Theses and dissertations (Accounting and Informatics)

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Administration practices affecting environmental compliance by small and medium-sized enterprises in the manufacturing sector
(2022-12-07) Maphumulo, Jabhisile Roxetta; Dongwe, Khethiwe; Nyide, Celani John
The significant role of Small and Medium-sized Enterprises (SMEs) and their contribution towards the growth and development of the countries’ economies are acknowledged globally. SMEs play a crucial role in transforming socioeconomic conditions and are driving the economy by availing employment opportunities and fuelling the demand for goods and services. However, regulations and legislations are the important constraints to SME growth in developing countries. One of the common causes that lead to the failure of some SMEs is that owners have limited awareness of the environmental legislations and lack managerial skills that will help with carrying out administrative practices required to comply with these legislations. The result of lack of awareness and poor entrepreneurship is shown by the high number of SMEs closing down annually in South Africa due to noncompliance. Therefore, the purpose of this study was to examine the administration practices adopted by SMEs in the manufacturing sector within Msunduzi Municipal boundary, and to establish how the environmental compliance can be enhanced by these entities. This study adopted a quantitative research approach using a 5 point Likert scale closed-ended questionnaire as a data collection instrument. The questionnaire was distributed to managers and administrative personnel of the participating SME in the manufacturing sector. Probability sampling method was adopted to narrow down the sample size to 215 respondents. The data collected from respondents was analysed using the Statistical Package for Social Sciences (SPSS) version 25.0 and Microsoft Excel. Results from data analysed show that there was a consensus that complying with environmental regulations is compulsory, therefore compliance is vital. Furthermore, the results indicate that among the administration practices for compliance identified, obtaining a licence to operate was paramount for the SMEs to operate legitimately. Respondents did not confirm if the compliance assessment reports were kept as a record for environmental compliance. The results indicate that employees were uncertain as to which environmental regulations they are complying with by completing the tasks assigned to them. Off concern, they were not in agreement that environmental compliance is prioritised within the respective SMEs.
Adoption of mobile cloud computing by small and medium-sized enterprises (SMEs) in rural areas
(2023-10) Cele, Noxolo Pretty; Govender, Mogiveny; Rajkoomar, Mogiveny
This study was conducted in the rural areas of KwaZulu-Natal (KZN) province of the Republic of South Africa. These rural areas includes uMbumbulu, Hlokozi, Eluphepheni, and KwaMakhutha. The main aim was to examine various factors that affect the adoption of Mobile Cloud Computing (MCC) by SMEs located in these areas. This study was motivated by benefits of MCC in various sectors around the world. This includes the provision of cloud-based services to users through the Internet and mobile devices. The current study is of the view that providing MCC to small and medium sized enterprises (SMEs) in rural areas can help them leverage cloud computing resources to improve their performance and delivery of services to customers. A quantitative research strategy was employed to obtain greater knowledge and understanding of the factors that affect the implementation of MCC by SMEs in the indicated rural areas, aiming to produce objective data that can be clearly communicated through statistics and numbers. The online survey was administered to owners, managers, employees and customers of these SMEs. The collected data was later analysed through Excel and the Statistical Package for the Social Sciences (SPSS) version 25. The results of this study reveal that, according to the customers’ point of view, SMEs in rural areas will be able to adopt MCC if there are adequate technological devices. The results suggest that relative advantage (RA), perceived security, perceived ease of use (PEU), and attitude are some of the factors that need to be considered for SMEs in rural areas to successfully adopt MCC. The findings also signal a strong correlation between perceived need, technological devices, compatibility, RA, complexity, trialability, and observability, when measured against MCC. In summary, the results indicate the importance of doing proper research before adopting cloud-based services in order to identify the need for MCC adoption. Significantly few respondents showed resistance or doubt regarding SMEs‘ adoption of MCC.
The alleviation of information poverty in a selected small-scale farming community in KwaZulu-Natal
(2023-04-12) Zondi, Nombuso Phamela; Moyane, Smangele Pretty; Nkomo, Ntando
Information is crucial to human development, yet crucial as it is, rural communities are experiencing information poverty. It is recognized that rural South Africans who survive on the main through farming are confronted by information poverty as a significant barrier to their development. Access to information has been identified as one of the most significant barriers confronting rural small-scale farmers. The problem of information poverty in rural small-scale farming communities is a critical issue that must be addressed if a country desires to develop. This study therefore examined the alleviation information poverty in a selected small-scale farming community in Kwazulu-Natal. The objectives of the study were to establish the information needs of the selected small-scale farmers, determine factors that influence information poverty for the selected small-scale farmers, ascertain whether the selected small-scale farmers are information poor in accordance with Chatman's (1996) information poverty theory and to determine the strategies employed and needed by the selected small-scale farmers to address information needs for the aim of alleviating information poverty.The study was guided by Elfreda Chatman's (1996) Theory of Information Poverty which views information poverty, as situations in which people are hesitant to disclose or seek for assistance for needed information because they feel isolated. An interpretive paradigm employing qualitative research in an exploratory research design was adopted. The population targeted was rural small-scale farmers of ward thirteen in Swayimane, KwaZulu-Natal. In the absence of a sampling frame, the study employed purposive and convenience sampling methods. Data yielded from three focus groups was analysed using thematic analysis. The study found that small-scale farmers’ information needs were chiefly crop soil requirements, market information, and guidance on livestock production and maintenance. Furthermore, adult education, ICTs, and library services were important needs for both young and older members of the community. The findings indicate that the information poverty faced by rural small-scale farmers is influenced by several factors. Among the factors were low family income brought by a lack of employment opportunities, rural small-scale farmers' isolation from essential services, a lack of government intervention, and small-scale farmers’ cultural beliefs deemed to be backward. The findings showed that rural small-scale farmers distrust information they receive from outsiders, which is consistent with Chatman's theory of Information Poverty that individuals who are information poor mistrust outsiders. The findings, however, contradict Chatman's claims that informationpoor people are averse to sharing their needs with outsiders. The study revealed that rural small-scale farmers rely heavily on agricultural advisors, seasoned farmers, radio, and word of mouth for information. With regards to the strategies needed by small-scale farmers to address information poverty, the study found that government intervention, easy access to the internet, and an increase in the number of agricultural advisors were crucial. The study recommends increasing the number of agricultural advisors to provide small-scale farmers with more immediate support; establishing a library facility to offer library services to fill information gaps; adding more agricultural programs on radio and television to cover a wide range of small- scale farmers informational needs; offering ABET programs to reduce illiteracy among rural small-scale farmers; development of commercial centers in rural farming communities to improve rural small-scale farmer access to markets; government intervention in educating rural small-scale farmers on modern agricultural practices and on methods of obtaining agricultural information.
