Faculty of Management Sciences
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Item Administrative practices for improved environmental compliance of manufacturing small and medium-sized enterprises in South Africa(LLC CPC Business Perspectives, 2023-10-23) Maphumulo, Jabhisile; Dongwe, Khethiwe; Nyide, CelaniThe main constraints on SME growth in developing countries are regulations and legislation. Poor administration of environmental regulatory compliance is shown by the high number of SMEs in the manufacturing sector closing down annually in developing economies. Therefore, the purpose of this study is to investigate the influence of administrative practices on environmental compliance by manufacturing SMEs in a developing country. This study adopted a quantitative research approach. A sample size of 215 administrative personnel and managers from manufacturing SMEs operating within Msunduzi Municipality, KwaZulu-Natal, South Africa, was selected. Managers and administrative personnel were selected to eliminate biased answers that favor organizations and because both may have had an opportunity to enforce administrative practices that adhere to environmental regulations. The sample size was selected using a probability sampling method. The study shows that respondents agree that environmental compliance is a mandatory practice for SMEs in the manufacturing sector. Although results show that SMEs are complying with environmental regulations, they still face challenges. The study further demonstrates a disregard for the organization and storage of assessment reports by administrative personnel working in manufacturing SMEs.Item Business leadership competency for innovative strategies post COVID-19 among small and medium enterprises in Gauteng Province, South Africa(2023) Mugivhisa, Fulufhelo Lindelani; Ogulu, ChristianaThe COVID-19 pandemic brought many challenges to South African business leaders, such as optimising hybrid teams, attracting and retaining workers with needed capabilities, and making the most of scarce competencies. Current and complex challenges require leadership with the necessary skills. Besides COVID-19 challenges, business organisations and Small and Medium Enterprises (SMEs) must deal with economic downfall, social unrest, and corruption. Leadership plays an important role in ensuring business competitiveness amid these challenges. This study investigated the business leadership competency required for innovative strategies required post-COVID-19 among SMEs in Gauteng Province, South Africa. This involves identifying leadership competencies and proposing a framework for innovative leadership. A sample size of 384 respondents was drawn from owner/managers of SMEs in Gauteng Province. A mixed-method approach was adopted using both structured interviews and a closed-ended questionnaire through an online survey. The results showed that most of the SMEs agreed that COVID-19 challenged SMEs with several difficulties. The research highlighted business leadership competencies for innovative strategies post-COVID-19. The main findings revealed that training and developing employees play a pivotal role in shaping and influencing business performance, which is critical to the success of a business and ensuring innovation. Furthermore, the survey results showed that most SME owners/managers prioritise the competency of setting targets, reviewing and improving financial performance. Results also indicated that adaptability, flexibility, and resilience are necessary to meet changing market conditions. Furthermore, the study highlighted the importance of building diverse and expansive networks. Additionally, findings show that SME Leaders must be willing to take calculated risks for the business to emerge successful.Item Driving sustainable growth for small and medium enterprises in emerging urban–rural economies(MDPI AG, 2023) Tshikovhi, Ndivhuho; More, Krantisagar; Cele, ZamaswaziRural economies are crucial for global development, with more than 80% of the world’s population living in rural areas and agriculture providing livelihoods for approximately 2.5 billion people worldwide. However, these economies are often vulnerable to various factors, including climate change, natural disasters, and a lack of progressive economic policies. The main aim of making rural economies more sustainable is to promote long-term economic development, protect the environment, and improve the quality of life in urban–rural communities. This paper explored certain strategies for enhancing rural economies to be more sustainable. The results show that smart growth has been rapidly growing in urban cities, while certain communities outside urban areas have been left behind. However, both urban and rural communities need economic growth and be adaptive to smart growth to serve their communities and adhere to the Sustainable Development Goals (SDGs) in the new era of innovation. Thus, we argue that rural areas are a big part of emerging economies. As such, they cannot be left behind in any smart growth. In this study, we found that rural economies need training and up-skilling in order to improve their sustainability and efficiency targets. Through a systematic review, this paper looked at various ways rural communities can solve their challenges toward smart growth and the sustainability of their resources. As a result, we propose solutions for urban–rural communities to implement in daily activities in terms of policy and practice approaches.Item The influence of digital transformation on the growth of small and medium enterprises in KwaZulu-Natal(2021) Jeza, Sanele; Lekhanya, Lawrence MpeleDigital transformation has become the driver of the current market in the world of business. Globally, the business environment has become highly dynamic, unpredictable, and competitive due to external forces that generate change, mostly “technology”. Existing data indicate that the arrival of digital transformation is forcing businesses to change the way they operate. Therefore, a warning to any enterprise to rethink the way they operate, to maintain their competitive