Local Economic Development (LED) in South Africa has grown in significance since the 1994 democratic transition. This study investigates and analyses enterprise development trends in and around Mthatha, in the King Sabata Dalindyebo Municipality (KSDM) for the period 1995 to 2006. The study briefly examines the local economic development in the context of developmental local government with reference to enterprise developments. For the purpose of the study, a case study research method was adopted. Yin (1984:23) defines the case study research method as an empirical inquiry that investigates a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used. Both quantitative and qualitative data collection techniques were used in a complementary way. A thorough literature review was conducted to lay a theoretical foundation for the study. Secondary data was used from publicly available sources. Primary data was gathered by means of face-to-face structured interviews and questionnaires. The findings indicated that a number of factors have been identified as contributing to the retarded development and economic growth in the area, namely limited skills base, high levels of poverty, high unemployment rate, lack of co-ordination and integration of development initiatives. These lead to ineffective use of resources and a poor condition of the roads. Such factors, coupled with inadequate maintenance, may have also resulted in the failure to maximise the economic potential of the area and poor infrastructure provision that cannot support business or industrial development. The study further reveals that there are local government policies and legislative frameworks in KSDM to address municipal developments, although some of these are still in their draft phases. The Integrated Development Plan (IDP) emerged as the most popular local development plan and strategy, particularly, because it provides a holistic and participatory approach to planning at a local government level. The government also emphasises IDP in its strategic planning and development frameworks. The study undertaken will contribute to policy development in the critical area of local economic development and, more specifically, enterprise development. The study recommends that KSDM needs to plan and ensure that the developments that take place are within stipulated Spatial Development Framework (SDF) Guidelines, and Land Use Management Guidelines. / Thesis (MBA)-University of KwaZulu-Natal, 2009.

The South African government has set a target of reducing unemployment by fifty percent by the year 2014. In order for government to achieve this target, more attention needs to be given to female entrepreneurs. This is due to the fact that women in South Africa make up half the business force and their contributions have not been adequately nurtured. The South African government is aware of the significance that female entrepreneurship has had on the growing economy of the country. As a result, many initiatives have been undertaken by the South African government, including business start-up training and advice as well as mentoring and coaching programmes. Thus, the aim of this study is to critically evaluate the role of female entrepreneurs and their contribution to economic growth in KwaZulu-Natal. The study will further analyse the role played by the South African government in terms of promoting female entrepreneurship, specifically relating to access to finance and training programmes. A ‘snowball’ sample of fifty female entrepreneurs was selected from the central business region of KwaZulu-Natal to complete the questionaire who were in business for more than three years. Data was collected using a questionnaire developed by the researcher. Statistical analysis was conducted on the data in order to reveal whether there were any significant relationships between training programmes instituted by the government and success of the small to medium owned businesses as well as the access to financial support and start-up costs. Research in this study have shown that there are a number of challenges which hindered the growth of female entrepreneurs including shortage of skills, limited access to start-up capital, lack of mentorship and government assistance as well as insufficient family support. Although the government has assisted organisations to assist female entrepreneurs in terms of mentorship and training programmes, more needs to be done in terms of building awareness of these programmes. The government needs to be more proactively involved in the promotion and advertisement of these programmes as well as sponsoring training programmes for women. / Thesis (MBA)-University of KwaZulu-Natal, Westville, 2010.

The purpose of the study was to investigate the impediments to the expansion of small black owned businesses in Durban. The study was based on the assumption that small black owned businesses are not expanding in Durban despite the support from eThekwini Municipality, Government and Black Economic Empowerment policies. Participation in seminars, conferences and meetings in which barriers to the expansion of SMMEs were discussed also helped in data collection, and the questionnaires were also given to the small black owned businesses. Semi-structured interviews were conducted with the small black business owners who have experience as small entrepreneurs. Websites of SMMEs like Khula and Ntsika were visited to establish the direction of SMMEs in Durban. Visits to eThekwini Municipality and South African Chamber of Commerce helped in gathering the information about the impediments to the expansion of small black entrepreneurs. The finding was that small black owned businesses are facing serious impediments such as lack of capital, lack of training and lack of government support. It was recommended that the UKZN-Graduate School of Business should provide small businesses development courses interpreted in both English and Zulu. It was also recommended that Government establish one central office for entrepreneurs to sort out licenses, tax and service contracts. It is recommended that South African Revenue Service to be a right place for sorting out licenses, tax and service contracts. / Thesis (MBA)-University of KwaZulu-Natal, 2008.