Assessing the impact of environmental cost on the capital investment decision-making of the Electricity Supply Commission, South Africa
(2020-09) Oyewo,Toyese Titus; Olarewaju, Odunayo Magret; Cloete, Melanie Bernice
The availability of energy (electricity) is a key factor in economic growth and the sustainability of production processes. The need to quantitatively measure the environmental risk and hazard associated with energy sources for the environment is useful in evaluating capital investment for decision-making. Coal (fossil fuel) is the main source of energy in South Africa, based on its availability and cost-effectiveness. Specifically, quantitative research using mathematical marginal social cost modelling to evaluate the environmental cost of emissions emanating from the Electricity Supply Commission’s (ESKOM) coal power stations is employed. It was discovered that the price of electricity has trebled over the lifespan of coal power plants. Therefore, the need to construct coal power plants with optimum levels of production was highlighted. The net present value (NPV) technique was used to evaluate ESKOM's capital investment and the marginal social cost mathematical model was developed for measuring and quantifying the emission costs associated with the lifespan of the coal power plants. Results revealed that the optimum level production of 2,150,000 Gigawatts per annum within the range of the present capacity of ESKOM of 2,292,000 gigawatts annually is required and profitable to ESKOM. The net present value yielded a positive value of R1, 448,713,000,000-00 over a period of 30 years of coal power plants’ life-span. However, various technologies used to minimize emissions were also considered and investigated to confirm the feasibility and profitability of investment in coal- powered stations using environmental management accounting and marginal social cost approaches.
Determinants of participation of Msunduzi local municipality’s peri-urban households in the digital finance economy
(2024) Nyide, Nelisiwe Fortunate; Olarewaju, Odunayo Magret
Digital finance is an instrument that has the potential of improving access to finance to underprivileged groups such as peri-urban communities. Digital financial tools are capable of achieving traditional crisis management objectives with greater potency and accuracy than was historically possible. The financial services sector is in a process of accelerating change by adopting new business models based on convergent technological developments to increase customer participation in periurban areas. Therefore, the financial services sector can use digital finance to improve the availability of household financial services through diversified financial products, thus promoting the growth of household consumption. However, several studies maintain that determinants of digital finance participation of marginalised households, including peri-urban households, are generally underdetermined. Moreover, there is limited literature on the participation of South African households in the digital economy. Scholarly literature asserts that the level of participation of South Africans in digital finance is concerning. This is largely due to a lack of awareness and knowledge of digital financial services that are available to South African households. This study seeks to bridge that gap by examining the determinants of participation of peri-urban households in digital finance in the financial services sector in KwaZuluNatal, South Africa. A quantitative research approach was adopted to answer the research questions. This method was found to be suitable for this study given that the research objectives can be best measured using a structured survey that is quantitative in nature. The target population of this study consisted of peri-urban households located in the Greater Edendale area, which is the largest peri-urban area within the Msunduzi Local Municipality. The sample size for this study was 384 periurban households which were selected using purposive sampling, derived from nonprobability sampling. The questionnaires were in English and were also translated into isiZulu in order to make it easier for respondents to participate in this study. The Statistical Package for the Social Sciences (SPSS) was used to compile the descriptive statistics. The results of this study indicate that the general public in economically disadvantaged communities participates in digital financial transactions in the financial services sector on a regular basis. A Spearman correlation analysis found a substantial positive link between the usage of digital platforms by peri-urban families and their degree of participation in digital finance. This association was shown to be statistically significant (r = .649, n = 315, p < .001). However, the results of a Mann-Whitney U test showed that there was no statistically significant difference between genders with regard to involvement in digital finance (Z = -1.804, p = .071). A correlation analysis was undertaken to determine whether peri-urban households’ awareness of digital financial services influenced their adoption of digital platforms. The Spearman correlation analysis (r = .768, n = 315, p < .001) showed a strong and significant relationship between peri-urban households’ knowledge and awareness of digital financial services and their use of digital platforms. Additionally, a Spearman correlation analysis (r = -.524, n = 315, p < .001) revealed a significant negative association between peri-urban households’ adoption of digital financial platforms and their digital literacy. This is despite the fact that literature argues that in South Africa, the adoption of digital financial services is negatively affected by a lack of information and knowledge which is prevalent among marginalised communities.
Developing a frugal information system to support very small enterprise business transactions
(2017) Khubisa, Freedom Mthobisi; Olugbara, Oludayo O.
