Economic stagnation in sub-Saharan Africa since 1970 is well documented. While the causes are varied, the paradigm of nationalistic state-led economic development has changed. Economic development occurs in a global marketplace. Manufacturing has shifted from developed to less developed countries, an opportunity that was seized in Asia and Latin America. South Africa’s labour, unskilled and costly by world standards, is at a disadvantage as an agile and competitive world market seeks skilled labour at the lowest cost. South Africa’s Gear economic policy suggests that 300 000 new jobs need to be created annually until 2004 in order to reduce unemployment. Small, medium and microenterprise growth is central to meeting this target. Numerous government structures to assist small enterprises have been created. Few, however, assist small business with the demands of the marketplace. Most focus on generic skills training and questionable small business finance. This thesis suggests that interfirm linkages between large and small enterprises is one strategy that can assist the growth of small business, create employment and, increase labour skills. International experience shows that generic training is less effective in promoting small business than linking business training to actual market-demands. Interfirm linkages, most often through subcontracting, is a strategy used successfully in Taiwan, Indonesia, Malaysia and Brazil. Such linkages are usually government supported and provide incentives for both large and small businesses to work together productively. Three South African interfirm linkage case studies are critiqued. Case study findings indicate that interfirm linkages expose emerging businesses to market conditions, and can provide access to process technology training, low cost raw materials, creative finance, and new markets. Small business ‘learns by doing’ and also ‘learns while earning’. The state has a role in the development of a vibrant small, medium and microenterprise sector in South Africa. Current support strategies are largely unrelated to market conditions. Interfirm linkages are an approach that applies market forces in the development of small business. Government policy would be wisely directed to support such business interactions.

Small and medium-sized enterprises (SMEs) are recognised internationally and in South Africa as a critical component of the economic development of a country as a result of their contribution to job creation, alleviation of poverty, sustainability and innovation. Furthermore, the majority of SMEs are also family-owned and play an increasingly important role in the South African economy, making up approximately 84 per cent of businesses in the country. Despite the critical role that family and non-family SMEs play in economic development, they are still plagued with high failure rates and unique challenges that make it difficult for them to survive. These challenges include, amongst others, regulatory burdens, restrictive labour policies, a lack of access to finance, markets and technology, as well as an overwhelmingly constant emphasis on survival. As a result of the added dynamic of family relationships within family-owned SMEs, they face additional challenges such as conflict between family members and inadequate succession planning. Focus is often placed on the factors leading to failure, but little is known about success-aiding behaviours that could reduce the high failure rate and improve the success rate of these businesses. As a result, it is important to examine what determines success and how it is measured. Success can be defined as the attainment of goals, therefore the achievement of goals plays a critical role in the success of the business.