advantage. This study sought to investigate the effectiveness of digital transformation and assess its impact on Small and Medium Enterprises (SMEs) in KwaZulu-Natal. Furthermore, the study aimed to explore the extent to which South African SMEs implement digital transformation using the case study of KwaZulu-Natal. Moreover, the investigation determined the factors that challenge digital transformation in SMEs. A qualitative design was used to collect data through semi-structured interviews, with eight interviews conducted in Durban, in the KwaZulu-Natal province. Eight SMEs representatives were interviewed and responded to the questions. In the analysis of data, various factors were identified that link SMEs and the arrival of digital technologies. In the effectiveness of digital transformation, the study identified that themes such as “gaining exposure” and “gaining effective sales figures” result from implementing digital transformation. In reference to its impact on SMEs, the analysed data illustrate that digital transformation has a huge impact in building customer relationships and ensuring easy accessibility of the business. As to the extent of implementation, the collected and analysed data indicate mainly online selling and digital marketing as the main digital platforms successfully implemented by most SMEs. Lastly, the study reveals that factors such as digital maintenance and rapid changes in technology are the main challenging factors of digital transformation in SMEs. In the final analysis of data, the study recommends that South African SMEs must improve digital transformation implementation by extending more digital marketing to gain more exposure. Every business desire competitive advantage in the business sector, therefore, every SME must adapt to the new ways of doing business by implementing effective digital transformation.Item Insights into corporate social responsibility in small and medium enterprises in South Africa(International Journal of Special Education, 2022-03-03) Maome, Itumeleng Judith; Zondo, Robert Walter DumisaniSmall and Medium Enterprises (SMEs) are recognised around the world for their contribution to a country's social and economic growth. They are the fertile generators of economic growth and development for South Africa. It has been recognised that one of the strategies that contributes to the longevity and success of businesses is Corporate Social Responsibility (CSR). Hence, this study provides an insight into the influence of CSR on business growth in South Africa. Various scholars assert that CSR is more evident in major corporations with structured CSR strategies. Such businesses have separate divisions dedicated to CSR initiatives. However, CSR activities in SMEs in South Africa are still sketchy. They are based on the personal judgement and beliefs of owners and managers. There is a lack of awareness of the advantages of CSR in SMEs in South Africa. The lack of top management commitment has also been identified as a barrier to SMEs participating in CSR in South Africa. Consequently, there is more focus on the application of CSR in big corporations, thus neglecting SME participation in this initiative. It has thus been established that CSR remains a development tool that facilitates growth for SMEs in South Africa. Not all CSR activities require businesses to spend millions on such activities. SMEs may choose projects that are within their economic means. Hence, CSR awareness campaigns are useful to assist SMEs to make their projects more explicit.Item The relationship between entrepreneurial orientation, organisational orientation and innovation performance of manufacturing small and medium enterprises in KwaZulu-Natal province(2019-03-24) Kankisingi, Gustave Mungeni; Dhliwayo, ShepherdThis study was conducted to investigate the relationship between entrepreneurial orientation, organisational orientation, and innovation performance of manufacturing small and medium enterprises (SMEs) in KwaZulu Natal province. To instil innovation culture, an organisational architecture of SMEs should accommodate both organisational and entrepreneurial factors in order to create a synergy that is likely to achieve innovation objectives of SMEs. The empirical investigation was based on a quantitative study and used a cross-sectional survey design to collect data from owner-managers of 308 small and medium firms in the manufacturing sector. The provincial SMEs database from the Kwa-Zulu Natal Department of Economic Development and Tourism was used and it contained an estimate population of 1255 SMEs. This study found that there was a positive and significant correlation between entrepreneurial orientation and organisational orientation dimensions. It further established that organisational and entrepreneurial dimensions were correlated with innovation performance dimensions in the SMEs. An aptly entrepreneurial orientation is proven to be grounded in a related organisational orientation. This implies that an organisational strategy, its culture, structure, systems and the management style in SMEs strengthen the entrepreneurial strategy leading to improvements in the standard of the product, the process, the market position and the business model of SMEs. In the same context, other organisational factors such as available rewards, SMEs’ age, size and ownership provided another dimension and an insight into the innovation performance of SMEs. Based on the findings, the researcher suggests two models: the proximity model of the correlation between entrepreneurial orientation and organisational orientation and the new model of innovation performance for SMEs. The managerial implication is that the success of an entrepreneurial strategy of an SME is rooted into organisational orientation dimensions: culture, structure, strategy, systems and management style of owner-managers. However, an organisational orientation is proven to be driven by a mindset which, if entrepreneurial, leads to an entrepreneurial orientation and consequently achieve an innovation performance of SMEs. With such variables, the study recommends