The research reported in this dissertation focuses on the development of a web-based frugal information system (frugal IS) which supports financial management of very small enterprises (VSEs), with a special focus on their business transactions. In most developing countries, VSEs have some significant contributions at various socioeconomic objectives, such as fostering entrepreneurship and improving growth of employment. They represent an income opportunity to retrenched and retired entrepreneurs which is recognised to be crucial to the livelihood of many poor local households and local citizens. In addition, these enterprises have a remarkable role to play in the areas of employment and poverty alleviation. Despite this, the majority of VSEs in developing countries, especially those in rural regions are faced with miscellaneous issues and challenges, which could be ascribed to their resource scarcity. In particular, most VSEs are resource-constrained in terms of knowledge and information resources, financial resources and human resources. What also exacerbates their situation is the fact that the majority of VSEs are still ingrained in their traditional ways of running the business and they are unready to adopt new and innovative working methods. In particular, VSEs are still accustomed to manual paper-based systems which are monotonous, error-prone, highly fragmented and severely inefficient. Unfortunately, all this gravely challenges the growth and development of VSEs. In this dissertation, a concept of frugal innovation, precisely frugal IS, is applied to distinctively address specific and unique business needs of VEs in developing countries. A methodology that is employed in this research is called design science research methodology (DSRM). The DSRM helped to address the problem of VSEs through design, construction, utilization and evaluation of a web-based frugal IS prototype system. A novel system life cycle model that favours the notion of frugality was employed for the design and development of a web-based frugal IS. The evaluation of the prototype system and its design revealed quite interesting results. The design of a web-based frugal IS prototype system was characterized with low complexity which promoted reusability, maintainability and reliability. The evaluation of usability indicated that the system was fairly simple to use, reliable and effective in terms of managing financial information of VSEs. Based on the general findings of this research, the design and development of a web-based frugal IS for VSEs in developing countries promises to assist VSE owners to assess their profitability, improve their financial management, promote sound economic decisions and help them to avoid business failure.
The development of a framework for the successful implementation of curriculum renewal : a case study of the office management and technology (OMT) programme
(2018) Moodley, Egashnee; Rajkoomar, Mogiveny
South Africa’s tertiary education institutions main goal is to train, educate, deliver high level professional and occupational skills, research and innovation required for development and economic growth for South Africa (Timm, Govender and Gonsalves 2016). To develop the manpower required for the advancement of South Africa’s economic development, tertiary institutions need to align their programme with the needs of social, economic and technology developments locally, nationally and globally. In an attempt to enhance the aligning needs of the industry and international education standards towards education, universities had started to accredit and renew their programme curricular. However, some researchers have identified that even though curriculum renewal of a programme had brought about some advantages for academics and students, there was many disadvantages as well (Bird et al. 2015: 19). Wormley (2004: 329) has identified that if there are many challenges, negative perceptions and lack of benefits because of a poorly planned framework for curriculum renewal of a programme. Ultimately it leads to the unsuccessful implementation of curriculum renewal. The aim of the study is to explore the curriculum renewal process amongst academics and students of the Office Management and Technology programme at Durban University of Technology to develop a framework for future successful implementation of the curriculum implementation process. As this case study will provide new insights into the perceptions and experiences of those most closely affected, that is the academic staff, the curriculum champion and students of the university involved in the curriculum renewal process, thereby assisting other departments or programmes embarking on a curriculum renewal process A qualitative methodology was employed for this study. Whereby semi-structured interviews were conducted with OMT academics, the OMT curriculum champion, representative from the Centre for Quality Promotion and Assurance (CQPA), and Academic Development Practioner (ADP) for the Faculty of Accounting and Informatics (FAI). Focus group discussion with OMT students was held to obtain the students’ perspectives on the curriculum renewal process of the OMT programme. The study revealed that the main barrier for academics implementing the curriculum renewal process and renewed curriculum lagged due to the lack of resources available to the department, lack of tutors for students, lack of student involvement in the advisory board for stakeholders, as well as lack of curriculum expert’s in department as the main factors that hinder the curriculum renewal process of a programme. On the other hand, the students revealed that the ‘’Blackboard, ThinkLearnZone’’ application notification system needs to be improved as most students do not own smartphones to access the internet. Moreover, students suggested that the academics should conduct more practical activities during the lecture period. Interestingly, students also suggested that lecturers begin to record lectures via the Podcast application which always them to download and learn. The recommendation highlights that students representatives from each level enrolled into the programme should form part of the advisory board for the curriculum renewal process and review, there should be a professional student body from the department, who must be given an equal opportunity to participate in the process discussion. Moreover, to resolve the lack of funds to purchase textbooks and resources, the researcher recommends that the OMT department should start using their own resources from the department and start creating revenue for the department.
Evaluation of factors affecting financial performance of non-life insurance businesses in South Africa
(2022-04-12) Abdulraheem-Saheed, Hassana; Olarewaju, Odunayo Magret
Profitability enhancement through financial analysis remains a crucial tool in accessing the performance of the insurance sector. In the developing countries such as South Africa, there is dearth of information on the impact of explanatory factors on the financial performance of nonlife insurance businesses. This study examined the influence of selected firm-specific, macroeconomic and underwriting profit variables on the financial performance of the South African non-life insurance firms. Here, we considered 36 listed non-life insurers with measurable markets over the period 2008 – 2019. The study employed return on asset (ROA) as a function of financial performance as the dependent variables. While the firm size, leverage ratio, premium growth rate, liquidity ratio and tangibility of assets constituted the investigated firm-specific variables, the macroeconomic (income level, inflation rate, GDP growth rate, market structure and trade openness), and underwriting profit (underwriting profit, total investment, shareholder’s fund and earning asset ratio) were studied as independent variables using panel data regression approach. The regression results revealed that except leverage and liquidity ratios, other firmspecific variables do not have statistically significant effect on the financial performance of south African non-life insurance firms. On the other hand, only GDP rate and shareholder’s fund are the exclusive macroeconomic and underwriting variables, respectively, with statistically significant impact on the financial performance of the non-life insurance firms of South Africa. These results, indeed, gainsay with economic theories. Thus, the leverage and liquidity ratios along with GDP rate and shareholder’s fund can be identified as determinants of the financial performance of the South African nonlife insurance sector. While providing some noteworthy insights on rational decisions regarding selection of non-life insurance firms’ stocks and strategies that would guide their operations, the data presented in this study will also be beneficial to regulatory authorities in formulating sound and effective policies to ensure economic growth and stability of the republic of South Africa.
