Faculty of Management Sciences
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Item The role of integrated promotional strategies in aiding the success of SMMEs in the retail sector in Durban(2024-03-05) Mahohoma, N.; Agbenyegah, A. T.The success of Small, Medium and Micro Enterprises (SMMEs) in Durban's retail sector is crucial for both the local economic vitality and community engagement. Despite this importance, these enterprises often struggle with maintaining visibility and competitiveness. However, there is a solution in the form of integrated promotional strategies, which bring together different marketing channels to deliver a coherent message to the target audience. To further understand the impact of these strategies, this study aims to delve into their role in the success of retail SMMEs in Durban. 217 owner-managers of retail SMMEs in Durban provided data using self-administered questionnaires with a 5-point Likert scale, resulting in 88% response rate. Analysing the data using a variety of descriptive and inferential methods, we utilised the statistical software SPSS Version 29. The results displayed an overall agreement among respondents regarding the effectiveness of integrated promotional strategies such as sales promotion, branding, digital marketing, and social media. However, respondents had divided opinions on the effectiveness of public relations, email communication, and telemarketing. In conclusion, it was evident that integrated promotional strategies play a crucial role in the success of retail small and medium enterprises (SMMEs) in Durban by boosting visibility, strengthening brand recognition, and fostering customer engagement. Through the implementation of personalised and cohesive promotional strategies, SMMEs can better navigate the competitive market and ultimately attain long-term growth and success.Item Navigating the digital divide : exploring the multifaceted 4IR challenges and technological disparities encountered by SMMEs within KwaZulu-Natal, South Africa(Private Company Technology Center, 2023) Sheik, IsmailThe dawn of the Fourth Industrial Revolution (4IR) has been a harbinger of unparalleled technological innovations, reshaping industries and economies at an unprecedented pace. While these advancements promise a new frontier of opportunities, they also bring forth a myriad of challenges, particularly for Small, Micro, and Medium-Sized Enterprises (SMMEs). This research delves deep into the multifaceted challenges and technological disparities encountered by SMMEs in the wake of 4IR, with a concentrated lens on the enterprises operating within the KwaZulu-Natal region of South Africa. At the heart of this exploration is the pronounced digital divide, which exacerbates the gulf between well-resourced corporations and SMMEs. The divide is not just technological but extends to areas like access to finance, digital literacy, infrastructure, and the agility to adapt to rapidly changing business environments. As these SMMEs grapple with the challenges of integrating into the digital economy, they face hurdles such as limited access to advanced technological tools, cybersecurity threats, the high cost of digital transformation, and a dearth of skilled manpower to navigate the complexities of 4IR. Furthermore, the research sheds light on the systemic and infrastructural challenges in the KwaZulu-Natal region, which further compound the difficulties faced by local SMMEs. From inconsistent internet access and electricity issues to the lack of tailored training programs and financial schemes, these enterprises find themselves in a precarious position, trying to bridge the chasm between traditional business models and the demands of the digital age. By offering an in-depth analysis of these challenges, this study seeks to provide a comprehensive understanding of the obstacles that SMMEs face in the current 4IR-driven economic climate. It emphasizes the need for a multi-stakeholder approach, involving governments, industry leaders, educational institutions, and financial institutions, to collaboratively develop strategies, policies, and interventions that can empower SMMEs. Through targeted support, capacity-building initiatives, and fostering an ecosystem of innovation, there's potential to not only narrow the digital divide but to position these enterprises as key players in South Africa's 4IR journey. This research, thus, serves as both a clarion call and a foundational blueprint for ensuring that no enterprise, regardless of its size, is left behind in this transformative era.Item Service quality at Durban University of Technology, Centre for Social Entrepreneurship Rapid Incubator(2023-06) Nyamurima, Solomon; Ramchander, ManduthBusiness incubators have emerged as crucial mechanisms for fostering entrepreneurship and propelling global