Thesis (MBA)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: This research investigates the short-term insurance industry in South Africa in order to develop a strategic architecture for a new player to enter the market, differentiated primarily by operating on mutual principles. Mutual insurance is not something new and is widely applied across the world. However, in South Africa there is only one company that operates completely as a mutual. That company is known as the Professional Provident Society (PPS), and has been in operation since 1941. Although PPS operates completely as a mutual, it has only recently started to take part in the short-term insurance industry. Apart from them, there is no other short-term insurer that operates on mutual principles. In order to develop a strategic architecture, a thorough understanding of the industry and market was obtained by analysing the external and internal environments of short-term insurers in South Africa. The research is based on solid statistical data on all registered insurers, available from the governing body for insurers in South Africa, the Financial Services Board, as well as more qualitative data in the form of reports on industry analysis, performed by major auditors like KPMG and PWC. It also takes into consideration “cutting edge” approaches to starting up a new business, regardless of industry, through the application of the “Customer Development Model”, an approach based on lean and agile principles to mitigate the risk of developing a product / service at high cost before knowing if the market actually has a need or appetite for it. This research concludes by offering a strategic architecture and strategic implementation plan for a new player to enter the market, based on the analysis performed though the application of various strategic tools and frameworks. The primary findings of this research are that the industry is highly competitive, with longstanding ‘giants’ supported by parent companies. Those ‘giants’, however, all operate as stock insurers, and a transition by any one of them to mutual insurer, is highly unlikely. As mentioned, the industry currently only has one mutual insurer. This means there is really only one competitor (PPS) in terms of the profit sharing model and in that, PPS has a rather niche focus since its products are only available to graduate professionals. This research uses further external and internal environment analysis methods to extract industry information used in the formulation of a strategic architecture and business model for a new player to compete in the environment described above. It suggests that there is, in fact, room for a new player and that it can differentiate itself from stock insurers by applying the mutual model. It can further differentiate itself from stock insurers and PPS by expanding its market focus (i.e. not only for graduate professionals) and by utilising technology in productive and creative ways that encourages engagement with customers in a new way.

A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management with specialisation in Entrepreneurship and New Venture Creation. University of the Witwatersrand, Johannesburg, March 2016 / New technology-based firms (NTBFs) or technopreneurs are assumed to be one of the most important sources of economic value creation and development. Apart from bringing innovation with high growth and impact potential, NTBFs are faced with high uncertainty and demand a supporting environment that enhances firm’s performance. It can be concluded that new firms or new incubatees operate in competitive settings and demand systems that aid them to realize sustainable growth. Globally, there is a well-established body of knowledge that scrutinizes factors and relationships between factors that enhance NTBFs innovation performance. Majority of existing literature concurs that there are numerous variables of factors that can influence the product or service performance in respect to turnover. Within sub-Saharan Africa, technology incubation support programmes are seen as factors that affect a firm’s performance. However, the rise of NTBFs, the startups concept and technology incubator practices are all very much in their infancy in South Africa. From this point of view, it is significant to qualify the existing global body of knowledge to Gauteng’s context in order to identify the right mix factors impacting innovation performance of new technology-based firms. Factors such as survival, research and development (i.e. R&D propensity) and technological capability are seen as levers that impact new technology-based firm’s innovation performance. In a narrow sense, in this study, we aim to extend existing research by identifying determinant factors related to survival, R&D propensity and technological capability as independent variables; and analyse the nexus of these factors and innovation performance, the independent variable. We prudently identify startup firms that are in technology and embrace innovations while most of these new startups are still in an early development stage and receive comprehensive investment from university or government innovation in Gauteng. A total of 206 NTBFs were surveyed. Initially, the study employs exploratory factor analysis to first estimate the underlying variables and estimate of latent loadings. Subsequently, the correlations between survival, technological capability, R&D propensity and innovation performance measurements were tested. ii The findings suggest that there is no relationship between the number of years under the incubation management and producing new products and services that firms can launch to new market to gain profits in order to survive. Particular, in South Africa, the technology incubator movement is still in an infancy stage; hence for firms starting new ventures and producing products, it is difficult. The evidence from this study also found no relationship between survival (i.e. access to knowledge and collaboration) and innovation performance i.e. turnover. On the other hand, it was expected that investing vigorously in R&D would create patents, publications, products and services which would impact turnover. In opposition, the empirical results found no statistical relationship between R&D propensity and turnover. Our results should also be interpreted in the broad sense; measuring R&D propensity should be viewed with the understanding of complexity in measuring R&D impact to turnover. The study also found no relationship between marketing and firm turnover. Although theoretical studies suggest applying marketing capability is a key in launching and commercialising innovations, these firms tend to place more focus on product developments and pay less attention to marketing capabilities. Consistent with existing literature, the study found that there is a positive relationship between technological capability - innovativeness and innovation performance i.e. turnover. This is in line with the researcher’s position that generation, developing and implementation of new ideas leads successful performance of innovation, while we have contended that adapting or modifying existing technologies, emphasising introduction of new products, marketing of tried and true technologies and using previous research to implement technologies as determinant factors to technological capability (i.e. Technology Adaptation) impacts innovation performance. The results of the study concluded that there is a relationship between Technology Adaptation and innovation performance. In regards, competitive environment, the study found that no relationship between introducing innovation ahead of competitors and innovation performance. It was expected that these firms would avoid taking risks, these firms are not equipped with resources to experiment innovation methods or lead in new market identification. The empirical evidence generated from this study is significant and contributes to the existing body of knowledge for this reason: the study advances literature of measurements of innovation performance which varies from one study to the other. / GR2018

