Examining a new approach to cost control methods and mechanisms for SMMEs in construction projects: a case study of a road construction project in Limpopo
- Authors: Ademola, Williams Olawale
- Date: 2014-01-14
- Subjects: Small business , Road construction industry - South Africa - Limpopo , Building - South Africa - Limpopo - Cost control
- Type: Thesis
- Identifier: uj:7885 , http://hdl.handle.net/10210/8776
- Description: M.Ing.(Engineering Management) , A lot have been said and written about how South African Small Micro and Medium Size Enterprises (SMMEs) in the Construction sector of the economy have failed in the delivery of their projects and about how they have not measured up in terms of the requirements needed to be competitive in the global place. Services delivery protests by communities where SMMEs have either failed to deliver their projects adequately or have out rightly abandoned projects are common features in our various electronic and print media, and in many cases these days the most reasons given for this behavior is the total collapse or lack thereof of proper financial management of the project. Because of the ease of procedure required to register construction outfits at the Department of Trade and Industry many have flocked to the opportunity and established business enterprises with the intention that at least they will be considered for one tender or the other to carry out some sort of construction work or the other in their various environments. Others registered such companies because they have links and ties to these opportunities in the various government establishments responsible for creating these works in the name of service delivery to their respective communities. Many of the proprietors of these enterprises, when they eventually get the job, have little or no financial knowledge on how to successfully manage a construction project and sometimes always based their financial judgment on the bottom line without considering the various factors that influence the bottom line profit. Virtual calculations of their financial inputs and relative desired outputs are done with little or no consideration for cost implications of the individual building blocks of the project itself. Safe to say, in many instances, the project fail or is abandoned due to mismanaged funds or the exhaustion of such funds required to carry the project to the completion stage. It has been observed in many instances and in interactions with some SMMEs in the construction sector that not many of the appointed Project Managers and/ or Site Managers have Project Management skills, and those who do have, in most cases are unable to apply these skills to their projects. Usually they just result to invoking personal experiences obtained from their various earlier endeavors in financial projections and decisions involving the management of their projects. More often than not, these financial projections and decisions become inaccurate and tend to drive the project into financial losses. This now begs the question, that if there exits simple mathematical techniques and methods of evaluating the various costs during the project life cycle, and weighing those daily weekly and monthly costs against targeted objectives, both in the planning and execution of the projects, wouldn’t it then be easier to make sensible financial decisions if we are able to control and manage project resource costs so much so that the resultant will always be the desired financial objectives? The aim therefore, of this dissertation is to examine a simple but adequately comprehensive method, of managing resources cost as applied to road construction projects and how, by also weighing the influence of other trade-offs such as quality and time within the life cycle, the project is kept in good financial status and is subsequently able to make a profit at the end of the day. An illustration of the application of this cost control method is highlighted in a case study of a road construction project in Limpopo undertaken by an emerging South African construction company. The financial management style and those factors that govern some of the cost decisions made during the course of the project are taking into account. The resultant financial success of the work so far is evidence that the cost control mechanism employed largely contributes to its present successful state. It can therefore be concluded that if properly implemented, this method will assist SMMEs in the promotion of proper cost control practices, and subsequent financial breakthroughs when applied to other similar projects.
- Full Text:
- Authors: Ademola, Williams Olawale
- Date: 2014-01-14
- Subjects: Small business , Road construction industry - South Africa - Limpopo , Building - South Africa - Limpopo - Cost control
- Type: Thesis
- Identifier: uj:7885 , http://hdl.handle.net/10210/8776
- Description: M.Ing.(Engineering Management) , A lot have been said and written about how South African Small Micro and Medium Size Enterprises (SMMEs) in the Construction sector of the economy have failed in the delivery of their projects and about how they have not measured up in terms of the requirements needed to be competitive in the global place. Services delivery protests by communities where SMMEs have either failed to deliver their projects adequately or have out rightly abandoned projects are common features in our various electronic and print media, and in many cases these days the most reasons given for this behavior is the total collapse or lack thereof of proper financial management of the project. Because of the ease of procedure required to register construction outfits at the Department of Trade and Industry many have flocked to the opportunity and established business enterprises with the intention that at least they will be considered for one tender or the other to carry out some sort of construction work or the other in their various environments. Others registered such companies because they have links and ties to these opportunities in the various government establishments responsible for creating these works in the name of service delivery to their respective communities. Many of the proprietors of these enterprises, when they eventually get the job, have little or no financial knowledge on how to successfully manage a construction project and sometimes always based their financial judgment on the bottom line without considering the various factors that influence the bottom line profit. Virtual calculations of their financial inputs and relative desired outputs are done with little or no consideration for cost implications of the individual building blocks of the project itself. Safe to say, in many instances, the project fail or is abandoned due to mismanaged funds or the exhaustion of such funds required to carry the project to the completion stage. It has been observed in many instances and in interactions with some SMMEs in the construction sector that not many of the appointed Project Managers and/ or Site Managers have Project Management skills, and those who do have, in most cases are unable to apply these skills to their projects. Usually they just result to invoking personal experiences obtained from their various earlier endeavors in financial projections and decisions involving the management of their projects. More often than not, these financial projections and decisions become inaccurate and tend to drive the project into financial losses. This now begs the question, that if there exits simple mathematical techniques and methods of evaluating the various costs during the project life cycle, and weighing those daily weekly and monthly costs against targeted objectives, both in the planning and execution of the projects, wouldn’t it then be easier to make sensible financial decisions if we are able to control and manage project resource costs so much so that the resultant will always be the desired financial objectives? The aim therefore, of this dissertation is to examine a simple but adequately comprehensive method, of managing resources cost as applied to road construction projects and how, by also weighing the influence of other trade-offs such as quality and time within the life cycle, the project is kept in good financial status and is subsequently able to make a profit at the end of the day. An illustration of the application of this cost control method is highlighted in a case study of a road construction project in Limpopo undertaken by an emerging South African construction company. The financial management style and those factors that govern some of the cost decisions made during the course of the project are taking into account. The resultant financial success of the work so far is evidence that the cost control mechanism employed largely contributes to its present successful state. It can therefore be concluded that if properly implemented, this method will assist SMMEs in the promotion of proper cost control practices, and subsequent financial breakthroughs when applied to other similar projects.
- Full Text:
Evaluating management commitment to health and safety in small and medium construction enterprises
- Agumba, Justus N., Haupt, Theo.
- Authors: Agumba, Justus N. , Haupt, Theo.
- Date: 2009
- Subjects: Construction industry , Construction health and safety , Small business
- Type: Article
- Identifier: uj:5308 , ISBN 978-0-620-44689-1 , http://hdl.handle.net/10210/5297
- Description: Construction health and safety (H&S) in small and medium construction enterprises (SMEs) has received little attention in South Africa, in terms of either research or support for preventive initiatives. Previous research suggests that this sector has serious problems exacerbated by limited access to human, economic and technological resources. Moreover it is now recognized that methods developed specifically for large firms cannot necessarily be transferred to smaller and medium firms, hence the need to investigate management commitment to H&S among SMEs.
- Full Text:
- Authors: Agumba, Justus N. , Haupt, Theo.
- Date: 2009
- Subjects: Construction industry , Construction health and safety , Small business
- Type: Article
- Identifier: uj:5308 , ISBN 978-0-620-44689-1 , http://hdl.handle.net/10210/5297
- Description: Construction health and safety (H&S) in small and medium construction enterprises (SMEs) has received little attention in South Africa, in terms of either research or support for preventive initiatives. Previous research suggests that this sector has serious problems exacerbated by limited access to human, economic and technological resources. Moreover it is now recognized that methods developed specifically for large firms cannot necessarily be transferred to smaller and medium firms, hence the need to investigate management commitment to H&S among SMEs.
- Full Text:
Construction health and safety culture in South African small and medium enterprises
- Agumba, Justus N., Haupt, Theo
- Authors: Agumba, Justus N. , Haupt, Theo
- Date: 2009
- Subjects: Construction health and safety , Construction industry , Small business
- Type: Article
- Identifier: uj:5307 , ISSN 978-0-62043702-8 , http://hdl.handle.net/10210/5293
- Description: Construction health and safety (H&S) culture in small and medium construction enterprises (SMEs) has received little attention in South Africa, in terms of either research or support for preventive initiatives. Previous research suggests that this sector has serious problems exacerbated by limited access to human, economic and technological resources. Moreover it is now recognized that methods developed specifically for large firms cannot necessarily be transferred to smaller and medium firms, hence the need to investigate the H&S culture in SMEs. This exploratory study is based on descriptive survey using semi-structured and structured questionnaire, and non-probability sampling to give an overview of the characteristics of H&S culture and practices in SMEs firms in the South African construction industry.