Abstracts in English, Zulu, Sesotho and Venda / This study focused on occupational health and safety in South African small businesses. The owners/managers of small businesses have a moral, legal and financial obligation to ensure the health and safety of their employees. Both an international and South African perspective on occupational health and safety in small businesses are included in the literature study. Twelve core occupational health and safety criteria, developed specifically with regard to small businesses, were identified and used as basis for this study, in conjunction with the aspects of the theory of planned behaviour. The research design of this study included a positivistic research philosophy and a deductive research approach. A questionnaire was developed and used to determine the knowledge, attitude, behavioural intent and actual behaviour of South African small business owners/managers with regard to occupational health and safety in their businesses. In addition, barriers to occupational health and safety compliance were determined and tested to determine the perceived strength of these barriers. South African small business owners/managers completed the questionnaire for this study. It was determined that the knowledge, attitude, behavioural intent and actual behaviour of South African small business owners/managers related to occupational health and safety were not at optimum levels. Barriers to compliance should be reduced. Legal compliance issues comprise one of the main reasons why South African small businesses fail. Therefore, this study proposes a compliance management framework, based on applicable occupational health and safety legislation that encompasses moral, legal and financial contentions. The identified core occupational health and safety criteria were used as sections in the compliance management framework. This proposed compliance management framework aims to reduce the complexity of occupational health and safety legislation for South African small business owners/managers. / Ngudo heyi yo sedza kha tsireledzo na mutakalo mushumoni kha mabindu maṱuku Afrika Tshipembe. Vhalanguli/vhaṋe vha mabindu maṱuku vha na pfanelo ya vhuḓilisi, mulayo na masheleni u khwaṱhisedza tsireledzo na mutakalo kha vhashumi vhavho. Vhuvhili hazwo mbonalo ya lushaka na ya dzitshaka nga ha tsireledzo na mutakalo mushumoni kha mabindu maṱuku zwo katelwa kha ngudo dza maṅwalwa. Nḓila khulwane dza fumimbili dza tsireledzo na mutakalo mushumoni, dzo bveledzwaho nga maanḓa hu tshi itelwa mabindu maṱuku, dzo topolwa na u shumiswa sa mutheo kha ngudo heyi, zwo ṱanganyiswa na zwiteṅwa zwa thiori ya vhuḓifari ho dzudzanywaho. Nyolo ya kuitele kwa ṱhoḓisiso heyi i katela fiḽosofi ya ṱhoḓisiso ine ya khwaṱhisedza nga u sedza hu tshi shumiswa kuitele kwa ṱhoḓisiso kwa u ṋea zwiitisi. Mbudzisambekanywa yo bveledziswa na u shumiswa u ta nḓivho, vhuvha, vhuḓifari vhune ha khou lavhelelwa na vhuḓifari ha vhukuma ha vhaṋe/vhalanguli vha mabindu maṱuku Afrika Tshipembe zwi tshi ḓa kha tsireledzo na mutakalo mushumoni mabinduni avho. U ḓadzisa kha zwenezwo, zwithivheli kha u tevhedza tsireledzo na mutakalo mushumoni zwo tiwa na u lingwa u ta maanḓa o vhonwaho kha zwithivheli izwi. Vhaṋe/vhalanguli vha mabindu maṱuku Afrika Tshipembe vho fhindula mbudzisambekanywa kha ngudo heyi. Ho waniwa uri nḓivho, vhuvha, vhuḓifari vhune ha khou lavhelela na vhuḓifari ha vhukuma ha vhaṋe/vhalanguli vha mabindu maṱuku Afrika Tshipembe zwi tshi ḓa kha tsireledzo na mutakalo mushumoni zwo vha zwi si kha ḽeveḽe dza nṱhesa. Mafhungo a u tevhedza lwa mulayo tsho vha tshiṅwe tsha zwiitisi zwihulwane uri ndingani mabindu maṱuku a Afrika Tshipembe a tshi khou kundelwa. Nga zwenezwo, ngudo heyi yo dzinginya furemiweke ya ndangulo ya u tevhedza, zwo ḓi sendeka kha mulayo