Faculty of Management Sciences

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The influence of corporate social responsibility on business performance of a medium-sized manufacturing enterprise in eThekwini Municipal Area
(2024) Maome, Itumeleng Judith
Corporate Social Responsibility (CSR) is an organisation's ongoing commitment to ethical behaviour and economic development, as well as improving the quality of life for its employees and their families, the local community, and society at large. It is an unavoidable requirement for long-term development, particularly in developing countries. Although there has been some focus on CSR and business performance in large corporations, research on CSR in SMEs, particularly in economically depressed African countries is becoming increasingly important. To reap the benefits of CSR efforts, SMEs should be encouraged to create strategic CSR frameworks. Hence this study aims to investigate the influence of CSR on the business performance of a medium-sized manufacturing enterprise in the eThekwini metropolitan area. It will contribute to theoretical discussions and improve their performance. The data for this study was gathered in two parts, that is quantitative and qualitative. The pre- and post-CSR quantitative data were derived from business performance values obtained from company records. To collect qualitative data, both semi-structured and focus group interviews with the manager and employees were used. The SPSS was used to analyse the quantitative data, while Nvivo analysed the qualitative data. Furthermore, inferential statistics used in quantitative data included regression analysis and factorial Analysis of Variance (ANOVA), while qualitative data analysis employed thematic content analysis. The findings of this study reveal that the medium-sized enterprise has a positive attitude towards CSR. Emanating from his humanity and Ubuntu, the owner of the organisation was inspired to practise CSR. The benefits gained by a sampled medium-sized enterprise that incorporated CSR into its business operations were highlighted in this study. This study adds to the existing body of knowledge on CSR and business performance in South African SMEs. It adds to the body of knowledge by creating a CSR framework for SMEs.
Adoption of business intelligence by micro-small apparel businesses in the great eThekwini region
(2023-08) Mavutha, Winiswa; Corbishley, Karen; Kamwendo, Andrew
The increasing pressure of costs in the Small Medium Micro Enterprise (SMME) sector produces the need to continually improve management efficiency. This requires the use of different approaches, methods and tools. One method is the use of a digital business analytical tools, such as those related to business intelligence (BI). BI assists businesses with the analysis of information to make better decisions to improve business performance. The objective of this study was to determine factors influencing the adoption of BI in micro-small apparel retail businesses in the eThekwini region. This was a cross sectional study conducted among 161 apparel business owners who were selected using non-probability purposive sampling. Data was collected using an anonymous questionnaire. Multiple linear regression was conducted to determine the influencing factors for business intelligence adoption. The conceptual framework used for this study was the technology-organisation-environment (TOE) framework. The results from this study found that the factors that significantly influence the adoption of BI in micro-small apparel businesses in the eThekwini region are perceived relative advantage, organisational readiness, management support and organisational data environment. The results of this study have also indicated that there are not sufficient government incentives offered for technological innovations such as BI , particularly for micro-small businesses. While there are a number of government funding opportunities and business support mechanisms, the respondents indicated that government incentives do not support the adoption of BI and all the factors needed to be considered during the adoption process. The adoption and use of BI in the South African context could contribute greatly to the country’s GDP and generally create growth opportunities for South African SMMEs in the global market. Government support for such an initiative would help decrease the high unemployment rate in South Africa as more jobs would be created around the country through these projects.
