Theses and dissertations (Management Sciences)

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The influence of modern technology on emerging entrepreneurs in rural KwaZulu-Natal (KZN) province
(2023-10) Langry, Fiona; Rena, Ravinder
Information and communication technology (ICT) gives emerging entrepreneurs a greater opportunity to expand their companies, but many companies are unable to grow into engines of rural economic growth and job creation due to the difficulties associated with adopting and using ICTs. The purpose of this research is to describe the findings of an empirical study on the application of modern technology by emerging entrepreneurs in rural KwaZulu-Natal and its implications, both theoretical and practical, for the expansion of rural small and medium-sized enterprises (SMMEs). Many decision-makers are concerned about the concept of rural industrialization and the ways in which it might boost the economic growth of rural small, micro and medium-sized enterprises (SMMEs). The study also seeks to gain an understanding, knowledge, and awareness of how the application of modern technology could help in the development of robust rural industrialization, which would have a positive change in the economic climate of rural SMMEs. A quantitative analysis was undertaken for this study, and empirical data was collected from 384 participants in this study, all of whom were company managers or owners of small, micro and medium-sized enterprises (SMMEs) located in the KwaZulu-Natal Province. The statistical application, Statistical Package for the Social Sciences (SPSS) version 28.0 was used to conduct the analysis once the data had been inputted into the computer in accordance with the question codes that were pre determined. The findings of the study suggest that rural entrepreneurs encounter a diverse range of challenges that have a substantial impact on their operational effectiveness. The existence of these challenges presents significant barriers, hindering their ability to engage in innovative and creative endeavours, hence limiting their potential to make substantial contributions to the advancement of sustainable development. The findings identified that access to finance, lack of training and skilled employees and lack of ICT infrastructure were the primary catalysts that influenced modern technology adoption by emerging entrepreneurs in rural KwaZulu-Natal Province. As a result of this research, this paradigm will be enlightened, and new knowledge perspectives will be disclosed. It is conceivable for policymakers to encourage emerging entrepreneurs in rural areas to use ICT in their businesses, which will, in turn, inspire other entrepreneurs to look up to these adopters and follow them, ultimately contributing to an increase in the usage of ICT in rural communities
Factors influencing the growth of SMEs in Durban
(2023) Makasi, Farai Humbrosi; Mheta, Gift
The research study investigated the factors that affect the growth of Small and Medium Enterprises in the Durban Metropolitan Area. The global economic environment has been facing a plethora of challenges in recent times and nations are struggling to find ways of stimulating their economies. SMEs have been known to be great contributors to the development of economies through the provision of employment and increasing the Gross Domestic Product. However, inasmuch as SMEs are drivers of economic growth in various countries, there are diverse factors that influence the growth of SMEs, leading to stunted growth and sometimes closure of these businesses. The study focused on investigating the factors influencing the growth of SMEs in Durban. A mixed methods approach was adopted for conducting the study. Structured questionnaires were administered to 60 SME owners in Durban and there was a 100% response rate. In addition, 12 interviews with other owners of SMEs were conducted to gather in-depth information on the factors influencing the growth of SMEs. The convenience non-probability sampling technique was employed in coming up with the sample from the target population, which comprised both registered and unregistered SMEs. The researcher personally administered and collected the questionnaires from the business owners. Semi-structured interviews were also conducted by the researcher with SME owners. Quantitative data was then analysed using the Statistical Package for the Social Sciences (SPSS) version 24.0, whilst qualitative data was analysed using Nvivo 11. The study found that entrepreneurial skills, the availability of support and training for SME owners, managerial skills and the availability of capital are important factors that influence the growth of SMEs. In addition, the study found that government policies that favour the formation of SMEs are crucial for the growth of these businesses.
Foreign direct investments as a solution to South Africa’s economic growth
(2023-03) Muzuva, Meshel; Balkaran, Rishi; Rawjee, V. P.
