PHDRDV / Institute for Rural Development / Over 50% of the world's economies face high enterprise failure with African countries being on the top of the list. Specifically, South Africa is among nations with the highest rate of enterprise failure, estimated at 70%, despite sustained investments by the government to support the growth of enterprises. It has been argued that the country has no entrepreneurship models to support enterprise development, as a result, policies for entrepreneurial-supporting initiatives are not driven by correct or informed mechanisms that can adequately transform enterprises. This study investigated the indicators and critical exogenous and endogenous components associated with successful enterprises, borrowing some aspects from the Economic base theory. A mixedmethod was followed and 280 participants were drawn from 16 villages in four local municipalities of Vhembe District using snowball, purposive and cluster sampling techniques. A desktop review, semi-structured and structured questionnaires were tools used for the data collection. An analysis of the qualitative data was achieved through a thematic technique using MAX QDA and Atlas-ti v8. Microsoft Excel functions; descriptive statistics through STATA, while, Crosstabulation, Principal Component Analysis (PCA) and Multilayer Perceptron (MLP) model through SPSS v26, as well as Multiple Linear Regression (MLR) model using R v3.0, were exploited with the quantitative data. The results indicate that - profit margin, trends of new products, enterprise expansion and enterprise survival - are common success indicators in the area. The PCA fitted on exogenous data structure (n=280) computed 6 principal enterprise challenges from 45 items identified qualitatively. These are - Access to finance (AF: 14.887%), Access to market (AM: 10.297%), Physical capacity (PC: 8.858), Operational cost (OC: 6.052%), Socio-cultural issues (SC: 5.628%) and Competition (Co 4.460%). The MLP based on 83 sample structure of success enterprises, however, revealed that Co presents the most challenge followed by AM, OC, SI, AF and PC which was the least challenging. Similarly, PCA post-endogenous qualitative study computed 5 principal components from 49 initial items. Bridging networks (BN) constituted 38.044% of the variance followed by Self-belief (SB:15.802), Risk Awareness (RA:6.144), Resilience (R: 4.532), and Nonconformist (NC:4.271). The MLR employed to investigate the linear relationship of the parameters revealed that BN (𝛽1 = 7.57) is most influential and statistically significant (p=0.01). Except for SI which is negatively related to enterprise success, R, RA and NC parameters demonstrate positive influences to enterprise success. A model for successful enterprises centred on entrepreneurs’ exogenous and endogenous attributes is proposed as the main contribution of the study towards enterprises’ success in the areas of the research. The key recommendation in this study is that support to enterprises should be informed by the area-specific indicators outlined in the study. Keywords: African model, enterprise development, endogenous attributes, exogenous factors, rural areas / NRF

MAIR / Department of Development Studies / See the attached abstract below

MCom / Department of Accountany / The relationship between the Equity Market Risk Premium (MRP) and macroeconomic variables has been a subject of extensive discussion in the finance literature. The MRP is a central component of the main asset pricing models which are used to estimate the cost of equity which is mainly used in investment appraisal, performance measurement and valuation of equity assets. Past studies have identified inflation rate, interest rate, foreign exchange rate and political risk as the key macroeconomic variables that determine the size of the MRP. The test of the impact of these variables on the MRP have however been based mainly on data from developed countries and a few emerging countries. To the researcher’s knowledge, there are no studies that have investigated the impact of these macroeconomic variables on the MRP in South Africa. It is necessary to test the impact of these variables in the context of South Africa as these variables vary across countries. Using time series secondary data that was obtained from the SARB database, JSE database and World Bank database for the period 2002 to 2017, this study investigated the impact of these variables on the MRP in South Africa. A total of 192 observations per series of the inflation rate, interest rate, foreign exchange rate, political risk, JSE-ALSI and 91-days Treasury bill was used in the study. The data used were tested for possible misspecification errors that could arise from using a time series secondary data and the regression model was fitted using the Ordinary Least Square (OLS) estimator. The misspecification tests and models were both implemented on STATA 15 software. The results shows that inflation rate, interest rate and foreign exchange rate have a negative impact on the MRP whilst political risk has a positive impact on the MRP. Furthermore, the result shows that the inflation rate is the only variable amongst other variable tested that has a significant influence on the MRP for the study period. The study, therefore, concludes that inflation rate has the highest impact on the MRP in the context of South Africa. The study recommends that inflation rate should be monitored and kept within its target of 3-6% amongst other variables tested in order to increase investors’ confidence in the security market and also foster economic growth. The main limitations to the study were the limited data sources and insufficient funds. / NRF

