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The effects of the Labour Relations Act on small, medium and micro enterprises (SMME's) in the Nelson Mandela MetropolitanMatiso, Khayalethu Goodman January 2003 (has links)
The society in which we live is economically based and the greater part of our activities centres in the economy. Within this context, the Department of Trade and Industry recognized that small business development was an important area for government intervention. A long process of highlighting the importance of this sector and creating the right environment in which small businesses could grow and flourish was initiated at the level of policy and legislation. In the Labour Relations field, an attempt at achieving some measure of certainty in previously disputed areas was made through the passing of the Labour Relations Act of 1995. This study aims at exploring the effects of this Act on the growth and development of the small business sector in the Nelson Mandela Metropole. In fulfilling this aim, the focus was restricted to factors such as dismissal of workers, strikes and lock-outs, freedom of association and dispute resolution. The theory pertaining to Labour Legislation and small business development was obtained by means of conducting a comprehensive literature study. The literature study included all relevant perspectives on the Labour Relations Act and Government Policy on small businesses. From the study, a questionnaire was developed to test the impact of the Act on the growth and development of the small business sector in the Nelson Mandela Metropole. The empirical results, in general, indicated non-compliance with the Labour Relations Act and negative views on the value of the Act on the growth and development of the small business sector in the Nelson Mandela Metropole. From the literature study and the findings of the research questionnaire, it became apparent that: · A comprehensive audit of the small business sector in the Nelson Mandela Metropole is needed. The aim of the audit would be to review the current operations of the small business sector in the Metropole. This outcome will indicate the extent of understanding and compliance with the various aspects of the Labour Relations Act. · The acquisition of industrial relations knowledge and skills by owners and leaders in the sector is vital for the development of the sector. The Skills Development Act provides a funding framework for skills training that is relevant to a specific industry. The small business sector could benefit significantly from the provision of this piece of legislation. · A comprehensive support programme for SMME’s is a necessary prerequisite for the growth and development of the sector. The support system could include tax incentives, flexible labour legislation and training as indicated in the above paragraph.
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Executing a process enhancement intervention on the processing lines at Seavuna Fishing CompanyAbdullah, Philip Rodger January 2017 (has links)
The fresh hake processing lines at Seavuna fishing company in Mossel Bay are not consistently achieving their volume output standards and this is resulting in higher processing costs and loss of processing opportunities. The company’s senior management are concerned about this trend and require a complete review of the effectiveness of the resources deployed on the lines. This with the view of establishing the causes of poor process volume output. In order to resolve the process inefficiency challenges mentioned, this study used both empirical and time studies to investigate the effectiveness of the company’s resources directly deployed in the processing unit. The study focused on investigating the human factor, machinery and equipment, the environment and the current efficiency standards. Relevant literature in the field of process efficiency improvement was consulted to assist in identifying factors that are known to cause process inefficiencies, and also to establish which improvement techniques would be relevant in correcting the situation. From the Literature reviewed, it was evident that a ‘one size fits all’ solution to resolving inefficiencies is almost non-existent and that a solution that is relevant to the problem is more effective. In addition, a benchmarking exercise was also done to establish how Seavuna’s current volume output standards fair against its major rivals. Once data from both studies were collected, the results were analysed using the some of the basic quality tools. Thereafter, lean manufacturing principles were used to attempt to resolve the current efficiency challenges. The study recommended that the company construct a business strategy and a corresponding organisational culture to direct its continuous improvement interventions. The use of strategic quality planning would go a long way in assisting the company to execute some of the interventions recommended.
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Environmental sustainability orientation of small and medium sized businesses in South AfricaOkuboyejo, Saheed Babajide January 2013 (has links)
Small and medium sized enterprises (SMEs) represent about 90% of global businesses. SMEs account, on the average, for about 50% of gross domestic product (GDP) of all countries and up to 60% of employment. In South Africa, SMEs account for about 91% of all formally registered business entities, contributing to about 57% of the GDP and providing about 60% of all formal employment. However, SMEs are said to contribute up to 70% of all industrial pollution globally.
