Abstract
The study investigates the effectiveness of business rescue proceedings in South Africa. The chapter begins with an introduction, summarising the key findings of the empirical study conducted in Chapter 3 and Chapter 4. It also outlines the recommendations and conclusions drawn from the research. The objectives of the study were outlined to investigate the viability of business rescue for financially distressed South African companies and identify the factors influencing the success or failure of business rescue processes.
Chapter 1 introduced the research topic, background, literature review, research problem, objectives, and methodology. The literature review highlighted the importance of distinguishing between commercial and factual insolvency under the Companies Act, with a focus on key factors influencing business rescue effectiveness.
The methodology section detailed the research approach, using an interpretivist research paradigm and a mixed method approach. The research findings from the questionnaire results revealed insights into the experiences of business rescue practitioners. Respondents varied in experience levels and qualifications, with a majority holding advanced degrees.
Case studies of South African airline companies highlighted challenges faced by the industry, with SA Express and Comair facing liquidation while South African Airways underwent a successful business rescue. The outcomes and strategies for improving business rescue success were explored.
Recommendations were provided to enhance business rescue effectiveness, including the establishment of mentorship programs, addressing funding challenges, promoting standardised business plans, and ongoing education for practitioners. Specific recommendations for the airline industry were also outlined.
The chapter concludes with suggestions for future research, emphasising the need for further study on business rescue funding and exploring topics such as Small and Medium Enterprises (SMEs) in business rescue, the role of technology, and sustainability practices. In conclusion, the research demonstrates that business rescue plays a crucial role in preserving financially distressed companies in South Africa.
KEY WORDS: Business rescue, Mentorship program, Research findings, Business rescue practitioners, Financial distress, Success rate, South Africa