MSc (Statistics) / Department of Statistics / Foreign direct investment plays an important role in the economic growth process in the host country, since foreign direct investment is considered as a vehicle transferring new ideas, capital, superior technology and skills from developed country to developing country. Non-parametric quantile regression is used in this study to estimate the relationship between foreign direct investment and the factors in uencing it in South Africa, using the data for the period 1996 to 2015. The variables are selected using the least absolute shrinkage and selection operator technique, and all the variables were selected to be in the models. The developed non-parametric quantile regression models were used for forecasting the future in ow of foreign direct investment in South Africa. The forecast evaluation was done for all models and the laplace radial basis kernel, ANOVA radial basis kernel and linear quantile regression averaging were selected as the three best models based on the accuracy measures (mean absolute percentage error, root mean square error and mean absolute error). The best set of forecast was selected based on the prediction interval coverage probability, Prediction interval normalized average deviation and prediction interval normalized average width. The results showed that linear quantile regression averaging is the best model to predict foreign direct investment since it had 100% coverage of the predictions. Linear quantile regression averaging was also con rmed to be the best model under the forecast error distribution. One of the contributions of this study was to bring the accurate foreign direct investment forecast results that can help policy makers to come up with good policies and suitable strategic plans to promote foreign direct investment in ows into South Africa. / NRF

MCom / Department of Business Management / Government regulations are needed to achieve a range of economic and social objectives which are beneficial to the nation as a whole. However, many countries experience problems with their regulatory systems as they invariably impose costs on businesses. In South Africa, it comes in the form of red tape, high taxes, labour laws and corruption. This places various regulatory burdens including compliance, administrative costs and other costs that may adversely influence firms’ productivity and frustrate their overall business performance and growth, particularly the small business sector. Given this sector’s indisputable contribution towards the overall economic health of the nation, it is important to address its concerns regarding the issue of the regulatory environment and government policy, in order to initiate corrective action and introduce regulatory reforms. Again, it is important to point out that not all businesses within the small business sector suffer under the weight of regulation. The purpose of this study was to examine the extent to which South Africa’s regulatory environment curtails the growth of the small business sector as well as determine whether the different categories of firms within the Small Business Sector (micro, very small, small or medium) bears different regulatory burdens. This study was carried out in Polokwane, Capricorn District Municipality, Limpopo Province, South Africa. To address the research problem, the positivist paradigm was used. The study used the mixed research method and the descriptive research design. The stratified sampling technique was used to determine various characteristics of the study population, while the convenience sampling technique was used due to constraints in reaching everyone in the population. The aim was therefore to find a representative sample of that population. Thus, to ensure that the population was representative, a sample size of 121 participants was derived using the Raosoft sample size calculator as well as other criteria. Questionnaires were utilised as the data collection tool and the collected data were analysed using SPSS version 25. Descriptive statistics, cluster analysis and Kruskal Wallis were also used to analyse the collected data. Results indicate that to a certain extent, the regulatory environment influences the small business sector negatively. On the other hand, the efforts and skills of the business owner influence their success and ability to remain in business, thus influencing the growth of the sector. The results also show that different categories of businesses within the small business sector bear different burdens, owing to certain characteristics they are defined by. / NRF

The aim of this study is to explore ways to maximise the economic returns of road infrastructure investment. In order to achieve this objective, the study was divided into five parts involving the following: analysing the nature of road infrastructure, determining the relationship between road infrastructure investment and economic development, considering aspects of economic modelling, developing a formula of road investment, and refocusing road investment practices. In the first part the characteristics of road infrastructure are examined and the demand and supply approaches to road investment outlined. The focus is on the balanced approach versus the unbalanced approach to infrastructure investment. The second part analyses the causal relationship between road investment and economic development. Four components are highlighted, namely the investment component, the network-performance component, the transport economic component and the economic development component. The third part analyses the applicability of modelling techniques. In the fifth part, the formula of road investment and economic development is focused on four markets. Finally, it is argued that road infrastructure investment must be refocused. The following was found: Road infrastructure investment must be demand led. This is because of the characteristics of roads, namely their indivisibility, long gestation period, lumpiness and high cost. Road infrastructure investment can only realise economic development if the four causality components are complied with simultaneously. Input-output modelling is preferred in South Africa. The modelling strategy developed in this study is recommended for transport economic studies. The probability of economic returns of road infrastructure investment is a function of the real estate market, the land development market, the urban economic market and the infrastructure market. An agenda for reform in the road investment industry was also proposed. The study clearly identifies the relationship between road infrastructure investment and economic development, and the proposed formula is an appropriate tool for a first-order priority system. / Transport Economics, Logistics and Tourism / D. Com. (Transport Economics)