M. Tech. Organisational Leadership / Over the past few decades, increasing attention has been paid to the contribution of Universities of Technology towards advancing the frontiers of science and technology. However, such research is descriptive and lacks a theoretical framework. Relying on the resource-based theory and incubation models, the present research is concerned with proposing a theoretical framework for the enabling factors that influence the graduation of new technology-based firms that result from the commercialisation of research and technology through to becoming established businesses from university technology business incubators. This framework is being proposed with two major objectives in mind. The first is to identify the main enabling factors that influence the graduation of new technology-based firms within university technology business incubators, which may provide a base for university stakeholders to design an appropriate incubation programme aimed at timely and successful graduation of new technology-based firms. The second is to link the development of business ideas to enabling factors that influence their progression into graduate businesses, which may provide a better understanding of how university incubation aspects work, providing theoretical insights into the incubation process of new technology-based firms. In the theoretical framework, a number of enabling factors were identified as components of the incubation process, namely stringent selection and admission criteria, administrative and legal policies, access to financial resources, access to university entrepreneurial network/mediation, and access to organisational resources and business support services. The most significant finding of the research is that there are a number of enabling factors that influence the graduation of new technology-based firms within university technology business incubators, the most significant of which are stringent selection and admission criteria, the business support services, financial resources, university entrepreneurial network/ mediation and organisational resources. Each of these factors is grouped into three stages: the pre incubation stage, the incubation stage and the graduation stage.

Small businesses contribute towards the Gross National Product of the country and also provide jobs. More and more people are leaving schools and universities with the hope of finding jobs but this is not always possible. The best solution for these people is that they should start their own small businesses in their communities. Different businesses start because people have identified a need in their community. Good things about small businesses are that some of them become successful and eventually turned into franchise. Franchise is one way of starting a business. People are sceptical of new products, they want the tried and tested products because they can identify with them. However, the franchisee will always be provided with support from Head office to ensure that they succeed. The government has set-up organisations such as Ntsika and Khula that help the SMMEs with things such as business plans and finance. These organisations help entrepreneurs free of charge. This project seek to evaluate those aspects that make some small businesses succeed and others fail in Mafikeng and Mmabatho area and also to what extend does management skills affect small skills affect small businesses. The report also looks at how entrepreneurs use technology in their businesses. / (MBA) North-West University, Mafikeng Campus, 2006

South Africa is faced with many mutually reinforcing societal challenges which include, amongst others, a high rate of unemployment, poverty and inequality. The community that is mostly affected by these challenges is the black African community. In order to deal with the challenge of poverty and inequality which causes other societal problems, entrepreneurship and enterprise development becomes the answer. This view is supported by the body of knowledge available on the subject of entrepreneurship and enterprise development. This paper undertakes to understand critical success factors affecting entrepreneurial culture within black African communities in South Africa. In addition, this paper undertakes to investigate the perceived influence of education and training, access to funding, government policies (i.e. regulatory environment), government programmes, commercial and financial infrastructure, physical infrastructure, crime, corruption and social and cultural norms on the success of entrepreneurial culture development within black African communities. Propositions are made and tested through conducting in-depth interviews with individuals involved with the dynamics presented by this subject on a day to day basis. Evidence collected is interpreted into knowledge and finally recommendations are made.

