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Faculty of Accounting and Informatics

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Subject: search.filters.subject.Economic development--South Africa

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    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.
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    Transformation of the commercial property sector for the realisation of its economic benefits : an exploratory study of key stakeholders' perspectives in South Africa
    (2021-10-29) Mpungose, Buyisiwe Poletty; Moyane, Smangele Pretty; Nkomo, Ntando
    Diverse sectors of the economy in democratic South Africa have transformed, however, the commercial property sector is still characterised as a domain of inequality. It is recognised that for generations, significant numbers of South Africans never experienced formal property ownership and its wealth creation benefits. This racially based inequality of the commercial property sector requires transformation. It is claimed that the South African commercial property sector is slow on transformation. The widely alluded justification for lack of transformation is that laws enacted before the democratic government were not transformative. Undoing the legacies of apartheid and colonialism requires profound societal transformation. It was thus critical to conduct a research with an aim to explore a study of key stakeholders’ perspectives in transformation of the commercial property sector for the realisation of its economic benefits in South Africa. The objectives of this study was to determine from stakeholders’ perspectives in the commercial property sector on whether there is transformation and identify factors that are affecting transformation of the commercial property sector from stakeholders’ perspectives and subsequently the realisation of commercial property sector’s economic benefits. The study adopted the transformation theory propagated by Jack Mezirow in 1978 as a conceptual framework underpinning the study. The transformation theory views democratic societal changes as being agentic, inclusive, open, seeking social justice and equity. A post-positivist research paradigm was adopted. The research adopted a qualitative approach and an exploratory research design. The population for the study was identified through purposive sampling and comprised of the Senior Executives from eight stakeholders in the commercial property sector: Property Sector Chartered Council, five South African commercial banks (Standard Bank, ABSA Bank, First National Bank, Nedbank and Capitec Bank), Department of National Public Works and Provincial Public Works. Snowball sampling was also adopted to obtain the perspectives of other stakeholders of the sector. A semi-structured telephonically interview schedule was used to collect data. Data was analysed through descriptive statistics and thematic content analysis. The study findings emanating from the literature and respondents suggested that policy frameworks need to be reviewed and enforced as the first point of departure. Secondly, lack of information must be resolved by introducing technology that has features of transparency, traceability, accessibility, and enhanced security. The third factor is the ownership of commercial property sector, its value chain and economic spin offs through an inclusive approach to ensure economic and societal balances. This takes a political slant and may be hard to debate. However, this research is timely, topical and addressed an important issue, which has both policy and practical implications for the future economic growth and development of the commercial property sector transformation.
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    An analysis of factors influencing the capital structure of small, medium and micro enterprises : a growth and survival perspective
    (2018-12) Zunckel, Sharon; Nyide, Celani
    In South Africa, there is a need for small, medium and micro enterprises (SMMEs) to become established and be sustainable. These organisations play a crucial role in the economy of South Africa, as well as across the globe. 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 emphasised in the same studies. The lack of finance has been identified as one of the contributing factors towards the discontinuance of small firms, hence, managing capital is an importance task for organisations. Managers need to understand the capital structure of the firm in order to make the best decisions regarding the finances of the firm. The growth of SMMEs is also crucial to all economies around the world. Despite many empirical studies on capital structure decisions in large firms, minimal studies have investigated the capital structure decisions in SMMEs. Therefore, this study is expected to shed more light on the capital structure of SMMEs and enlighten owners/managers on the importance thereof. The aim of this study was to identify the factors influencing the capital structure in terms of the survival and growth of SMMEs in KwaZulu-Natal. The study addressed the following primary questions: what factors influence the capital structure of small, medium and micro enterprises in Durban, KwaZulu-Natal? Furthermore, what is the influence of the capital structure on the survival and growth of small, medium and micro enterprises in Durban, KwaZulu-Natal? The study used a quantitative research design and was cross-sectional in nature. A survey questionnaire was the primary data collection tool utilised. The target population was 204 SMMEs from the retail and wholesale sectors. A convenience sampling method was adopted which resulted in a sample size of 136, with 103 responses received. The Partial Least Squares Structural Equation Modelling 5.0 software was utilised to determine the statistical results. The findings revealed that both managerial and firm-level factors influence the capital structure of SMMEs. Managerial factors included individual goals and financing preferences of the owner/manager, network ties, attitude to debt, asymmetric information and maintaining control; whilst the firm-level factors were size of the firm, profitability and firm age. The findings also revealed that personal savings was the most important financing choice at the initial phase of the firm, however once the firm was established, retained earnings was utilised more than any other source of finance. Retained earnings was also revealed to have a significant influence on the growth and survival of small, medium and micro enterprises