SMEs individually perceive little or no impact on the environment and may attempt to relieve themselves of environmental responsibility. Although, the environmental footprint of individual SMEs may be small, collectively they contribute substantially to environmental damage globally.
Research on environmental activities of SMEs is rare and mostly neglected. This research attempts to close this gap by exploring the understanding, practices, barriers and motivation for environmental practices by SMEs in South Africa. This research was realised through semi-structured interviews of nine SMEs located in Eastern Cape, Western Cape, Gauteng and KwaZulu Natal. / Dissertation (MBA)--University of Pretoria, 2013. / pagibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted
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The impact of wage-setting institutions on the creation and long-term survival of small, medium and micro-enterprises (SMMES) in South AfricaHadebe, S.P. 18 August 2014 (has links)
M.Com. (Business Management) / The overall aim of this study was to investigate the impact of the wage-setting institutions, including bargaining councils and minimum wages, on the creation and long-term survival of small, medium and micro-enterprises (SMMEs) in South Africa. The objectives of the study focused on (i) gaining an understanding of how the legislative requirements impact on SMMEs; (ii) investigating what needs to be done to assist small companies in order to cope with the burden of compliance with "the prescriptions and provisions of the law; (iii) demonstrating how the current wage setting mechan-isms are partly responsible for the promotion of capital intensive firms at the expense of small- and medium sized entities; (iv) investigating how other countries approach the issue of exemption of small businesses from the stringent requirements of labour legislation; and (v) exploring the possibility for the establishment of a separate dispensation that may be utilised to govern the wage-setting environment for the SMME sector. The study commenced with the review of different literature sources. First, the importance of the SMME sector in wealth creation and the role of the government in developing SMMEs were dealt with. Existing constraints and problems, other than labour-related factors, facing the SMMEs were identified with the sole purpose of highlighting the general conditions under which they operate. The support offered by government and other stakeholders in developing SMMEs in South Africa were also discussed. Second, an overview of wage-setting institutions that shape the South African labour market, i.e. the National Economic Development and Labour Council (NEDLAC), bargaining councils and the Employment Conditions Commission (ECC) was provided. For the purposes of this study, two case studies (i.e. Sweden and Egypt) were chosen and a comparative analysis of these case studies focusing on the wage setting environment was performed, with the hope of drawing important lessons for South Africa. The cross-case analysis revealed that there are differences and similarities in the nature of wage-setting institutions that are found in Sweden, Egypt and South Africa. The lessons for South Africa are that there is a need (i) of strengthening of the role of NEDLAC (tripartism); (ii) of recognising the fact that globalisation is not a myth but a reality, even for SMMEs; (iii) of creating an institutionalised dialogue for the SMME sector, i.e. SMME representative body; and (iv) of expanding the role of workplace forums in the South African environment to facilitate meaningful collective bargaining at local level. Following the cross-case analysis, the research findings on the effects of wage-setting institutions on SMMEs were presented. This was achieved by examining empirical evidence. First, an analysis of collective bargaining and minimum wages was conducted by focusing on the different aspects of the wage-setting institutions that may be considered to have an impact on the creation and long-term survival of small and medium enterprises. This was followed by an exploration of empirical evidence if there is a need for creating a separate dispensation, i.e. two-tier labour market, for the SMME sector in South Africa. Despite an intense scrutiny of the relationship between wage-setting institutions and their effects on SMMEs, the study found that there are no discernible impacts on small and medium businesses. As a result, this study proposes that the policy framework for developing a suitable environment for small and medium businesses in South Africa should be based on targeted strategic policy interventions rather than general measures such as tax reduction or labour market deregulation. These strategic policy interventions are given as recommendations of this study. In concluding the study, the following recommendations are made: • Strengthening of the social dialogue and collective bargaining in South Africa through the expansion of the role of workplace forums; • The establishment of a separate dispensation for SMMEs in South Africa, e.g. two-tier wage system, is not necessary; • A case is made for the establishment of a SMME representative body or bodies, independent of large companies, to collectively represent the interests of smaller businesses in general or in a particular sector of the economy or a geographical area in South Africa; • A need for a shift in small and medium-sized enterprise policy in the South Africa away from "one size fits all" approach to clustering SMMEs in economic sectors that have growth potential; and • SMME policies need to be re-focused to address the economic challenges the country faces due to external competition and globalisation, and this will ensure a more co-ordinated approach to the development of SMME policy in South Africa.
