Small and Medium Enterprises are the engines of economic development. In developing countries, they play an irreplaceable role in poverty alleviation through creation of jobs and contribution towards the countries’ gross domestic products. South Africa is faced with a challenge of high failure rate of SMEs despite the efforts by government to support and grow this sector. For a country to have a strong sustainable economy, sustainable and successful SME sector is necessary. Literature reviews have demonstrated that incorporating sustainability aspect into entrepreneurship improves the performance of businesses. Research on implementation of sustainability principles by SMEs is limited and SMEs have been left out in sustainability teachings and monitoring. The purpose of the study was to analyse the role played by entrepreneurial mind-set and entrepreneurial education on sustainability of SMEs. The research was conducted amongst 10 SME owners/managers with businesses located in the Buffalo City Metropolitan Municipality. Case study method using a semi-structured interview guide was conducted. Results were transcribed, analysed and interpreted. Results of the research demonstrated that SME owners/managers possess entrepreneurial mind-set, which is a necessity to run a successful business. There was also evidence that entrepreneurial education enhances entrepreneurial mind-set of SME owners/managers. SMEs owners/managers also demonstrated that they implement sustainability principles informally with no guiding documents. With regards to implementation of sustainability principles, there was no noticeable difference between SME owners/managers who had undergone entrepreneurship education and the ones who had not gone through entrepreneurship education. This highlighted the need to incorporate sustainability issues in entrepreneurship education courses. The study brings contribution towards building sustainable SMEs.

A lot of SMME development initiatives have been subsidised from the funds accumulated from taxpayers. In the promotion of sustainability and growth of SMMEs within developing countries particularly within the BRICS, South Africa is lagging despite its efforts over the past 17 years. According to STATS SA, SA’s unemployment rate for 2011 was between 24-36% and economic growth was 3.1%, the Eastern Cape Province is the poorest province within SA and therefore residence within the province is looking at start-up businesses to better their economic situation. The NMBM economic growth and employment is driven largely by its Integrated Development Plan (IDP) 2013/2014. Aims and objectives:To develop a supply chain management policy that addresses the challenges faced by infrastructure officials, supply chain management practitioners and ward councillors with regards to SMME engagement; and, Investigating the strengths, weaknesses and effectiveness of the current supply chain management policy employed within Nelson Mandela Bay Municipality with regards to SMME engagement. Research methodology: A questionnaire was used in this study to conduct quantitative research; the questionnaire was also used as a data collection tool. Valuable information was gathered from SMMEs residing in the Nelson Mandela Bay Municipal area who operate in the civil engineering field. These SMMEs formed the core research sample. Results: The findings suggest that the current supply chain management (SCM) policy of the Nelson Mandela Bay Municipality (NMBM) does not adequately address the challenges encountered by SMMEs. This suggests the SCM policy is inadequate and the policy must be amended to address its short falls:There is a need for a contractor development programme in the NMBM to assist the Potentially Emerging (PE) contractors within its boundaries;The NMBM is regulating the SMME market for competitiveness to some extent with its SCM policy;Even though the market is being regulated for competitiveness, it is not regulated with regards to new entries into the market; There is a need for the NMBM to provide business development services to SMME’s within its boundaries; The majority of SMME’s believed that there is no gender discrimination within the banking sector;The NMBM is an efficient government institution when it comes to settling their debt in a timely manner;The NMBM must appoint a committee to address the problems faced by SMME’s within its boundaries;South Africa’s National Credit Act (NCA) prevents SMME’s from acquiring an uncontrollable amount of debt. Conclusion: SMME’s within the NMBM enjoy a healthy credit record; these SMME’s also pay their suppliers in a timely fashion. Employees of these SMME’s are adequately compensated for their services. Some SMME’s service the equipment regularly and some do not. Some SMME’s are able to cover their overheads from the projects they undertake and some are not. SMME’s residing in the NMBM have experienced a growth in their business over the last financial year, even though they have not received substantial work over this period. The quality of the end product produced by some SMME’s meets the standard required by the NMBM. Recommendations: To address the development needs of the SMME’s the SCM policy needs to be amended to provide business development services and off-the-job training. To address the access to finance needs of the SMME’s the SCM policy needs to be amended to assist SMME’s in acquiring start-up capital, getting a reduced interest rate and creating work opportunities through micro-financing.