Social capital, in broad terms, refers to norms, networks, trust and forms of social connections in societies that allows people to gain access to resources. This study involves a reconceptualisation of the concept of social capital. An overview of social capital literature reveals that economic needs are still dominant in both the theory and practice of development efforts that make use of social capital. It would therefore appear that the social capital paradigm is not balanced in that it does not clearly provide for the satisfaction of the diverse range of needs that people, particularly those in the rural communities, often experience. A resource-orientated approach is suggested in broadening the concept social capital to include the satisfaction of a wider variety of needs. An effort is made in the literature study, to capture the manifestations of social capital in different societies globally, with particular emphasis on community life in developing communities of the world. In addition, the discussion of social capital is deepened to include need satisfaction. A matrix of needs, as proposed by Max-Neef (1991), is used to argue that social capital would better be seen as a synergetic resource for the satisfaction of various needs. Instead of understanding social capital as a need, single satisfier, or as a `factor of production', an argument is put forward that such a conception of social capital is incomplete and inaccurate and that, instead, social capital should be understood as a multi-dimensional resource that can be used to service various needs of communities. Extensive fieldwork amongst agricultural producers in the Vhembe district of Limpopo provided ample evidence of social capital, although a precise fit with the mainstream theoretical perspectives was not found. The unusual profile of social capital reaffirmed the argument that social capital is present in different forms in rural developing communities and that social capital can best be seen as multi-dimensional because it has the ability to satisfy a wide variety of needs at different levels. Better use can be made of the concept of social capital by viewing it as multi-dimensional and linked to resources relevant to a wide variety of needs. Further research is needed if social capital is to be used by development planners. / Sosiale kapitaal verwys breedweg na norme, netwerke, vertroue en verskillende vorme van sosiale skakeling. `n Oorsig oor sosiale literatuur toon dat ekonomiese behoeftes die sosiale kapitaal teorie en praktyk domineer, veral tydens ontwilkkelingspogings wat gebruik maak van sosiale kapitaal. Hierdie studie behels `n heroorweging van die konsep sosiale kapitaal. Die sosialekapitaal - paradigma blyk ongeballanseerd te wees aangesien dit nie volkome voorsiening maak vir die verskeidenheid van behoeftes wat mense in landelike gemeenskappe dikwels ondervind nie. Deur die sosiale kapitaal konsep te verbreed, naamlik volgens die bevrediging van `n verskeidenheid van behoeftes, word `n hulpbrongebasseerde benadering tot sosiale kapitaal voorgestel. Tydens die literatuurstudie is gepoog om die manifestasies van sosiale kapitaal in verskillende samelewings van die wêreld vas te lê, met besondere verwysing na ontwikkelende gemeenskappe van die wêreld. Daarbenewens word die bespreking oor sosiale kapitaal spesifiek gekoppel aan behoeftebevrediging. `n Behoefte matriks, soos voorgestel deur Max-Neef (1991), is gebruik om te betoog dat sosiale kapitaal eerder as `n medewerkende hulpbron gesien behoord te word vir die bevrediging van verskillende behoeftes. Volgens hierdie siening word sosiale kapitaal nie beperk tot die bevrediging van enkele ekonomiese behoeftes nie. Hoewel uitgebreide veldwerk genoegsame bewyse van sosiale kapitaal opgelewer het, kon `n presiese ooreenstemming met die hoofstroom sosiaal teoretiese perspektiewe nie gevind word nie. Die ongewone profiel van sosiale kapitaal het die argument bevestig dat sosiale kapitaal as `n multidimensionele hulpbron verstaan behoord te word. Dit het die vermoë om `n wye verskydenheid behoeftes op verskillende vlakke te bevredig. Die konsep sosiale kapitaal kan beter gebruik word mits dit as multidimensioneel gesien word, asook gekoppel word aan hulpbronne wat relevant is aan `n wye verskeidenheid behoeftes. Verdere navorsing is nodig vir sosiale kapitaal om deur ontwikkelingsbeplanners gebruik te word. / Summary in Afrikaans and English / Development Studies / D. Litt. et Phil. (Development Studies)