Evaluation of operational efficiency and financial health of non-life insurance companies in South Africa
(2023) Ige-Gbadeyan, Omonike Ope; Swanepoel, Matthys Johannes
For some time, operational efficiency has been a great challenge confronting insurance companies; the pressure of low investment returns, pressure to change to the digital age to be relevant to modern technology, and lack of performance to standard and strategic vision are the primary challenges to future transformation efforts. This study examined the operational efficiency and financial health of nonlife insurance in South Africa. Since Operational efficiency is the primary medium to measure financial health, there is a need to identify and discuss the microeconomics and macroeconomics variables and understand the financial health of non-life insurance companies. A descriptive research design was adopted to achieve the objective of this study. In this study, panel data from 2008- 2019 was used. This panel data gives more informative data as it consists of both the cross-sectional information, which captures individual inconsistency, and the time-series information, which captures active modification. 2008 was chosen because insurance industries were distressed due to the 2008. This study used secondary data from S&P Capitall Q and Refinitiv Eikon, well-known databases with readily available data. They provide data reliability, in-depth financial information on companies, equities, fixed income, industry reports, SEC filings, interest rates, commodities, and screening for stocks and mutual funds. The study employed Profitability TLA as a function of financial health and other variables like the company's size, leverage ratio, premium growth rate, liquidity, inflation rate, and Gross domestic product (GDP) growth rate using a panel data regression approach. The result shows that of all the predictors, only LY and LV have a significant (positive) effect on the dependent variable financial health (TLA). The correlation analysis results show the relationships between some of the observed parameters. In particular, the result reveals that liquidity, size of the company, leverage, profit After Tax, operational efficiency, and Return on Asset all have a significant positive correlation with financial health. At the same time, Total Assets correlate negatively with TLA. The study contribute insight into the operational efficiency of non-life insurance companies and show profitability as an efficiency index. The study recommends improving premium growth. Insurance management should focus on reviewing their product prices since some common factors can affect insurance premiums, like gender, age, smoking status, lifestyle, occupation, and income, to improve the premium growth of non-life insurance companies, this study will also be helpful to monitoring authorities in articulating comprehensive and practical strategies to ensure financial development and steadiness of the non-life insurance In the Republic of South Africa.
Evaluation of quality administrative practices in three selected Technical and Vocational Education and Training colleges in KwaZulu-Natal
(2017-08) Mpanza, Nomzamo Monica; Green, Paul; Sentoo, Naresh Ramnarain
This dissertation evaluates the quality of administrative practices in three selected Technical and Vocational Education and Training (TVET) colleges in KwaZulu-Natal, situated in the Durban area. TVET Colleges, formerly known as Further Education and Training (FET) colleges in South Africa, have undergone numerous changes since 1994. The South African government has recognized the sharp increase in unemployment, particularly among the youth of the country. There is a dearth of trained employees possessing a certain skills set required in the South African vocational industry and the government has identified TVET colleges as the panacea to address this skills shortage. Student satisfaction is important in higher education as it influences effective learning. This study adopted a mixed methods approach involving a set of questionnaires administered to students. Semi-structured interviews were conducted with administrative clerks and administrative managers. A stratified sampling technique was used when collecting data from staff and a convenience sample was applied when collecting data from students. A SERVQUAL theoretical framework was employed in this study; this model explains the students’ perceptions and expectations in evaluation of administrative practices which have been used to measure service quality in an administrative service context. The result of the research indicated great importance for all TVET colleges to implement an appropriate set of processes for the administrative practices and to continuously review and refine the application system (COLTECH) being used to capture academic information for students, and the lack of support to the administrative clerks in dealing with all students’ enquiries expeditiously. Following an in-depth analysis of the results, this study recommends more consultation with students regarding administrative practices; flexibility in accessing academic information on time; a high level of communication in any enquiries; and proper monitoring of the application system (COLTECH). Administrative clerks should be authorised to rectify errors as soon as possible; continuous training; workshops and the COLTECH application system should be continuously upgraded.
Evolving a framework to observe and analyse customer experience on the Twitter platform using machine learning techniques
(2024) Moodley, Thaneshni; Thakur, Surendra
Retailers have become more focused on retaining and turning existing customers into longterm clients because retailers have become more competitive, customers more demanding, and competitors more aggressive. The 2020 COVID-19 pandemic has forced a transformation for retailers. Within months, a revolution has taken place, constituting major changes to how consumers view cash, how they shop online and what they expect from retailers as part of a positive buying experience. Consumers increasingly expect retailers to create a seamless customer experience. This often means leaning on digital capabilities to create a seamless, omni-channel experience by linking different aspects of the customer shopping experience. The usage of big data analytics has primarily been implemented outside of South Africa to better understand customer connections and experiences, highlighting a noticeable research gap in South Africa. It has been proven to be an effective tool for retailers in predicting customer behaviour. There is a need to reduce the complexities in understanding which are the most appropriate machine learning techniques for sentiment analysis of online customer experience and to capitalise on development. Thereafter, online retailers are better equipped to tailor machine learning tools to craft analytical tools. Given the massive migration to online transactions, this work presents a rigorous analysis of social media posts, which is paramount for modern-era retailers. Businesses can use sentiment analysis to determine how well their brand is performing in the marketplace, learn more about the attitudes of their customers and determine whether their items receive more positive or negative feedback. A longitudinal study was adopted to analyse a dataset of retail-related tweets for the identification of customer complaints using a sentiment analysis hybrid approach, which is a combination of lexicon and machine learning approaches. A conceptual framework was developed to observe and analyse customer experiences on the Twitter platform using machine learning techniques. The framework encompasses components such as data preparation, natural language processing pre-processing techniques, calculating sentiment using sentiment lexicon and ML techniques, and thereafter a selection of the best-performing machine learning technique for sentiment analysis within the developed conceptual framework. The extracted dataset contains 240 000 tweets posted between 01 January 2017 and 31 January 2019, out of which 27 233 tweets were selected for the study. Natural language pre-processing techniques were applied to the dataset, including tokenisation, stemming, lemmatisation, part-of-speech tagging, and name-of-entity recognition. Supervised and deep machine learning gave the best results of 61.75 and 60.25. This study has identified deep learning as a good technique for sentiment analysis when NLP pre-processing methods are done in a certain order. A study on analysing retail complaints posted on the Twitter platform using a sentiment analytic framework has not been done in South Africa before. This study has proven that the sentiment analysis hybrid approach is highly capable of analysing social media data.