Purpose of this treatise: The aim of this treatise is to identify the challenges facing emerging entrepreneurs in accessing funding for property development initiatives which results in high levels of declined loans thereby limiting participation in the property market as well as the interventions necessary to improve access to finance. Design / methodology / approach: The questionnaires were emailed to funding institutions and emerging property developers. The questionnaire investigates the respondents‟ perception of importance and evidence of questions on property development, finance and managerial skills drawn from the literature. Findings: The findings of this study are consistent with and support the findings of previous local and international literature on constraints that SME‟s have in accessing finance for various initiatives. The findings indicate that the emerging property developers in South Africa are characterised by insufficient number in representation in the property sector, high risk averse financial institutions that requires collateral to lend. The findings of the study indicate that broader and bolder initiatives aimed at improving the emerging property developer's representation in the market needs a holistic and collaborative approach from the various institutions to aide these entrepreneurs. Value of paper: The research is of importance to all stakeholders involved in the property sector, financial institutions and economic development of the SME sector. The results of the study will contribute to the understanding of the current financing limitations facing SMEs and will assist funding institutions to better understand the role and importance of effective collaboration in improving access to finance to emerging property developers.

Entrepreneurship plays an important role in the South African economy, especially in light of the recent global recession. For family businesses, namely copreneurs in the restaurant industry, to be afforded a better opportunity to perform better and be viable and sustainable, a deeper understanding and insight into their dynamics is required. Researching and implementing strategies or recommendations to improve the influence of copreneurial relationships in the restaurant industry is fundamentally important to the growth and sustainability of restaurants in the hospitality industry, in the Nelson Mandela Metropole (NMM). However, no known studies have been performed in this area of copreneurship. This study sought to present exploratory research in the rapidly expanding and critically important sector family business, namely copreneurships specifically in the restaurant industry in the NMM, in South Africa. The primary research objective of this study is to gain a deeper understanding and insight into the influence of copreneurial relationships in the restaurant industry in the NMM. A phenomenological, or qualitative, research paradigm, through the use of focused one-on-one interviews, was employed to probe and analyse relational factors of copreneurial relationships. A qualifying questionnaire was constructed to determine the most effective sample for the study followed by an extensive questionnaire constructed to probe into the demographics and the specifically identified relational factors of the ten qualifying copreneurships. The collected data was then analysed and inferences were derived from the findings of the study. The findings revealed that what restaurant copreneurships perceive to be the most important relationship factors are very closely linked to the relationship factors perceived important to personally work on and improve. Of the relational factors considered for this study, namely: Commitment, communication, conflict, division of labour, emotional attachment, relationship bond, respect, spousal harmony, trust and the spousal values system, several factors stood out as those baring greatest influence on copreneurial relationships and their business. This study, from an analysis of the collected interview data and subsequent findings, determined communication to stand out above all other factors as being the most critical to copreneurial relationships. All other factors emanated as important but division of labour, values system, respect and relationship bond were revealed as extremely important, just behind communication. In light of these findings, as well as the discovery of other affecting factors, the study concluded that the viability and sustainability of restaurant copreneurships is of paramount significance. In order to facilitate this, copreneurial couples must cherish their relationships with each other, understand the dynamics of the relational factors affecting their relationships, invoke relational improvements for their viability and sustainability, not neglect family responsibilities and preservation in light of business needs and work together as a team.