wo teaho wa tsireledzo na mutakalo mushumoni une wa katela therisano dza vhuḓilisi, mulayo na masheleni. Nḓila khulwane dzo topolwaho dza tsireledzo na mutakalo mushumoni dzo shumiswa sa khethekanyo kha u tevhedza furemiweke ya ndangulo. Heyi furemiweke ya ndangulo ya u tevhedza yo dzinginywaho yo livhiswa kha u fhungudza vhukonḓi ha mulayo wa tsireledzo na mutakalo mushumoni kha vhaṋe/vhalanguli vha mabindu maṱuku Afrika Tshipembe. / Lolu cwaningo lugxile kwezempilo nokuphepha emsebenzini emabhizinisini amancane aseNingizimu Afrika. Abanikazi / abaphathi bamabhizinisi amancane banesibopho sokuziphatha, sezomthetho kanye nezezezimali sokuqinisekisa impilo nokuphepha kwabasebenzi babo. Kokubili umbono wamazwe omhlaba nowaseNingizimu Afrika ngempilo nokuphepha emsebenzini emabhizinisini amancane kufakiwe esifundweni semibhalo. Izimiso eziyishumi nambili eziyisisekelo zezempilo nokuphepha emsebenzini, ezithuthukisiwe ngokukhethekile maqondana namabhizinisi amancane, zahlonzwa futhi zasetshenziswa njengesisekelo salolu cwaningo, ngokuhlangana nezici zomqondo wokuziphatha okuhleliwe. Ukwakheka kocwaningo kwalesi sifundo kubandakanye isimo esiyisisekelo solwazi, iqiniso nokuba khona (ifilosofi) kokucwaninga okuhle kanye nendlela yocwaningo yokuthuthukisa umbono ngokuya komqondo osukhona. Kwenziwa uhlu lwemibuzo futhi lwasetshenziswa ukuthola ulwazi, isimo sengqondo, inhloso yokuziphatha nokuziphatha kwangempela kwabaninimabhizinisi / abaphathi bamabhizinisi amancane aseNingizimu Afrika maqondana nempilo nokuphepha emsebenzini emabhizinisini abo. Ngaphezu kwalokho, izithiyo ekuthobeleni ezempilo nokuphepha emsebenzini zanqunywa futhi zahlolwa ukuthola amandla abonwayo alezi zithiyo. Abanikazi bamabhizinisi amancane / abaphathi baseNingizimu Afrika bagcwalise uhlu lwemibuzo kulolu cwaningo. Kwanqunywa ukuthi ulwazi, isimo sengqondo, inhloso yokuziphatha nokuziphatha kwangempela kwabaninimabhizinisi / abaphathi bamabhizinisi amancane aseNingizimu Afrika ahlobene nempilo nokuphepha emsebenzini bekungekho ezingeni elifanele. Izithiyo ekuthobeleni kufanele zinciphiswe. Izinkinga zokuthobela komthetho ziqukethe esinye sezizathu ezisemqoka zokuthi kungani amabhizinisi amancane aseNingizimu Afrika ehluleka. Ngakho-ke, lolu cwaningo luphakamisa uhlaka lokuthobela kokuphathwa, olususelwa kumthetho osebenzayo wezempilo nokuphepha emsebenzini obandakanya imibango yokuziphatha, yezomthetho neyezezimali. Izimiso ezisemqoka ezikhonjiwe kwezempilo nokuphepha emsebenzini zisetshenziswe njengezigaba zohlaka lokuthobela kokuphathwa. Lolu hlaka oluhlongozwayo lokuthobela kokuphathwa luhlose ukunciphisa ubunzima bemithetho yezempilo nokuphepha emsebenzini yabaninimabhizinisi / abaphathi bamabhizinisi amancane aseNingizimu Afrika. / Boithuto bona bo ne bo shebane le polokeho le bophelo bo botle dikgwebong tse nyane Afrika Borwa. Beng ba/baokamedi ba dikgwebo tse nyane ba na le boikarabello ba boitshwaro, molao le ditjhelete ba ho netefatsa polokeho le bophelo bo botle ba basebeletsi ba bona. Boithuto ba dingolwa bo kenyelleditswe bobedi tjhebo ya matjhaba le ya Afrika Borwa mabapi le polokeho le bophelo bo botle mosebetsing ho dikgwebo tse nyane. Ho hlwailwe le ho sebediswa ditlhophiso tse leshome le metso e mmedi tsa motheo tsa polokeho le bophelo bo botle mosebetsing, tse thehilweng ka ho qolleha bakeng sa dikgwebo tse nyane jwalo ka motheo wa boithuto bona, hammoho le dikarolo tsa thiori ya boitshwaro bo rerilweng. Moralo wa patlisiso wa boithuto bona o ne o akarelletsa filosofi ya dipatlisiso tse senang leeme le katamelo ya dipatlisiso e etsang diteko ho fumana na thiori e itseng ke nnete kapa tjhe maemong a itseng. Ho ile ha hlahiswa le ho sebediswa letoto la dipotso ho fumana tsebo, maikutlo le maikemisetso a boitshwaro le boitshwaro ba nnete