The aim of this study is to determine the role that innovation plays in economic development and how an economic environment can be created that is conducive to innovation. The urgent need for development in large parts of the world indicates the importance of the increase in innovative activities because innovation is indicated as the “engine of growth and development”. It was found that innovation takes place within an innovation system and should be studied from a system perspective. The system perspective implies that there are different participants and that these participants function individually but that they also interact (wittingly or unwittingly) with one another. The innovation system is defined as a system that includes the participants or actors and their activities and interactions, as well as the socio-economic environment within which these actors or participants function, which determine the innovative performance of the system. A system approach is therefore necessary to study the influence of innovation on development. The role that innovation plays in economic development has been established by means of the historical patterns of economic development and major innovations as well as an analysis of literature of empirical studies. The historical pattern indicates the importance of innovation for economic development, but literature revealed the complexity of the relationship due to the non-linear relationship among different actors or participants in an innovation system. The main determinants of innovation was identified and a conceptual, descriptive model for an innovation system was developed, indicating the different participants, their roles, the interaction among them, and the economic environment within which the participants function. The model was applied to the Mpumalanga province in South Africa as case study. Strengths and weaknesses were identified in the Mpumalanga innovation system and recommendations were made for the improvement of the Mpumalanga innovation system which in turn should lead to an improvement in the economic development of the province. / Economics / D.Comm. (Economics)

This study aimed to develop a causal chain that illustrates the path through which a variety of factors influence consumer financial vulnerability. In order to achieve the stated aim, it was necessary to firstly identify the factors that gave rise to consumers being financially vulnerable. Secondly, the nature of the causal chain between the identified factors was determined. Thirdly, the causes of consumer financial vulnerability according to key informants in the financial services industry were determined. Finally, based on the results of the first three stages, possible explanations for consumer financial vulnerability were provided. Before the construction of the causal chain could be explored, a theoretical framework regarding household financial position as well as financial attitudes and behaviours was provided. The theoretical framework was supported by a description of the linkages through which consumers function and transact in an economy by applying chain reasoning. The chain reasoning was extended by providing financial statements reflecting the results of consumers’ interactions in the macroeconomy with an extract from the national accounts of South Africa presenting the income statements, balance sheets and relevant financial ratios of consumers for the period in which the research was conducted (2008 to 2009). For this study, the explanatory sequential mixed methods design was deemed appropriate to achieve the proposed research objectives. The research process firstly consisted of a quantitative strand where the possible causes for consumer financial vulnerability were identified after which the results were validated with data obtained in the second phase by means of four focus group discussions. To determine the factors giving rise to and establish the causal chain of overall consumer financial vulnerability, regression analysis was conducted. Based on the results of the regression analysis, it became evident that the financial vulnerability chain is not a singular linear process but rather a non-linear process (with contemporaneous and singular linkages) with a variety of factors influencing financial vulnerability, but also influencing each other over time. / Management Accounting / D. Accounting Science

This study sets out to contribute to the expansive development of Systematic Theology and Black Theology, particularly in the struggle for economic justice in the democratic South Africa. The liberation of black people in South Africa and across the globe is the substantive reason for Black Theologies‘ existence and expression. The study‘s reflections on economic justice and Black Theology as sites of the intellectual focus and analysis is central to understanding the conditions of existence for the majority of South Africa‘s citizens, as well as understanding whether the fullness of life based on dignity and freedom as articulated in biblical witness, particularly John 10:10 is manifest for black people in South Africa. The study also seeks to identify, describe, analyse and understand the emancipatory theories and praxis, which entail a plethora of efforts they undertake to liberate themselves. Understanding and engendering the nexus of social practice and theological insights in the articulation of Black Theology as a particular expression of systematic theology, and drawing attention to the ethical foundations undergirding Black Theology, are important in demonstrating Black Theology‘s role and task as a multi-disciplinary discipline which encompass and engender dialogue within and between theory and praxis, and theology and ethics. This study thus suggests that since the locus of Black Theology and spirituality is embedded in the life, (ecclesial and missional) work (koinonia) and preaching (kerygma) of black churches, they have the requisite responsibility to engage in the efforts (spiritual and theological) in the struggle to finding solutions to the triple crises of unemployment, inequality and poverty which ravage the quality and dignity of life of the majority black people in post-apartheid South Africa. This study therefore concludes by asserting that, there are a variety of viable options and criteria relevant for facilitating economic justice in South Africa. These strategies include transformational distribution of land to the majority of South Africans, the implementation of heterodox economic policies which engender market and social justice values in the distribution of economic goods to all citizens. It also entails prioritization of the social justice agenda in economic planning and economic practice. In theological language, economic justice must involve the restoration of the dignity and the wellbeing of the majority of South Africans, who remain poor, marginalised and disillusioned. It also entails promoting justice as a central principle in correcting the remnants of apartheid injustices, which limit transformational justice which enables and facilitates equality, freedom and economic justice for all South African citizens. / Philosophy, Practical & Systematic Theology / M. Th. (Systematic Theology)