The South African economy and especially its retail environment are continuously experiencing the impact of globalisation. The continuous expansions of large public retail businesses that consist of numerous chain stores are evident in both the local and international arena. South Africa has witnessed large amounts of foreign direct investment (FDI) invested into its retail sector. The above mentioned facts hold a serious challenge for small and medium retail businesses in South Africa (SMEs). In order for SME retail businesses to stay competitive against these global retail businesses, it needs to be able to withstand the competition in the environment it operates. This is not always an easy challenge given the limited access to resources that the majority of SME businesses have access to. This study presents how South African SME retail businesses can remain competent and profitable in spite of serious competition from large retail businesses of both local and international origin. In order to suggest recommendations for South African SME retail businesses to be more competent in relation to large retail businesses, the researcher identified some areas of improvement, which is perceived to be the most important for enhancing the competitiveness of SMEs. These variables include uniqueness, entrepreneurial leadership, cost effectiveness, technology and quality management. These variables were researched to understand how they affect SME retail businesses and where tested using quantitative analysis to ascertain if managers and owners of SME retail businesses believed that these variables would help them to improve the level of competitiveness in relation to large retail businesses. The results indicated that SME owners and managers felt that uniqueness, entrepreneurial leadership, cost effectiveness, technology and quality management all contributes to the competitiveness of their business. Empirical evidence shows that owners and managers of SME retail business felt that all of the above factors will result in their SME retail business being more competitive as compared to large retail businesses. The former will lead to better chances of success which again are most likely to lead to increased probability.

The primary objective of the study was to establish the role that e-commerce can play in improving some Small and Medium Enterprises (SMEs) business processes and transactions. This was undertaken by investigating how SMEs in the Eastern Cape can be empowered to use e-commerce and overcome barriers in the adoption of e-commerce. The study was modelled on the concept that there are four key factors that influence the adoption of e-commerce, namely: level of e-commerce awareness, level of computer literacy, availability of Information Technology and telecommunication infrastructure, as well as trust and security of e-commerce applications. The literature study revealed that SMEs play a vital role in the development and growth of a country’s economy. The literature review also identified a wide-range of barriers hindering e-commerce development and adoption by SMEs, namely: lack of computer skills, low level of e-commerce awareness, lack of Information Technology and telecommunication infrastructure, as well as lack of e-commerce trust and security. Further, the literature study showed that Internet availability and affordability is key to e-commerce growth and development, as in developing countries Internet is not yet universally accessible. This is due to a lack of necessary policies and infrastructure enabling wide-spread Internet use. The empirical study consisted of a structured questionnaire distributed to a population of executive management, middle management, operational employees and directors/owners in various SMEs in the Eastern Cape. The structured questionnaire was aimed at gathering views about e-commerce development and adoption by SMEs in the Eastern Cape with a special focus on barriers to the adoption of e-commerce by SMEs. The results of the empirical study revealed that: E-commerce awareness needs to be created among SMEs. Awareness needs to be created among SMEs about all aspects surrounding the use of e-commerce. Improvements in the telecommunications infrastructure could reduce the unreliable connections experienced by SMEs. Skills development strategies could assist in equipping SMEs with skills required in the e-commerce environment. Non-governmental organizations, government and companies assisting SMEs could provide free Internet access to SMEs. Alternatively, Internet cafes could be placed at different places and charge reasonable fees. NGO’s and higher education institutions could help in developing electronic literacy skills among SMEs. Companies assisting SMEs with funding could provide more funds to allow SMEs interested in e-commerce to start e-commerce systems.