- Full Text:
- Authors: Agumba, Justus N. , Haupt, Theo
- Date: 2009
- Subjects: Construction health and safety , Construction industry , Small business
- Type: Article
- Identifier: uj:5307 , ISSN 978-0-62043702-8 , http://hdl.handle.net/10210/5293
- Description: Construction health and safety (H&S) culture in small and medium construction enterprises (SMEs) has received little attention in South Africa, in terms of either research or support for preventive initiatives. Previous research suggests that this sector has serious problems exacerbated by limited access to human, economic and technological resources. Moreover it is now recognized that methods developed specifically for large firms cannot necessarily be transferred to smaller and medium firms, hence the need to investigate the H&S culture in SMEs. This exploratory study is based on descriptive survey using semi-structured and structured questionnaire, and non-probability sampling to give an overview of the characteristics of H&S culture and practices in SMEs firms in the South African construction industry.
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Evaluating the use of project management techniques in infrastructure delivery by South African small and medium sized contractors
- Authors: Agumba, Justus Ngala
- Date: 2008-07-16T12:54:49Z
- Subjects: Project management , Construction industry , Small business
- Type: Thesis
- Identifier: uj:7289 , http://hdl.handle.net/10210/802
- Description: South Africa is currently faced with the challenge of reducing the huge backlog of infrastructure delivery to communities that were previously disadvantaged. Given the prioritization of empowerment by the South African government, the previously disadvantaged and marginalized sector of the construction industry that comprises mainly, Small and Medium Enterprises (SMEs) is the preferred vehicle of delivery. However, consequent to their historic position outside of the mainstream construction industry, they lack the requisite project management expertise and experience to make good on this objective. This study investigates the characteristics of the personnel managing SMEs and the SMEs themselves, the usage, necessity, importance and adequate use of the techniques, effectiveness and potential applicability of various project management techniques to improve the performance of the SMEs in delivering the much-needed infrastructure. The study also identifies those external and internal factors that are detrimental to the effective implementation of project management techniques. Given the aforementioned, a descriptive survey was conducted among contractors who were either registered members of the Gauteng Master Builders Association (GMBA) or the National Home Builders Registration Council (NHBRC) in Gauteng. The data was collected using a semi-structured, structured and open-ended interview questionnaire, and analysed using descriptive analysis, severity index and content analysis respectively. The findings indicate that experienced and educated personnel manage SMEs. There is usage of essential project management techniques, which the contractors agreed are necessary and important in managing their projects. There is inadequate use of project management techniques among the SMEs. When used, the techniques brought about improvement in the delivery of projects. The research also established various factors that deterred the adequate implementation of project management techniques, namely, lack of adequate project information from professionals, time and financial constraints. The research concludes by suggesting that if significant improvements in the delivery of construction projects are to be attained, the findings stated need to be taken into consideration. , Mr. F.C. Fester Prof. F.A.O. Otieno Mr. I.O. Adegoke
- Full Text:
- Authors: Agumba, Justus Ngala
- Date: 2008-07-16T12:54:49Z
- Subjects: Project management , Construction industry , Small business
- Type: Thesis
- Identifier: uj:7289 , http://hdl.handle.net/10210/802
- Description: South Africa is currently faced with the challenge of reducing the huge backlog of infrastructure delivery to communities that were previously disadvantaged. Given the prioritization of empowerment by the South African government, the previously disadvantaged and marginalized sector of the construction industry that comprises mainly, Small and Medium Enterprises (SMEs) is the preferred vehicle of delivery. However, consequent to their historic position outside of the mainstream construction industry, they lack the requisite project management expertise and experience to make good on this objective. This study investigates the characteristics of the personnel managing SMEs and the SMEs themselves, the usage, necessity, importance and adequate use of the techniques, effectiveness and potential applicability of various project management techniques to improve the performance of the SMEs in delivering the much-needed infrastructure. The study also identifies those external and internal factors that are detrimental to the effective implementation of project management techniques. Given the aforementioned, a descriptive survey was conducted among contractors who were either registered members of the Gauteng Master Builders Association (GMBA) or the National Home Builders Registration Council (NHBRC) in Gauteng. The data was collected using a semi-structured, structured and open-ended interview questionnaire, and analysed using descriptive analysis, severity index and content analysis respectively. The findings indicate that experienced and educated personnel manage SMEs. There is usage of essential project management techniques, which the contractors agreed are necessary and important in managing their projects. There is inadequate use of project management techniques among the SMEs. When used, the techniques brought about improvement in the delivery of projects. The research also established various factors that deterred the adequate implementation of project management techniques, namely, lack of adequate project information from professionals, time and financial constraints. The research concludes by suggesting that if significant improvements in the delivery of construction projects are to be attained, the findings stated need to be taken into consideration. , Mr. F.C. Fester Prof. F.A.O. Otieno Mr. I.O. Adegoke
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An assessment of Peoples Bank Business' service to SMME's sponsored by the Khula Indemnity Scheme
- Authors: Bredenkamp, Monique
- Date: 2012-01-16
- Subjects: Small business , Small business finance , Banks and banking , Risk management , Commercial credit
- Type: Mini-Dissertation
- Identifier: uj:1910 , http://hdl.handle.net/10210/4271
- Description: M.Comm. , South Africa's Minister of Trade and Industry, Alec Irwin, stated that "one of the most striking features of the South African economy is the underdevelopment of small and medium enterprises" (Polkinghorne, 2001). A lack of sufficient capital and credit is often a major handicap to the development of SMMEs, particularly in their early growth stages. The growth and development .ofthe small, medium and micro enterprise (SMME) sector is acknowledged by most interest groups and policy-makers as being of critical importance to South Africa's ability to address the serious problems of unemployment. The South African government suggests that the SMME sector -with the help of government support -is capable of fulfilling these obj ectives and has introduced a number of supply-side measures to promote the formerly neglected sector. The overall objective is "to create an enabling environment" and "to level the playing field" (South Africa, 1995) in terms of national, regional and local policy frameworks for SMME development. Khula Enterprise Finance Ltd. was established in 1996 in terms of a Department of Trade and Industry (DT!) initiative and provides access to credit to SMMEs through various delivery mechanisms. One of these delivery mechanisms is a scheme that was created to assist SMMEs to access finance from traditional financial intermediaries by providing guarantees on a risksharing basis. Khula Enterprise Finance Ltd. has assisted in delivering almost 103 000 loans, credit guarantees and other facilities to SMMEs since the agency started operating in 1996. The total value of the loans and guarantees exceeds R550 million (Martins, 2001). ii However, Khula Enterprise Finance Ltd. has to contend with intermediaries applying its programmes -banks that are not renowned for their spirit of adventure, and welfare-oriented service organisations that lack business acumen (Khula: Some business ... , 2002: 53). The perception among the general population in South Africa is that most banks have neither the capacity nor the will to actively and creatively manage SMME loans to South Africa's emerging markets -"emerging" meaning political customers who have not been seen as critical in the past, but who are seen as such in the future. In South Africa these are largely people of black African descent (Polkinghorne, 2001). The target of Peoples Bank Business includes previously disadvantaged communities such as black persons, women and the disabled. Additionally, clients are assisted with venture capital or loans to fund start-up businesses. Emphasis is placed on assistance to the community in addition to traditional criteria such as bottom-line results. This study attempted to assess the service provided by Peoples Bank Business to clients sponsored by the Khula Indemnity Scheme. This study did not attempt to provide solutions to problems experienced, but rather to identify the deficiencies/gaps in service as experienced by clients of Peoples Bank Business.
- Full Text:
- Authors: Bredenkamp, Monique
- Date: 2012-01-16
- Subjects: Small business , Small business finance , Banks and banking , Risk management , Commercial credit
- Type: Mini-Dissertation
- Identifier: uj:1910 , http://hdl.handle.net/10210/4271
- Description: M.Comm. , South Africa's Minister of Trade and Industry, Alec Irwin, stated that "one of the most striking features of the South African economy is the underdevelopment of small and medium enterprises" (Polkinghorne, 2001). A lack of sufficient capital and credit is often a major handicap to the development of SMMEs, particularly in their early growth stages. The growth and development .ofthe small, medium and micro enterprise (SMME) sector is acknowledged by most interest groups and policy-makers as being of critical importance to South Africa's ability to address the serious problems of unemployment. The South African government suggests that the SMME sector -with the help of government support -is capable of fulfilling these obj ectives and has introduced a number of supply-side measures to promote the formerly neglected sector. The overall objective is "to create an enabling environment" and "to level the playing field" (South Africa, 1995) in terms of national, regional and local policy frameworks for SMME development. Khula Enterprise Finance Ltd. was established in 1996 in terms of a Department of Trade and Industry (DT!) initiative and provides access to credit to SMMEs through various delivery mechanisms. One of these delivery mechanisms is a scheme that was created to assist SMMEs to access finance from traditional financial intermediaries by providing guarantees on a risksharing basis. Khula Enterprise Finance Ltd. has assisted in delivering almost 103 000 loans, credit guarantees and other facilities to SMMEs since the agency started operating in 1996. The total value of the loans and guarantees exceeds R550 million (Martins, 2001). ii However, Khula Enterprise Finance Ltd. has to contend with intermediaries applying its programmes -banks that are not renowned for their spirit of adventure, and welfare-oriented service organisations that lack business acumen (Khula: Some business ... , 2002: 53). The perception among the general population in South Africa is that most banks have neither the capacity nor the will to actively and creatively manage SMME loans to South Africa's emerging markets -"emerging" meaning political customers who have not been seen as critical in the past, but who are seen as such in the future. In South Africa these are largely people of black African descent (Polkinghorne, 2001). The target of Peoples Bank Business includes previously disadvantaged communities such as black persons, women and the disabled. Additionally, clients are assisted with venture capital or loans to fund start-up businesses. Emphasis is placed on assistance to the community in addition to traditional criteria such as bottom-line results. This study attempted to assess the service provided by Peoples Bank Business to clients sponsored by the Khula Indemnity Scheme. This study did not attempt to provide solutions to problems experienced, but rather to identify the deficiencies/gaps in service as experienced by clients of Peoples Bank Business.