Examining the impact of the ethnoscience teaching philosophy on academic performance in introductory computer programming
(2021-09-20) Sofowora, Mayowa A.; Eyono Obono, Seraphin Desire
The mastery of the core technologies of the Fourth Industrial Revolution (4IR) seems to require a set of skills that are reputed to be difficult to learn. This also includes general STEM (Science, Technology, Engineering and Mathematics) related know- how where computer programming is considered by many as the new linking glue of the 4IR despite its reputation of being difficult to learn and to master. 4IR is credited with a wide range of advantages, such as improved production, communication and participation, but it also comes with several disadvantages, such as the widening of the digital divide and higher levels of unemployment, especially for unskilled people. In fact, computer programming and other STEM related skills are crucial for the optimization of the benefits of the 4IR and for the minimization of its disadvantages. This is why this study is examining the impact of a different type of teaching approach known as the ethnoscience teaching approach, a STEM teaching philosophy, on students’ academic performance in introductory computer programming. A content analysis of existing literature on academic performance factors was first undertaken, both for introductory programming and for STEM subjects, in order to design an aggregated theoretically sound model of academic performance factors for these two fields. That model was then partially empirically tested by this study first within a totally culturally neutral teaching approach, then with a quasi- experiment whose experimental group was taught and tested with the use of the ethnoscientific teaching approach and philosophy while the control group stayed with the conventional culturally neutral teaching approach. The results of this study indicate that the ethnoscience teaching approach significantly improves students' academic performance in introductory computer programming compared to the conventional teaching approach. They also indicate that students’ prior language and computing subject choices affect their performance in conventional but not in culturally sensitive introductory computer programming. The participants of this study were selected from the introductory programming 2018 class of the IT Department of the Durban University of Technology. Should the findings of this study be confirmed with more programming concepts and with different samples, they will confirm the intrinsic value of culturally sensitive computing education.
An expanded tax model to improve tax compliance amongst micro-businesses
(2021-11-03) Mkhwanazi, Sipho S.; Jali, Lulu Fortunate; Ronald, R.
Taxation plays a significant role in any country’s economy, since countries depend on the tax revenues they collect to generate the resources they require to meet their expenditure needs. The contribution of micro-businesses in South Africa, both to society and to the economy, is such that they have the potential to reduce the high rates of unemployment, to reduce poverty and to help address inequality. However, these businesses are known to face challenges with regards to complying with their tax obligations. Therefore, in this study, the conceptual framework presented by Fischer’s Tax Compliance Model is explored and its limitations considered in order to find possible solutions to improve tax compliance amongst micro-businesses. The aim of this study was therefore to expand existing theoretical models to further understand tax compliance behavior amongst these micro-businesses. The study adopted a quantitative research approach and a questionnaire was randomly distributed to micro-businesses in the following areas of eThekwini: a suburban area (Durban North), a township area (Umlazi), a rural area (Umbumbulu) and the city centre of Durban. Of the selected sample of 392 micro businesses, only 242 micro-business owners completed the questionnaires despite an extension of time being granted. Three research assistants were employed to assist the researcher in the data collection. The analytic software (SPSS) Version 26.0 was used to analyze the data. Results include the presentation of biographical data of the respondents, along with factors selected for inclusion which would enable a deeper understanding to emerge of aspects needed to improve tax compliance amongst this group of taxpayers. The findings indicate that these business owners share many of the characteristics of other businesses in their tax compliance behavior, but also that there were specific additional factors which affected them as regards tax compliance particularly involving the three aspects selected as a focus by the researcher: registration for tax, keeping of accurate accounting records, and drawing up of financial statements. These findings enabled an expanded tax compliance model to be presented. The study therefore contributes to improving the understanding of tax compliance behavior amongst micro-businesses in eThekwini Municipality. It recommends that, in order to improve the level of tax compliance amongst this group, the South African Revenue Services (SARS) must find better ways of communicating with, and assisting, micro-business owners to register their businesses for tax and they must emphasize the importance of keeping accurate accounting records, along with the need to prepare accurate financial statements for their businesses.