The role of entrepreneurship in small to medium tourism enterprises is well recognised and acknowledged as a significant contributor to economic development and employment opportunities. Worldwide, small to medium tourism enterprises play a dominant role in the tourism industry. These businesses are often vulnerable to external economic forces and find it increasingly difficult to transform their strategic and operational management to face the challenges placed upon them. This study focuses on small to medium tourism enterprises in the Eastern Cape Province, which is economically the poorest province of South Africa. To ensure the growth and sustainability of small to medium tourism enterprises, owners need to make efficient and effective business decisions regarding the challenges their businesses face. The study examines the factors impacting customer relationship management in the context of small to medium tourism enterprises in the Eastern Cape. Customer relationship management, that is, building relationships with customers, has become of pivotal importance to many organisations as businesses strive to be competitive and profitable. While large organisations practice customer relationship management to enable them to better target profitable customers, improve customer services, enhance customer retention and ultimately improve business performance, small businesses often need assistance in understanding and effecting this complex relationship. The factors that could impact customer relationship management in the organisations are the focus of this study. Three major factors were identified, namely, strategic, operational, and organisational factors. The study furthermore examined the extent to which these factors are present in the tourism and hospitality sector of the Eastern Cape and investigated the relationships between these factors. Quantitative research was deemed appropriate for this study. Systematic random sampling was employed to select a sample of 332 respondent organisations from the 2012 database of the Eastern Cape Parks and Tourism Agency consisting of formally registered small to medium tourism enterprises. A total of 310 usable questionnaires were finally obtained. Both descriptive and inferential statistics were used in the study. Descriptive statistics were computed to reflect the organisations‟ and respondent managers‟ general characteristics and to summarise their measurement scores. Using inferential statistics, the study further investigated relationships between customer relationship management factors, as well as demographic factors. Data were subjected to exploratory factor analysis and both the validity (refer to section 2.10.1) and reliability (refer to section 2.10.2) of the research instrument was assessed. The relationships between customer relationship management variables were also investigated (refer to section 2.11.4). The research results support an overall significant association between customer relationship management readiness and business strategy, customer strategy, touch points and competencies, skills and technology. Relationships were also explored among customer relationship management factors and demographic characteristics. Significant results were found between perceived business performance and the gender of managers, family businesses and gross annual turnover. The most salient contributions of this research can be summarised as follows. The overview of the importance of tourism and the role of small to medium enterprises in the tourism and hospitality industry of the Eastern Cape will benefit researchers and potential owners who have an interest in this sector. The study contributes to an improved understanding of the factors that should precede customer relationship management. The study established a profile of the small to medium tourism enterprises in the Eastern Cape which can serve as a basis for future research. A measuring instrument for assessing respondents‟ views on the existence of the strategic, operational and organisational factors in their organisations was developed. This instrument showed good internal validity and reliability and can serve as a basis for the same purpose in contexts other than the tourism and hospitality sector. This research has made a contribution toward a largely under-researched area concerning customer relationship management in small to medium enterprises. Recommendations for managers and consideration of future research included the following. Managers need to have a strategic vision and a strong customer-centric focus. Through understanding customers and their needs, offerings can be tailored to maximize the overall value of customers, thereby, improving business performance. Through efficient operational processes in place, enhanced customer service levels can be attained in the organisations. Managers need to effectively manage customer information through data warehousing and technology. Top management commitment is a crucial element for ensuring improved customer services. Managers need to train staff with respect to customer services, thus enhancing CRM. Future researchers can conduct a longitudinal study and investigate the same factors which could impact customer relationship management. A verification of the usefulness of the measuring instrument in examining the determinants of customer relationship management and the level of development regarding other small businesses is suggested. It is recommended that this study be replicated abroad in an effort to verify to what extent the determinants of customer relationship management are evident in small businesses of other countries.