- Full Text:
Online community portals for small businesses
- Authors: Chen, Her-Jiang
- Date: 2011-10-11T08:53:31Z
- Subjects: Small business , Information and communication technologies , Knowledge management
- Type: Thesis
- Identifier: uj:7252 , http://hdl.handle.net/10210/3905
- Description: M.A. , The first part of the study is a literature review which indicate that small, medium and micro enterprises (SMMEs) represent an important vehicle to address the challenges of job creation, economic growth and equity. Modern economy is driven by innovations and knowledge. Transforming information resources into knowledge and maximise the value of knowledge is the new challenge in achieving a sustainable competitive advantage. Information resources are needed by small businesses as much as their larger counter parts but small businesses are usually in a disadvantaged position in terms of finance and expertise. Information and communication technologies (ICTs) offer small businesses new opportunities in the information economy. Exciting ICT applications such as Web portals provide platforms for business communities to share information and communicate more efficiently than ever. Such information resources enable small businesses to react faster and adapt better to the changing global market. The stimulation of SMMEs must be seen as part of an integrated strategy to develop the society to a higher level. The research findings of this study provide all stakeholders in small business development in South Africa including government, industries and academics a better understanding and practical guideline for delivering information resources to small business owners and managers and the design of information portals that can address the information needs of small businesses in South Africa. The empirical components that follow the literature review comprised a questionnaire survey. The survey focused on non-franchised small businesses in the retail industry in the greater Johannesburg metropolitan. A total of 150 questionnaires completed by small business owners and managers were used for statistic analysis in this research. The questionnaire consisted of four sections: business biographic information, business information and agencies, information and communication technologies usage, and community and portal activities. The survey results revealed valuable insights and trends in the use of ICTs and attitudes towards information sharing amongst small business owners and managers. Textile, clothing, footwear and leather goods were the most popular trade for the small businesses use in the survey. Nearly all respondents prefer English for business communication and the businesses are typically owner manager with a small number of employees. Infrastructure for ICTs is in place for small businesses, but the usage level is still basic. Short message service (SMS) and e-mail are the most commonly used ICT tools. Traditional media such as television, radio, newspapers and magazines remain the most important source of information for these small business owners and managers. Younger businesses adapt better to ICTs than the older businesses. Despite a mixed attitude towards sharing business information, small business owners and managers showed a high level of interest in networking with other businesses, in particular with potential customers and suppliers. Most respondents do not belong to any professional or industrial organisation primarily because they were not aware of these organisations. Based on the literature review and the empirical research, the final conclusion that was made from this research is that Web community information portals can, to a great extent, promote the use of information resources for small businesses in South Africa. The results from this research give a better understanding and are useful guidelines to stakeholders in small business development in South Africa.
- Full Text:
- Authors: Chen, Her-Jiang
- Date: 2011-10-11T08:53:31Z
- Subjects: Small business , Information and communication technologies , Knowledge management
- Type: Thesis
- Identifier: uj:7252 , http://hdl.handle.net/10210/3905
- Description: M.A. , The first part of the study is a literature review which indicate that small, medium and micro enterprises (SMMEs) represent an important vehicle to address the challenges of job creation, economic growth and equity. Modern economy is driven by innovations and knowledge. Transforming information resources into knowledge and maximise the value of knowledge is the new challenge in achieving a sustainable competitive advantage. Information resources are needed by small businesses as much as their larger counter parts but small businesses are usually in a disadvantaged position in terms of finance and expertise. Information and communication technologies (ICTs) offer small businesses new opportunities in the information economy. Exciting ICT applications such as Web portals provide platforms for business communities to share information and communicate more efficiently than ever. Such information resources enable small businesses to react faster and adapt better to the changing global market. The stimulation of SMMEs must be seen as part of an integrated strategy to develop the society to a higher level. The research findings of this study provide all stakeholders in small business development in South Africa including government, industries and academics a better understanding and practical guideline for delivering information resources to small business owners and managers and the design of information portals that can address the information needs of small businesses in South Africa. The empirical components that follow the literature review comprised a questionnaire survey. The survey focused on non-franchised small businesses in the retail industry in the greater Johannesburg metropolitan. A total of 150 questionnaires completed by small business owners and managers were used for statistic analysis in this research. The questionnaire consisted of four sections: business biographic information, business information and agencies, information and communication technologies usage, and community and portal activities. The survey results revealed valuable insights and trends in the use of ICTs and attitudes towards information sharing amongst small business owners and managers. Textile, clothing, footwear and leather goods were the most popular trade for the small businesses use in the survey. Nearly all respondents prefer English for business communication and the businesses are typically owner manager with a small number of employees. Infrastructure for ICTs is in place for small businesses, but the usage level is still basic. Short message service (SMS) and e-mail are the most commonly used ICT tools. Traditional media such as television, radio, newspapers and magazines remain the most important source of information for these small business owners and managers. Younger businesses adapt better to ICTs than the older businesses. Despite a mixed attitude towards sharing business information, small business owners and managers showed a high level of interest in networking with other businesses, in particular with potential customers and suppliers. Most respondents do not belong to any professional or industrial organisation primarily because they were not aware of these organisations. Based on the literature review and the empirical research, the final conclusion that was made from this research is that Web community information portals can, to a great extent, promote the use of information resources for small businesses in South Africa. The results from this research give a better understanding and are useful guidelines to stakeholders in small business development in South Africa.
- Full Text:
Online community portals for small businesses
- Authors: Chen, Her-Jiang
- Date: 2014-02-11
- Subjects: Small business , Business enterprises - Computer networks. , Information technology
- Type: Thesis
- Identifier: uj:3794 , http://hdl.handle.net/10210/9168
- Description: M.A.(Information Science) , The first part of the study is a literature review which indicate that small, medium and micro enterprises (SMMEs) represent an important vehicle to address the challenges of job creation, economic growth and equity. Modern economy is driven by innovations and knowledge. Transforming information resources into knowledge and maximise the value of knowledge is the new challenge in achieving a sustainable competitive advantage. Information resources are needed by small businesses as much as their larger counter parts but small businesses are usually in a disadvantaged position in terms of finance and expertise. Information and communication technologies (ICTs) offer small businesses new opportunities in the information economy. Exciting ICT applications such as Web portals provide platforms for business communities to share information and communicate more efficiently than ever. Such information resources enable small businesses to react faster and adapt better to the changing global market. The stimulation of SMMEs must be seen as part of an integrated strategy to develop the society to a higher level. The research findings of this study provide all stakeholders in small business development in South Africa including government, industries and academics a better understanding and practical guideline for delivering information resources to small business owners and managers and the design of information portals that can address the information needs of small businesses in South Africa. The empirical components that follow the literature review comprised a questionnaire survey. The survey focused on non-franchised small businesses in the retail industry in the greater Johannesburg metropolitan. A total of 150 questionnaires completed by small business owners and managers were used for statistic analysis in this research. The questionnaire consisted of four sections: business biographic information, business information and agencies, information and communication technologies usage, and community and portal activities. The survey results revealed valuable insights and trends in the use of ICTs and attitudes towards information sharing amongst small business owners and managers. Textile, clothing, footwear and leather goods were the most popular trade for the small businesses use in the survey. Nearly all respondents prefer English for business communication and the businesses are typically owner manager with a small number of employees. . Infrastructure for ICTs is in place for small businesses, but the usage level is still basic. Short message service (SMS) and e-mail are the most commonly used leT tools. Traditional media such as television, radio, newspapers and magazines remain the most important source of information for these small business owners and managers. Younger businesses adapt better to ICTs than the older businesses. Despite a mixed attitude towards sharing business information, small business owners and managers showed a high level of interest in networking with other businesses, in particular with potential customers and suppliers. Most respondents do not belong to any professional or industrial organisation primarily because they were not aware of these organisations. Based on the literature review and the empirical research, the final conclusion that was made from this research is that Web community information portals can, to a great extent, promote the use of information resources for small businesses in South Africa. The results from this research give a better understanding and are useful guidelines to stakeholders in small business development in South Africa.