economic growth. These programmes provide aspiring entrepreneurs with essential resources, mentoring, and support services in order to facilitate the creation and launch of successful businesses. As a consequence, business incubators have become essential components of government agencies, particularly those with a primary focus on entrepreneurship. The study aims to assess the quality of service provided by the Durban University of Technology Centre for Social Entrepreneurship Rapid Incubator (DUT CSERI). The SERVQUAL questionnaire was used to assess the expectations and perceptions of SMMEs in relation to five quality dimensions. Non-probability sampling and convenience sampling were utilised to select 330 SMMEs affiliated with the DUT CSERI. Inferential and descriptive statistical analyses were utilised to assess the quality provided by the DUT CSERI. This study revealed that the DUT CSERI provides SMMEs with exceptional service quality. This is evidenced by the fact that SMME’s perceptions of service quality exceeded their expectations. However, there is room for continuous improvement, as five out of twenty-two service quality gaps were successfully identified. It is recommended that CSERI improve its tangibility and reliability service quality dimensionsItem Sustainable entrepreneurship strategies for SMME development in the fourth industrial revolution within KwaZulu-Natal, South Africa(Private Company Technology Center, 2022) Sheik, Ismail; Kader, AbdullaThe emergence of the fourth industrial revolution (4IR) poses the risk of bringing about a new wave of disparities due to changed employment patterns and a global economic environment that is experiencing rapid transformation. Automation and so-called «thinking machines» are displacing humans in a variety of professions and functions, which in turn is causing businesses to reevaluate the competencies they seek in prospective workers. The main goal of sustainable economic participation in the 4IR is to harness the localized economic potential by promoting innovation to all its growth aspects. This is accomplished via a unified approach to development rather than a «one size fits all» solution. To that aim, small, micro, and medium-sized enterprises (SMMEs) is one of the most crucial pillars that support the economy. As a result, sustainable entrepreneurship in the context of the 4IR was approached in this research as an outcome-based local initiative that that was addressed by key stakeholders. The fundamental purpose of this study was to analyze the factors that led to the successful identification and utilization of local resources, ideas, and skills by entrepreneurs in order to stimulate economic growth and development in the Fourth Industrial Revolution (4IR). The aim of this study was to evaluate the problems faced by company owners and the impact that provincial and national government aid had on their ability to continue operations. In this study, qualitative research technique and an exploratory research methodology were employed. The 12 SMMEs comprising the study's population are located in the eThekwini area of KwaZulu-Natal, South Africa. The participants in the study were not selected by chance, but rather on the basis of a predetermined criterion aimed at senior management. Semi-structured interviews constituted the entirety of the data collection. The data was analyzed via NVivo and thematic analysis. This research has contributed to the subject by presenting a business sustainability strategy for SMMEs, with the aim of enhancing the performance and growth of these firms in an uncertain digital realm.Item The marketing strategies used by emerging building contractors in Polokwane Municipality, Limpopo(2020-09) Selamolela, Mafeta David; Amisi, Baruti B.This study explores The Marketing strategies used by emerging building contractors in the Polokwane Municipality which falls under the Capricorn district of Limpopo province, South Africa. It was motivated by the high failure rate of emerging building contractors. The aim is to identify and evaluate the effectiveness of the marketing strategies employed by emerging building contractors. Every business needs a winning marketing strategy to strengthen both its market position and presence. The high failure rate of emerging building contractors is of great concern to government, beneficiaries and the owners themselves. Research has shown that businesses with no clear-cut marketing strategy are prone to collapse. A case in point is marketing in the construction industry. Emerging building contractors have failed to compete adequately among themselves due to a lack of marketing skills, little or no knowledge of how to develop a marketing plan or its importance, insufficient capital, and a lack of access to markets. The respondents in the study were drawn