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Business sophistication levels of informal sector hairdressing salonsMakibelo, Mpho Kgwaredi 20 October 2014 (has links)
M.Com. (Business Management) / The aim of this research study was to suggest the business sophistication levels of the informal sector hairdressing salons in Cosmo City. This aim was achieved through two research objectives, namely; identifying the characteristics that categorise the hairdressing salons as informal sector enterprises under the umbrella of Small, Micro and Medium Enterprises (SMMEs), and determining the business management practices that are currently implemented by the hairdressing salons. South Africa’s informal sector has the potential to contribute towards poverty alleviation and employment amongst the semi–skilled and unskilled poor. However, businesses in this sector apply less developed business management practices as compared to their formal counterparts. Furthermore, the challenges faced by these enterprises in implementing sound business management practices contribute to a lack of sophistication in their business operations, which in turn reduces their performance and sustainability. The adoption of good business management practices can have a significant impact on the performance of an enterprise, as well as on its productivity and output. This is true for an enterprise of any size. As a business becomes more mature in the implementation of business management practices, the longer that enterprise’s sustainability horizon may become. The research was conducted amongst Cosmo City’s hairdressing salon and the data was collected by means of interviewer–administered questionnaires. A total of 24 out of the 36 hairdressing salons that were identified to participate in the research study completed the questionnaires. The study employed a qualitative research approach during the data collection process; however the data analysis was quantitative in nature. In support of the first research objective, it was confirmed that the hairdressing salons operated within the informal sector, specifically in the lower end Business Sophistication Measures (BSM) categories 1, 2 and 3. With regards to the second research objective, it was confirmed that particularly because the informal sector hairdressing salons had low BSM they lacked good business management practices. Due to the size and nature of their operations, low managerial competence and skills, limited business support, small–scale marketing initiatives, the lack of documentation of policies and procedures and inadequately maintained business information; the informal sector hairdressing salons are too undeveloped to embrace good business management practices and as such have lower to low medium business sophistication levels that may prevent further growth and sustainability.
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An investigation into constraints impacting on small micro and medium enterprises (SMMEs) access to finance in Buffalo City Metropolitan MunicipalityDlova, Mzwanele Roadwell January 2012 (has links)
Internationally, in both developed and developing countries, it has been accepted that SMMEs are the backbone and the driving force of economic growth and job creation. In South Africa, SMMEs account for approximately 60 per cent of all employment in the economy and more than 35 per cent of South Africa's Gross Domestic Product (GDP) (Ntsika, 1999:38; Gumede, 2000:67 and Berry et ai, 2002 in Kongolo, 2010:235). SMMEs are often the vehicle by which the lowest income people in our society gain access to economic opportunities. The sector represents 97.5 per cent of the total number of business firms in South Africa and that it contributes 42 per cent of total remuneration. SMMEs account for some 3.5 million jobs and have between 500 000 and 700 000 businesses (Abor and Quartey, 2010:2337). Due to the above-mentioned contribution, the South African government initiated a number of SMME support programmes aimed at promoting, growing and developing the SMME sector. As a result, a number of national government agencies such as the National Youth Development Agency (NYDA), Khula Finance Limited, the National Development Agency (NDA), the Small Enterprise Development Agency (SEDA) and many other national , provincial and local government organizations were established post 1994. However, despite the concerted efforts by government to develop the sector, SMMEs are, after 17 years of democracy, still faced with enormous challenges such as access to markets, information, appropriate technology, finance, to mention but a few. Of the above-mentioned challenges, access to finance is on top of the list of these. This study, therefore, is aimed at investigating external, institutional and internal constraints impacting on SMME access to finance in the Buffalo City Metropolitan Municipal area. The study is also aimed at ascertaining which of the abovementioned constraints have the greatest influence to SMME access to finance. In developing the framework of the study, recent empirical research conducted around the country and internationally on constraints influencing SMME access to finance (Bbenkele, 2007:18; Ganbold, 2008:45; Mahadea and Pillay, 2008:99; Chenesai, 