ba beng ba/baokamedi ba dikgwebo tse nyane ba maAfrika Borwa mabapi le polokeho le bophelo bo botle dikgwebong tsa bona. Ho feta moo, dithibedi tsa tatello ya melawana ya polokeho le bophelo bo botle mosebetsing di ile tsa fumanwa le ho etswa diteko ho bona matla ao ho dumelwang hore dithebedi tsena di na le ona. Beng ba/baokamedi ba dikgwebo tse nyane ba maAfrika Borwa ba ile ba tlatsa letoto la dipotso bakeng sa boithuto bona. Ho ile ha fumanwa hore tsebo, maikutlo le maikemisetso a boitshwaro le boitshwaro ba nnete ba beng ba/baokamedi ba dikgwebo tse nyane ba maAfrika Borwa mabapi le polokeho le bophelo bo botle mosebetsing ha di maemong a matle. Dithibedi tsa tatelo di lokela ho fokotswa. Mathata a tatelo ya semolao ke a mang a mabaka a sehlooho ao ka ona dikgwebo tse nyane tsa Afrika Borwa di hlolehang. Kahoo, boithuto bona bo sisinya boteng ba moralo wa tsamaiso ya tatelo, o thehilweng hodima melao e amehang ya polokeho le bophelo bo botle mosebetsing o kenyelletsang mehopolo ya boitshwaro, molao le ditjhelete. Ditlhophiso tse hlwailweng tsa motheo tsa polokeho le bophelo bo botle mosebetsing di sebedisitswe jwalo ka dikarolo moralong wa tsamaiso ya tatelo. Moralo ona o sisintsweng wa tsamaiso ya tatelo o ikemiseditse ho nolofatsa molao wa polokeho le bophelo bo botle mosebetsing bakeng sa beng ba/baokamedi ba dikgwebo tse nyane ba maAfrika Borwa. / Business Management / D. Phil. (Management Studies)

Submitted in fulfillment of the requirements of the Master of Technology Degree in Cost and Management Accounting, Durban University of Technology, Durban, South Africa, 2014. / Small businesses are vital for employment and job creation in South Africa. The implementation of sound cash management practices is essential to ensure to profitability and sustainability of any successful business. The commonly used expression, “Cash is king” cannot be contested as its validity was more prevalent in this research study. The aim of the study was to identify the current cash management practices of small retail businesses in the Tongaat area and identify the impact of such practices on their profitability and sustainability. This descriptive, cross sectional study, using a quantitative research paradigm and a non-probability sampling method targeted a sample of 69 businesses in the chosen area. The sample structure consisted of small retail businesses in the Tongaat area of KwaZulu-Natal. There was a significant relationship between drawing budgets and sustainability. This finding suggests that the more often the business draws up cash budgets, the more viable and sustainable the business is. 78.3% of the respondents acknowledged the importance of keeping records in the business, however, only 29.9% drew up cash budgets. The findings of this study could be useful to potential, emerging and established owners of all types of businesses since effective and efficient cash management is an integral component of any successful business. There should be more emphasis placed on the impact of how proper cash management practices can affect profitability and sustainability of a small retail business. A recommendation that adds value to the study was to engage the final-year, National Diploma: Cost and Management Accounting students in an integrated project, where they can provide cash management advice to these businesses. This will enhance the small businesses’ knowledge of cash management and encourage implementation of these procedures to assist in increasing profitability and sustainability in their business.

Submitted in partial fulfilment of the requirements for the degree of Masters in Business Administration (MBA), Business Studies Unit--Durban University of Technology, 2008 / 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.