- Full Text:
- Authors: Chen, Her-Jiang
- Date: 2014-02-11
- Subjects: Small business , Business enterprises - Computer networks. , Information technology
- Type: Thesis
- Identifier: uj:3794 , http://hdl.handle.net/10210/9168
- Description: M.A.(Information Science) , The first part of the study is a literature review which indicate that small, medium and micro enterprises (SMMEs) represent an important vehicle to address the challenges of job creation, economic growth and equity. Modern economy is driven by innovations and knowledge. Transforming information resources into knowledge and maximise the value of knowledge is the new challenge in achieving a sustainable competitive advantage. Information resources are needed by small businesses as much as their larger counter parts but small businesses are usually in a disadvantaged position in terms of finance and expertise. Information and communication technologies (ICTs) offer small businesses new opportunities in the information economy. Exciting ICT applications such as Web portals provide platforms for business communities to share information and communicate more efficiently than ever. Such information resources enable small businesses to react faster and adapt better to the changing global market. The stimulation of SMMEs must be seen as part of an integrated strategy to develop the society to a higher level. The research findings of this study provide all stakeholders in small business development in South Africa including government, industries and academics a better understanding and practical guideline for delivering information resources to small business owners and managers and the design of information portals that can address the information needs of small businesses in South Africa. The empirical components that follow the literature review comprised a questionnaire survey. The survey focused on non-franchised small businesses in the retail industry in the greater Johannesburg metropolitan. A total of 150 questionnaires completed by small business owners and managers were used for statistic analysis in this research. The questionnaire consisted of four sections: business biographic information, business information and agencies, information and communication technologies usage, and community and portal activities. The survey results revealed valuable insights and trends in the use of ICTs and attitudes towards information sharing amongst small business owners and managers. Textile, clothing, footwear and leather goods were the most popular trade for the small businesses use in the survey. Nearly all respondents prefer English for business communication and the businesses are typically owner manager with a small number of employees. . Infrastructure for ICTs is in place for small businesses, but the usage level is still basic. Short message service (SMS) and e-mail are the most commonly used leT tools. Traditional media such as television, radio, newspapers and magazines remain the most important source of information for these small business owners and managers. Younger businesses adapt better to ICTs than the older businesses. Despite a mixed attitude towards sharing business information, small business owners and managers showed a high level of interest in networking with other businesses, in particular with potential customers and suppliers. Most respondents do not belong to any professional or industrial organisation primarily because they were not aware of these organisations. Based on the literature review and the empirical research, the final conclusion that was made from this research is that Web community information portals can, to a great extent, promote the use of information resources for small businesses in South Africa. The results from this research give a better understanding and are useful guidelines to stakeholders in small business development in South Africa.
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Towards sustainable development in small, micro and medium adventure tourism enterprises
- Authors: Chiliya, Norman
- Date: 2016
- Subjects: Sustainable tourism , Adventure travel , Small business
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/237567 , uj:24342
- Description: D.Phil. (Business Management) , Abstract: Sustainable development suggests that there are restrictions to the obtainability of ecological resources and the planet to engage human activities. Accordingly, sustainable development must bring about a process of transformation, in which utilisation of resources, the direction of investments, the direction of technological developments, and institutional change are all made compatible with future and current needs. Limited South African research exists in the field of sustainable development in adventure tourism SMMEs. Given the brief background on sustainability and the low levels of implementation in South Africa, this study sought to determine the level of impact of environmental, social, political and economic variables on the implementation of sustainable development in adventure tourism SMMEs in South Africa. The study also investigated whether the adoption of the concept of sustainable development by SMMEs would contribute to enhanced business performance in SMMEs in South Africa. The drivers of and barriers to implementation of the concept of sustainable development in adventure tourism SMMEs in South Africa were also identified. Based on secondary sources, a hypothetical model was constructed and then subjected to empirical testing. A structured questionnaire was administered via email and hard copies, and 105 usable responses were received. The validity of the measuring instrument was confirmed using confirmatory factor analysis, while Cronbach’s alpha coefficients confirmed the inter-item reliability of the identified variables. Structural equation modelling (SEM) confirmatory statistical techniques were used to analyse the model fit and to determine statistically significant relationships. Two methods were used to collect data: structured questionnaires were emailed to businesses that were deemed to be potential respondents, and self-administered questionnaires were physical distributed to respondents that were within reach of the researcher. The data collected from 105 usable questionnaires were subjected to statistical analysis. Using SPSS Version 22 and the Amos 22 software programme, structural equation modelling (SEM) was performed to analyse the data set. It was evident from the statistical analysis (the Cronbach’s alpha values, and confirmatory factor analysis) that the variables and items (statements) in the hypothetical model can be regarded as reliable and valid. A hypothetical...
- Full Text:
- Authors: Chiliya, Norman
- Date: 2016
- Subjects: Sustainable tourism , Adventure travel , Small business
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/237567 , uj:24342
- Description: D.Phil. (Business Management) , Abstract: Sustainable development suggests that there are restrictions to the obtainability of ecological resources and the planet to engage human activities. Accordingly, sustainable development must bring about a process of transformation, in which utilisation of resources, the direction of investments, the direction of technological developments, and institutional change are all made compatible with future and current needs. Limited South African research exists in the field of sustainable development in adventure tourism SMMEs. Given the brief background on sustainability and the low levels of implementation in South Africa, this study sought to determine the level of impact of environmental, social, political and economic variables on the implementation of sustainable development in adventure tourism SMMEs in South Africa. The study also investigated whether the adoption of the concept of sustainable development by SMMEs would contribute to enhanced business performance in SMMEs in South Africa. The drivers of and barriers to implementation of the concept of sustainable development in adventure tourism SMMEs in South Africa were also identified. Based on secondary sources, a hypothetical model was constructed and then subjected to empirical testing. A structured questionnaire was administered via email and hard copies, and 105 usable responses were received. The validity of the measuring instrument was confirmed using confirmatory factor analysis, while Cronbach’s alpha coefficients confirmed the inter-item reliability of the identified variables. Structural equation modelling (SEM) confirmatory statistical techniques were used to analyse the model fit and to determine statistically significant relationships. Two methods were used to collect data: structured questionnaires were emailed to businesses that were deemed to be potential respondents, and self-administered questionnaires were physical distributed to respondents that were within reach of the researcher. The data collected from 105 usable questionnaires were subjected to statistical analysis. Using SPSS Version 22 and the Amos 22 software programme, structural equation modelling (SEM) was performed to analyse the data set. It was evident from the statistical analysis (the Cronbach’s alpha values, and confirmatory factor analysis) that the variables and items (statements) in the hypothetical model can be regarded as reliable and valid. A hypothetical...
- Full Text:
The role of government in the implementation of sustainable development initiatives by adventure tourism SMMEs in South Africa : an exploratory inquiry
- Chiliya, Norman, Nieuwenhuizen, Cecile, Groenewald, Darelle
- Authors: Chiliya, Norman , Nieuwenhuizen, Cecile , Groenewald, Darelle
- Date: 2017
- Subjects: Sustainable development , Small business , Business performance
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/240462 , uj:24736 , Citation: Chiliya, N., Nieuwenhuizen, C. & Groenewald, D. 2017. The role of government in the implementation of sustainable development initiatives by adventure tourism SMMEs in South Africa : an exploratory inquiry.
- Description: Abstract: Sustainable development suggests that there are restrictions to the obtainability of ecological resources and the planet to engage human activities. Limited South African research exists in the field of sustainable development in adventure tourism SMMEs especially the role of Government in terms of implementation of sustainable development initiatives. A structured questionnaire was administered via email and hard copies. A total of 105 usable responses were received. Government, business associations and certification bodies have unrelated methods for evaluating sustainability issues. The tourism sector is overwhelmed with initiatives and certifications intended at facilitation and adoption of sustainable development practices. This adds to the confusion that entrepreneurs face when it comes to choosing an appropriate tool. There is consensus that entrepreneurs want to develop their sustainability knowledge base. It is recommended that the different institutions or actors in the arena of sustainable development should make information on sustainable development easily available. The SMMEs also indicated that the legislative framework affecting small businesses should be improved. The government, should award rebates to SMMEs for implementing sustainable development initiatives. Alternative funding for implementing sustainable development initiatives should also be established.
- Full Text:
- Authors: Chiliya, Norman , Nieuwenhuizen, Cecile , Groenewald, Darelle
- Date: 2017
- Subjects: Sustainable development , Small business , Business performance
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/240462 , uj:24736 , Citation: Chiliya, N., Nieuwenhuizen, C. & Groenewald, D. 2017. The role of government in the implementation of sustainable development initiatives by adventure tourism SMMEs in South Africa : an exploratory inquiry.
- Description: Abstract: Sustainable development suggests that there are restrictions to the obtainability of ecological resources and the planet to engage human activities. Limited South African research exists in the field of sustainable development in adventure tourism SMMEs especially the role of Government in terms of implementation of sustainable development initiatives. A structured questionnaire was administered via email and hard copies. A total of 105 usable responses were received. Government, business associations and certification bodies have unrelated methods for evaluating sustainability issues. The tourism sector is overwhelmed with initiatives and certifications intended at facilitation and adoption of sustainable development practices. This adds to the confusion that entrepreneurs face when it comes to choosing an appropriate tool. There is consensus that entrepreneurs want to develop their sustainability knowledge base. It is recommended that the different institutions or actors in the arena of sustainable development should make information on sustainable development easily available. The SMMEs also indicated that the legislative framework affecting small businesses should be improved. The government, should award rebates to SMMEs for implementing sustainable development initiatives. Alternative funding for implementing sustainable development initiatives should also be established.
