Faculty of Accounting and Informatics
Permanent URI for this communityhttp://ir-dev.dut.ac.za/handle/10321/1
Browse
8 results
Search Results
Item A framework for supporting technological innovation by manufacturing small and medium enterprises in KZN(2024) Bingwa, Luyanda Loraine; Ngibe, MusawenkosiUnemployment 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.Item Strategies employed for the sustainability of township tourism small medium and micro enterprises(2022-09-23) Mokoena, Sinenhlanhla Lerato; Moyane, Smangele Pretty; Nkomo, N.The Small, Micro, and Medium Enterprises (SMMEs) sector is perceived as an economic engine for many countries. SMMEs are viewed as the primary creators and drivers of new businesses in the South African economy. The township tourism SMMEs are critical to the upliftment of the rural and township economies, however, they remain marginalized, continue to struggle to be sustainable, and face a variety of challenges that have a negative impact on their contribution to economic growth. This study aimed to examine the strategies employed for the sustainability of township tourism SMMEs. The objectives were to identify SMMEs involved in tourism in the townships, establish factors influencing the sustainability of SMMEs in the township, and determine the competitive strategy for the sustainability of tourism SMMEs in the townships. To guide the present inquiry, Porter’s Five Force’s for Industry Analysis (1980) was employed. A positivist research paradigm was adopted, through a quantitative approach and a survey research design. The population targeted for this study were township tourism SMMEs operating in UMlazi Township in KwaZulu Natal. There being no reliab le available sampling frame, a non-probability sampling strategy was adopted. Within non-probability, snowball sampling was used. Through the sampling strategy, owners and/ or managers of township tourism SMMEs were purposively approached and they suggested other SMMEs to consider for inclusion. A questionnaire was used for gathering data. Data was analyzed using descriptive statistics, presented in tables, graphs, and percentages. The leading township tourism attractions in Umlazi were found to be in the lifestyle and entertainment category in particular food, beverage, and accommodation. In this regard, restaurants and BnBs dominated. Most SMMEs have been operating between 1-3 years and the majority were Micro enterprises. The number of registered and non-registered SMMEs was nearly equal, a larger number of SMMEs were located in fixed physical structures, with a smaller number offering mobile service/non-fixed services and/or operating online. A high number of businesses were located in residential areas, next to the taxi rank, and operated as sole proprietors and informal businesses.The most influential factors affecting the sustainability of township tourism SMMEs were the lack of funding, strong business competition, poor business location, lack of business skills, and high crime rate. It was revealed that only a few entrepreneurs applied a competitive strategy. Some of the used competitive strategies included registration of the businesses with the Department of Small Business Development, social media marketing, and bulk buying. The study recommends township tourism SMME diversification instead of the current focus which is food, beverage, and accommodation. SMMEs should consider operating their business remotely and/ or mobile non-fixed physical structures, as well as having a web presence and optimizing location to improve sustainability given that some of their sustainability are curtailed by their non-optimal location.Item Nexus of loan re-payment plans, interest on loans and the sustainability of small and medium enterprises in South Africa(Durban University of Technology, 2022) Msomi, Thabiso Sthembiso; Olarewaju, Odunayo MagretThis paper examined the influences of interest on loans and loan re-payment plans on the sustainability of small and medium enterprises (SMEs) in South Africa. A quantitative research design that adheres to the positivist paradigm was utilized for this study's methodology. The study targeted 103 SMEs operating in KwaZulu-Natal, South Africa using purposive sampling. A total of 103 surveys were administered, representing a participation rate of 100 percent. The analysis demonstrated a positive relationship between interest on loans and the SMEs’ sustainability and positive relationship between Loan re-payment plans and SMEs’ sustainability. The study recommended that financial institutions should examine loan re-payment plans for SMEs as necessary in order to minimize loan defaults by SMEs, and financial institutions should cut loan interest rates and the costs associated with loan approvals, which may be accomplished via automation and the utilization of online applications. Furthermore, the study suggested that financial institutions should design a flexible loan re-payment plan for SMEs that considers the nation's economic realities.Item Accounting skills and the sustainability of small and medium enterprises in South Africa(Universitatea Danubius Galati, 2021-04-01) Olarewaju, Odunayo Magret; Msomi, Thabiso SthembisoThe objective of this study is to examine the accounting skills and sustainability of small and medium-sized enterprises (SMEs). The quantitative research method was adopted for this study and the purposive sampling technique was chosen to select the participants for this study. The study collected primary data from respondents who are owners of SMEs in the retail, construction and manufacturing sectors, etc. Data