Thesis (PhD)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: This thesis, presented in six thematic chapters, investigates an approach for promoting the growth of small businesses in South Africa. Chapter 1 motivates the thesis by discussing the contested role of small businesses in reducing unemployment and fostering social equity. Chapter 2 reviews the small business development policy in South Africa and explicates the socioeconomic conditions underpinning the policy. Chapters 3, 4 and 5 are empirical analyses using data from the World Bank Enterprise Surveys of 2003 and 2007, and the World Bank Financial Crisis Survey of 2010 to determine key impediments to the growth of small businesses and characteristics of firms creating and retaining most jobs in South Africa. Chapter 3 uses two methods to investigate the key impediments. The first method is based on a count of obstacles that entrepreneurs rate as seriously affecting enterprise operations. The second estimates the effects of the obstacles on growth through sequential multivariate regressions and identifies binding constraints for different categories of firms. It emerges that medium-sized firms are mildly affected by most obstacles but micro and small firms are significantly affected by crime, electricity and transportation problems. The chapter provides important insight on the sequencing of interventions to address the impediments to growth. Chapter 4 studies the finance constraint. It evaluates the importance of the constraint firstly by assessing whether firms rating finance as a serious problem underperform firms rating the problem as less important. Thereafter, the chapter studies the experiences of firms when seeking external finance and identifies four levels of the finance constraint. Using an ordered logit model and a binary logit model, the chapter explores the profile of financially constrained firms. Results show that firms owned by ethnic groups disadvantaged in the apartheid era are more likely to be credit-constrained. The results also suggest that the likelihood of being credit-constrained decreases with higher levels of formal education. The results inform policy on the types of firms that financial interventions must target. Chapter 5 builds on a growing body of evidence which shows that a small proportion of firms in an economy account for over 50 percent of net new jobs. The evidence from the literature suggests that such high-growth enterprises have distinct characteristics that could make it possible for interventions to nurture or for other firms to emulate. The chapter employs two methods to investigate the characteristics of high-growth firms. The first is logit regression, which the investigation uses to determine characteristics of firms that create more jobs than the average firm. The characteristics are also interacted to identify interaction terms most associated with growth. The second method is quantile regression, which makes it possible to assess the importance of each characteristic for firms in different levels of growth rates. The results show that the typical high-growth firm is more likely to be black-owned. The results of the chapter however highlight the need for further research into characteristics that may perhaps explain high-growth firms more robustly than variables in the survey instrument. The research ends with a summary, a discussion of areas of further research, and policy recommendations in Chapter 6.

Thesis (MComm)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: At present the population in South Africa continues to grow at a higher rate than the rate of job creation. Traditional sources of job creation, such as large enterprises and state departments, are unable to provide enough jobs to combat the increasing rate of unemployment. An important component of the government's effort to address the unemployment problem, should be the emphasis on the development of entrepreneurship. In a study done in Bulgaria by Bartlett and Rangelava the contribution of small business to job creation became clear. Bulgaria, like South Africa, is also plagued by a high rate of unemployment (1997: 330). As the small business is seen as the natural port of entry for the entrepreneur to the business world, it would only be logical if efforts to encourage entrepreneurship are focussed on small business development. In essence entrepreneurial activity can be regarded initially as a local phenomenon which then spreads to the larger economy. In this regard research suggested that a mega event in a local context might result in an increase in entrepreneurial activity. The development of the Saldanha Steel project could be seen as an example of such a mega event in the West Coast region. This event inevitably led to an increase in entrepreneurial activity, which manifested in the establishment of many formal and informal businesses. At the completion of the project, however, few businesses survived. This raises the question whether the opportunity perceived by the mega event rather than the market on the long term initiated the decision to start-up. In this study it will be argued that the businesses that survived the so-called mega event were started as a result of long-term market considerations characterized by the critical success factors underlying an entrepreneurial decision. The objective of this research is to prove that the critical factors for entrepreneurial success play a more important role in eventual success and survival of the enterprise than the opportunistic entrepreneurial behavior sparked by a mega event only. Consequently the critical success factors for entrepreneurial success of businesses established in anticipation of the mega event that survived and surviving businesses established in the ten year period prior to the mega event, will be compared in order to test the hypothesis. / AFRIKAANSE OPSOMMING: Tans is die bevolkingsaanwas in Suid-Afrika hoër as wat die toename in die skepping van werksgeleenthede is. Tradisionele bronne vir werkskepping, soos groot sakeondernemings en staatsdepartemente, kan nie voldoende werksgeleenthede skep om die toename in werkloosheid teë te werk nie. 