- Full Text:
Entrepreneurship and subjectivity constitution in secondary school students in Mozambique
- Authors: Chissale, Adelino Leonardo
- Date: 2016
- Subjects: Entrepreneurship , Small business
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/82880 , uj:19020
- Description: Abstract: This thesis is an exploration of how secondary school students constitute themselves into future entrepreneurs through a vocationalised curriculum of general secondary education. It highlights the complex process of becoming an entrepreneur by investigating the conditions of possibility and the dynamics of such a process. It discusses subjectivities produced by both curriculum discourses on entrepreneurship and practical experiences in running small businesses in a family environment in order to understand the entrepreneurial identities that emerge from the process. It is based on a case study of a secondary school in Maputo (Mozambique) undertaken in 2013 with focus on grade 12 secondary school students, their respective associates (relatives or friends), and officials from the school and the Ministry of Education who were interviewed. Non-participant classroom observations provided information on the pedagogies used in teaching the subject of Notions of Entrepreneurship (NE). Documentary analysis provided an understanding of the content and assumptions underpinning the project of vocationalisation of general secondary education in Mozambique. The study adopted a constructionist perspective to grasp experiences in becoming an entrepreneur as a process of self-making and being made within a context through particular discourses and discursive practices on entrepreneurship. Important insights emerged from the study. First, while students go through similar experiences on schooling and in running small businesses they position themselves in different ways with regard to those experiences, and the choices they make in relation to their future are negotiated from the various possibilities offered by those experiences. Second, classroom pedagogies applied to the subject of NE seem to be detached from practical experiences in running small businesses. Consequently, while some students regard the subject as important for them to become entrepreneurs because it provides them with knowledge on how to start and run a business, there are also those who see nothing new in NE compared to what they know from practical experiences. This does not mean that these students devalue school knowledge but it does highlight the importance of integrating theory and practice in learning to become an entrepreneur. Third, future career paths are developed from practical experiences students have on what it means to be an entrepreneur and multiple identities emerging from those experiences seem to be driven by both labour market rationalities and the concern with others. These identities are subject to change and since students plan concomitant two career paths (running a small business and continuing with higher education) it appears that they may not be ready for the labour market upon completion of grade 12.... , D.Phil.
- Full Text:
- Authors: Chissale, Adelino Leonardo
- Date: 2016
- Subjects: Entrepreneurship , Small business
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/82880 , uj:19020
- Description: Abstract: This thesis is an exploration of how secondary school students constitute themselves into future entrepreneurs through a vocationalised curriculum of general secondary education. It highlights the complex process of becoming an entrepreneur by investigating the conditions of possibility and the dynamics of such a process. It discusses subjectivities produced by both curriculum discourses on entrepreneurship and practical experiences in running small businesses in a family environment in order to understand the entrepreneurial identities that emerge from the process. It is based on a case study of a secondary school in Maputo (Mozambique) undertaken in 2013 with focus on grade 12 secondary school students, their respective associates (relatives or friends), and officials from the school and the Ministry of Education who were interviewed. Non-participant classroom observations provided information on the pedagogies used in teaching the subject of Notions of Entrepreneurship (NE). Documentary analysis provided an understanding of the content and assumptions underpinning the project of vocationalisation of general secondary education in Mozambique. The study adopted a constructionist perspective to grasp experiences in becoming an entrepreneur as a process of self-making and being made within a context through particular discourses and discursive practices on entrepreneurship. Important insights emerged from the study. First, while students go through similar experiences on schooling and in running small businesses they position themselves in different ways with regard to those experiences, and the choices they make in relation to their future are negotiated from the various possibilities offered by those experiences. Second, classroom pedagogies applied to the subject of NE seem to be detached from practical experiences in running small businesses. Consequently, while some students regard the subject as important for them to become entrepreneurs because it provides them with knowledge on how to start and run a business, there are also those who see nothing new in NE compared to what they know from practical experiences. This does not mean that these students devalue school knowledge but it does highlight the importance of integrating theory and practice in learning to become an entrepreneur. Third, future career paths are developed from practical experiences students have on what it means to be an entrepreneur and multiple identities emerging from those experiences seem to be driven by both labour market rationalities and the concern with others. These identities are subject to change and since students plan concomitant two career paths (running a small business and continuing with higher education) it appears that they may not be ready for the labour market upon completion of grade 12.... , D.Phil.
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The correlation between market orientation and business performance in start-up SME's in the South African mining communication industry
- Authors: Davel, Gerrit Jacobus
- Date: 2009-03-31T09:36:42Z
- Subjects: Small business , Small business planning
- Type: Thesis
- Identifier: uj:8264 , http://hdl.handle.net/10210/2374
- Description: M.B.A. , Due to the high unemployment rate of twenty-five and a half percent in South Africa it is critical to create jobs. Economies throughout the world have benefited through the job creation resulting from successful small and medium enterprises (SME’s). What is also apparent is the high prevalent rate of failure in start-up of SME’s. It is therefore important to guide entrepreneurs that enter into business by starting a SME and to ensure sustainability and success with the new venture. In order to be sustainable and successful, research is in agreement that market orientation is a prerequisite for the business performance of a company in that the successful implementation of market orientation as a management philosophy will result in sustainable competitive advantage. A SME’s is successful if and when the company have realised business performance. This study has determined the relationship between market orientation and businesses performance in the Mining Communication Industry of South Africa. In addition the study contributed by proposing a measurement tool for business performance. Considerations of the findings in this study will benefit entrepreneurs within the start-up phase as well as aspirant entrepreneurs. The benefit of these finding will become obvious in that the risk of failure will be reduced through the implementation of market orientation and the aspects of the financial perspective. Subsequently the enormous potential of job creation through successful and sustainable SME’s can become a reality.
- Full Text:
- Authors: Davel, Gerrit Jacobus
- Date: 2009-03-31T09:36:42Z
- Subjects: Small business , Small business planning
- Type: Thesis
- Identifier: uj:8264 , http://hdl.handle.net/10210/2374
- Description: M.B.A. , Due to the high unemployment rate of twenty-five and a half percent in South Africa it is critical to create jobs. Economies throughout the world have benefited through the job creation resulting from successful small and medium enterprises (SME’s). What is also apparent is the high prevalent rate of failure in start-up of SME’s. It is therefore important to guide entrepreneurs that enter into business by starting a SME and to ensure sustainability and success with the new venture. In order to be sustainable and successful, research is in agreement that market orientation is a prerequisite for the business performance of a company in that the successful implementation of market orientation as a management philosophy will result in sustainable competitive advantage. A SME’s is successful if and when the company have realised business performance. This study has determined the relationship between market orientation and businesses performance in the Mining Communication Industry of South Africa. In addition the study contributed by proposing a measurement tool for business performance. Considerations of the findings in this study will benefit entrepreneurs within the start-up phase as well as aspirant entrepreneurs. The benefit of these finding will become obvious in that the risk of failure will be reduced through the implementation of market orientation and the aspects of the financial perspective. Subsequently the enormous potential of job creation through successful and sustainable SME’s can become a reality.
- Full Text:
Guest houses success: the experience of five small enterprises in a turbulent environment
- Authors: De Winter, Tina
- Date: 2010-11-09T06:17:53Z
- Subjects: Success in business , Boarding houses , Small business
- Type: Thesis
- Identifier: uj:6949 , http://hdl.handle.net/10210/3459
- Description: M.Comm. , The study was concerned with the problem of the long-term survival and success of SMEs in the tourism industry in a turbulent global operating environment, as well as in hostile conditions, such as unexpected changes, or disaster in the operating environments of the small businesses. The study was prompted by the high failure rate of SMEs worldwide and in SA. The tourism industry has a predominance of small business and was identified by SA as the industry of choice to support for the achievement of macroeconomic goals that include economic stability, poverty alleviation and employment creation. The overall objective of the study was to explore and examine factors located within the three operating environments (macro, industry and micro), that contribute to the survival and long-term success of tourism SMEs (five guest houses on the Dolphin Coast), operating in a turbulent global environment and hostile conditions such as disaster and unexpected events. The study explored and explained factors from four interrelated perspectives, namely a macro, meso, micro and chrono contexts; to examine the way in which the guest houses engaged with their environments; to determine the role of networks and clusters in the process; and to determine the impact of industry-specific and sector-specific factors on success. The study used an embedded case study methodology to assess five tourism SMEs, guest houses, located on the east coast of SA in a region known as the Dolphin Coast. The area was studied over a three year period from 2005 to 2007, a period of favourable economic and industry conditions globally and nationally (SA). Slowing economic conditions, severe coastal storms, rates increases and changes in the external environment provided conditions of turbulence and hostility in which to assess the responses of the guest houses, compared to activity and perceptions in the prior stable conditions. Porter’s (1980; 1990; 1996; 2000) theoretical frameworks, including the Diamond Model, the Five Forces Model and augmentations to these models were used to guide the research and interpretation of results. The study concluded that various sets of interlinked factors located in the macro, industry and internal (micro) operating environment of the firm, contributed to the success and constraints experienced by the guest houses. The presence of elements in the environments does not facilitate or ensure success, but success is dependent on the actions and choices of leaders and managers. These actions and choices are, in turn, guided by the values and culture present in the environment and are affected by human agency and efficacy.