An exploration of the differing administrative skills and trading practices of local and foreign micro businesses operating in the informal sector within eThekwini Municipality
(2022-09-13) Ntombela, Mnotho Slam; Skinner, Jane Phyllida; Ngibe, Musawenkosi
The informal sector in South Africa plays a significant role in alleviating current high levels of unemployment and it has become an economic alternative not only in eThekwini but in the whole of South Africa. The motivation for the study was thus to understand the informal trading practices employed by local and foreign informal traders and something of their impact on the community life and economy of eThekwini, focusing specifically on the administrative practices of different groups of traders, local and foreign. In reaching this aim a set of related issues were investigated in order to be in a position of fully understanding the current situation. This enabled the making of informed recommendations concerning the administrative, economic and educational support structures that could enabled better trading practices. There was a need to understand the requirements of informal traders, the nature of their business practices, and the regulatory context of this sector. The research involved a case study using a mixed methods approach. Questionnaires and follow-up interviews with both local and foreign traders and with their customers were used as the data collection instruments. The study explored the administrative skills and practices of both foreign and local informal traders trading in eThekwini; the experiences of foreigners as regards their reception by local traders; and the perceptions of end consumers concerning the goods and services offered by both groups. The administrative strengths and weaknesses in this business sector were identified. The findings indicated that there is a potential for the informal business sector to become a major role player in sustaining the livelihoods of many people – however, there are constraints that prevent informal businesses from prospering. These include: administrative weaknesses amongst the traders themselves, and local policies and bylaws which fail to provide sufficient support for trading, along with continued harassment by law enforcement officials, bribery demands, and confiscation of traders’ goods. The findings reveal that the location of any business is very important for maximizing the number of customers available and that re-locations by the authorities are often damaging in this respect. Despite some good experiences, the findings showed overall that traders do not have adequate shelters to prevent their goods from getting damaged, nor adequate security. The perceived greater success of foreigners was found to be a point of division and tension between the two groups. Differences in their business practices appeared to be a central issue at the heart of the divisions and therefore a factor in the persistence of xenophobia in the country. The findings indicated that foreign traders’ administrative practices are learned informally but that, as indicated in the literature, they are generally more effective than those of local traders. Unlike local traders, foreigners collaborate with each other, for instance buying in bulk from a specific foreign wholesaler, and uplifting each other by lending capital to start other businesses, trusting that the loans will be repaid once the new businesses prosper. The study also shows that informal trading has created a number of employment opportunities for local South Africans as well as foreigners, and that foreign traders provide services which are appreciated by their customers. It also reveals that most traders, both foreign and local, do not use formal accounting systems and that the business training currently offered by the municipality is not ideal. Foreign traders tend to learn from practical experience but often seek formal certification in South Africa that can allow them to operate freely within the law. The study therefore recommends that institutions of higher learning, local business owners, and the private sector partner with informal traders to provide intensive relevant training, directly designed for groups offering common services. Local traders should also be prepared to consider foreign practices where these have proved successful. The study also recommends that all stakeholders need to be part of committees drafting /amending Municipal traders’ bylaws, thus including informal traders themselves. A committee that includes informal traders, municipal officials, legal experts, ordinary citizens, and university representatives could be formed to deal decisively with the issues, policies or bylaws affecting both local and foreign informal traders.
Exploring quality administration management practices on customer retention and satisfaction : case study of small medium micro enterprises at eThekwini Metropolitan area
(2024) Mchunu, Nkosingiphile Trevor; Ngxongo, Nduduzo Andrias; Moyane, Smangele Pretty
Small Medium Micro Enterprises (SMMEs) play a significant role in many countries’ economic growth and development. However, customer retention and satisfaction remain critical challenges facing SMMEs. This study investigated the effectiveness of quality administration management practices in SMMEs located in the eThekwini Metropolitan Area. The objectives of the study were to examine how quality administration management practices impact customer retention and satisfaction in SMMEs located in the eThekwini Metropolitan area, to comprehend the influence of training and development of employees on quality management practices and customer retention and satisfaction in small and medium-sized enterprises (SMMEs), to recognise how internal and external factors impact quality management practices in SMMEs in the eThekwini Metropolitan area and, to determine the factors that contribute to and hinder customer retention and satisfaction in SMMEs in the eThekwini Metropolitan area and propose integrated, effective quality administration management practices to address these factors. The Quality Administration Management Theory (QAMT) was adopted as a theoretical framework in this study to assert the effective role of administration and management in achieving successful business quality management practices in SMMEs. QAMT’s focus was relevant to small and medium-sized enterprises (SMEs), which often face resource constraints and struggle to implement quality management practices effectively. Due to time constraints, the geographical scope of the study was limited to the eThekwini Metropolitan Area. Potential limitations included the possibility of response bias and a relatively small sample size. The research adopted a quantitative research approach and employed a survey questionnaire to collect data from customers of selected SMMEs. Data was analysed using descriptive statistics and inferential statistics, including t-tests, ANOVA, factor analysis, and regression analysis, through the Statistical Package for the Social Sciences (SPSS) software. The findings of the study indicated that hat continuous improvement with the quality administration management practice significantly influences the customer satisfaction and in return, it positively relates to customer retention. Secondly, the results revealed that the education levels significantly had increasing impact on customer retention perceptions. The study thereafter recommended for SMMEs in the eThekwini Metropolitan area to continue striving for improvement in quality management practices achievable by implementing strategies that cater for customers with different levels of education. Policy frameworks also need to be initiated to develop and promote customer customer retention.
