Faculty of Management Sciences

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The implication of social media marketing on the sustainability of SMEs in Accra Ghana
(2023) Hayford, Amegbe; Zungu, Nkululeko PraiseGod; Asamoah, Emmanuel Selase
Social media is a nascent technological tool that impacts organizations today. The impact varies from large to small organizations and developed and developing country contexts. The present study advances insight by investigating the implication of social media marketing on small and medium enterprise (SME) sustainability in Accra, using an exploratory, sequential, mixed methods strategy. The study commenced with the qualitative phase, interviewing 16 SMEs in Accra from different industries, as classified by the Ghana Investment and Promotion Council. The findings from the qualitative phase formed the basis for the quantitative phase, which surveyed 234 SMEs to participate in the study. The qualitative data were analysed with NVivo, while SmartPLS was employed for the quantitative data. Findings from the qualitative and quantitative phases reveal support for organisational and entrepreneurial factors influencing the adoption decision of SMEs in Accra. However, the study did not find support for two qualitative phase technological factors (complexity and perceived cost) and one environmental factor (institutional pressure). Furthermore, support for social media adoption and financial marketing performance were revealed as non-financial marketing performance in both study phases, while financial marketing performance was found to also support environmental and social sustainability. This study's originality lies in the use of a sequential mixed methods approach, to extend Technology, Organization and Environment theory in examining marketing performance outcomes and sustainability. Moreover, the inclusion of an additional factor to test social media adoption among SMEs and developing a conceptual framework to explore and test these relationships, differentiates this study. Theoretically, the study contributes to the existing knowledge, demonstrating the factors influencing SMEs' social media adoption, how this translates into non-financial marketing performance of SMEs and would lead to their sustainable performance. Based on the overall findings, the study also develops a conceptual framework that can serve as a foundation upon which future studies could be conducted. Practically, the findings would also benefit SME owners/managers on advantages of social media use in their organizations and to develop a proper implementation strategy. For policymakers who oversee SME activities, this study would provide the avenue for policy formulation on how SMEs can take advantage of social media in their organization to enable them to become competitive and remain sustainable.
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.
Modelling values, entrepreneurial competencies and sustainable development : a case of small, medium and micro enterprises in eThekwini Municipal area
(2023-04) Ogonsola, Sijuwade Adedayo; Potwana, Nobubele
There is a universal call to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. This must be done in such a way that the needs of the present must be met without compromising the ability of future generations to meet their own needs. This is what sustainable development is all about. Broadly stated, it refers to programmes, initiatives and actions aimed at the preservation of distinct areas such as human, social, economic and environmental. Governments at all levels are expected to be in the forefront of such initiatives. At the heart of economic development is the business world, in particular, Small, Medium and Micro Enterprises. There is overwhelming evidence that these categories of business are very responsive to societal needs and are thus able to mitigate the effects of afflictions such as poverty and unemployment. As such, the South African Government has some initiatives in place to assist them to grow. The kind of assistance that is mainly focussed on is financial and skills training. However, even with all that assistance, the two main ills of poverty and unemployment have not been dented. This observation gave rise to this study, to examine the behavioural competencies of entrepreneurs to see how values impact competence so that sustainable development is achieved. The research area was eThekwini Municipality, which is a Metropolitan City in KwaZulu-Natal, South Africa. Its size and economic activity make it attractive to job seekers even from rural areas. The main aim of this research has thus been to determine the extent to which values and entrepreneurial competencies can impact sustainable economic development in the eThekwini Municipal Area of South Africa. To establish the set objectives, a descriptive research design was employed, using a quantitative research strategy. Data was collected using a structured questionnaire which was administered to the entrepreneurs through convenience sampling, yielding a sample of 400. The data was captured and analysed on SPSS (version 26) and SEM was used to test the structural relationships of the variables, these being Honesty; Integrity; and Transparency as these emerged as the key values that entrepreneurs should have while Accountability; Social Interaction and Personal Identity were conceptualised as key competencies. The main measures of sustainable development were Poverty Alleviation and creation of employment opportunities. Pertinent observations came out of the structural model which showed that honesty and transparency do not have an effect on accountability. Similarly, personal identity does not have an impact on integrity whereas integrity has a significant effect on social interaction. Furthermore, accountability does not have a significant impact on neither poverty alleviation nor creation of employment opportunities. The finding that integrity weighs more to society than anything else is to be taken seriously.