The objective of this research was to assess the role of entrepreneurship in the success of small businesses using the factors based on the Burch continuum to measure the levels of entrepreneurial activity. The term entrepreneurship is often used inappropriately in respect of all small businesses, and yet in actual fact this term only refers to businesses that have growth and development as sustainable and achievable objectives (Ligthelm, 2008:368). This study used growth in staff numbers as the measure of success. Growth in staff numbers was used because small business owners are generally not willing to give out their financial records or to disclose their firms’ financial standing. The law of diminishing returns states that the business faces rising costs as it undertakes to expand or grow. The cause of this being that some fixed factors of production limit profitable growth (Teece, 2000:49). This therefore implies that businesses would not unnecessarily increase their employee numbers unless they were growing and had an increased need for labour. Using emailed questionnaires to collect the data needed for the research, a simple random sample of 252 SMEs was generated from a pool of 678 companies registered with the Pietermaritzburg Chamber of Business. The data collected was both qualitative and quantitative. SPSS was used to analyse the data. The information showed that an increase in the level of entrepreneurial activity has a positive impact on the success of a small business. Nearly all the businesses that were successful actively practiced a number of variables that Burch used to measure entrepreneurial activity in his continuum and engaged in more strategic roles as compared to the unsuccessful businesses. A clear differentiation was found using the roles played by the entrepreneur. The successful businesses were run by entrepreneurs who employed more strategic roles in businesses. The researcher would suggest that further study be done on the relevance of older business theories in relation to business success considering the impact of advanced technology in the present day. / Thesis (M.Com.)-University of KwaZulu-Natal, Pietermaritzburg, 2013.

The sustained growth of small, medium and micro enterprises (SMMEs) could help to reduce poverty, income inequality and unemployment problems in KwaZulu-Natal (KZN). Public and private sector institutions can identify policies and strategies to, increase the survival and growth rates of SMMEs if they have more information about the factors that constrain business performance, and the link between entrepreneurial quality and enterprise success. The owners of 44 agribusiness SMMEs in a stratified random sample of Ithala Development Finance Corporation (Ithala) clients in KZN were, therefore, surveyed during October 2003-February 2004 to identify what they perceive are constraints on business survival and growth, and how entrepreneurial quality affects business success (using loan repayment performance at Ithala as a proxy for success). Principal Component Analysis of 36 potential constraints ranked by the survey respondents identified eight dimensions of perceived constraints: A lack of access to services; funding constraints at enterprise start-up; a lack of management capacity in the enterprise; access to tender contracts; compliance costs associated with VAT and labour legislation; liquidity stress; a lack of collateral, and a lack of institutional (government and private sector) support. A lack of collateral and access to services seemed to affect the Retailer stratum relatively more, while Speculators considered lack of capital at start-up to be their major constraint. Harvester contractors and Processors seemed to be most affected by compliance costs, while Processors were especially prone to liquidity stress. Possible solutions to ease these constraints include the provision of appropriate infrastructure and training, development of innovative loan products to address cash flow and collateral issues, more transparent tendering processes, and policies to reduce the costs of compliance with legislation. An empirical logit model showed that strong energizer behaviours (current and planned business expansion and staff training) that reflect entrepreneurial quality, more business experience, and family assistance to become an entrepreneur, promote loan repayment (success), while a lack of access to electricity and training facilities increase the probability of loan default. This suggests that more focus on the personal characteristics of credit applicants and (again) the development of appropriate infrastructure and training services could help to promote the future success of agribusiness SMMEs in KZN. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