Recent years have seen the decline of entrepreneurial activity in South Africa. This is especially concerning in that, officially, 27.7% of South Africans are unemployed. The unofficial unemployment figures are closer to 50%. The South African economy is battling to recover from the world economic crisis of 2009/10, putting pressure on government to alleviate growing unemployment and curtail social unrest. Furthermore, a South African economy which thrives on entrepreneurial activity will become more competitive from a global perspective. The purpose of this study is to contribute to the promotion and development of entrepreneurship in South Africa, in an effort to combat the problems listed above. In order to achieve this purpose, the objective was to develop and test a model which could be used in the development of entrepreneurs. The rationale is that, if the factors which affect entrepreneurship could be identified and tested, then recommendations could be made which could promote the development of entrepreneurs in South Africa. The approach was as follows: Perform a literature review which would cover both global and local (South African) approaches to developmental training for entrepreneurs; Develop a theoretical model comprising of identified factors which formed the base for the data collection; Develop a measuring instrument to test the relationships described in the theoretical model empirically; • Empirically test the proposed model and suggested hypotheses by means of sourcing data from entrepreneurs in South Africa and statistically analyse the sourced data; Formulate the final theoretical model to support the research objectives; and Propose recommendations based on the results of the statistical analysis. The focus of the literature study was on two main areas: trends in global developmental training, and South African initiatives to stimulate developmental training of entrepreneurs. The literature on global entrepreneurial development highlights two distinct categories for entrepreneurial development: 1) entrepreneurial education and 2) entrepreneurial training. The literature study concerning South African methodologies for developmental training for entrepreneurs, focused on current methods employed and highlighted areas on which improvements should be concentrated. From the literature study on both global and South African developmental training methods, ten independent variables (entrepreneurial culture; socio-emotional attributes; acquiring business skills; industry experience; opportunity identification; regulatory barriers; economic barriers; outside advice; formal training and informal training were identified as factors affecting entrepreneurial developmental training. All the variables were hypothesised as they were perceived to influence significantly the dependent variables: perceived global success as an entrepreneur and perceived individual success as an entrepreneur. These factors, clearly defined and operationalised, were structured in a questionnaire which was sent randomly to South African business owners. Data were collected from 332 respondents and subjected to various statistical analysis techniques. Firstly, Exploratory Factor Analysis (EFA) was conducted to assess the discriminant validity of the research instrument. Secondly, Cronbach’s alpha coefficients were calculated for each of the identified factors to confirm the reliability of the research instrument. The significance of the hypothesised relationships in the revised model were then tested by using the statistical technique known as Structural Equation Modelling (SEM) This study contributed to this specific field of knowledge.