from four important bodies in the construction industry in the Polokwane municipality, namely the Construction Industry Development Board (CIDB), the Limpopo Economic Development Agency (LEDA), the National Home Builders Registration Council (NHBRC) and the South African Women in Construction (SAWIC). It is required by law that all building contractors be registered with the CIDB. A quantitative method of data collection and analysis was used namely simple, random sampling to supply 75 potential respondents (33 women and 42 men). Two thirds (22 women and 28 men) of the 75 individuals were found to have active status on the CIDB register, while the registration of the remaining 25 had expired. Thereafter, descriptive ad inferential statistics were used to aggregate and correlate data. The results of this study showed that we do not reject null hypothesis H0, since (t (48) = 0.122, p=0.903) while mean and standard deviation of the marketing strategies are M = 24.16%, SD = 3.51%. The data indicates that the emerging contractors did not have marketing strategies all together. The findings of the study may assist the emerging building contractors to develop marketing strategies in order to enhance the construction fraternity and lead to growth and future profitability.Item An assessment of reporting tools used for corporate social responsibility in the Small, Medium, and Micro Enterprises (SMME) Sector in Kwazulu-Natal(2021-04) Buthelezi, Mthokozisi; Rampersad, Renitha; Gopaul, RogerSmall, Medium and Micro Enterprises (SMMEs) are considered as the key role drivers in order to close the gap of inequality, particularly when it comes to investing in disadvantaged communities. In South Africa, Corporate Social Responsibility (CSR) is proposed as a strategy to revive the competitiveness of SMMEs. As global competitiveness continues to be a momentous trend, the notion of CSR is proposed as an impressive strategy to invigorate the operations and competitiveness of SMMEs. The aim of this study was to assess the reporting tools used for CSR in the SMME sector in KwaZulu-Natal (KZN). In so doing, this study utilised a qualitative research approach to assess the reporting tools used by the SMME sector. Nonprobability and judgmental sampling was used to obtain participants. The target population was selected from the three geographic areas in KZN, namely Pietermaritzburg, Durban and Richards Bay. The population centered on 15 CEO’s, and 15 general public representatives that had benefited from the CSR projects of the 15 selected enterprises. The participants were selected by the researcher based on their involvement on CSR. In-depth interviews, observation, and focus group discussions were conducted by the researcher to collect primary data from the SMME CEO’s and the beneficiaries from their companies. The study revealed that some SMMEs used platforms such as meetings and strategic sessions to report on their CSR engagements. The findings further outlined that social media platforms such as Facebook, Twitter and Instagram were the most preferred reporting tools by SMME owners. The fact that these tools did not cost the company much was considered to be a major motivator for the adoption. Given that majority of SMMEs are actively engaged in CSR, most of them did not report their programmes at all to their stakeholders even though there are free tools that can be utilised. The study has provided additional contribution to the current literature on CSR and SMMEs. It further provided recommendations on how SMMEs can implement CSR programmes efficiently and use appropriate tools to communicate and report their CSR activities competently.Item Sustainable business strategy for small and medium enterprises in KwaZulu-Natal, South Africa(2022-04) Bugwandin, Vinay; Bayat, Mohamed SaheedBusiness sustainability in today’s world is primarily arduous owing to global economic and financial crises. In the first quarter of 2019, according to Statistics South Africa the Gross Domestic Product deteriorated by 3.2%. Similarly in KwaZulu-Natal, the state of sustainability of Small and Medium Enterprises were on the decline and the majority (75%) of small and medium enterprises failed after operating for three years. The purpose of this research was to formulate a business strategy to achieve sustainability for small and medium enterprises. Small and medium enterprises in KwaZulu-Natal do not sustain themselves for long term periods due to the underlying problem being strategy formulation. Hence, the need for a strategy to achieve sustainability. The mixed methodology approach was used in this empirical study using the survey and interview methods. The target population of 488 000, a confidence level of 95%, margin of error of 5% and a 50% response rate was used which indicated a sample size of 384 