Faculty of Management Sciences

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Assessing the influence of organizational culture on small, medium and micro enterprise’s business sustainability in the eThekwini Municipal area
(2024) Khoza, Ntokozo Thanks-Lord
This research accepted that the government of South Africa supports the development of Small, Medium, and Micro Enterprises (SMMEs) due to their potential to grow the country’s economy. The research then aimed to ascertain the extent to which the influence of organizational culture on SMMEs can influence business sustainability in the eThekwini Municipal area of South Africa. The study scrutinized the ability of SMME managers and operators on how they can through organizational culture ensure business sustainability in a way that contributes to sustainable economic growth. Additionally, the factors that influence the development and the performances of SMMEs in the eThekwini Municipal area were observed. The study follows the human behaviour of SMME managers, operators, and business owners as to how they can contribute to economic development and survive in the competitive market. Using simple random sampling, data was collected from various SMMEs in the eThekwini Municipal area. A total of 250 entrepreneurs responded to the questionnaire. This data was captured and analyzed on SPSS (version 26) and yielded descriptive statistics. The key findings were that the entrepreneurs revealed that business awareness; transparency; market capturing; opportunity recognition; market intelligence; clarity of purpose; business risk; creativity; self-motivation; and team spirit were all significant in founding and operating a successful business. A challenge that emerged from the respondents was that a high number of entrepreneurs did not give much significance to assuming responsibilities. However, they were taking good care of their environments and using their cultural values to reform the environment. The main objective is that entrepreneurs, operatives and managers must learn to assume responsibly if they are to build their businesses and environment that renounces incorrigible act. This could also be an avenue for further research.
The use of social media platforms by small, medium and micro enterprises in the beauty industry in Honeydew, Johannesburg
(2024-05) Cele, Zamaswazi Pretty; Govender, Saths; Tshikovhi, Ndivhuho
Small, medium and micro enterprises (SMMEs) play a crucial role in job creation and the country’s economy. Developing SMMEs and ensuring that they adapt to the new digital era becomes a necessity to keep up with competitors for sustainability and constant growth. This study investigates the use of social media platforms within the beauty industry; to see if Honeydew nail bar salons use any of the social media platforms to advertise their products and services. Statistics South Africa indicate that 2042 businesses, including nail bar salons were liquidated within a year; January to December 2019 due to severe financial challenges. Research shows that social media is the future of the new digital era required by SMMEs to grow their businesses. Social media have created a worldwide virtual community in which can help SMMEs to compete with bigger businesses by showcasing their products and services to a larger community. Many studies were conducted on nail bar salons. However, they mostly focused on health-related issues, such as the skin diseases that might be associated with products used on customer’s nails. Therefore, this study sought to investigate how nail bar salon businesses can grow from small businesses to larger enterprises. The study focused on what they can do differently to earn more profits for their salons. The study employed a quantitative research methodology to collect data from Honeydew residents who normally do their nails in local salons. There are six nail bar salons in Honeydew and a hundred questionnaires were distributed to the salon patrons. A face- to-face survey was conducted, although some participants preferred to complete the survey online, so the link to the questionnaires was distributed to their email addresses. The study findings showed that the target clients for the Honeydew nail bar salons are young adults in the 18 -34 years age range, who constitutes 55.1percent of the clients. The study also noted that clients are accustomed to social media platforms. Therefore, Honeydew nail bar salons can still improve and attract more male clients to their nail bars, because they also form part of their clientele. The gender record showed 96.6percent females and 3.4 percent males. The study recommends the use of social media platforms to attract more clients of all genders to Honeydew nail bar owners.
The influence of strategic planning on the growth posture of small and medium-sized enterprises (SMEs) within the infrastructure sector in eThekwini, KwaZulu-Natal
(2023) Zuma, Goodman Zwelihle; Kankisingi, Gustave Mungeni
The purpose of the research was to examine whether there is a correlation between the use of strategic planning and the sustainable growth of Small and medium-sized enterprises (SMEs). The purpose was achieved through an empirical investigation that was based on a quantitative study and used a cross-sectional survey design to collect data from owners of 239 SMEs in the infrastructure sector. SMEs are a key factor in improving the growth posture of the South African economy. However, despite their significant socio-economic contribution, the failure rate among SMEs in South Africa remains significantly high. The challenges that are facing the SME sector cannot be ignored by any country that takes economic growth seriously, since SMEs are proven to be key in improving the growth posture of the country’s economy. The strategic planning process, which leads to the formation of a company's strategy, was one of the aspects examined in the study. The Study assesses the impact of strategic planning on the growth posture of small and medium-sized enterprises in the infrastructure sector in South Africa, eThekwini Municipality. The process of developing a strategic plan has been controversial in the literature due to the several perspectives offered by scholars. The main debate concerning the nature of the strategic planning process is about how the process should be approached, which stems from conflicting views concerning the strategic planning process, even though strategic planning is a widely adopted process in many organisations, as it is viewed as the activity that leads to the strategy’s success. The study’s findings prove that most small companies do not follow a strategic process to develop their strategies and for those which do not follow a structured strategic process experience low levels of business growth compared with those that follow a strategic process. These findings have an enormous potential to theoretically contribute to the research body while making practical contributions to governmental policymakers, future researchers, and small business owners. The managerial implications are that a strategic process for developing a firm strategy had a considerable favourable impact on the growth posture of such a firm regardless of business size or resources.
