technology (ICT) industry delivering
fibre to the home (FTTh) offerings to the market. Furthermore, this exploratory study seeks to
determine whether sustainable development is perceived as inherent to the traditional critical
success factors (CSFs) or whether sustainable development results from premeditation at the
start-up of the company. The study also seeks to explore the perceived significance of financial
performance as a CSF for SMEs in the ICT industry of South Africa. The author conducted
semi-structured interviews and measured the interviewees’ perceptions of critical success
factors against traditional models such as the KITE project and new venture template (NVT).
All interviewees echoed in unison the importance of financial control and good governance as
critical and augmented by strong financial management. However, the core of the focus on
finance was on the cash flow management of the SME. Some 60% of interviewees indicated
that sustainability in an SME is inherent to the establishment or rather objectives of an SME
and that it cannot be separated from doing business. The remaining interviewees held a profitdriven
focus. The least successful SME held to a focus on profits whilst the most successful
held to an inherent view and offered a chicken or egg analogy, finally concluding that an SME’s
success and ultimately sustainable success is inherently interwoven with the enterprise and
is rooted in the establishment of the entity. The profit-driven focused interviewees did
acknowledge that an SME cannot remain profit-focused into perpetuity and all indicated that
an equilibrium point is to be reached where profit focus would shift to include the other
dimensions of sustainable business practices such as people and the planet. All interviewees
also emphasised the importance of remaining compliant with legislated practices with
particular reference to environmental laws.
M.Com. (Finance)