'n Belangrike komponent in die regering se poging om die werkloosheidprobleem aan te spreek, behoort 'n fokus op die ontwikkeling van entrepreneurskap te wees. 'n Studie wat deur Bartlett en Rangelova in Bulgarye gedoen is, toon duidelik dat klein- en mediumsakeondernemings 'n bydrae tot werkverskaffing lewer. Bulgarye, soos Suid-Afrika, is ook die prooi van 'n hoë werkloosheidsyfer (1997: 330). Kleinsakeondernemings word beskou as die natuurlike deurgang vir die entrepreneur tot die sakewêreld en dit sou net logies wees om pogings om entrepreneurskap aan te moedig, op die ontwikkeling van klein sakeondernemings te fokus. In wese kan entrepreneursaktiwiteite beskou word as 'n aanvanklike plaaslike verskynsel wat geleidelik uitbrei na die groter ekonomiese sektor. Navorsing suggereer, derhalwe, dat 'n grootskaalse gebeurtenis binne plaaslike konteks kan lei tot 'n toename in entrepreneursaktiwiteite. Die ontwikkeling van die Saldanha Staal-projek kan beskou word as sodanige gebeurtenis in die Weskusstreek. Hierdie projek het onvermydelik tot 'n toename in entrepreneursaktiwiteite gelei wat in die vestiging van verskeie formele en informele sakeondernemings gemanifesteer het. Na voltooiing van die projek het min van die ondernemings egter bly voortbestaan. Dit laat die vraag ontstaan of dit die potensiële geleentheid van hierdie grootskaalse gebeurtenis, eerder as die langtermyn mark is wat hierdie ondernemingsbesluite geïnisieer het. In hierdie studie sal daar van die standpunt uitgegaan word dat die ondernemings wat die grootskaalse gebeurtenis oorleef het, die is wat die resultaat van langtermyn markoorwegings was en gekenmerk is deur kritiese suksesfaktore onderliggend aan 'n entrepreneursbesluit. Die doel van hierdie navorsing is om te bewys dat die kritiese suksesfaktore vir entrepreneursukses 'n belangriker rol in die uiteindelike sukses en oorlewing van 'n onderneming speel as die opportunistiese entrepreneursgedrag wat slegs deur 'n grootskaalse gebeurtenis aangevuur is. Om die hipotese te toets sal daar 'n vergelyking getref word tussen die kritiese suksesfaktore vir entrepreneursukses van ondernemings wat in afwagting van die grootskaalse gebeurtenis begin is en nog bestaan, en dié van ondernemings wat in die tien jaar periode voor die verwagte gebeurtenis begin is en nog bestaan.

Thesis (MDF (Development Finance))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The need for Small, Micro and Medium Enterprise (SMME) growth in South Africa is beyond question. Government sees SMMEs as an important vehicle to boost the economy of the country because of the contribution they make to job creation. According to recent estimates by the Department of Trade and Industry (DTI), small businesses represent 98% of the total number of registered firms, employ 55% of the country’s labour force and account for 35% of GDP. Unfortunately South Africa has a low survival rate among start-up businesses compared to other developing economies. Some believe that the reason for the failure of government programmes to support small businesses is due to poor delivery. This is one of the key issues to be addressed by all business support players. The key to success is to pursue a private sector led approach where experienced business advisors and mentors can add value to the businesses of customers. The research focuses solely on support organisations within the Siyanda region. The findings support the notion that Seda, as government’s small business support vehicle, will have to utilise support organisations more in order to make a success of its mandate. The investigation has identified some recommendations that may lead to an improvement in the current environment. The first approach is to ensure that people who render small business support have business experience and understand small enterprises. Secondly, to ensure that sector programmes are focused on a particular objective and that the overall strategy remains integrated and focused. In order to achieve this, the private sector should participate and share the costs. In recommending measures to improve the promotion of small business support at a local level, it is important to focus on what works best and that is ultimately privatesector organisations. / AFRIKAANSE OPSOMMING: Die behoefte aan groei van Klein, Mikro en Medium Ondernemings (SMMEs) in Suid-Afrika word nie debateer nie. Die regering sien SMMEs as ‘n belangrike medium om die land se ekonomie ‘n hupstoot te gee vanweë die bydrae wat hulle tot werkskeppping maak. Volgens onlangse skattings van die Departement van Handel en Nywerheid, verteenwoordig kleinsake-ondernemings 98% van die totale aantal geregistreerde ondernemings en verskaf hulle werk aan 55% van die land se arbeidsmag, en dra hulle by tot 35% van die bruto binnelandse produk. Ongelukkig het Suid-Afrika ‘n lae oorlewingsyfer onder nuwe besighede in vergelyking met ander ontwikkelende ekonomieë. Sommige mense glo die rede vir die mislukkig van regeringsprogramme wat kleinsake-ondernemings ondersteun, is swak dienslewering. Hierdie is een van die sleutelkwessies wat aangespreek behoort te word deur alle sake-ondersteuningspartye. Die sleutel tot sukses is om ‘n privaatsektor-gedrewe aanslag te volg waar ervare sake-adviseurs en -mentors waarde kan toevoeg tot kliënte se besighede. Die ondersoek het sekere aanbevelings geidentifiseer wat mag lei tot ‘n verbetering van die huidige omstandighede. Die eerste stap is om te verseker dat mense wat kleinsake-ondersteuning bied wel sake-ondervinding het en die kleinsakebedryf verstaan. Tweedens, om te verseker dat die sektor se programme wel gefokus is op ‘n spesifieke doelwit en dat die oorkoepelende strategieë geïntegreerd en gefokus bly. Ten einde dit te bereik, moet die privaatsektor deelneem en die kostes deel. By die soeke na stappe om die bevordering van kleinsake op plaaslike vlak te verbeter, is dit belangrik om te kyk wat (elders) reeds geslaag het. Dit is alte dikwels stappe wat deur die privaatsektor onderneem word.