There are numerous government and private sector initiatives aimed at supporting micro business in South Africa, yet there seems to be a lack of coercion, synergy and harmony in these endeavours to assist such businesses. A common perception about government is that all of its business programmes, have a string of protocols, red tape and intermediaries resulting in delays and inefficient support. Efforts to access this assistance is burdensome for micro-business. There is loss of time and resources in the process. This research paper sought to establish what business management strategies are employed by the micro-business owner in the Pinetown area, as a means to survive and grow. Business management strategies have been discussed in light of their strength to help the business survive and grow. The effectiveness and the efficiency of these management strategies is measured based on the classification of micro- business and the research methodology chosen. Questionnaires have been self administered to the micro-business owners to obtain their response on strategies practical for their survival. The area of study selected has been the Pinetown Area located within the Ethekwini Municipality, and part of the Province of KwaZulu- Natal. Findings from literature have highlighted constraints limiting micro business growth in South Africa. Findings have also highlighted major survival strategies viewed as the main motivating factor for micro-business owners to survive. Two key findings emerged from the study; firstly the need micro business owners to be financially prudent and to manage their business better. The second major finding was the existence of collaborative savings (stokvel), utilized as a traditional investment strategy. Recommendations based on these are the provision of financial management skills to micro business, through mentorship and financial assistance programmes by government agencies. This would benefit the micro-business owners realize their dreams of substantial and extensive business expansion. / MBA. University of KwaZulu-Natal, Durban 2012.

The number of unemployed young university graduates in South Africa is annually on the rise. This is due to a combination of factors which include a lack of the right skills, work experience, type of qualification, low number of available jobs and other macro-economic factors. Different stakeholders have proposed entrepreneurship as a possible solution to graduate unemployment. This study explores the feasibility of entrepreneurship as a way out of unemployment for jobless graduates. It does this by investigating the perceptions of young graduates of the University of KwaZulu-Natal who are engaged in entrepreneurship in Pietermaritzburg. The qualitative method of interviews is used for data collection. Two major areas of investigation in this study are that of the challenges that graduates encounter in their various business ventures as well as their perceptions about the effectiveness of entrepreneurship education at university. Generally the findings of this study seem to suggest that entrepreneurship, if developed properly, could be one of the solutions to the challenge of graduate unemployment. However a number of factors determine successful entrepreneurship. These include personality traits, intelligence, access to finance, good business management skills, family background as well as the general economic environment. The findings could also generally suggest that, in its current form, entrepreneurship education is not effective enough in producing graduates who are successful in business. / Thesis (M.Com.Dev.Studies)-University of KwaZulu-Natal, Durban, 2012.

The purpose of the study was to investigate the perceptions of emerging black entrepreneurs on their ability to access government contract work with special reference to that outsourced by the Department of Economic Development and Tourism in the Province of KwaZulu-Natal. The study was based on the assumption that black emerging entrepreneurs are side lined by the procurement systems and processes of government, despite the fact when the new government took over after the democratic elections of 1994, it formulated legislation and policies and provided institutional framework to ensure that enterprises belonging to entrepreneurs of African descent in particular were brought into the economic mainstream activities of the country. The study utilized an exploratory description research design owing to publicity of literature on the effectiveness of government's procurement intervention strategies in addressing the needs of emerging black entrepreneurs. The study used two samples drawn from two research populations. In the first sample the population consisted of thirty-two tender submissions that emerging black entrepreneurs forwarded to the Department of Economic Development and Tourism in the Province of KwaZulu-Natal, in response to contract work or tenders advertised and evaluated by the Tender Evaluation Committee and the Tender Award Committee of the Department during the financial year 2001/2. An instrument was developed to elicit data from the tender documents for the purpose of orders. In the second sample the research population consisted of sixteen emerging black entrepreneurs whose tender documents submitted in response to the tenders outsourced by the Department during the financial year 2001/2 were evaluated by the Department's Tender Evaluation Committee and tender Award Committee during the period in question. The questionnaire was used to elicit information on the perceptions of emerging black entrepreneurs with regard to their level of participation in the procurement process of the Department. The findings of the study are supportive of the guiding questions and assumptions advanced for the purpose of focusing the study. The finding was that black emerging entrepreneurs perceived themselves to be non-participants in the procurement activities of the Department. The study also found the existence of structural problem, which acted as barriers to active participation, of black emerging entrepreneurs, in the outsourcing activities of the Department of Economic Development and Tourism in the Province of KwaZulu-Natal. / Thesis (MBA)-University of Natal, Durban, 2003.