- Full Text:
- Authors: De Winter, Tina
- Date: 2010-11-09T06:17:53Z
- Subjects: Success in business , Boarding houses , Small business
- Type: Thesis
- Identifier: uj:6949 , http://hdl.handle.net/10210/3459
- Description: M.Comm. , The study was concerned with the problem of the long-term survival and success of SMEs in the tourism industry in a turbulent global operating environment, as well as in hostile conditions, such as unexpected changes, or disaster in the operating environments of the small businesses. The study was prompted by the high failure rate of SMEs worldwide and in SA. The tourism industry has a predominance of small business and was identified by SA as the industry of choice to support for the achievement of macroeconomic goals that include economic stability, poverty alleviation and employment creation. The overall objective of the study was to explore and examine factors located within the three operating environments (macro, industry and micro), that contribute to the survival and long-term success of tourism SMEs (five guest houses on the Dolphin Coast), operating in a turbulent global environment and hostile conditions such as disaster and unexpected events. The study explored and explained factors from four interrelated perspectives, namely a macro, meso, micro and chrono contexts; to examine the way in which the guest houses engaged with their environments; to determine the role of networks and clusters in the process; and to determine the impact of industry-specific and sector-specific factors on success. The study used an embedded case study methodology to assess five tourism SMEs, guest houses, located on the east coast of SA in a region known as the Dolphin Coast. The area was studied over a three year period from 2005 to 2007, a period of favourable economic and industry conditions globally and nationally (SA). Slowing economic conditions, severe coastal storms, rates increases and changes in the external environment provided conditions of turbulence and hostility in which to assess the responses of the guest houses, compared to activity and perceptions in the prior stable conditions. Porter’s (1980; 1990; 1996; 2000) theoretical frameworks, including the Diamond Model, the Five Forces Model and augmentations to these models were used to guide the research and interpretation of results. The study concluded that various sets of interlinked factors located in the macro, industry and internal (micro) operating environment of the firm, contributed to the success and constraints experienced by the guest houses. The presence of elements in the environments does not facilitate or ensure success, but success is dependent on the actions and choices of leaders and managers. These actions and choices are, in turn, guided by the values and culture present in the environment and are affected by human agency and efficacy.
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The financing of small businesses in the greater Soweto area
- Authors: Dhlamini, Alfred Siphiwe
- Date: 2015-09-28
- Subjects: Small business
- Type: Thesis
- Identifier: uj:14193 , http://hdl.handle.net/10210/14636
- Description: M.Com. , Please refer to full text to view abstract
- Full Text:
- Authors: Dhlamini, Alfred Siphiwe
- Date: 2015-09-28
- Subjects: Small business
- Type: Thesis
- Identifier: uj:14193 , http://hdl.handle.net/10210/14636
- Description: M.Com. , Please refer to full text to view abstract
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The need for and development of differential reporting globally
- Authors: Greeff, Marlene E.
- Date: 2009-05-19T06:52:33Z
- Subjects: Financial statements , Financial statements standards , Small business
- Type: Thesis
- Identifier: uj:8389 , http://hdl.handle.net/10210/2554
- Description: M.Comm , The international financial reporting arena has undergone considerable changes in recent years. The recognition, measurement, presentation and disclosure requirements have increased significantly over the past two decades. Standard setters around the world have justified the more stringent reporting requirements on the grounds of the changes in the international business and economic landscapes as a result of globalisation. These increased financial reporting requirements placed a tremendous burden on Small and Medium-sized Entities (SMEs). As a result, the need for differential reporting has been identified. The notion of differential reporting acknowledges that the users of the financial statements of SMEs have different needs compared to those of public companies. Stakeholders and users of financial statements of SMEs are generally in a position to acquire information additional to that disclosed in the financial statements. Financial information presented in the financial statements is therefore not required to be exhaustive. The users of public company financial statements on the other hand, generally do not have access to any additional information, other than that presented in the financial statements. The information required to be presented in the financial statements, must therefore be extensive in order to allow the user to make informed decisions based on the information. Various countries around the world have responded to this cry for differential reporting, and standard setters have adopted differential reporting in one form or the other. This study discusses the need for differential reporting and outlines the developments of differential reporting internationally and in South Africa, by means of a literature review.
- Full Text:
- Authors: Greeff, Marlene E.
- Date: 2009-05-19T06:52:33Z
- Subjects: Financial statements , Financial statements standards , Small business
- Type: Thesis
- Identifier: uj:8389 , http://hdl.handle.net/10210/2554
- Description: M.Comm , The international financial reporting arena has undergone considerable changes in recent years. The recognition, measurement, presentation and disclosure requirements have increased significantly over the past two decades. Standard setters around the world have justified the more stringent reporting requirements on the grounds of the changes in the international business and economic landscapes as a result of globalisation. These increased financial reporting requirements placed a tremendous burden on Small and Medium-sized Entities (SMEs). As a result, the need for differential reporting has been identified. The notion of differential reporting acknowledges that the users of the financial statements of SMEs have different needs compared to those of public companies. Stakeholders and users of financial statements of SMEs are generally in a position to acquire information additional to that disclosed in the financial statements. Financial information presented in the financial statements is therefore not required to be exhaustive. The users of public company financial statements on the other hand, generally do not have access to any additional information, other than that presented in the financial statements. The information required to be presented in the financial statements, must therefore be extensive in order to allow the user to make informed decisions based on the information. Various countries around the world have responded to this cry for differential reporting, and standard setters have adopted differential reporting in one form or the other. This study discusses the need for differential reporting and outlines the developments of differential reporting internationally and in South Africa, by means of a literature review.
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The application of the theory of constraints in the small business sector
- Authors: Groenewald, Rupert Pierre
- Date: 2011-12-06
- Subjects: Small business , Theory of constraints (Management)
- Type: Mini-Dissertation
- Identifier: uj:1832 , http://hdl.handle.net/10210/4192
- Description: M.Comm. , A constraint is anything that limits a system's performance relative to its goal. The Theory of Constraints (TOC) is a systems-management philosophy developed by Eliyahu M. Goldratt since the early 1980's in a series of non-fiction books, articles and novels. The overall goal of this study is to understand the nature of the small business environment and the constraints it has to deal with. It is further part of this goal to determine if TOC could be made applicable in the small organisation. This goal is accomplished in the form of a literature study on the small business sector as well as on TOC. The method centres on gathering and analysing information from various literature sources. TOC's fundamental message is that constraints determine the performance of any system, and any system contains only a few constraints. Constraints may be found within or outside a company. A production bottleneck, which can limit the overall profitability of a manufacturing firm, is an example of an internal constraint. An external constraint could be a lack of customer orders. TOC suggests that the goal of for -profit firms is making money, and constraints must be effectively managed if this goal is to be achieved. This is then also the goal of most small businesses, i.e. to be profitable. They need to be profitable in order to survive. The survival and growth of the small business sector is critical to the social and economic development of South Africa. Small enterprises are an integral part of a healthy economy. They increase competitiveness, contribute a great deal to job-creation and can provide long-term jobs for millions. Small businesses faces however a wide range of constraints. These constraints should be addressed in order to sustain growth in the small business sector.
- Full Text:
- Authors: Groenewald, Rupert Pierre
- Date: 2011-12-06
- Subjects: Small business , Theory of constraints (Management)
- Type: Mini-Dissertation
- Identifier: uj:1832 , http://hdl.handle.net/10210/4192
- Description: M.Comm. , A constraint is anything that limits a system's performance relative to its goal. The Theory of Constraints (TOC) is a systems-management philosophy developed by Eliyahu M. Goldratt since the early 1980's in a series of non-fiction books, articles and novels. The overall goal of this study is to understand the nature of the small business environment and the constraints it has to deal with. It is further part of this goal to determine if TOC could be made applicable in the small organisation. This goal is accomplished in the form of a literature study on the small business sector as well as on TOC. The method centres on gathering and analysing information from various literature sources. TOC's fundamental message is that constraints determine the performance of any system, and any system contains only a few constraints. Constraints may be found within or outside a company. A production bottleneck, which can limit the overall profitability of a manufacturing firm, is an example of an internal constraint. An external constraint could be a lack of customer orders. TOC suggests that the goal of for -profit firms is making money, and constraints must be effectively managed if this goal is to be achieved. This is then also the goal of most small businesses, i.e. to be profitable. They need to be profitable in order to survive. The survival and growth of the small business sector is critical to the social and economic development of South Africa. Small enterprises are an integral part of a healthy economy. They increase competitiveness, contribute a great deal to job-creation and can provide long-term jobs for millions. Small businesses faces however a wide range of constraints. These constraints should be addressed in order to sustain growth in the small business sector.