Foreign Direct Investments (FDI) as a growth-enhancing component has received growing attention in the global economy and is considered a vital source of external financing for many developing economies. This study examines the impact of FDI on economic growth using a mixed research methodology. The study combines the Autoregressive Distributed Lag (ARDL) approach and interviews with experts in the field of international finance and macroeconomics. The ARDL approach was employed to estimate the long-run and short-run relationship between FDI and economic growth using annual time series data for the period 1980 to 2020. The results indicate that FDI has a positive and significant impact on economic growth in the long-run and shortrun. Furthermore, the study found that South Africa has not been able to fully exploit the potential benefits of FDI due to structural constraints such as poor infrastructure, insufficient skills and limited access to finance. This study, therefore, support the hypothesis that FDI has a significant impact on South Africa’s economic growth. Thus, policy makers can formulate policies that attracts more FDIs in the country to promote economic growth. The interviews with the experts in the field provide additional insights into the factors that influence FDI flows and their impact on economic growth. The experts highlighted that FDI has contributed significantly to the country's economic growth by creating job opportunities, promoting innovation and technological advancement, and enhancing competition in the domestic market. The findings suggest that to maximize the benefits of FDI, the government needs to create a favourable investment climate, reduce bureaucratic barriers, and address the skills gap in the workforce. Therefore, policymakers and stakeholders should take steps to promote a conducive environment for FDI to contribute positively to the country's economic growth. The study also sought to conduct an empirical investigation on the determinants of foreign direct investment in South Africa using ARDL. The results revealed the following variables that were significant determinants of FDI, government spending, market size and exchange rates. The findings from the interviews identified market size and growth, inflation, exchange rates, availability of natural resources, infrastructure, openness of the economy and availability of good infrastructure as specific determinants of FDI.This study concludes that increasing economic growth requires attention to be focused on to the fundamental determinants of foreign investments decisions and the underlying relevant microeconomic and macroeconomic outlooks. Furthermore, though there is a prime need to attract more foreign investors in South Africa, it is important to concede that attracting FDIs alone is not enough for sustainable economic growth and development. The policy makers should have holistic policies in place and undertake reforms with clear objectives and commitments.
The role of SMMEs in promoting local economic development : a case study of the Matatiele Local Municipality
(2023-06) Hoffman, Pholoho Glorius; Jugmohan, Sean; Kudakwashe, Shoniwa
South Africa continues to have issues with unemployment, poverty, inequality and slow economic growth. As the economy shifted to skills-based employment, one province significantly affected is the Eastern Cape, which faces slow economic growth. The government of this province made the decision to implement a national strategy to reduce unemployment and boost growth and development through small and medium and micro sized businesses (SMMEs). The Matatiele Local Municipality, located within this province, was selected as the study area. Small medium and micro enterprises and municipal stakeholders operating within the Matatiele Local Municipality were interviewed for this study. The methodology used to conduct this study was qualitative, in-depth interviews to gather data. Twelve participants made up the sample, which was drawn from the Matatiele Local municipality, SMMEs and Community members. The Endogenous Growth Theory, which maintains that internal rather than external forces predominantly affect economic growth, was used in this study. The study recommends that the municipality work in collaboration with the SMMEs and locals to revive business confidence. This advice could be carried out by making sure that all information pertaining to SMMEs is conveyed clearly and on time in order to prevent misunderstandings. The municipality also needs to ensure that the support it provides to SMMEs is enough to be sustainable. It is evident from the feedback from local business owners that the municipality needs to increase the budget for Local Economic Development (LED) in order to make sure that SMMEs reap the most benefits.
Factors influencing the adoption and implementation of customer relationship management strategies by small and medium enterprises in KwaZulu-Natal
(2020-11) Garatsa, Cletos; Dlamini, Bongani Innocent
Purpose The aim of this study is to identify and investigate the factors that influence the adoption and implementation of CRM strategies by SMEs in the province of Kwa-Zulu Natal in South Africa. Background Small to medium enterprises (SMEs) play an important role in the development of economies both in the developed and developing countries. SMEs face many obstacles in their path to survival and much has been discussed in terms of helping the small enterprises to survive and grow to fulfil their economic potential and derive the benefits that come with it. However, there is limited literature when it comes to the use of CRM as a tool for survival. This study suggested that CRM can also be used to help SMEs to grow and thrive. It was within this scope that this study examined the factors that influence the adoption of CRM by SMEs in KZN. The goal was to move away from the misconception that CRM is a technology but gravitate towards treating CRM as a holistic strategy that should diffuse within the whole organisation. Technology is thus viewed as an enabler of the CRM strategy. Organisational, environmental, technological and information culture factors should all be integrated and help the firm to make a well-informed decision when it comes to adopting CRM strategies. CRM adoption and implementation are not without their problems, but the promises are too good to ignore; and, indeed, the future prosperity of SMEs may lie in CRM adoption and implementation. Methodology The research used a quantitative research approach to evaluate the major factors affecting KwaZulu Natal SMEs in the process of adopting and implementing CRM programs. A questionnaire that was divided into owner-specific and organisational profile demographics and CRM factors was used as the survey instrument to collect the data. The statistical package, SPSS version 25 was utilised to analyse the accumulated data. Logistic regression and t-tests were used to assess validity and reliability Findings The study outcomes revealed that technological, environmental, organisational contexts and information culture factors play an important role in the adoption and implementation of CRM innovations by SMEs in KZN. The study identified education and technological factors like security and complexity as the major drivers of innovation adoption among the SMEs that were investigated. It must, however, be noted that successful adoption can only be realised when all the factors are combined. Recommendations The TOE can be used by managers and practitioners as a guideline for the adoption and implementation of CRM innovations. The outcomes of this study revealed that all the interrelations of the framework are very important when deciding to adopt and implement CRM projects. Adoption of CRM in an incremental manner is needed to allow integration between the innovation and the current needs and culture of the enterprise. Simple technology can be used in the adoption and effective implementation of CRM strategies. Future Research Future research can test the TOE framework on the wider KZN SME population including those not under incubation programmes. This study examined the whole SME sector. It would be interesting to examine one sector and also post adoption research studies can be undertaken. A study can also be commissioned to examine the success and failure of the adopted strategies.