was analysed using SPSS. A total of 310 research questionnaires were administered and 304 research questionnaires were returned for analysis (giving a 98% response rate). A regression analysis and Pearson’s correlation analysis were conducted. The outcome of Pearson’s correlation shows moderate correlation (r value is 0.531) between accounting skills and sustainable SMEs. There is also a significant effect of accounting skills on sustainability as revealed in p-value <0.0005. Thus, it was concluded that SME owners need more accounting training or bookkeeping awareness. This is because training will equip SME owners with the needed skills to ensure accurate recording of business transactions, which is beneficial when the need for financial assistance from banks or other financial institution arises.Item Interplay between capital structure choice and survival and growth of small, medium, and micro enterprises : a South African context(LLC CPC Business Perspectives, 2019-11-26) Nyide, Celani John; Zunckel, SharonIt is essential for small, medium, and micro enterprises (SMMEs) to become established, be sustainable and grow. These firms play a vital role in the economy of both developed and developing countries. Empirical studies have acknowledged the contribution of SMMEs to the economy, as well as to the gross domestic product. However, the failure rate of these firms has also been emphasized in the same studies. SMME survival is critical for economic growth, which is measured by increases in profits. Capital structure decisions are significant to the survival and growth of these entities. This study was conducted to examine the interplay between capital structure and SMMEs` survival and growth in a developing economy. A sample size of 103 SMMEs was chosen on a non-probability basis using convenience sampling within the eThekwini area, KwaZulu-Natal, South Africa. The statistical tool used for analysis in this study was the Partial Least Squares Structural Equation Modelling (PLS-SEM) 5.0 software. Capital structure was found to have a significant influence on the growth and survival of small, medium, and micro enterprises. The study concludes that utilizing retained earnings, personal savings, trade credit and funds from friends and family has a significant influence on the growth and survival of the firm. Debt and external equity financing, on the other hand, have an insignificant influence on the growth the firm.Item The effectiveness of using material flow cost accounting (MFCA) to identify non-product output costs(Business Perspectives, 2015) Doorasamy, Mishelle; Garbharran, Hari LallThis paper analyzes the effectiveness of adopting the Material Flow Cost Accounting (MFCA) approach to highlight non-product output costs and assist managers in their strategic decision making processes with regard to implementing cleaner production processes. This paper is based on a case study of a paper manufacturing company in KwaZulu-Natal which provides evidence that MFCA technique highlights the value of non-product output costs enabling managers to assess the financial and environmental benefits of adopting CP techniques and technologies. It had been concluded that the company should integrate MFCA with the current EMS system to ensure their future sustainability.Item Benchmarking : a strategy to improve environmental performance by using material flow cost accounting emprical study based on a paper manufacturing company(AJBM, 2015) Doorasamy, MishelleA growing number of organisations have incorporated environmental strategies as part of their corporate business strategies, hoping to improve their competitiveness.To ensure their future sustainability and competitiveness, management needs to consider adopting Cleaner Production (CP) techniques and technologies which will address waste issues at its source and ensure more efficient use of resources. However, management is not keen on this strategy as they perceive CP as a costly strategy that requires innovation with no financial benefits to the company. The aim of this paper is to benchmark the company’s environmental costs by comparing material balance indicators against technological standards and best-available technology. The results are based on a case study which focused on the boiler technology used in the steam generation process. It had been found that benchmarking enabled managers to evaluate and analyse how they can improve both their environmental and economic performance in the future and attain their sustainability targets.Item The perceptions of small businesses in the implementation of cash management techniques(International Foundation for Research & Development (IFRD), 2014-01) Mungal, Avika; Garbharran, Hari LallThe purpose of this paper is to ascertain the perceptions of small business owners on the implementation of cash management techniques in their businesses. This paper also highlights the importance of managing cash inflow and outflow in the business and examines the impact on business profitability and sustainability. The study focused on small businesses in the Tongaat area, South Africa. This research was quantitative, descriptive and cross-sectional in nature. The instrument used to extract the relevant data from respondents was a Likert type questionnaire. The findings of this research identified the perceptions of small business cash management techniques. A short course on cash management could be offered by the Durban University of Technology to small business owners and managers to enhance their basic cash management knowledge in the implementation of cash management techniques.