Personal factors influencing the success of immigrant small business owners in the eThekwini metropolitan area
(2022) Mbili, Londiwe Ether; Chazireni, Bobo
The South African economy is characterised by a high unemployment rate, low growth rate, and widespread poverty. immigrant-owned businesses can address some of these economic problems as they contribute to economic growth, job creation, and alleviation of poverty in the community. However, many of these businesses fail due to various reasons. This study seeks to identify and empirically investigate the personal factors influencing the success of immigrant small business owners in the eThekwini metropolitan area. By identifying and empirically testing such factors, valuable recommendations can be put forward to immigrant small business owners on how to succeed in the market and subsequently contribute to economic growth. The study aims to investigate personal factors influencing the success of immigrant small business owners in the eThekwini metropolitan area in terms of the following research objectives: entrepreneurial competence, leadership style, and self-confidence. A quantitative research design and a convenience non-probability sampling method will be utilised for the study. A questionnaire will be designed as a measuring instrument and physically distributed to immigrant entrepreneurs to measure the hypothesised relationship of the identified research objectives. The researcher utilised Raosoft software to calculate the sample size for the study (i.e. required sample size of 377 based on a 5% margin of error, 95% confidence level, and 50% response distribution). The researcher utilised both open-ended and fixed-alternative questions to collect data. Data will be recorded on a 5-point Likert scale, analysed using the SPSS version 27 statistical package and exploratory factor analysis will be performed to test the validity of the measuring instrument. Also, the hypothesised relationships will be evaluated through regression analysis. The findings of the study concluded that entrepreneurial competence and selfconfidence have a positive relationship with the success of immigrant small business owners. Therefore, it is evident that personal success factors play a vital role in enhancing the success of immigrant small business owners. Furthermore, the findings also concluded that there is no correlation between leadership style and the success of immigrant small business owners, however, the respondents perceived that leadership style is important for business growth. Therefore, future research can be conducted to determine how leadership style impacts the success of SMEs. According to the findings of the study, most immigrant entrepreneurs within eThekwini metropolitan area are operating informal businesses, therefore, the South African policymakers must develop regulations that will govern all foreign-owned businesses within the country such as developing policies regarding the formalisation of these businesses, support programs, training and funding opportunities that can be explored by immigrant entrepreneurs. Immigrant small businesses are continuing to dominate in local communities of South Africa, and it should be investigated how immigrants identify entrepreneurial opportunities that are neglected by the natives.
Factors influencing the competitiveness of small and medium clothing manufacturing enterprises in the eThekwini Municipal District in KwaZulu-Natal
(2022) Mkhize, Dalisu Mhlengi; Lekhanya, Lawrence Mpele
The purpose of this study is to determine factors influencing the competitiveness of small and medium clothing manufacturing enterprises in the eThekwini municipal district in KwaZulu-Natal. SMEs in the clothing manufacturing industry remain at lower competency. This appears to be as a consequence of a lack of knowledge and understanding of those factors that contribute to their competitiveness. The study aimed to determine which factors contribute to the competitiveness of manufacturing SMEs, while also describing how they impact these small clothing manufacturing industry enterprises in the eThekwini District Municipality of KZN. Data were collected from different parts of the eThekwini district municipality, which include Durban central, South Coast of Durban, North Coast of Durban, and west parts of Durban. The sample consisted of 80 SME owners and managers of clothing manufacturing companies who are members of the National Bargaining Council for the clothing manufacturing industry in the eThekwini District Municipality. The research design embraces a quantitative research approach with a closed-ended questionnaire distributed to participants by the researcher. Due to lockdown restrictions posed by the COVID-19 (coronavirus) pandemic, and some participants restricting visitors, arrangements were made to receive and return the completed questionnaire through email. Data were analysed using the Statistical Package for Social Sciences (SPSS) version 27 for Windows. Numerous factors were anticipated to challenge the competitiveness of clothing manufacturing SMEs in the eThekwini District Municipality, with cheap imports, technological advances, and a lack of competitiveness knowledge by both employers and employees amongst these.
Adoption of social media for effective marketing by micro-hospitality businesses in KwaZulu-Natal, South Africa
(2022) Nkosana, Tenson; Mnguni, Erasmus M.; Skinner, Jane Phyllida