new approaches in line with the suggested models in support of manufacturing SMEs and the manufacturing sector in terms of managerial decision-making about firms’ innovation performance and competitiveness at organisational and sectorial levels.Item Critical environmental dynamics : barriers restraining business growth in rural areas of Southern region of KwaZulu-Natal province(Business Perspectives, 2016) Lekhanya, Lawrence Mpele; Visser, KobusThe study intends to examine the understanding and awareness of environmental dynamics and their implications of rural SMEs in the southern region of KwaZulu-Natal (KZN) province. The study was conducted within the rural areas of the Southern region of KZN province, using quantitative research methods. The sample for the study consisted of 127 owners/managers of SMEs. The respondents were selected using quota sampling and required to complete a research questionnaire, with an interviewer present to assist. The research instrument consisted of closed-ended questionnaires made up of 5 point Likert scale responses and questionnaires were distributed to five selected areas in rural Southern region of KZN province. The research findings indicate the size of local market is very small to sell their products; poor infrastructure has an impact on their business growth, lack of financial support, as well as tough government regulations, just to mention the few. This study provides both theoretical and practical implications for rural entrepreneurs and policymakers. The study presents a number of recommendations, including a conceptual growth model for rural SMEs.Item The influence of government financial incentive schemes (Gfiss) on small and micro enteprises’ (Smes’) operational performance : case study(IJIRD, 2016-10) Thusi, Sbonelo Comfort; Zondo, Robert Walter DumisaniThe small, medium and micro enterprises (SMMEs) play a pivotal role in the South African economy through job creation and development. Hence, SMMEs should operate efficiently and run their businesses effectively in order to grow within their respective sectors. One of their challenges is access to different methods of finance in order to improve their operations. As a result, this paper examines the influence of the financial incentive schemes (GFIS) on small and micro enterprises’ (SMEs’) operational performance in the textile and clothing manufacturing sector in the eThekwini District Municipality. Of the 94 SMEs that were identified, 80 participated in the study. The owners of SMEs were the target population. Descriptive and one-sample statistics were used to analyse the three objectives. That is, to examine SME awareness of government financial incentive schemes; to establish SME knowledge of accessing government financial incentive schemes; and to determine the influence of GFIS for SMEs’ operational performance. The results indicate that the majority of SMEs are not aware of GFIS. They are less knowledgeable as to where to access government’s finance assistance. However, those that have accessed the government financial schemes indicate that such schemes help achieve their operational performance objectives for growth. The original value of this paper is its approach in uncovering strengths and weaknesses of government’s financial incentive scheme for SMEs’ operational performance in the eThekwini District Municipality. It provides the initial baseline data upon which to base future work.Item An exploration of the impact of digital marketing on SMEs Growth and brand popularity in rural South Africa(IFRD, 2015-10) Lekhanya, Lawrence MpeleThe purpose of the study is to establish understand of digital marketing and its use by SMEs in rural South Africa, the extent of its use, examining contributing factors to its use and their implications. Primary data was collected using a quantitative research technique with the use of a structured questionnaire as the survey instrument. A total of 134 SMEs operating in rural KwaZulu –Natal were selected. Questionnaires were distributed to the business owners/ mangers between august and December 2014. SPSS (22.0) version was employed to for data analysis. The findings of this study revealed that some rural places in South Africa still experiencing ICT problems for being not available make it difficult for SMEs growth through the use of digital marketing. The reliability analysis, reflected coefficient values from 0.70 to 0.833. The analysis of factors limiting use of digital marketing among the rural SMEs, are presented with recommended strategies and implications on how to approach the challenges. Digital marketing of rural SMEs may be strengthened through awareness and providing adequate information about ICT and through diverse of internet marketing programmes.Item The role of integrated marketing communications in enhancement of SMEs growth in South Africa(IFRD, 2014-04) Lekhanya, Lawrence MpeleThe intention of this paper is to discover and empirically test the knowledge gap exist with regard to the role that integrated marketing communication (IMC) plays in the enhancement of SMEs growth. A quantitative approach is followed in this paper, with a questionnaire as the research instrument and questionnaire items established through a literature review. A sample of 374 SMEs owners/managers agreed to complete the questionnaire. In order to give a descriptive overview of variables relevant to the objectives of the study, a Cronbach test was performed. Certain ability in marketing communication by SMEs was evident from the sample. However, very few marketing communication tools are fully applied in order to enhance SMEs growth. A significant starting point, in attaching importance to the role of IMC enhancement of SMEs growth, is constituted by this paper’s sample, even though it is restrictively small. Practitioners may, from this paper, understand where intervention guidelines are needed, in order to improve an IMC plan needed for SMEs. Compared to previous research done on large company practices, this paper represents an original trial to empirically apply the marketing communication approach within SMEs.