Poverty is caused by inadequate income. Effective assistance to small-scale enterprises may benefit the urban and rural poor. Small enterprises have the potential to create employment, reduce poverty and support sustainable livelihoods, as small enterprises satisfy local needs, provide employment opportunities in local areas, increase income, ensure food security and improve health. The Department of Land Affairs has recently introduced policies such the Land Reform Policy to correct the injustices of South Africa’s past. During 2005, the KwaZulu-Natal Department of Agriculture and Environmental Affairs introduced the Agrarian Revolution Programme, in an effort to close the gap between the first and second economy. The Agrarian Revolution and the LRAD programmes encourage agribusinesses through the formation of co-operatives or trusts. The purpose of this study was to investigate the potential of an envisaged processing enterprise with a group of women from an LRAD project, within the Engadini Community Trust. An action research methodology was followed. A training manual was developed and training conducted with the Engadini women’s group through which they prepared a business plan, developed prototype products; conducted market research; estimated prices for the products and developed a marketing plan. The study results indicate that the group would have the technical skills to make a good quality product. The group is likely to face problems ensuring a sustainable supply of raw materials as the current supply of milk would hardly be sufficient to supply the target market sampled during the consumer survey. The success of the dairy processing enterprises depends heavily on the ability of the Engadini Trust to overcome internal social problems. Conflict between the Engadini dairy processing enterprise members and conflict within the larger Engadini Community Trust had a crippling effect on the dairy processing enterprise. The main recommendations for the group are that the group needs to secure a sustainable supply or fresh milk. A dairy processing facility that will meet food safety standards needs to be erected for the enterprise. The location of the dairy processing enterprise needs to be re-considered. To overcome internal conflict within the group, the women’s group needs to gain representation on the Engadini Community Trust’s Executive Committee, to ensure that the dairy processing enterprise interests are considered by the Trust. The main recommendations for small-scale enterprises are that they should ensure to have sustainable supply of good-quality raw materials and a reliable, sustainable market, even if the market is relatively small. Policy recommendations are that Government Departments such as the KwaZulu-Natal Departments of Agriculture and Environmental Affairs and Economic Development should consider adapting policies that will focus on funding individual enterprises, rather than group enterprises. A directorate or sub-directorate dedicated to the development of small and medium sized food processing enterprises should be created. The marketing section of the KwaZulu- Natal Department of Agriculture and Environmental Affairs should provide marketing information for small-scale food processing enterprises available to extension officers and small-scale enterprises.

The ANC government’s quest for economic transformation in the post-apartheid South Africa came up with black economic empowerment policy. Equal participation in the economy especially for the previously disadvantaged was one of the stated aims of black economic empowerment. This study discusses black entrepreneurs’ perceptions of business transformation in Durban in the context of lack economic empowerment. Qualitative interviews were conducted with fourteen black entrepreneurs that were indentified and located through purposive and snowball sampling methods. The study found out that while there is an appreciation of BEE policy and the transformation that has already taken place, there is also a healthy criticism, discontent, skepticism and impatience over the pace of transformation and implementation of BEE policy. / Thesis (M.Dev.Studies)-University of KwaZulu-Natal, Durban, 2013.