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Faculty of Management Sciences

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Subject: search.filters.subject.Small business--Finance

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Now showing 1 - 4 of 4
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    The challenges of enriching small, medium and micro enterprises with financial management knowledge in KwaZulu-Natal metropolitan area
    (2021) Mazibuko, Wiseman Sinethemba; Mugari, Alpha
    South Africa is experiencing enormous socio-economic challenges such as gender-based violence, poverty and inequality, including ever-increasing high levels of unemployment. Many businesses are either closing or downsizing. People are resorting to alternative ways to alleviate poverty by establishing SMMEs. To get established, SMMEs are encountering a daunting task when it comes to implementing sound financial systems. The study sought to examine the challenges of capacitating SMMEs with financial management acumen and to remedy the difficulties of implementation thereof. Primary research was conducted amongst SMMEs in KwaZulu-Natal, Metropolitan Area. The population of this study consisted of a sample of 250 randomly selected SMMEs participated from a target population of 2200. Data were analysed using descriptive and inferential statistical techniques such as SPSS and Cronbach’s Alpha. The study found, that the sector has grown and has become an engine to drive economic stabilisation, poverty alleviation and employment creation. However, perennial challenges grew exponentially. Moreover the covid-19 pandamic has worsen the situation. Government has played a huge role in making sure the SMMEs sector get the necessary financial support, through different entiies like the SEFA, SEDA, and SSSP. The majority of SMMEs concurs that lack of adequate financial management acumen negatively affects their success. Most of them cannot upskill themselves and are not satisfied with stakeholder interventions regarding training and development. The study also found that, funding is not a panacea to all the challenges faced by this sector. Solutions should come from SMMEs instead of stakeholders prescribing how problems should be resolved. Apart from financial management understanding, SMMEs maintains that networking opportunities with business associates are vital to their success.
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    The influence of customer-supplier relationships through the facilitation of credit on the development of micro enterprises in the Sobonakhona Makhanya tribal area of KwaZulu-Natal
    (2009) Maome, Itumeleng Judith; De Beer, Marie
    The purpose of this study is to identify the influence of customer-supplier relationships through facilitation of credit on the development of Micro enterprises in the Sobonakhona Makhanya Tribal Area of KZN. This study originates from the fact that there are many SMME‟s in South Africa, absorbing about 15 million people (DTI, 1995:7). Even though this sector is providing most of the employment in the country, they still find it difficult to arrange funds to start or expand their businesses. Lending institutions do not want to provide finance for them, and if they do, they do it with reluctance and reservations. As a result, SMME‟s are not able to grow and develop into big businesses. This is a quantitative and exploratory research study which was used to explore, for the first time in Sobonakhona Makhanya Tribal area, the relationship between customer-supplier relationships and accessibility of credit facilities. The study made use of questionnaires to obtain the respondents‟ perceptions on the research questions developed. A questionnaire that consisted of 35 questions was distributed to 50 SMME owners in Adams Mission, Madundube and Umbumbulu (AMU) villages. Cronbach‟s reliability analysis was not applied as it was not appropriate for use with this questionnaire. The research showed that a relationship between customers and suppliers assists SMME‟s to obtain access to credit facilities. Added to this, SMME owners, who had access to credit facilities, experienced positive changes in their businesses. This serves to prove that access to credit is essential for the development of SMME‟s. As a result, recommendations to train and educate SMME owners on how to manage their businesses, how to apply for credit and the requirements needed for applications have been set out.
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    The extent of entrepreneurship, business knowledge and skills within micro and small businesses on the mid-South Coast of KZN
    (2007) Graaf, René; Raap, Peter John
    Entrepreneurship, business knowledge and skills within micro and small businesses play an important part in the economies of countries across the globe by being the drivers of economic growth, as well as, creating employment. The role of micro and small businesses is matching that of big business and in some countries contributes up to ninety per cent of revenue. The difficulties from supply and demand perspectives are receiving increasing attention from government and academic institutions and researchers, and the purpose of this study is to establish to what degree the presence of entrepreneurship is present in the region concerned, as well as, investigating the extent of knowledge and skills within the sample of micro and small business owners. The study uses descriptive statistics drawn from a questionnaire survey, to achieve its purpose. One hundred and seventy micro and small businesses were drawn using a stratified random sampling method. Businesses surveyed were grouped into the following categories: services, manufacturing, hardware, clothing and food. Entrepreneurial traits were found present in the micro and small business owners, however certain behavioural aspects argued against this presence. In terms of knowledge and skills, the extent was found to be limited in terms of both academic qualifications, and business acumen. Growth rates of the businesses in the survey seem to be low and the presence of real entrepreneurship would need further investigation.
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    The ability of the South African Small Medium Enterprise Development Programme to promote economic growth and employment
    (2008) Jessup, Dylan; Myburgh, Cornelius; Raap, Peter John
    The ability of the South African Small Medium Enterprise Development Programme to promote economic growth and employment. The Department of Trade and Industry (DTI) offers the Small Medium Enterprise Development Programme (SMEDP) incentive grant programme to qualifying manufacturers in South Africa. The status of the progress of this incentive grant programme is unknown. The DTI alluded to an impact study in the 2004 DTI Annual Report but no further reference or publication of results of the impact study has been made. The objectives of the study are to investigate the following three criteria of the SMEDP and to develop benchmarks and recommendations for future incentive grants offered by the DTI. • Rationale for implementation of SMEDP; • Exploration of SMEDP merits; and • Measure of SMEDP success. The study is a secondary analysis design with both qualitative and quantitative components. The qualitative component allows the researcher to reflect on the process by which the incentive programme under investigation came into being, whilst the quantitative component allows for comment on the result of the process as per the markers developed in the qualitative component of the design. There were 152 sample cases used in the study. The outcome measures are the output measures stated in the Medium Term Strategic Plan which are: • The number of jobs sustained. v i • The number of jobs created. • The number of Greenfield’s projects supported. • The fixed investment in Rand terms. • The improvement in employment levels. The DTI achieved certain of the stated objectives. The empirical data analysed confirms the achievement of these objectives. There is scope for further empirical investigation for the future development of incentive grants. The contribution of the SMEDP to economic growth and employment growth is evident and such government interventions should be continued. The recommendations from the study include further investigation into the following areas to improve the benefits provided by manufacturing incentive programmes: • Limit the incentive to a specified Rand value per job created; • Volume driven turnover growth not price driven turnover growth; • The continued inclusion of expansions in future programme; and • Specified sector programmes i.e. textile sector.