The strategic financial management framework for small and medium-sized enterprises in Zimbabwe
(2023-06) Mutambara, Alice; Kader, Abdul
Small to medium enterprises (SMEs) by nature often encounter performance and growth-related challenges attributable to failure by SME owner managers to embraceStrategic Financial Management Practices (SFMPs) that are popular for promoting business growth and performance. The Zimbabwean economy, which relies on SMEs following the collapse of the economy due to the agrarian reform initiated by the government in the year 2000, faces economic crisis of large proportions as SMEs fail perform and grow. Aim: The overall aim of the study was to develop a strategic financial management framework for SMEs towards improving performance and growth. Study setting: The study was conducted in Mashonaland West Province of Zimbabwe, a relatively impoverished community that rely on SMEs as a source of livelihood. Methods: The study employed the mixed method research design that include the quantitative, and qualitative methods gathering data from a target population of 640 SMEs selected from the furniture, steel, metalwork, retail, confectionary, and the hospitality sectors. Cluster, and stratified sampling techniques were used to select 240 participants for the quantitative study while purposive sampling technique was used to select 21 participants for the qualitative study. Quantitative data was analysed using the Statistical Package for Social Science (SPSS) version 25 with qualitative data analysed using N-Vivo and thematic analysis. Results: The main study findings revealed that SMEs across the province partially applied SFMPs which include developing a vision that guides the business, opening a fixed asset register to serve as collateral security, bulk stock ordering, and networking. Conclusions: The study concluded that SFMPs were critical for SME performance and growth, and that SMEs should embrace the practices. The study therefore recommended the implementation of the FNBE11 framework by SMEs across the province to ensure sustenance of growth and performance. The recommended framework would compel SMEs to be visionary, invest in fixed assets as collateral security, open bank accounts that provides creditors/financiers with solid financial history used as the basis to seek funding.
Evaluating the influence of social responsibility practices on the performance of small and medium automotive manufacturers in the eThekwini Metropolitan Municipality
(2023-03) Mvakwendlu, Nonophela Buhle; Zondo, Robert Walter Dumisani
Small and medium enterprises (SMEs) are an important business sector in South Africa, while also contributing to new job opportunities and development all over the world. It is assumed the implementation of a strategic philosophy such as Corporate Social Responsibility (CSR) can enhance performance of SMEs, as it involves organisations acting responsibly and ethically towards society, the environment and other stakeholders to maximise positive impact, not merely increase profit. CSR has received much attention in the business world, nevertheless, several SMEs in the manufacturing sector do not recognise how their practice closely affects employees, society, and the environment. Studies show manufacturers deposit their waste into some of the country’s main rivers, which affects individuals in the surroundings, demonstrating the lack of business manufacturers involvement in CSR practices. Hence, the purpose of this study is to evaluate the extent to which CSR practices influence SME performance in the automotive manufacturing sector of the eThekwini Metropolitan Municipality. The study objective is thus to evaluate the influence of environmental CSR practices, ethical CSR labour practices, and the public good of CSR, on SME performance. Being quantitative in nature, structured questionnaires were employed to gather data from the targeted population of 120 SME owners in the automotive manufacturing sector, with the sampling size of 110 SME owners and 10 SME owners for pilot study. The study reveals the demographic variables that have a relationship with CSR practices, as well as variables that do not. This includes environmental, ethical labour and public good CSR practices and their relationship with demographic variables. Ethical CSR labour practices showed no relationship with any demographic variable when using ANOVA technique. All statistical results are achieved with Statistical Package for Social Sciences (SPSS) techniques, including descriptive statistics, chisquare, Pearson correlation co-efficient and ANOVA techniques. The study is limited to automotive manufacturing SMEs and CSR practices.