2009:135; Zindiye, 2009:78; Fatoki and Garwe, 2010:2765; Pandula, 2011 :257) was drawn upon. In order to meet the objectives of the study, a simple random sample survey of 50 SMMEs in the Buffalo City Metropolitan Municipality (BCMM) jurisdiction was conducted. The profile of the SMMEs was very similar to that of other studies that focused on constraints to SMME access to finance. A structured questionnaire was used to collect data from SMME owner-managers and a response rate of 60 percent was achieved . The results of the study indicated that the high cost of credit and interest rates and Value Added Tax (VAT) registration were the key external factors that impacted on SMME access to finance. Generally, SMMEs are viewed by lending institutions as high risk category. Therefore, even though interest rates have come down significantly, the cost of credit and interest rates still remain a constraint. The study also found that even though the South African Revenue Services (SARS) has increased the VAT threshold to R1 million (South African Revenue Service, 2007: 29), SMMEs still struggled to register for VAT. With regards to the institutional factors, the study revealed that ineffective support services provided by private and public SMME support agencies, the lack of communication of these services (access to information) and the lack of the subsequent follow-up services were the key constraints to SMME access to finance. The results of the study indicate that those firms with good track record, high annual turnover, sophistication and diverse skills, good credit record, good cash flow, proper financial records, bankable and viable business plans, collateral and registered for VAT were more likely to have access to finance than their counterparts. The main conclusion of the study is that the internal factors turned to have the greatest influence to SMME access to finance. However, there is more to be done by private and public SMME support agencies and lending institutions to address the above-mentioned institutional constraints which have a negative influence to SMME access to finance. It is recommended that more in-depth empirical research be conducted on the support services provided by private and public SMME support agencies in terms of the services that they offer the effectiveness of the services and how these are communicated to potential customers. It is also recommended that training workshops aimed at addressing the intemal constraints identified be conducted. Also recommended is the development and implementation of sector-specific mentoring programmes for the owner-managers. Strategies to improve the awareness of support services provided by SMME support agencies need to be developed. This would ensure the effective use of these services by SMMEs. It is also recommended that SMME support agencies and lending institutions staff be trained in order to better understand and be more responsive to the owner managers' needs. Linkages with tertiary institutions in planning and conducting the training needs to be made.
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Construction small and medium enterprise developmentMbambe, Putumani January 2016 (has links)
The objective of this treatise study was to determine the leading causes which limit the development of SMME contractors, to ascertain the accessibility of SMME incubators available to support SMME development and to identify the cause of poor management performance by SMME contractors based in the Nelson Mandela Bay Metropolitan Municipality. A qualitative method was adopted for this study. The primary data was collected using a structured interview guide which incorporated the sub problems and the research questions. The salient findings of this study are: SMME contractors are unaware of the available business information and government support programmes designed to assist them; SMME contractors do not receive capital from banks when they don‟t have collateral; Desperation to secure projects among SMME contractors is the leading cause for under-pricing; SMME contractors are still paid later than the 30 day period for completed work; SMME owners who had started their construction companies lacked training and do not have the relevant experience and knowledge required to manage a construction company. In summary the study concluded that SMME who have access to capital have high growth prospects than those that have not. Accessibility to information and awareness of available opportunities remains significant for the growth of SMMEs. Construction related knowledge and training for SMME owners contributes vastly to the success of SMME companies. The study recommended that; Government needs to promote the accessibility of SMME incubators and ensure institutions designed to assist SMMEs with finance are accessible; The effectiveness of current development programs for small enterprises and skills development programs should be reviewed; MMBM should setup a mentoring program to help train SMME contractors theoretically and practically; NMBM local government should promote women to own SMMEs in order to close the gap of inequality in the built environment; Banks must work with government institutions to ensure that they are able to fund SMMEs.