Studies have shown that BBBEE parties are unsuccessful in raising banking finance due to a number of reasons. The objective of the enactment of the Broad Based Black Economic Empowerment (BBBEE) Act is primarily to promote the participation of black people in the economy. The measurement of BBBEE is determined by the codes of good practice for Qualifying Small Enterprises (QSE), which consists of seven elements namely: ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development. Enterprises with annual turnover ranging from R5 million and R35 million qualify as QSE. These elements measure the level of BBBEE status. The enactment of the National Credit Act replaced the Usury Act, 1968 and the Credit Agreements Act, 1980. The objective of the act is to promote accessibility to the credit market and to prevent the over-indebtedness of consumers. The Act is applicable to natural persons with contractual capacity and juristic persons with monetary assets or annual turnover of less than R1 million. This study aims to establish the facilitation of access to banking finance for BBBEE SME’S within the George and Mossel Bay area as these towns form part of the Garden Route Business Banking Division of Nedbank. The effect of the BBBEE and NCA on the accessing of banking finance was studied and analysed. Credit applications are subject to stringent credit scoring systems to rate applicants, monitor performance and manage accounts. The Basel rating which measures the minimum level of capital a bank should hold to protect investors determines the interest rate charged for loans. These ratings affect the accessibility of banking finance. A framework for bank and SME relationship building shows the relationships between: • The accounts manager’s role in relationship management; • Branch staff role in relationship management; • Corporate policies as part of relationship management. A survey was conducted in the form of a questionnaire in order to obtain primary information from two sample groups, banking officials and BBBEE clients to establish the relationship between the two sample groups. Quantitative techniques were used and the data obtained from the two sample groups were analysed. The study revealed that the by establishment of relationships between BBBEE clients and banking officials would facilitate access to banking.

Even though many organizations invest in IT, the value that IT is expected to contribute is still not clearly understood. Researchers agree that IT has become a crucial element to business operations and business existence. However, while there is continued investment in new information technologies and systems, organizations are not certain whether significant value is derived from IT investments. The failure to realize good return on IT investments is ascribed to a lack of understanding of IT by organizations and also the failure by organizations to align IT strategies with business strategies. The lack of alignment leads to the failure to match the right IT to the correct task, which leads to the poor application of systems and poor allocation of human resources to tasks. Therefore, organizations such as Small and Medium Enterprises (SMEs) in particular Boutique Hotels, are noted for their failure to derive better IT value. Their unique characteristics are understood to be influential in the way IT is used and managed by affecting the delivery of value from technology. In order to enable Boutique Hotels to derive more value from IT, the IT governance frameworks, Val IT and CobiT (ITGI, 2007), were examined as these integrate good practices to ensure that an organization‘s IT supports the business objectives. In addition, the Task Technology Fit (TTF) (Goodhue and Thompson, 1995) and Gap Analysis (Heeks, 2001) theories were highlighted as these prescribe the platform ideal for more value to be derived from IT. The current status of Boutique Hotels in Buffalo City was assessed through the use of questionnaires and interviews. The collected data was analyzed and resulted in the development of a model that can be used by Boutique Hotels in order to derive more value from IT and to maximize the use of IT.

Small and Medium enterprises (SMEs) play an important role as employers and in the economic growth of South Africa and in Africa as a whole. SMEs comprise over 90 percent of African business operations and contribute to over percent of African employment and GDP. SMEs sector has shown positive signs in South Africa, Mauritius and North Africa. SMEs constitute 95 percent of formal manufacturing activity in Nigeria. Senegal and Kenya have provided an environment which is conducive for SMEs (African Development Bank 2005). In August 2006, flood damage to small businesses and residential premises in the Nelson Mandela Metropolitan Area was estimated at R120million (SABC News 2006). The holding of an insurance cover by SMEs is crucial and beneficial to the economy and to the survival and success of the Small and Medium Enterprise sector. If a business has an insurance policy and a relationship with its insurer it becomes easier for the company to over come such a catastrophe. However, literature has shown that insurance companies are not willing to insure SMEs and it is the aim of this research to establish whether a relationship between the two constructs exists. An article entitled New Deal In The Offering for SMMEs, the author stated that the insurance industry prefer to deal only with established businesses (Mthimkhulu 2008). The aim of this research is to establish the importance of business relationship between Insurance companies and SMEs. The research will show how beneficial such a relationship is to both industries. The data for the research was collected through a survey type structured questionnaire that was developed and validated. The questionnaire was administered to the owners or managers of SMEs in the Nelson Mandela Metropolitan Area. The primary objective of this research was to establish whether SMEs in the Nelson Mandela Metropolitan Area have insurance policies for their businesses, and the results have shown that most of the SMEs in the Nelson Mandela Metropolitan Area do not have insurance policies for their businesses.