respondents. Upon completion of the data collection, a total of 200 responses were obtained within a capped period of 30 days, which accounted for >52% of the target sample size. Furthermore, the grounded theory was employed on a target of 20 individuals, whereby the participants were interviewed to investigate opinions towards strategy development and sustainability in KwaZulu-Natal. The core element of ‘Strategy’ and the sub-elements of ‘Change’, ‘Purpose’ and ‘Leadership’ were investigated. It was found that ‘Change’, ‘Purpose’ and ‘Leadership’ were the main contributors towards achieving sustainability. Furthermore, a Systems Thinking Model was used successfully to indicate the interdependencies to purport the goal of achieving sustainability. Ultimately it was found that ‘Strategy’, ‘Change’, ‘Purpose’, and ‘Leadership’ were required to achieve a ‘Sustainable Business Strategy’. Due cognisance should be taken by leaders, from the perspectives of ‘Change’, ‘Purpose’ and ‘Leadership’, to formulate a strategy which sustains the business. A conceptual framework was developed for small and medium enterprises to achieve a sustainable business strategy.Item The influence of key risk drivers on the performance of SMMEs in the manufacturing sector in KwaZulu-Natal(2021-12) Zhou, Helper; Gumbo, VictorSmall Medium and Micro Enterprises (SMMEs) have been shown to be key contributors to sustainable socio-economic development, constituting more than 90% of private sector enterprises around the world. Inevitably, many developing countries continue to explore means aimed at enhancing the performance of small enterprises. However, despite the implementation of various interventions the failure rate of SMMEs in South Africa particularly KwaZulu-Natal (KZN) is disturbing, reaching up to 80% in the first year of operation. As such, to contribute to addressing this challenge, the study adopted a novel approach to establishing and modelling manufacturing SMMEs performance drivers. Utilising a unique three-year panel dataset, key risk drivers were established and modelled via R software version 3.6.3. To achieve the study objectives, a series of independent but related papers were carried out and these make up the main chapters of this thesis. The first chapter provided the background to the study. The second chapter explored the characteristics of manufacturing SMMEs based in KZN province. The findings showed the complexity of firm performance, indicating the heterogeneity between rural and urban based SMMEs. The next chapter, harnessing Stochastic theory aimed to establish whether SMMEs’ growth performance followed a random walk. The theoretical model was rejected, thus providing a basis for the claim that firm performance is a function of certain risk drivers. Armed with findings from the previous papers, the investigation of key drivers impacting the sales and growth performance of manufacturing SMMEs ensued. The fourth chapter, harnessing the Penrosian and strategic management theories established key drivers of SMMEs’ performance. The fifth chapter concerningly, revealed that SMME owners in the manufacturing sector are largely not aware of the impact of established drivers on their enterprises’ performance. In the next chapter, a total of five machine learning algorithms were evaluated of which Artificial Neural Network and Support Vector Machines were identified as the best algorithms for SMME sales and growth predictive modelling, respectively. The two algorithms informed the development of a dedicated machine learning application for SMMEs that’s being commercialised through the DUT Technology Transfer and Innovation Directorate.Item Rural-urban comparison of manufacturing SMMEs performance in KwaZulu Natal province, South Africa(Adonis and Abbey Publishers, 2021-03-01) Zhou, Helper; Gumbo, VictorThe paper investigated the role of location on the performance attributes of manufacturing Small, Micro and Medium Enterprises (SMMEs) in South Africa’s second-largest province of KwaZulu Natal (KZN). Panel data from 191 SMMEs covering three years between 2015 and 2017 were analysed using R software. The results utilising the Random Effects Within-Between (REWB) technique show that SMMEs in KZN have related characteristics but the extent to which they influence performance is moderated by location. The findings also indicate that the use of digital media and liability registration negatively affects the performance of urban-based, with no effect on rural-based enterprises. Based on the findings, it was recommended that SMMEs in KZN should focus on productivity, permanent employees, temporary employees and total assets to drive performance despite their locations. Based on this study, the government has an informed basis for the development of effective interventions for SMMEs in the province.