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: The main objective of this study is to analyse and evaluate the alignment between the strategies and operational aspects of small business promotion initiatives of regional government with those of the private sector. Small business development had been identified by the post-apartheid government as one of the keys to addressing a number of social problems - growth, employment and (re)distribution of wealth. Despite efforts and investment from both government and the private sector, this sector had never performed as expected and South Africa usually ranks relatively poorly in terms of innovation, according to the published rankings. To provide context, a literature review briefly explores the importance, success and inhibiting factors of small business development in South Africa. From the data, it is : clear that the success of the Small, Medium and Micro Enterprise (SMME) sector in South Africa, as in most developing countries, is key to the achievement of socioeconomic goals which are linked directly to the structure and success of the larger economy. The factors inhibiting a more successful development of the SMME sector relate to (a) the influence of socia-political goals on the economic policies, (b) the invisibility of SMME track records because of the development of the informal sector and (c) lacking skills, both among entrepreneurs and regional/local government and agencies. A brief review of the SMME strategies and implementation by national and regional government highlights the major problem areas, being regional interpretation and implementation of what seems to be generally accepted as a fairly well-developed national SMME strategy. This appears to be due mostly to lacking co-ordination and capacity (skills and knowledge) at the regional and local levels of government. The description of the South African Breweries' KickStart programme as an example of private sector SMME development efforts highlights a few aspects that seem to ensure a greater degree of tangible, directly attributable success of SMMEs developing into a sustainable business, albeit in smaller numbers. These aspects relate to a mixture of training and mentoring that assists the entrepreneurs in becoming self-sufficient prior to the awarding of any substantial financial assistance. At a higher level, it is evident that the private sector develops a clear, simple national strategy and ensures regional execution thereof through clear guidelines and the alignment and linking thereof to local group and individual goals and performance measurement. The latter is perhaps the most evident contrast between the government and the private sector in this regard, as it had not been found discussed in relation to how government executes strategy, in any of the literature reviewed. The writer agrees with the general opinion of the private sector from the literature reviewed, in that government should playa less directly involved and interventionist role and recommended that it should focus on facilitation of the process through creating the· right environment. Typically this will take place through reviewing of legislation and administrative requirements that increases the cost and complexity of doing business. Some proposals include the consolidation of SMME development . . efforts under a single Public Private Partnership (PPP); to ensure alignment and to . draw on the energy, focus and skills of the private sector. The study concludes that close co-operation between the public and private sectors is vital for the improvement of SMME development and that government has a number of options to consider for stimulating a greater private sector effort, while at : the same time becoming less interventionist. / AFRIKAANSE OPSOMMING: Die hoofdoelwit van die studie is om te analiseer en evalueer op watter wyse die strategiee en bedryfsaspekte van die kleinsakeontwikkelingsinisiatiewe van plaaslike regering en die van