Factors influencing tax compliance of small and medium-sized enterprises in the Durban area
(2022-04-10) Dlamini, Prisca Nondumiso; Jali, Lulu Fortunate; Mutanda, Mary
It is globally recognised that small and medium-sized enterprises (SMEs) play a significant role in improving a country’s economic growth and creating jobs. It is, therefore, in the public interest and in the interests of government to support SMEs. The South African government has recognised and focused on the improvement of SMEs as one of its strategic objectives. Regardless of the significance of SMEs for the country and region, there are numerous difficulties that SMEs face. Therefore, this study was conducted to evaluate factors that influence tax compliance of SMEs in the Durban area, located in KwaZulu-Natal, South Africa. The gravest and tedious difficulty is guaranteeing tax compliance. Taxation is an important source of funding for the government's construction programmes. For many tax authorities, tax compliance is a major concern, and persuading SMEs to comply with tax provisions, particularly as tax laws are often not precise, is a challenging task. South African Revenue Services (SARS) estimates a South African tax gap of R 300 billion per tax year, and also about 40% of local enterprises are not registered for tax purposes in South Africa. This study employed a quantitative research approach to obtain data from 146 SMEs operating in the Durban area. A total of 230 questionnaires were distributed to SMEs located in Clermont, Morningside, Umgeni, Durban Central and Phoenix, with 157 questionnaires returned. However, only 146 questionnaires were usable. The research outcome revealed that participants’ level of education impacts tax compliance, and there is a positive relationship between the tax compliance costs and tax compliance. Attention was drawn to the impact on non-compliance due to complex tax filing and high tax rates. Furthermore, the study indicated that the continuous granting of tax amnesties demotivates compliant taxpayers. The research recommended that the South African government consider reviewing the tax rates and compliance costs and reduce noncompliance by SMEs by improving tax awareness campaigns.
Factors influencing the adoption of management accounting practices (MAPs) by small and medium enterprises (SMEs) in the manufacturing sector in Durban
(2020-10) Msomi, Mbali Portia; Nyide, Celani John; Ngibe, Musawenkosi
Most countries recognise small and medium enterprises (SMEs) as a key element in strengthening the economy and in reducing the high unemployment rate that is currently prevailing globally and especially in South Africa. Although these enterprises contribute significantly towards the economy, they often fail to survive beyond their start-up phase due to a number of challenges affecting their business life-cycle. These challenges stem from both internal and external factors and, if not curbed during the initial phase of the enterprise, they may cause the business to fail prematurely. Common causes of failure include, but are not limited to, difficulties encountered in gaining access to start-up capital; a lack of entrepreneurship or business management skills; a lack of appropriate business education along with a lack of any culture of innovation or of networking skills amongst their owner/managers. Finally, there is frequently a failure to adopt management accounting practices (MAPs). It is with this last issue that this research is concerned. MAPs are techniques used to provide management with financial and non-financial information to facilitate the planning, controlling and decision making process of an organisation. These techniques are recognised to improve business performance and sustainability substantially, and the application of these techniques is often seen as determining the success or failure of an enterprise. However, there has been some concern around the adoption of MAPs amongst manufacturing SMEs, especially in the South African context. Hence, the aim of this study was to explore the critical factors influencing the adoption of MAPs by SMEs in the manufacturing sector in South Africa using a case study of businesses located in and around Durban. The aim was also to provide informative guidelines to promote the facilitation of MAP practices. A quantitative research approach was adopted involving non-probability, purposive sampling to ensure that the relevant participants were chosen. A sample consisting of 202 participants was considered appropriate for a population with over 1050 manufacturing SMEs registered in Durban (Department of Trade and Industry report 2016/17). A questionnaire was used to collect data from the participants in the study. A pilot test was conducted to ensure that the research instrument was adequately prepared. The data collected were analysed using the Statistical Package for the Social Sciences (SPSS) version 26.0, and the results were presented using graphs, tables and charts. The results of the study showed that both traditional and contemporary MAPs are regarded as relevant in this changing business environment. Manufacturing SMEs still see the significance of using traditional MAPs, although with the new industrial revolution taking over globally, more sophisticated new MAPs have been implemented by several manufacturing SMEs, and this has proved more effective in their gaining a competitive edge and demonstrating innovation and thus in achieving market success. The findings of this study are therefore in a position to contribute towards promoting the adoption of appropriate up-to-date MAPs that are more technically advanced to meet current management needs. The findings also revealed that the key internal factors identified by the respondents in this adoption process were: the owner’s business experience and skills, the firm’s structure, its size, and changes in the firm’s size. Amongst the external factors, the results of the study showed that competition, technology, market innovation, market success, and networking with other businesses, were regarded as the predominant factors influencing the adoption of MAPs by manufacturing SMEs in the Durban area. Although the study was able to identify these critical factors influencing the adoption of MAPs, the results were limited to those views expressed by the responding stakeholders from manufacturing SMEs located in the Durban area, and therefore can only be generalised with caution. The study recommends that both traditional and contemporary MAPs should be adopted upon the inception of a business, and that the relevant stakeholders should invest in educating themselves so that they can have a better understanding of the available MAPs, and their adoption and implementation within their business processes. The study further recommends that manufacturing SMEs identify and adopt the most appropriate MAPs to promote cost effective measures, optimise business performance and ensure sustainable growth. The effective adoption of MAPs would also be aided if stakeholders were to make more use of government supporting agencies allowing them to benefit from further financial assistance, mentorship and training of staff.
Factors that impact the capital budgeting planning and practices of small business enterprises within the eThekwini Springfield Industrial Park
(2020-09-30) Nunden, Naresh Roshan; Sentoo, Naresh
This study focused on the factors impacting the capital budgeting planning and practices of small business enterprises (SMEs) within the eThekwini-Springfield Industrial Park in Durban, KwaZulu-Natal, South Africa. SMEs contribute an integral part to the gross domestic product (GDP) of South Africa, as well as beyond its borders. Studies have recognised the huge contribution of SMEs to reducing unemployment and boosting the economy whilst the formal sector shrinks. However, studies have also emphasised the failure rate of SMEs. The complexity of South Africa's economy poses challenges to SMEs in terms of the adoption of Capital Budgeting Processes. Therefore, this study contributes to their capital budgeting planning and practices by focusing on firstly, staff participation and secondly, the influence of owners/managers. Based on a 108 SME sample, the study argued that the planning and practices of capital budgeting represent the most significant aid to the survival of these SMEs. However, minimal studies have investigated the capital budgeting area in SMEs. The study used a quantitative research design, whilst a survey questionnaire was the primary data collection instrument applied. A purposive sampling method was adopted. The Partial Least Squares (PLS) and Structural Equation Modelling 5.0 (SEM) software were utilised to determine the statistical results. The findings revealed that both staff participation and management skills, as well as financial skills, played a critical role in the factors that impact the capital budgeting planning and practices of small business enterprises (SMEs). Factors in relation to staff participation included the following: budget participation, communication, clarification of duties, stake and motivation in the process, as well as technical and computer literacy skills. The study also recognised the managers’/owners’ lack of business knowledge, financial skills, financial considerations, government incentives and networking abilities. The study ended by making recommendations for assisting the survival and growth of SMEs.