Financial sustainability and financial well-being of small and medium enterprise owners in Sekondi-Takoradi, Ghana
(2023) Amankwaa, Robert; Agbenyegah, Albert Tchey
Financial sustainability is the most vital part of SMEs and the cornerstone of SME owners’ well-being. However, poor financial sustainability of SMEs leads to poor well-being of SME owners. Therefore, the study aimed to assess SME owners’ financial sustainability and well-being. Primarily, the study sought to identify the main factors that influence SMEs’ sustainability, describe the level of SMEs’ financial sustainability and level of SME owners’ financial well-being, amd to assess the relationship between SME financial sustainability and owners’ financial well-being in Sekondi-Takoradi. Through the use of cross-sectional design and a quantitative approach, 250 SME owners were chosen from a population of 10,205 SME owners in SekondiTakoradi, the study. Overall, the study used close-ended instrument to gather data from the participants. In particular, 5-point Likert scale measure was relied upon to solicit information from SME owners on sustainability factors, business sustainability measures and the financial well-being of the SME owners. Using SPSS version 22.0, data obtained were analysed and presented in tables and figures. Simple linear and multiple regression techiques were also used to determine the relationship between the variables. A p-values of less than 0.05 were considered statistically significant at a 95% confidence interval. The study found that SMEs financial sustainability is influence by both internal and external factors. It was also revealed that the businesses were financially stable amd the well-being of SME owners was financially good to a moderate extent. Finally, there was a favourable and significant relationship between financial sustainability and the financial well-being of SME owners. Therefore, the study recommended that since SMEs have no control over the external factors, they should concentrate on and improve upon the internal factors such as skills, experience amd finacial literacy since they positively influences SMEs' financial sustainability. In addition, it is recommended that SMEs work on their return on investment to better their sustainability.
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.
The influence of digital transformation on the growth of small and medium enterprises in KwaZulu-Natal
(2021) Jeza, Sanele; Lekhanya, Lawrence Mpele
Digital 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.
The influence of key risk drivers on the performance of SMMEs in the manufacturing sector in KwaZulu-Natal
(2021-12) Zhou, Helper; Gumbo, Victor
Small 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.
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.
A systems' thinking approach to entrepreneurial leadership : an analysis of SMMES in the Gauteng Province
(2021-11-17) Mhlongo, Thabisile; Daya, Preeya
Despite the efforts of the South African Government to stimulate entrepreneurial opportunities through policies, strategies, and programmes, many Small, Medium and Micro Businesses remain unsustainable. However, SMMEs often experience various challenges and studies have shown that SMMEs in South Africa rarely survive in their first year of existence. One problem SMMEs face in South Africa is poor leadership. Further, insufficient financial resources, lack of business knowledge and management, and inadequate institutional support thwart sustainable growth and have a negative effect on the overall performance of SMMEs. Thus, having an understanding and insight into the various leadership problems and dynamics encountered by the SMMEs could foster the development of strategies to improve the performance of SMMEs. This study evaluated the application of entrepreneurial leadership capabilities to respond to uncertainty, challenges, and opportunities in the entrepreneurial system and understand how the systems thinking approach can be applied in entrepreneurial leadership to address the complex dynamics of the entrepreneurial ecosystems. Overall, the study identified the pathways to entrepreneurial leadership and deepened the current understanding of the concept of entrepreneurial leadership in selected SMMEs operating in the Gauteng province. This study adopted a holism model underpinned by methodological pluralism and mixed- method strategy. It used a pragmatist philosophical approach and mixed-method case study to achieve its objectives. A three-tier research plan was used comprising semi-structured interviews, causal loop diagrams, and simulation modelling to address the research aim and the objectives.
Leadership and succession planning family-owned businesses in the south Durban basin of KwaZulu-Natal
(2021) Maharajh, Reshmini; Dhliwayo, Shepherd
The study aimed to ascertain whether there are effective leadership and succession planning mechanisms in place to sustain effective business acumen and survival in small to mediumsized family-owned enterprises in the South Durban Basin of KwaZulu-Natal. The study adopted an empirical, quantitative design. The population, which was targeted by the study was family-owned businesses in the South Durban Basin of KwaZulu-Natal. A target sample of 236 family-owned enterprises were selected from the eThekwini Database with a population of 2750 on the basis that they were in operation for at least 5 years; were situated within the Kwa Zulu -Natal region and were family-owned enterprises. A non-probability simple random sampling strategy as well as purposive sampling was used to get the sample size. In total, 236 questionnaires were despatched and 221 were returned which gave a 96% response rate. To analyse the data, which was collected, SPSS was used. Several descriptive and inferential statistical techniques were utilised to analyse the data. The main findings of the study are that: family businesses in the main do not have succession plans, have poor governance structures and that family conflict and sibling rivalry is common. It also found out that succession planning was predicted by task leadership style, performance, and governance.The study therefore recommends that family businesses should prepare a thorough succession plan after consultation with senior staff and family members. These plans should have constructive policies that clearly outline the roles, responsibilities, and procedures for undertaking duties diligently. This will help empower employees and family members for enhanced governance and business operations.While the study was confined to one locality, further research can be done in other areas where results can be compared.

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