Economic role of derivatives on bank lending, firm value and economic growth : evidence of South Africa
(2021-11) Chikwira, Collin
The South African financial system has had substantive growth in the derivative market from 1996 up to the present day. The instruments are growing at an astonishing rate, although the economic growth of South Africa was unstainable. It is growing at a slow rate that cannot be matched to the rate of derivatives growth. However, the causal analysis of derivatives markets and economic growth in developed market economies revealed that the variables tend to move together over time. What remains thorny to researchers is the question as to why such a relationship exists. Is it a pure coincidence, wealth effect, or is the derivative market a mirror or a leading indicator of the economy, or does the derivatives market drive the economy or reverse? The present study wishes to find out the answers to such questions regarding South Africa through examine the impact of derivatives on bank lending and firm's value and consequently economic growth. This study is predominantly quantitative, and it followed financial development-growth nexus studies to establish its methodology. The adoption of the methodology followed that derivatives are regarded as part of financial development instruments among stocks, bonds, bank loans, and other financial instruments. In terms of the estimation technique, the system generalised method of moments (GMM) was deemed appropriate due to its wellacknowledged ability to account for endogeneity prone with panel data set and growth-related models. This study revealed that derivatives, irrespective of type, positively influenced lending in the banking industry. Thus, the evidence shows that loan portfolios of banks that participate in derivative instruments increase. In addition, the analysis shows that derivatives permit banks to lend more to the private sector; there is a positive statistical relationship at 1 percent significance. Listed non-financial firms on the Johannesburg Stock Exchange use derivatives to manage foreign exchange, market, price, and interest rate risks during their operations. The results obtained suggested that the use of derivatives generates value for non-financial firms. There is a significant hedging premium for South African non-financial firms that use derivatives. Derivatives permit more significant extension of credit to the private and public sectors, which impacts the economic growth of South Africa; that is, if there is a 1% change in the loan portfolio growth, the real GDP of South Africa expanded by 1.52%, as estimated by the research findings. Also, derivatives allow non-financial firms to undertake capital investments, increasing the yearly South African real GDP by 1.15% if there is a 1% change in the firm value. It is observed that economic growth pinned its roots in the efficiency of the banking sector. Banks effectively provide funding through lending to the private sector to secure credit and interest rate risks with derivatives. Thus, it is availing liquidity in an economy that is essential for the firms to capitalise, finance capital projects, and invest in opportunities to derive economic activities. Thus, economic growth increases the production of quality goods and services through the private and public sectors. The research findings documented in this study supported policies to inspire the development of derivative markets as part of financial development. This can help deepen the financial sector in South Africa, which will help stimulate economic growth. Therefore, it is recommended that policymakers adopt strategies that reinforce the development of derivative markets in the country through fiscal or monetary interventions.