A framework for supporting technological innovation by manufacturing small and medium enterprises in KZN
(2024) Bingwa, Luyanda Loraine; Ngibe, Musawenkosi
Unemployment is an ongoing phenomenon in every country. It is rapidly increasing, which leads to a decline in the economy and other societal problems. This is particularly evident in developing countries such as South Africa, where the unemployment rate is 32.9%. The South African government has identified small and medium-sized enterprises (SMEs) as a key aspect of its strategy to reduce unemployment rates and to realise the vision outlined in the National Development Plan 2030. SMEs are major job creators and contribute significantly to the gross domestic product (GDP) of South Africa. They account for the majority of employment opportunities in the country, especially in sectors such as agriculture, manufacturing, and services. SMEs also support economic growth through their capacity for innovation and swift market adaptation. They are ideal for generating innovative ideas due to their pioneering role in adopting new technologies and are particularly adept at identifying gaps in the market which could be addressed through innovative solutions. There are ongoing debates about the uptake of technology by SMEs in African countries, including South Africa. Some scholars argue that manufacturing SMEs in South Africa have been hesitant to adopt modern technologies, which has hindered their growth and their ability to reach full potential. However, there are counterarguments that provide a more nuanced perspective on the challenges and opportunities for technology adoption among manufacturing SMEs in KwaZulu-Natal (KZN), South Africa. One significant issue is SME owners' inability to fully grasp the complexity of information and communications technology (ICT), which has a negative impact on their decision to adopt ICT. Furthermore, government regulations and compliance requirements have been a crucial factor affecting the viability and growth of manufacturing SMEs. Without a comprehensive understanding of ICT, SMEs find it challenging to make informed decisions about their investments in this field. Critically evaluating the use of Fourth Industrial Revolution (4IR) technologies as a way of improving success rates amongst manufacturing SMEs in KZN will enable the development of a framework which can provide practical guidance for the adoption of 4IR technologies by manufacturing SMEs in KZN. The objectives of this study are supported by a pragmatic methodology, which considerably expands the area of the investigation. 384 manufacturing SMEs in KZN are the target population for this study, and approaches for identification and selection of the sample size include convenience and purposive sampling. The study utilises both primary and secondary research. Interviews and questionnaires are utilised as data collection instruments. The review of literature and relevant theories such as the technology acceptance model (TAM), the technology-organisation-environment (TOE) framework, dynamic capability theory (DCT), the theory of planned behaviour (TPB), task-technology fit, process virtualisation, and the unified theory of acceptance and use of technology (UTAUT) assist in identifying and addressing potential barriers that may arise during the technology adoption process, such as cost, skills, resistance to change, and compatibility with existing systems. The primary results of this study demonstrate that digital competencies and thorough ICT knowledge are lacking in manufacturing SMEs in KZN. In addition, ICT adoption and usage in manufacturing SMEs in KZN is significantly low, which diminishes the potential of ICT as a long-term strategy. This is evident in the investigation of several factors relating to the acceptance and use of ICT by manufacturing SMEs as a longterm tool for business success. The findings of this study also suggest that manufacturing SMEs do not have the capacity to identify and implement appropriate and adequate ICTs as a sustainable strategy to improve their business viability. Based on the key findings, the study recommends that manufacturing SMEs prioritise digital literacy, which will enhance their comprehension of the potential benefits of ICT adoption. Consultation with IT professionals is recommended as a valuable means for SME owners to obtain reliable guidance and to discuss the complexities of ICT. The government should consider creating platforms to enable SMEs to express objections to regulations, contribute to amendments, and provide insight into the impact of legislation on their business.
Identifying and examining the nature and extent of external factors influencing growth and development of selected SMME's in Durban Kwa-Zulu Natal
(2015) Ngubane, Sisanda Michelle; De Beer, Marie
This study identified and examined the nature and extent of external factors influencing growth and development of selected SMMEs in Durban, KwaZulu-Natal. The importance of the research lies in the contribution of its findings and recommendations to ensure the survival of SMMEs. The target population was identified as 300 owners of SMMEs in Durban, KwaZulu Natal, with a sample of 169 selected on a convenience basis, to which a questionnaire was distributed. Regardless of the problems experienced by SMMEs, it is vital to stimulate their growth and development, as this sector is likely to be the job creators of the future South Africa, as well as the providers of a continuation level of employment opportunities (Antonie, 2010). The rate at which SMMEs spring up is encouraging, considering that one of the cardinal goals of establishing SMMEs, is the eradication of unemployment and poverty. It was found that, not all of the respondents understand the potential of SMMEs to gain a competitive advantage; however, the majority agreed that Durban is an accessible and convenient location to do business, and that Government should partner with SMMEs in job creation and poverty alleviation. In addition, more than 80 percent of the respondents believe SMMEs will thrive with more access to loans and financial support. More than half of the respondents indicated that they often need to bribe government officials in the process of obtaining a business license and/or registration, while the findings also show that, when the process is fair, open and transparent, respondents believe it facilitates SMME growth and development. Recommendations on how factors identified can be better managed, so as to support, rather than negate, SMMEs' quest for growth and development, include government facilitation of workshops, and more visible training.