The rise in popularity of social media as a marketing instrument has fundamentally changed the way in which small to medium enterprises, and small hospitality businesses in particular, interact with their clientele, especially in marketing their products and services. These small hospitality establishments (formal accommodation, guest accommodation, game lodges, events centres, restaurants and support services) have been influenced by social media and are compelled to adopt these platforms for effective marketing to keep pace with modern dynamics in tourist behaviour. The literature indicates that social media marketing in general has gained significant momentum across all sectors, with micro-hospitality establishments having embraced it fully in more economically developed countries. Although prior studies indicate that social media, with a particular reference to travel review sites such as TripAdvisor, are now regarded as the major sources of reliable travel information for tourists, as well as influencing their decisionmaking processes, evidence from the literature shows that there is limited industry-specific research into the adoption and utilisation of social media for marketing regarding small hospitality establishments in the context of a less economically developed country, and this is at a time when these establishments are struggling to survive and to regain their market share due to recent and ongoing travel restrictions. Research in this area is limited. This research was conducted to address this gap. The main aim of this study was to determine the effectiveness of social media as a marketing strategy taking small hospitality establishments in KwaZulu-Natal, South Africa as a case study. To achieve this, a review of literature provided insights into social media adoption for marketing, backed by relevant theoretical frameworks and specifically the unified theory of acceptance and use of technology 2 (UTAUT2). For data collection, both electronic and hand-delivered questionnaires were distributed to micro-hospitality establishments in KZN. Telephonic and live interviews as well as observations were also conducted with fifteen small hospitality establishments. A total of 70 respondents we engaged for this study through interviews, observations and questionnaires. The results from the study revealed that although social media marketing has been adopted extensively by small hospitality establishments in KZN, its effectiveness as a marketing strategy is not uniform across establishments and cannot be generalized. Empirical results further revealed that these establishments were not being systematic in the utilization of social media marketing, that other marketing strategies were sometimes as effective in this context and that some were failing to optimise the opportunities that exist. The major challenges highlighted by most small hospitality establishments were: lack of adequate funding, lack of specialized human resources, and the difficulty of measuring the actual impact of social media adoption. The conclusion drawn from the above empirical evidence and from the literature is that social media marketing is not an all-round strategy for effective marketing particularly for small establishments in a rural setting who are competing with hotel chains and franchises in urban areas. It is however the most significant marketing tool. It was therefore concluded that a combination of social media marketing, star grading and other informal means of assuring service quality, along with a clear marketing strategy adapted to the needs of the individual establishment, could provide the optimal matrix for effective marketing of small hospitality establishments in the context of a developing country. This study contributed in two ways: firstly, the research addresses the gap identified in the literature by providing evidence on the relative effectiveness of social media for marketing by small hospitality establishments in the context of a less economically developed country and, secondly, a social media marketing framework was proposed based on the evidence of shortcomings in marketing strategies by this group, highlighted by this study.
The role of preventative control measures on organisational productivity : case of manufacturing SMMEs in Durban
(2021-10) Nondaba, Mthobisi Titto
Abstract Considering the current business trends in the manufacturing sector, preventative control measures are becoming a strategic tool for productivity in most companies. However, Small Medium, and Macro Enterprises (SMME)s in Durban have been lagging in incorporating such tools into their strategies. Effective preventative controls have been known to be part of the big corporates, especially in the heavy manufacturing industries. Given the need to grow manufacturing SMMEs, businesses would need to adopt preventative control measures that are supportive of organizational productivity. Through this research it has been found that employees in Manufacturing SMMEs believe that preventative control measures negatively affect their performance and hinder productivity. The main concern is to have flexible preventative measures that allow employees to work even if the key members are not around. They also believe that preventative measures can reduce fraud and other costs as fewer people are allowed to sign off or access systems to pass critical transactions. However, this scenario undermines the importance and critical role that manufacturing SMMEs play in the economy in Gauteng province. Their growth and productivity cannot be overlooked. This research study aims to investigate the role of preventive control measures on organizational productivity in manufacturing SMMEs in Durban. This was achieved through identifying the type of preventive control measures used in manufacturing SMEs in Gauteng province; examining the role of preventive control measures on organizational productivity in manufacturing SMEs in Durban and recommending the appropriate application of preventive control measures that leverages organizational productivity in manufacturing SMEs in Durban. This study aims to significantly contribute and expand knowledge regarding preventative control measures in the manufacturing industry. The study used a Quantitative approach to carryout data collection, data analysis, and presentation. Some key findings were manufacturing SMMEs were applying inflexible preventative controls that in some cases slow productivity. The majority of employees lack knowledge of the role of preventative controls and their benefits. It is therefore recommended that manufacturing SMMEs in Durban should institute training programs for their employees and furthermore implement flexible preventative control measure that does not inhibit organizational productivity.