Exploring capacity development programmes for socio-economic transformation in South Africa : a case study of the South African petroleum industry
(2021-12) Kikasu, Tanzala Eustache; Dorasamy, Nirmala; Lekhanya, Lawrence Mpele
Capacity development programmes in the workplace, whether in the public or private sectors, play a strategic role through increasing the ability of people, organisations, and societies to cope with or adapt to challenging and adverse circumstances that affect the organisations or systems that societies depend upon. Capacity development programmes are an approach that addresses, in a continuous manner, specific issues at institutional/organisational, socio-economic, environmental, and infrastructural levels, with the aim of improving the delivery of adequate services; boosting organisational competitive advantages; improving productivity; and meeting sustainable development goals. In the workplace, capacity development is a significant socio-economic resource and a foremost key factor that can guarantee the development of employees’ skills, abilities, talents, performance, and value, as well as enabling organisational perspectives for improved innovation, efficiency, and sustainable growth. This study examined capacity development programmes as a tactical approach, suitable for tackling and bridging the gaps of technical skills shortages, skills waste and the deficit of positive human capital capacity affecting the South African society and petroleum industry respectively. The vision and mission statements of capacity development programmes are to continually equip, build and develop positive, creative, and innovative human capital capacity with functional, technical, and behavioural capacities to convey organisational and societal change through supporting people knowledge, skills, talents, capacities or abilities improvement and development in various spheres of socio-economic activities. The focus of this study was to describe the role that capacity development programmes could play in the petroleum industry for socio-economic transformation in South Africa, through the case study of the South African petroleum industry. It also examined the critical factors affecting the best practice of policies, programmes and strategic plans that support structures of human capital capacity development in the workplace and the challenges obstructing the effective best practice of capacity development programmes on job-related skills development of employees in the South i African petroleum industry. Therefore, the triangulation methods assisted the researcher with using more than one approach as sources of data collection and analysis process and by approaching data with various theories or perspectives in mind to extend the possibilities of bridging the gaps of technical skills shortage, skills waste and the deficit of positive human capital capacity affecting the South African petroleum industry. This method was useful in producing knowledge from diverse viewpoints upon matters that were discussed in this study. The triangulation methods facilitated the researcher in terms of gathering and converging quantitative and qualitative data from petroleum companies that are members of the South African Petroleum Industry Association (SAPIA). Therefore, the quantitative survey combined with qualitative in-depth interviews provided a better understanding of the information obtained. In this study, the PESTIE framework was applied in line with the aim and objectives defined for this research. However, only the political, economic, and social variables were examined to identify the challenges and effects of capacity development programmes in the process of developing technical skills, controlling/minimising skills waste and developing positive human capital capacity in the South African petroleum industry. Accordingly, findings indicated that (87.6%) challenges affecting the petroleum industry development and socio-economic transformation in South Africa are mostly caused by the lack of policies, programmes, and strategic plans best practice to bridging the gaps of technical skills shortages, skills waste, and the deficit of positive human capital capacity in the workplace. In addition, respondents (77.6%) affirmed that policies improvement and best practice could be a vital key in promoting scarce skills development in the South African petroleum industry. Furthermore, respondents (78.6%) agreed that awareness campaigns about capacity development programmes best practice in the South African petroleum industry could fuel the engine of technical, functional, and behavioural capacities development, and put in place a locomotive of organisational improved competitive advantages (innovation, productivity, and performance improvement) and socio-economic transformation. Moreover, respondents (73.7%) agreed that an improved/developed model of capacity development programmes in the workplace could be a sine qua non condition for scarce skills (technical skills) development and retention in the South African petroleum industry. Therefore, the CDP-PUSH-Effects model that comprises the Big Push and Push-Pull strategies associated with reactive, proactive, and active approaches was suggested as an indispensable tool, useful in tackling the critical matters of technical skills shortages, skills waste and the deficit of positive human capital capacity affecting the South African petroleum industry and society. Accordingly, more awareness, resources and efforts from role-key players (policy-makers, decision-makers and stakeholders) would be required towards supporting the scarce skills development process and strengthening employees’ ability to deliver quality services as well as deal with unpredicted adverse events that could prevent the petroleum industry’s development and socio-economic transformation processes in the country.
Factors influencing small and medium enterprises’ innovation strategies in Durban
(2021-11) Makuwe, Kudzai Nigel; Lekhanya, Lawrence Mpele
It is evident and generally agreed by scholars around the world that Small and Medium Enterprises (SMEs) are the backbone of any thriving economy. For the SME sector to fully support the economic activities of a country it needs to be absorbed in innovation activities that deliver products and services valued by customers. Studies have been conducted globally confirming a positive relationship between SMEs and their characteristic innovative nature. However, paucity still exists in the local context of South Africa, especially in Durban, on what influences SME innovation strategies. It was thus the aim of the current study to identify factors that influence SME innovation strategies in Durban. In addition, the study recognised the impact of Corona Virus 2019 (Covid-19) on SME innovation, while also delving into post Covid-19 innovation strategies by SMEs. The study made use of a quantitative research design and a structured questionnaire was distributed to respondents. The sample size of the study was 248 SME owners/ managers in Durban. With the closure of certain businesses, the impact of covid-19 forced a shift from probability to non-probability sampling, as well as changes to the data collection planned initially for the study. Therefore, the researcher had to resort to targeting SMEs in Durban that were allowed to operate. With the aid of a research assistant the questionnaire was distributed to and collected from respondents. Collected data was analysed using the Statistical Package for Social Sciences (SPSS) version 25.0 for Windows. The results emanating from the study were then presented in the form of bar graphs, pie charts and cross tabulations. The main findings of the research revealed that the majority of SMEs in Durban surveyed invest in technology equipment. Furthermore, the results showed agreement by a majority of the SMEs that the size of a firm influences innovation strategies. In addition, the majority of SME owners strongly agreed that the global pandemic, Covid-19, has significantly changed consumer buying patterns. The research project additionally highlighted some of the most critical factors that influence SME innovation strategies in Durban. Policy makers, academics and SME stakeholders will find the study informative.

Theses and dissertations (Management Sciences)

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