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The impact of wage-setting institutions on the creation and long-term survival of small, medium and micro enterprises (SMMEs) in South Africa
- Authors: Hadebe, Siyabonga Patrick
- Date: 2011-10-11T07:58:45Z
- Subjects: Small business , Wages
- Type: Thesis
- Identifier: uj:7242 , http://hdl.handle.net/10210/3896
- Description: M.Comm. , The overall aim of this study was to investigate the impact of the wage-setting institutions, including bargaining councils and minimum wages, on the creation and long-term survival of small, medium and micro-enterprises (SMMEs) in South Africa. The objectives of the study focused on (i) gaining an understanding of how the legislative requirements impact on SMMEs; (ii) investigating what needs to be done to assist small companies in order to cope with the burden of compliance with the prescriptions and provisions of the law; (iii) demonstrating how the current wage setting mechanisms are partly responsible for the promotion of capital intensive firms at the expense of small- and medium sized entities; (iv) investigating how other countries approach the issue of exemption of small businesses from the stringent requirements of labour legislation; and (v) exploring the possibility for the establishment of a separate dispensation that may be utilised to govern the wage-setting environment for the SMME sector. The study commenced with the review of different literature sources. First, the importance of the SMME sector in wealth creation and the role of the government in developing SMMEs were dealt with. Existing constraints and problems, other than labour-related factors, facing the SMMEs were identified with the sole purpose of highlighting the general conditions under which they operate. The support offered by government and other stakeholders in developing SMMEs in South Africa were also discussed. Second, an overview of wage-setting institutions that shape the South African labour market, i.e. the National Economic Development and Labour Council (NEDLAC), bargaining councils and the Employment Conditions Commission (ECC) was provided.For the purposes of this study, two case studies (i.e. Sweden and Egypt) were chosen and a comparative analysis of these case studies focusing on the wage setting environment was performed, with the hope of drawing important lessons for South Africa. The cross-case analysis revealed that there are differences and similarities in the nature of wage-setting institutions that are found in Sweden, Egypt and South Africa.
- Full Text:
- Authors: Hadebe, Siyabonga Patrick
- Date: 2011-10-11T07:58:45Z
- Subjects: Small business , Wages
- Type: Thesis
- Identifier: uj:7242 , http://hdl.handle.net/10210/3896
- Description: M.Comm. , The overall aim of this study was to investigate the impact of the wage-setting institutions, including bargaining councils and minimum wages, on the creation and long-term survival of small, medium and micro-enterprises (SMMEs) in South Africa. The objectives of the study focused on (i) gaining an understanding of how the legislative requirements impact on SMMEs; (ii) investigating what needs to be done to assist small companies in order to cope with the burden of compliance with the prescriptions and provisions of the law; (iii) demonstrating how the current wage setting mechanisms are partly responsible for the promotion of capital intensive firms at the expense of small- and medium sized entities; (iv) investigating how other countries approach the issue of exemption of small businesses from the stringent requirements of labour legislation; and (v) exploring the possibility for the establishment of a separate dispensation that may be utilised to govern the wage-setting environment for the SMME sector. The study commenced with the review of different literature sources. First, the importance of the SMME sector in wealth creation and the role of the government in developing SMMEs were dealt with. Existing constraints and problems, other than labour-related factors, facing the SMMEs were identified with the sole purpose of highlighting the general conditions under which they operate. The support offered by government and other stakeholders in developing SMMEs in South Africa were also discussed. Second, an overview of wage-setting institutions that shape the South African labour market, i.e. the National Economic Development and Labour Council (NEDLAC), bargaining councils and the Employment Conditions Commission (ECC) was provided.For the purposes of this study, two case studies (i.e. Sweden and Egypt) were chosen and a comparative analysis of these case studies focusing on the wage setting environment was performed, with the hope of drawing important lessons for South Africa. The cross-case analysis revealed that there are differences and similarities in the nature of wage-setting institutions that are found in Sweden, Egypt and South Africa.
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Gender and age differences in conflict management within small businesses.
- Authors: Havenga, W.
- Date: 2008
- Subjects: Conflict handling styles , Interpersonal conflict , Age , Gender , Small business , Rahim organisational inventory , ROC-II instrument
- Type: Article
- Identifier: uj:5639 , http://hdl.handle.net/10210/2878
- Description: The objective of this exploratory study was to establish, through the application of the Rahim Organisational Inventory (ROC II) instrument, how the gender and age status of owners/managers of small businesses relate to the application of different conflict-handling styles. The sample of 68 participants was taken using a convenience sampling technique to ensure representation from the strata of the 102 small businesses. Analysis of variances was used to determine if differences exist in conflict-handling styles within the gender and age status groups. The results of the statistical analysis done revealed that slight to significant variances were found, which are discussed accordingly.
- Full Text:
- Authors: Havenga, W.
- Date: 2008
- Subjects: Conflict handling styles , Interpersonal conflict , Age , Gender , Small business , Rahim organisational inventory , ROC-II instrument
- Type: Article
- Identifier: uj:5639 , http://hdl.handle.net/10210/2878
- Description: The objective of this exploratory study was to establish, through the application of the Rahim Organisational Inventory (ROC II) instrument, how the gender and age status of owners/managers of small businesses relate to the application of different conflict-handling styles. The sample of 68 participants was taken using a convenience sampling technique to ensure representation from the strata of the 102 small businesses. Analysis of variances was used to determine if differences exist in conflict-handling styles within the gender and age status groups. The results of the statistical analysis done revealed that slight to significant variances were found, which are discussed accordingly.
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An investigation into the success factors amongst small businesses in Gauteng
- Keil, Maria Clara Mauricio Pereira
- Authors: Keil, Maria Clara Mauricio Pereira
- Date: 2009-03-31T09:19:53Z
- Subjects: Small business , Success in business , Gauteng (South Africa)
- Type: Thesis
- Identifier: uj:8230 , http://hdl.handle.net/10210/2342
- Description: M.B.A. , Gauteng, the smallest of the nine South African provinces, but the largest in terms of its contribution to national GDP (33.9%), generates 10% of Africa’s GDP (Gauteng Enterprise Propeller Overview, 2007) and is therefore a very important geo-economical zone. As South Africa latest unemployment rate is 25.5% (StatsSA, 2006), Government is geared towards promoting small businesses in an effort to grow the economy and reduce unemployment. It is therefore very important to the economy that small businesses succeed, grow and provide employment. Due to the fact that at present, very little research into the success factors amongst small businesses in South Africa has been conducted in South Africa, it seems appropriate at this time to investigate the success factors of small businesses in Gauteng. The problem statement in this research is that there is insufficient knowledge relating to the factors contributing to the failure or success of small businesses in South Africa, Gauteng. To conduct this research, a qualitative and exploratory approach was decided upon. A literature survey on the subject was conducted in order to ground the current research in existing theory and research. A questionnaire was sent out by e-mail to 3776 businesses in Gauteng, to which the response rate was 3.15% (119 questionnaires were returned). The questionnaire was divided into sections and covered the definition of success, entrepreneurial personality characteristics of owner/manager, use of management tools, resource availability and the classification of respondents and their businesses. Due to the small size of the sample this research is not able to conclusively achieve the primary research objective of identifying the success factors of small businesses in Gauteng, but it has nevertheless contributed to the body of research on the matter, since it established that there is a correlation between: • Entrepreneurial personality and the success of small businesses • The use of management tools and the success of small businesses • The availability of resources and the success of small businesses. In addition the following can be reported: • The owner/managers surveyed attributed their success to: - persistence and determination - experience - entrepreneurial personality - business knowledge - a great team - education • The existence and or use of the business plan and its relationship to success remains inconclusive • Financial resources do not feature prominently as a success factor, but business skills do seem to correlate with success. Further research is necessary to pinpoint conclusively which traits and behaviours are conducive to success, by comparing successful and unsuccessful business owners. Other recommendations that arose from this research were: • Research should be conducted into the assumption that economic growth is driven by the proliferation of small businesses • Research into the weight of internal factors ((personality, experience, attitude, knowledge) versus that of external factors (start-up capital, business plans, skill availability, economic and legal conditions) would contribute to the body of knowledge and could trigger a shift in approach.