Ecommerce adoption by small medium enterprises in fashion : the case of Durban fashion fair designers
(2021) Nhuvira, Chiedza Elizabeth; Dorasamy, Nirmala
Small Medium Enterprises are one of the country’s engineers for transformation through economic growth, innovation and employment creation. The fashion industry is rated the second largest manufacturing curbing unemployment for both formal and informal sectors of fashion through providing one of the human basic needs. Due to the low entry barriers, the competition is rife both locally (other fashion designers) and internationally (imports) which has led to initiatives such as ‘fast fashion’ which represents the process of selling designs showcased on the catwalk in stores in the shortest possible. However, this is a challenge without the right platforms to advertise and sell the clothing. Initiatives such as Durban fashion fair have been good in providing the Durban designers with a local platform to showcase but Small Medium Enterprises greatest challenge is that Durban market is flooded despite designers offering niche products because it’s the same customers with limited income to buy the offerings, such that customer acquisition beyond the confines of the Durban is a necessity for business sustenance. Durban fashion designers are creative business people, knowledgeable in the fashion industry, however with the challenges that they are facing, there is limited research of their use of ecommerce in solving the stated problems. Ecommerce is perceived as an innovation that has transformed Small Medium Enterprises is developed nations such as China and America however the case is unknown for developing nations such as South Africa. The purpose of the case study is to determine how far the fashion designers have used ecommerce in their businesses and the factors that influence them to adopt taking into account the benefits and challenges that they face. The case study encourages multiple sources and techniques to gather data. Mixed method approach was conducted for data collection, for the Durban fashion fair designers quantitative study was undertaken while the Durban fashion fair management were interviewed. The data was analysed using statistical method SPSS and use of thematic analysis for quantitative. Results from the study supported the literature while other results revealed gaps for further research. The study revealed the following results, that the majority of fashion SMMES are cognisant that the South African population is moving to online buying and that there are business opportunities to be exploited online. Secondly, the challenges hindering the fashion SMMEs was the low profits and internet fraud. The findings revealed that the greater percentages of fashion SMME are survivalist entities earning profits of less than 50 000 rand annually. The low profit margin affects the acquisition of gadgets and infrastructure is deemed costly; moreover the SMMEs lack the financial collateral security to borrow from the banks. The other challenge mentioned was that internet fraud was the lack of digital training literacy and training such that fashion SMME perception of internet fraud was exaggerated. Thirdly, the results highlighted that the management benefited from the adoption by making better decisions. The better decisions can be attributed to knowledge of customer, the promptness of making decisions and the management’s previous online experience. Fashion SMME highlighted the benefits accrued from implementation of effective ecommerce practices, were increase in sales despite the number of years the business has been trading. The use of ecommerce, the results indicate that the fashion designers use free applications available since their profitability margins are low. Most of the SMME advertise on the social media Facebook and Instagram, they also use the social platforms for product research and prevailing trends too. And lastly they use banking applications to make payments to suppliers as well as receive payments from customers. The fashions SMME have not adopted ecommerce by using second parties such as paid second party sites.
The role of corporate social responsibility in promoting growth in Small and Medium Enterprises (SMEs) in the hospitality sector in Pietermaritzburg
(2021-10) Ngubane, Nompumelelo; Chazireni, Bobo
There is a consensus about SMEs being key to the growth of most economies in Africa and the world in general. SMEs have been branded as fecund drivers of economic growth and sustainable development in South Africa and the world at large. The existence of SMEs in any economy is of paramount importance despite them bullied by large corporations. There is growing recognition of the important role SMEs play in economic development. SMEs often described as efficient and prolific job creators, the seeds of big businesses and the fuel of national economic engines with much hype on their ability to create employment. Research on Corporate Social Responsibility in SMEs is limited, especially in developing countries. Considering Hospitality sector in Pietermaritzburg Municipal region, corporate social responsibility has been growing greater importance in the minds of businesses. Given the enormity of the South African economy, social responsibility for business took centre stage during the socio-economic turbulence experienced in the country. While playing such a significant role in the economy, to address this, the study will investigate perceived effectiveness of Corporate Social Responsibility as a stimulant of growth for SMEs in the service sector in Pietermaritzburg municipal area. The research shall consider the convenience and purposive sampling as sampling strategies. It will employ a sampling design where participants are conveniently but purposively selected on a volunteering basis. The quantitative approach will be used where a questionnaire is going to be used to obtain and analyse primary data. The study will make use of numeric data making use of descriptive research design to drive results and conclusions. This shall be done by assessing the attitude levels of Hospitality SMEs towards corporate social responsibility; the practice of corporate social responsibility by hospitality SMEs; exploring barriers undermining the practice of corporate social responsibility by hospitality SMEs; and exploring SME owner-managers‘ values key to the sustainable growth of the business. This study aspired to expand and contribute significantly to the body of knowledge regarding CSR by examining CSR on sustainable growth of hospitality SMEs in Pietermaritzburg Municipal region. As new knowledge, the study proposed a model based on the Stakeholder Theory which is meant to assist Hospitality SMEs in Pietermaritzburg Municipal region to apply positive attitude towards embracing CSR in their businesses. However, the study recommends that local authorities and chambers of commerce must play a leading role in awareness and support mobilisation to try and motivate hospitality SMEs to practise CSR. In addition, it is recommended that the phrase ‗Corporate Social Responsibility‘ should be re-phrased as ‗Small Business Responsibility‘ or generally ‗Business Responsibility‘ as a way of contextualising the whole responsible business idea, promote and refer to the social responsibility of SMEs. The phrase simply drives SMEs to think that they are excluded from the practice because of their size. The concept Corporate Social Responsibility imposes a challenging journey on SMEs it is psychologically intimidating to SMEs, hence resistance to the practise of CSR.