It is estimated that the failure rate of small, medium and micro enterprises in South Africa’s (SMME’s) are between 70 percent and 80 percent. As a result, millions of rand are lost on business ventures because of essentially avoidable mistakes and problems. Difficulties encountered by small business owner-managers can be described as environmental, marketing, financial or managerial in nature. The primary objective of this study was to investigate the nature and importance of problems experience by small business owner-managers in the private health sector. The design that was used in this study was qualitative, descriptive, exploratory and contextual in nature. This study fell within the broad framework of qualitative research, as interviews were employed to do the research project (Baker, 1999:247). A purposive sample was used to identify the participants for inclusion. The target population was small business owner-managers operating within the private health sector in the Nelson Mandela Metropole. The sample comprised eight business owner-managers in the health sector within the boundaries of the Nelson Mandela Metropole, purposely identified. Before doing the empirical research, a pilot study was conducted with one small business owner-manager that fulfilled the required criteria of the research population. Data was collected by means of naïve sketches and semi-structured interviews. Data was analyzed according to the framework provided by Tesch (in Creswell, 1994). Guba’s model (in Krefting, 1991) was employed for data verification. Interviews were conducted in both Afrikaans and English. iii Direct transcriptions from the tape-recorded interviews ensured that all data was gathered and saved for reference when needed during the data analysis as described by Field and Morse (1996:64). The researcher took observational, theoretical, methodological and personal notes as described in Wilson (1989: 433-435). Transcriptions from sketches and interviews served as the database for the study. Only literature pertaining to the research process was consulted prior to the data collection of the primary data, in order to establish an effective research format. The problems experienced by small business owner-managers in the health sector were discussed under four major themes and several sub-themes identified by the researcher and the independent coder. The main themes that emerged from the study were: small business ownermanagers in the health sector lacked business skills and experience; had financial problems regarding their businesses; had difficulty building a customer base; and were uncertain in terms of their businesses’ future. Conclusions were drawn from the findings of the study and limiting factors were identified and acknowledged in the report. Recommendations that could assist practitioners, educators and trainers were suggested.

The humble beginnings of business incubators date back to the 1970s in the USA and United Kingdom, where abandoned industrial buildings were converted to rent out to small businesses. South Africa (SA) was first introduced to business incubation in the 1980s when the Small Business Development Corporation (SBDC) established a number of business ‘hives’ and provided business space to entrepreneurs to operate their businesses. In their most basic form, business incubators provide a safe and nurturing environment for entrepreneurs to establish their small businesses. While in incubation, the Small and Medium Enterprises (SMEs) are supported with a number of services which assist their growth and development until they are able to exit the incubator as sustainable and viable businesses. Global incubator models have matured significantly, and now include assisting with business idea generation, accelerating business start-ups and commercialisation processes, and identifying high-growth orientated SMEs to assist them with gaining market access. The establishment of business incubators was a government-driven initiative, and more than 33 SME incubators exist in SA. Most of the incubators are government-funded, and have focused on the establishment and growth of SMEs to act as a catalyst to promote economic development and alleviate socio-economic challenges such as unemployment and poverty. Despite these noble objectives, incubation in SA has not been fully utilised, and a high SME failure rate still prevails in the country. One of the reasons for SME failure may be ascribed to the lack of an enabling SME incubation environment in SA. When compared to other developing countries such as Brazil with as many as 400 incubators, it is clear that the SA incubation industry still needs further development. The purpose of this study therefore was to ascertain the best practices of global business incubators in both developed and developing countries, and how SA incubators could learn from these best practices to create a more conducive and enabling SME incubation environment. Background literature on business incubation with a specific focus on best practices in world incubators in both developed and developing countries, was reviewed. Some of the literature reviewed included Aernoudt (2004), Buys and Mbewana (2007) and Chandra (2009). From the literature review, four main best practice areas were identified, namely strategic focus, sources of funding, incubator services, and the role of government. The study followed a qualitative approach, and an interview schedule was developed to seek the perceptions of incubator managers on how the four identified best practices can be utilised to create an enabling SA incubation environment. A survey was conducted by interviewing 14 incubator managers (twelve government and two private) in SA. Data was collected over a six-month period, using face-to-face and telephonic interviews. Data was analysed using the content analysis, constant comparison, grounded theory and case study methods. The biographical profiles of the incubator managers and incubators were presented in case studies. An initial analysis was made to identify themes and sub themes within the four best practices explored, using the constant comparison method. Thereafter a provincial comparative analysis was made, as well as a comparison of government funded versus privately funded incubators. The findings suggested that there is a relatively high turnover in incubator management, and that they often do not have incubator management experience. A provincial comparison of SA incubators revealed that their strategic focuses are greatly influenced by the industry prevailing in the various provinces. All SA incubators provide pre- and post incubation services, but few are utilising virtual incubation. Most SA incubators are government-funded, and some use a hybrid funding model. It was evident that most SA incubators are aware of government policies and programmes available to assist them on local, provincial and national levels. A comparison of the best practices of two developing countries and three developed countries, as well as suggestions made by SA incubator managers indicated that SA has indeed followed best practices from both developing and developed countries, but there are areas of non-alignment which provide scope for improvement, to create a more conducive and enabling incubation environment. This study recommends that incubators should have an entrepreneurial focus, and reposition and align their strategic focus with government policies and instruments. SA incubators must pursue opportunities for virtual incubation as well as linkages with academic institutions, in order to offer value-added services such as research, development and commercialisation of the product ideas. Incubators in SA must pursue a hybrid funding model with a combination of government and private funding, and generate some or their own income. With regard to the role of government, it is recommended that the roll-out of more industry-specific incubators be privatised, and that an overseeing body for incubation be established.