- Full Text:
- Authors: Keil, Maria Clara Mauricio Pereira
- Date: 2009-03-31T09:19:53Z
- Subjects: Small business , Success in business , Gauteng (South Africa)
- Type: Thesis
- Identifier: uj:8230 , http://hdl.handle.net/10210/2342
- Description: M.B.A. , Gauteng, the smallest of the nine South African provinces, but the largest in terms of its contribution to national GDP (33.9%), generates 10% of Africa’s GDP (Gauteng Enterprise Propeller Overview, 2007) and is therefore a very important geo-economical zone. As South Africa latest unemployment rate is 25.5% (StatsSA, 2006), Government is geared towards promoting small businesses in an effort to grow the economy and reduce unemployment. It is therefore very important to the economy that small businesses succeed, grow and provide employment. Due to the fact that at present, very little research into the success factors amongst small businesses in South Africa has been conducted in South Africa, it seems appropriate at this time to investigate the success factors of small businesses in Gauteng. The problem statement in this research is that there is insufficient knowledge relating to the factors contributing to the failure or success of small businesses in South Africa, Gauteng. To conduct this research, a qualitative and exploratory approach was decided upon. A literature survey on the subject was conducted in order to ground the current research in existing theory and research. A questionnaire was sent out by e-mail to 3776 businesses in Gauteng, to which the response rate was 3.15% (119 questionnaires were returned). The questionnaire was divided into sections and covered the definition of success, entrepreneurial personality characteristics of owner/manager, use of management tools, resource availability and the classification of respondents and their businesses. Due to the small size of the sample this research is not able to conclusively achieve the primary research objective of identifying the success factors of small businesses in Gauteng, but it has nevertheless contributed to the body of research on the matter, since it established that there is a correlation between: • Entrepreneurial personality and the success of small businesses • The use of management tools and the success of small businesses • The availability of resources and the success of small businesses. In addition the following can be reported: • The owner/managers surveyed attributed their success to: - persistence and determination - experience - entrepreneurial personality - business knowledge - a great team - education • The existence and or use of the business plan and its relationship to success remains inconclusive • Financial resources do not feature prominently as a success factor, but business skills do seem to correlate with success. Further research is necessary to pinpoint conclusively which traits and behaviours are conducive to success, by comparing successful and unsuccessful business owners. Other recommendations that arose from this research were: • Research should be conducted into the assumption that economic growth is driven by the proliferation of small businesses • Research into the weight of internal factors ((personality, experience, attitude, knowledge) versus that of external factors (start-up capital, business plans, skill availability, economic and legal conditions) would contribute to the body of knowledge and could trigger a shift in approach.
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The use of consultants versus independent strategy formation for small and medium enterprises in Gauteng
- Authors: Kennedy, Corrinne
- Date: 2012-06-05
- Subjects: Strategic planning , Business consultants , Small enterprises , Small business , Medium enterprises
- Type: Mini-Dissertation
- Identifier: uj:2428 , http://hdl.handle.net/10210/4888
- Description: M.Comm. , Small and medium enterprises are recognised as key drivers of the South African economy. Up to 90 percent of formal businesses in South Africa are classified as small and medium sized enterprises. Therefore, the success of these enterprises is of significance to the South African economy. The formation of strategy is mostly associated with large corporate enterprises, which have the required resources in respect of finance, time and skills, to expend in forming and implementing strategies that are aimed at long term success. These resources are typically not easily accessible to small and medium enterprises, whose focus is mostly on the day to day operation (or even survival) of the enterprise. This qualitative study explores the views, experiences, knowledge and perceptions of 12 small and medium enterprise research participants in respect of important aspects relating to strategy. These aspects include the role-players in strategy formation, forecasting and planning practices, the type of competitive intelligence gathered, the use of consultants and the link between strategy and the performance of small and medium enterprises. These aspects are all considered, in order to obtain an understanding of the main theme of the study, which focuses on determining the extent to which small and medium enterprise use consultants for the formation of strategy. Consultants are viewed in both a positive and negative light by small and medium enterprises, yet somehow are never considered for the purpose of strategy formation.
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- Authors: Kennedy, Corrinne
- Date: 2012-06-05
- Subjects: Strategic planning , Business consultants , Small enterprises , Small business , Medium enterprises
- Type: Mini-Dissertation
- Identifier: uj:2428 , http://hdl.handle.net/10210/4888
- Description: M.Comm. , Small and medium enterprises are recognised as key drivers of the South African economy. Up to 90 percent of formal businesses in South Africa are classified as small and medium sized enterprises. Therefore, the success of these enterprises is of significance to the South African economy. The formation of strategy is mostly associated with large corporate enterprises, which have the required resources in respect of finance, time and skills, to expend in forming and implementing strategies that are aimed at long term success. These resources are typically not easily accessible to small and medium enterprises, whose focus is mostly on the day to day operation (or even survival) of the enterprise. This qualitative study explores the views, experiences, knowledge and perceptions of 12 small and medium enterprise research participants in respect of important aspects relating to strategy. These aspects include the role-players in strategy formation, forecasting and planning practices, the type of competitive intelligence gathered, the use of consultants and the link between strategy and the performance of small and medium enterprises. These aspects are all considered, in order to obtain an understanding of the main theme of the study, which focuses on determining the extent to which small and medium enterprise use consultants for the formation of strategy. Consultants are viewed in both a positive and negative light by small and medium enterprises, yet somehow are never considered for the purpose of strategy formation.
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The cooperatives model as an approach to SMME development in South Africa with specific reference to the information, communication and technology (ICT) sector
- Authors: Mabuza, David Charles
- Date: 2009-05-07T07:22:47Z
- Subjects: Small business , Information technology , Small business research in South Africa
- Type: Thesis
- Identifier: uj:8360 , http://hdl.handle.net/10210/2501
- Description: M.A. , Small enterprise development is considered a priority in most developing countries and, South Africa’s not an exception. The rationale for prioritising SMMEs is premised on their potential ability to contribute to the alleviation of the socio-economic challenges facing most developing countries such as unemployment, poverty and low levels of economic development. For South Africa, SMME development is seen as an appropriate strategy that could assist government in its endeavours of bridging the gap that exists between the two economies (first and second economy). To date, the government has utilised various business models to facilitate the entry and development of small enterprises in the mainstream economy. These models include amongst others a close corporation, cooperative and private company. Whilst all three models have been effectively applied across all sectors of the economy such as agriculture, retail services, manufacturing and others, the cooperatives approach/model has not been successfully exploited for the development of small enterprises within the Information Communication Technology (ICT) sector. Using international case studies, this study has been able to demonstrate the critical role that could be played by the cooperative model in facilitating an accelerated development of viable small enterprises within the Information and Communication Technology (ICT) sector in South Africa. Internationally, cooperatives have played a pivotal role in their contribution to economic development in both developed and developing countries. The model has the potential to promote economic growth at the community and regional level, building on the spirit of cooperation that is already prevalent in rural areas. In the ICT sector, the cooperatives approach has been applied as a model for the development of sustainable ICT small enterprises. In actual fact, the model has been instrumental in enhancing small enterprise development in countries such as Argentina, Poland, USA and Bolivia, just to mention a few. It therefore becomes critical for South Africa to consider lessons from these countries, so as to take advantage of the opportunities offered by the cooperative model. However, government needs to put in place appropriate ICT sector specific support structures that would assist people willing to start cooperative enterprises within the ICT sector. In the United States, government introduced a sector-specific bill to facilitate the establishment of the Rural Telephone Administration. The bill made it possible for long-term loans to be made to telephone cooperatives at low interest rates, thus accelerating the development and procurement of rural telephone systems. In Poland, government established a sector-specific Trust Fund referred to as “Balazs Social Trust Fund” solely to support the development of ICT cooperatives in rural areas. Thus, for South Africa to accelerate its pace of development it might need to adopt and customise this model. To ensure continuous monitoring and measurement of the impact of these interventions, government needs to put in place appropriate measurement tools.
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- Authors: Mabuza, David Charles
- Date: 2009-05-07T07:22:47Z
- Subjects: Small business , Information technology , Small business research in South Africa
- Type: Thesis
- Identifier: uj:8360 , http://hdl.handle.net/10210/2501
- Description: M.A. , Small enterprise development is considered a priority in most developing countries and, South Africa’s not an exception. The rationale for prioritising SMMEs is premised on their potential ability to contribute to the alleviation of the socio-economic challenges facing most developing countries such as unemployment, poverty and low levels of economic development. For South Africa, SMME development is seen as an appropriate strategy that could assist government in its endeavours of bridging the gap that exists between the two economies (first and second economy). To date, the government has utilised various business models to facilitate the entry and development of small enterprises in the mainstream economy. These models include amongst others a close corporation, cooperative and private company. Whilst all three models have been effectively applied across all sectors of the economy such as agriculture, retail services, manufacturing and others, the cooperatives approach/model has not been successfully exploited for the development of small enterprises within the Information Communication Technology (ICT) sector. Using international case studies, this study has been able to demonstrate the critical role that could be played by the cooperative model in facilitating an accelerated development of viable small enterprises within the Information and Communication Technology (ICT) sector in South Africa. Internationally, cooperatives have played a pivotal role in their contribution to economic development in both developed and developing countries. The model has the potential to promote economic growth at the community and regional level, building on the spirit of cooperation that is already prevalent in rural areas. In the ICT sector, the cooperatives approach has been applied as a model for the development of sustainable ICT small enterprises. In actual fact, the model has been instrumental in enhancing small enterprise development in countries such as Argentina, Poland, USA and Bolivia, just to mention a few. It therefore becomes critical for South Africa to consider lessons from these countries, so as to take advantage of the opportunities offered by the cooperative model. However, government needs to put in place appropriate ICT sector specific support structures that would assist people willing to start cooperative enterprises within the ICT sector. In the United States, government introduced a sector-specific bill to facilitate the establishment of the Rural Telephone Administration. The bill made it possible for long-term loans to be made to telephone cooperatives at low interest rates, thus accelerating the development and procurement of rural telephone systems. In Poland, government established a sector-specific Trust Fund referred to as “Balazs Social Trust Fund” solely to support the development of ICT cooperatives in rural areas. Thus, for South Africa to accelerate its pace of development it might need to adopt and customise this model. To ensure continuous monitoring and measurement of the impact of these interventions, government needs to put in place appropriate measurement tools.
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