Learning and adaptive management mechanisms in implementing development programs in Zaka district, Zimbabwe
(2022) Mapfumo, Trust; Govender, Ivan Gunass
The aim of the study was to investigate the application and importance of Learning and Adaptive Management by the Ministry of Women Affairs, Community, Small and Medium Enterprises Development (MWACSMED) and beneficiaries when implementing development programs in Zaka district. The study investigated the objectives of the programs implemented by MWACSMED in Zaka district, the extent to which learning, risk management and adaptive management mechanisms are used by MWACSMED Zaka district are effective. The study also examined the challenges faced MWACSMED and beneficiaries with development programs in Zaka district. The study also aimed at developing a model for learning, risk management, adaptive management, monitoring, and evaluation for the efficient and effective implementation of development programs and the Monitoring, Evaluation, Learning, Adaptive and Risk Management model (MELARM) was developed. The researcher chose to conduct his research in this area because Zaka district is one of the districts in the country that is heavily reliant on subsistence farming, with farmers lacking adequate rain and inputs. Furthermore, there is no other industry or activity in the district that contributes to people's well-being. According to Chingarande and Matondi (2020:3), Zaka district is in a province that is reliant on activities such as livestock production, irrigated farming, wildlife conservation and smallholder agricultural production to support its population. Zimbabwe, where Zaka district is in the province of Masvingo used to be one of Southern Africa’s most vibrant, productive, and resilient countries, but the country has been facing economic and political challenges for close to two decades linked to decades of poor governance and corruption. Approximately 63% of Zimbabwean households are living in poverty and 16% in extreme poverty (USAID Country Development Cooperation Strategy 2016-2021:4). Given the above challenges in Zimbabwe, it is important to investigate whether decisionmakers are investing in long-term management approaches such as Adaptive Management. Decision-makers tend to be reluctant to invest in long-term management approaches which cover the concept of Adaptive Management and choose small-scale experiments instead. Moreover, they do not utilize opportunities to adjust and make improvements in their approach to management. Managers have often been making decisions based on funding opportunities that are short-term and political requests, rather than using the actual objectives of a program. The study used the quantitative approach in the form of a questionnaire that was designed using Google forms and shared through a link that was send to research participants through emails and WhatsApp. The sample population for the research questionnaire was 10 officials from MWACSMED and 7 beneficiaries of the programs managed by the Ministry in Zaka district. As shown by the study, the Ministry has not yet fully recognized the use of Learning and Adaptive Management to address the complexity and uncertainty of development programs. The Ministry has been managing programs through traditional monitoring and evaluation systems. The results of the study show that the Ministry was not using Adaptive Management approaches or learning thorough monitoring and evaluation systems, which may be because of socio-economic and political reasons. The introduction of adaptive programming and management calls for using information and learning to inform adjustments during implementation, which requires monitoring and evaluation systems that go beyond reporting on pre-specified indicators The study made recommendations for Learning and Adaptive Management mechanisms that are essential for development projects. The study also drafted a model known as the Monitoring, Evaluation, Learning, Adaptive and Risk Management Framework (MELARM). These recommendations are all based on the findings of the study. In general, government departments should avoid traditional thinking about program cycles, and they should merge program design, implementation, and evaluation through Learning and Adaptive Management. Government departments/agencies should also identify and document how procurement, contracting, work planning, reporting and risk management can foster adaptive programming and management to achieve intended development goals.