In the knowledge world into which mankind has progressed, universities are engines of economic growth. Their role has changed from producers of labour force to equal contributors - along with government and industry- in regional and national economic and social growth and development. Universities that will survive and succeed in this new climate must embrace entrepreneurship - become entrepreneurially oriented. As in any other organisation corporate entrepreneurship processes explain how entrepreneurship is implemented and diffused throughout a university, and its members must perceive the internal organisational culture as innovation supporting for entrepreneurship to flourish. Hence, the importance of studying internal environmental conditions that influence / enable corporate entrepreneurship. This study investigated NMMU’s entrepreneurial orientation by first determining what an entrepreneurial university is and its key attributes. Next it identified the key structural factors influencing university entrepreneurship and enquired how these structural factors can be influenced to enhance entrepreneurship at NMMU. To this end, survey method was used to sample perception of the university middle managers. The study first determined the level of entrepreneurship in NMMU by measuring its entrepreneurial intensity and then attempted to locate its position on the entrepreneurial grid. Next the level of the university’s internal environmental support for entrepreneurship was determined. The university’s culture was found to be the key factor influencing entrepreneurship with time availability and work discretion as key internal factors through which NMMU’s entrepreneurial culture could be improved. Proactivity and frequency dimensions of entrepreneurship were found to lead to significant improvement in the university’s entrepreneurial output and based on the outcome of the study; suggestions were made on ways of incorporating findings to better improve entrepreneurial orientation.

South Africa’s economy is in a phase of transformation. As part of this process, the South African government has identified the development of economic activities amongst previously disadvantaged black communities. However, this noble intent is challenged by a lack of entrepreneurial skills, which are seen as important elements in the economic development effort and necessary to achieve transformation goals and objectives (Smith, 2004). Since the apartheid era, South Africa has seen the emergence of two distinct economic sectors: a first world economy, consisting mostly of white owned and formal businesses, and a third world economy, consisting of mostly black owned and informal businesses. Economic activities of emerging entrepreneurs have been restricted to mostly the black townships and rural areas, whereas first world entrepreneurs have been actively involved in mainstream economic activities. The separation of emerging and first world entrepreneurs has resulted in a wide gap in entrepreneurial and technical skills and knowledge between the two. This imbalance has maintained a situation in which the minority of the population controls more than 80 per cent of the wealth of the country. Upon gaining independence in 1994, the new South African government embarked on the Reconstruction and Development Programme (RDP) to redress the imbalances of the past (GEM, 2001; GEM, 2002). The government has since also adopted the Growth Employment and Redistribution (GEAR) macroeconomic strategy to grow the economy, create employment and redistribute wealth. To accelerate the implementation of GEAR, the government has passed a number of Acts, namely: The National Small Business Promotion Act (102/1996), Skills Development Act (97/1998), Affirmative Procurement Act (5/2000), Mineral and Petroleum Resources Act (28/2002) and, most recently, the Mining Charter (2003), Petroleum Charter (2003), Financial services Charter (2003), and the Information Communications Technology (ICT) Charter (2004). Small business has been seen by government as a vehicle to create employment, promote economic growth and redistribute wealth; as such the promotion of entrepreneurship has been identified as a critical aspect of GEAR. However, despite supportive legislation and programmes, South Africa’s entrepreneurship rating remains below average, as evidenced by the findings of the Global Entrepreneurial Monitor reports (GEM, 2001; GEM, 2002). The wide gap in skills and knowledge between emerging and first world entrepreneurs in South Africa is a contributing factor to the country’s poor rating – and it is expected to widen as the new knowledge economy unfolds, if corrective measures are not taken by the government or private sector.