die privaatsektor by mekaar inskakel. Kleinsakeontwikkeling is reeds in 1994 deur die nuwe regering as een van die sleutels tot die verwesenliking van verskeie sosio-ekonomiese doelwitte geidentifiseer. Die vernaamste hiervan is groei, indiensneming en die (her)verdeling van inkomste. Ten spyte van die insette en finansiele belegging van sowel die regering as die privaatsektor, het hierdie sektor nooit na verwagting gepresteer nie en Suid-Afrika Ie gewoonlik relatief laag op die gepubliseerde ranglyste wat innovasie betref. As agtergrond tot die studie, ondersoek die literatuurstudie kortliks die belangrikheid, sukses en beperkende faktore van kleinsakeontwikkeling in Suid-Afrika. Die data toon duidelik dat die sukses van hierdie sektor, soos in die meeste ontwikkelende lande, 'n sleutelfaktor is in die verwesenliking van sosio-ekonomiese doelwitte, wat weer direk verbind is met die struktuur en sukses van die ekonomie in sy geheel. Die faktore wat 'n meer suksesvolle ontwikkeling van die kleinsakesektor verhoed, is verwant aan (a) die uitwerking wat sosio-politieke doelwitte op ekonomiese beleid het; (b) die feit dat die prestasies van die sektor as gevolg van die ontwikkeling van die informele sektor nie sigbaar is nie; en (c) 'n gebrek aan vaardighede onder entrepreneurs sowel as plaaslike/streeksregering en -agentskappe. 'n Analise van die nasionale en plaaslike regering se kleinsakeontwikkelingstrategiee, -struktuur en -implementering wys die grootste probleemareas uit, naamlik plaaslike regering se interpretasie en implementering van wat op die oog af as 'n redelik goed ontwikkelde nasionale strategie beskou word. Hierdie gaping blyk te wyte te wees aan 'n gebrek aan koordinering en kapasiteit (vaardighede en kennis) op plaaslike regeringsvlak. Die beskrywing van die "KickStart"-program van die SAB, as voorbeeld van privaatsektorinisiatiewe, wys 'n paar faktore uit wat oenskynlik lei tot 'n groter mate van tasbare en direk verwante sukses en onderhoubare groei in klein ondernemings, alhoewel in kleiner getalle. Hierdie faktore hou verband met die vermenging van opleiding en mentorskap wat die entrepreneurs help om selfonderhoudend te wees voordat enige wesenlike finansiele bystand verleen word. Op 'n hoer vlak is dit duidelik dat die privaatsektor tipies 'n duidelike, eenvoudige nasionale strategie ontwikkel en die uitvoering daarvan verseker deur duidelike riglyne en deur dit met plaaslike groeps- en individuele doelwitte en prestasiemeting te verbind. Laasgenoemde is waarskynlik die mees wesenlike kontras tussen die regering en die privaatsektor, aangesien nie enige van die Iitteratuur verwys het na die wyse waarop die regering strategie implementeer nie. Die skrywer stem saam met die algemene opinie van die privaatsektor op grond van die literatuurstudie, naamlik dat die regering 'n minder direkte rol, in kleinsakeontwikkeling behoort te speel, en beveel aan dat die regering op die fasilitering van die proses behoort te fokus deur die skepping van 'n tegemoetkomende besigheidsomgewing, hoofsaaklik deur die hersiening van wetgewing en administratiewe regulasies wat die kompleksiteit en koste van besigheid beinvloed. Van die aanbevelings sluit in die konsolidering van kleinsakeontwikkeling in 'n enkele vennootskap tussen die publieke en privaatsektore, om te verseker dat daar 'n beter gesamentlike poging sal wees en om die energie, fokus en kennis van die privaatsektor beter te benut. Die slotsom is dat samewerking tussen die publieke en privaalsektore krities is vir die suksesvolle ontwikkeling van die kleinsakesektor en dat die regering 'n paar opsies tot sy beskikking het om 'n groter mate van betrokkenheid deur die privaatsektor te stimuleer, terwyl die regering self minder direk betrokke kan wees.

Submitted in partial fulfilment of the requirements for the degree of Masters in Business Administration (MBA), Business Studies Unit--Durban University of Technology, 2008 / 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.