Factors shaping the growth of women’s entrepreneurship in small and medium-sized retail enterprises in the eThekwini Municipality, Durban
(2021-11) Siyaya, Nomalungelo Duduzile; Amisi, Baruti B.
This study investigated the factors that shape the growth of women’s entrepreneurship in small and medium-sized retail enterprises in the eThekwini Municipality. Female entrepreneurs contribute significantly to the economy of eThekwini and South Africa as a whole, yet they remain underrepresented and receive inadequate research and policy making efforts to reveal their contributions. The intention of this research was to investigate the effects of global clichés on the ability of women to choose entrepreneurial careers and their ability to operate successful retail SMEs. It also explored the reasons why some women entrepreneurs seem to be trapped in unsuccessful environments that prevent the expansion of retail SMEs. This qualitative research used the purposive sampling method to select 44 participants according to the researcher’s interests. The criteria of inclusion were being (1) women entrepreneurs, (2) based in the eThekwini Metropolitan Municipality, (3) owners of retail business(es), and (4) active in SMEs. Interviews and participant observation were used to gather empirical data whilst secondary data came from published and unpublished studies, research reports, and policy documents. The NVivo software assisted to analyse primary data. The results revealed that 71 percent of female entrepreneurs have at least diplomas, 50 percent are married, whilst 41 percent are single. They have small families or no children. The majority (84 percent) of their businesses are Closed Corporations in clothing (27 percent), beauty salons (18 percent), restaurants (14 percent), and event management (11 percent), whilst the remaining businesses share 30 percent. They run these businesses as professionals. Respondents indicated mixed feelings and reactions to the equity of the South African government’s SME policies and taxes. Most respondents are aware of these policies but a critical number of individuals are still in the dark. Among those who are aware about these policies, some are happy, other are unhappy for different reasons. Start-up capital mostly came from individuals’ savings, with some respondents having used more than one source to obtain the first investment for their business. Female business owners have received financial support from existing financial institutions. Among those who did not receive any, 61 percent have not applied for any loan. They therefore rely on family members (92 percent) for different kinds of assistance. Different motives (diverse sources of income, employment creation for themselves and others, the dream of creating businesses) motivated individuals to create businesses. Access to capital (human and social capital) features prominently in these businesses, from inception to management, growth, and expansion. Gender stereotypes play different roles in the businesses depending on their natures, settings and market niches, where they occur and are applied.
An autoethnographic study in youth development with technology entrepreneurship
(2021-10) Murugan, Rajenderan; Penceliah, Soobramoney
The inadequate participation of youth in business activities is disturbing in the light of the high rate of unemployment together with an education system that is not aligned to the needs of the economy. As a result, the majority of the youth prefer seeking employment and earning a salary rather than embarking on a business career which could be financially more beneficial to the individual, his/her family and the wider community The study aims to determine how entrepreneurship education coupled with the necessary coaching and mentoring can fulfil the primary role of preparing young South Africans to contribute towards the economic growth of the country and the prosperity of its people by engaging in entrepreneurial activities. This study leverages my entrepreneurial experience to mentor nascent entrepreneurs to collaborate in knowledge gathering, information sharing and business networking using ICT. Using the autoethnographic approach, the study explores my experiences in entrepreneurship from my early childhood as an observer in the family business and later as an entrepreneur highlighting my successes and failures. To ensure that my business experiences could make a difference in society, I have undertaken to mentor a group of aspiring youth entrepreneurs to add to their knowledge and experience. This could help ensure that they are sustainable in business, contributing to the growth of the economy through job creation amongst the unemployed and generating wealth for the alleviation of poverty in the community. A mixed methods approach guides the direction, collection and analysis of a mixture of qualitative and quantitative data in this study. The main premise for the use of quantitative and qualitative approaches in combination is that it provides a better understanding of research problems than either approach alone would have achieved. Here autoethnography becomes a powerful tool in feeling and practically putting one’s self in the other’s shoes, which otherwise would be logically analysed and clinically reviewed. The results suggest that youth entrepreneurship in South Africa is compromised by high levels of bureaucracy thereby limiting access to finance, a shortage of skills and a general lack of innovative thinking making the country less competitive on the international stage. The youth should be exposed to entrepreneurship education from primary and secondary school so that entrepreneurial orientation and intention are developed early, thereby ensuring that the aspiring entrepreneur is psychologically competent for a career in business.

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