The role of business incubation programmes on the performance of small and medium enterprises in South Africa
(2023-05-15) Zhou, Helper; Zondo, Robert Walter Dumisani
Research has shown that Small and Medium Enterprise (SMEs) play a pivotal role in socio-economic development of countries across the globe. In recent years, business incubation programmes have gained popularity to address the perennial challenge of SME failure in South Africa. However, there have been very limited studies to empirically assess the impact of incubation in South Africa. To address this gap, this study utilised dataset, comprising 387 incubated and non-incubated firms to assess the impact of business incubation of performance. The originality of our study lies in valuable insights we established relating to the impact of incubators on SME performance. Utilising Generalised Least Squares technique in R, the study revealed that incubation has a positive impact on SME performance. Further to that the results revealed differing attributes between the incubated and non-incubated cohorts. It was recommended that the government should invest into incubation programmes to drive sustainable SME performance. Further to that, the heterogeneity between the two cohorts demands a shift from a “one size fits all” approach to supporting SMEs in South Africa
The influence of demographic factors and culture on the risk management practices of SMEs in Zimbabwe
(2022) Mauchi, Fungai Ngoma; Rawjee, Veena; Ramlutchman, Nisha
Organisations are confronted with risks that negatively affect their performance. Risk management practices focus on detecting, calculating and evaluating threats to reduce material, reputation, opportunity and other costs. While business frameworks play a significant role in accomplishing impactful and profitable innovations, various studies point to the lack of a comprehensive SME risk management framework. This study sought to identify the level of SME risk management practices; determine their perception of the relevance of risk management in their businesses; and ascertain the influence of demographic factors and culture on Small and Medium Enterprises’ (SMEs) risk management practices in Zimbabwe. Furthermore, the study aimed to develop a risk management framework that ensures SME survival. The adoption of a risk management framework is hoped to guide effective SME risk management. A mixed-method research design was used, with a target population of 35 700 SMEs from Harare and Mashonaland Central provinces. Cluster and simple random sampling methods were used to select a sample of 276 SMEs. Data was collected using a structured questionnaire and semi-structured interviews. Quantitative Data was analysed using the Spearman rho test, descriptive statistical analysis, frequency analysis as well as correlations, inferential statistical analysis, T-tests and regression analysis whilst qualitative data was analysed using thematic analysis. Findings showed that risk management practices in SMEs were low, reflecting a negative perception of its relevance in business success. Age, gender, race and marital status, as well as educational and income levels, influenced the adoption of risk management practices by SMEs in Zimbabwe, whilst family size did not. Social complexity, fate control and religiosity were found to also influence SME risk management practices, whilst social cynicism and reward for application had no impact. The study recommended the adoption of a risk management framework for SMEs, SME capacity building through education and access to information, networking, the transformation of SME business principles and SME policy reform
The impact of financial audits on the sustainable growth of SMME’s : a case study of the eThekwini Municipality
(2021) Mkhize, Nkanyezi Lindani Alen; Chazireni, Bobo
Small, medium and micro enterprises (SMMEs) play a very important role in the economies of the world. However, the sustainable growth of these businesses in South Africa is one of worst recorded, as 90% of them fail within the initial stage of their existence. This study sought to investigate whether financial audits had an impact on the sustainable growth of SMMEs in South Africa. The New Companies Act 71 of 2008 of South Africa has brought about a lot of changes in the regulatory requirements of SMMEs to relieve them of administrative burdens and increase their sustainability. This, however, worked adversely against these businesses due to the barriers which inhibit their longevity. This can be attributed to the notion that managers/owners of the SMMEs have become oblivious to the risks inherently associated with businesses, and that this is enhanced by SMMEs not having to account to anyone (that is, there is no regulatory body or entity that controls these businesses). The commander and the agency theories, highlight the importance of separating ownership and control amongst SMMEs to align information symmetry between interested parties. A quantitative approach was followed in conducting the study and data was collected from SMMEs in Durban, under the eThekwini Municipality using a semi-structured questionnaire. A descriptive statistical analysis was performed to analyse the sample demographics, and then mean and standard deviations were computed for the variables.
Influence of self-motivation and intrinsic motivational factors for small and medium business growth : a South African case study
(AOSIS, 2018-05-29) Ncube, Thandukwazi R.; Zondo, Robert Walter Dumisani
Background: This study investigates the influence of intrinsic motivational factors for small and medium enterprise (SME) growth in the eThekwini District Municipality in South Africa (SA). Aim: It examines whether self-motivation of business owners operating in the furniture manufacturing sector has an influence on SME growth. Setting: Of the 127 SMEs operating in the eThekwini District Municipality, 112 participated in the study representing 88% of the target population. Methods: Descriptive, chi-square and correlative analyses were used to test the two objectives. That is, to determine the influence of self-motivation of business owners for SME growth, as well as to establish the intrinsic motivational factors that stimulate creativity for SME growth. Results: The study revealed that the intrinsic motivational factors of business owners do influence SME growth in SA. These factors include exerting effort for business growth interest, finding new solutions to business problems to achieve growth, growing business for recognition, belief to produce the desired outcomes, taking responsibilities for business expansion, the need for advancement, and growth aspiration that enables the business owner to take risks in order to grow the business. Conclusion: The outcome is that a self-motivated business owner has the ability to grow the business. The study provides valuable data relating to intrinsic motivational factors. Such factors are the enablers of creativity and business growth. It provides initial baseline data upon which to base future work.

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