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An entrepreneurial development framework for SMEs in South AfricaPyper, Regina Christina, Pyper, Regina Christina January 2016 (has links)
Small and Medium Enterprises (SMEs) are engines of growth. It has been determined globally that these enterprises are the largest employers in economies. Small and Medium Enterprises fail fundamentally to succeed in South Africa. Many challenges and barriers were identified as the reason why the enterprise fails to survive or succeed for at least 42 months. Poor performance of the SMEs could be blamed on the lack of meaningful support including an over-regulated environment, red tape and the poor quality of education and training. A number of Small and Medium Enterprise owners in Turkey were interviewed to determine if the enterprise development support system contributed to success and economic growth. The government succeeded to improve the economy of Turkey profoundly by investing and supporting this very important sector. Turkey is positioned 17th in the world based on the Gross Domestic Product (GDP). The purpose of this study was to develop an entrepreneurial development framework for SMEs in South Africa. The government needs to support and implement this framework to stimulate economic growth, to address the poor quality of education and training and to establish a system to measure the performance of critical success factors. A case study research approach was employed to address five propositions that were investigated in this research project. Semi-structured interviews studied the perceptions and experiences of the SME owners in Turkey. The study found a positive relationship between economic growth, a meaningful enterprise development support system, education and training, critical success factors and entrepreneurship and the perceived success of entrepreneurial ventures in South Africa. The establishment and implementation of an entrepreneurial development framework will encourage the creation of new ventures. The government will be able to achieve the goal of economic growth as set out in the National Development Plan. The establishment of SMEs will result in employment, social stability, economic growth and the generation of tax revenues. The purpose of an entrepreneurial development framework is to ensure the sustainable economic development and prosperity of South Africa.
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Impact of microfinance institutions on small business sustainability in Nelson Mandela BayMgoduka, Bulelwa Keitumetse January 2015 (has links)
The rise of microfinance in South Africa as a development trajectory has dismissed ideas that small business enterprises have no significant contribution to the economic growth and development of the country. The primary objective of the study is to assess the impact of microfinance service providers on the success and sustainability of small business enterprises in the Nelson Mandela Bay. By applying descriptive statistics, 2 ordinary least square regression analyses as well as correlation matrix; the results reveal that microfinance has a positive and significant impact on the success and sustainability on small business enterprises in the Nelson Mandela Bay. The research findings hold a variety of implications for Government and policymakers. The study recommends that the microfinance sector must be under good governance through the microfinance regulatory and supervisory structures, since the sector contributes a great deal towards one of the most important objectives of the Post-Apartheid Government. Further, small business entrepreneurs must be well exposed to the requirements, standards and norms which govern the financial sector. This is particularly important in terms of the National Credit Act provisions.
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The effect of occupational health and safety programmes in the growth of small businesses in Gauteng province, South AfricaMyeni, Sibongiseni Selby January 2015 (has links)
Introduction: Managers in small businesses are faced with a dilemma of meeting the requirements of health and safety legislation and trying to grow their businesses. It is important that they understand the business value of occupational health and safety programs. For them to allocate resources to occupational health and safety programs they need to understand if there are any economic benefits attached to such programs. Thus this study was designed to investigate the benefits of occupational health services on economic performance and growth of small businesses in Gauteng, South Africa. Method: This was a descriptive quantitative study. A self administered structured questionnaire was developed and distributed to 200 small businesses in Gauteng Province, South Africa. Thirty completed questionnaires were received back, representing a response rate of 15%. Data was analysed by the NMMU Unit for Statistical Consultation, using STATISTICA. Results: Economic performance moderately correlated with the presence of occupational health and safety professionals. It moderately correlated with the categories of occupational health and safety professionals in a small business. The level of knowledge, awareness, attitude and perception on occupational health and safety was rated high. Eighty three percent (83%) of the respondents had a clear understanding of their responsibility in terms of the health and safety function at work. The level of employee engagement was rated high with seventy six percent (76%) of respondents reporting that they get recognition for their work, and eighty six percent (86%) indicated that they were happy with the relationship they had with their boss. There was a difference between managers and employees in terms of how they view economic performance and growth of their companies. Conclusion: The presence of occupational health and safety professionals as well as different categories of occupational health and safety professionals are factors of importance in the economic performance and growth of small businesses in Gauteng, Republic of South Africa. The weak correlation between economic performance and growth of small businesses requires a further study with a bigger sample size.
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