Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: The main objective of this study is to analyse and evaluate the alignment between the strategies and operational aspects of small business promotion initiatives of regional government with those of the private sector. Small business development had been identified by the post-apartheid government as one of the keys to addressing a number of social problems - growth, employment and (re)distribution of wealth. Despite efforts and investment from both government and the private sector, this sector had never performed as expected and South Africa usually ranks relatively poorly in terms of innovation, according to the published rankings. To provide context, a literature review briefly explores the importance, success and inhibiting factors of small business development in South Africa. From the data, it is : clear that the success of the Small, Medium and Micro Enterprise (SMME) sector in South Africa, as in most developing countries, is key to the achievement of socioeconomic goals which are linked directly to the structure and success of the larger economy. The factors inhibiting a more successful development of the SMME sector relate to (a) the influence of socia-political goals on the economic policies, (b) the invisibility of SMME track records because of the development of the informal sector and (c) lacking skills, both among entrepreneurs and regional/local government and agencies. A brief review of the SMME strategies and implementation by national and regional government highlights the major problem areas, being regional interpretation and implementation of what seems to be generally accepted as a fairly well-developed national SMME strategy. This appears to be due mostly to lacking co-ordination and capacity (skills and knowledge) at the regional and local levels of government. The description of the South African Breweries' KickStart programme as an example of private sector SMME development efforts highlights a few aspects that seem to ensure a greater degree of tangible, directly attributable success of SMMEs developing into a sustainable business, albeit in smaller numbers. These aspects relate to a mixture of training and mentoring that assists the entrepreneurs in becoming self-sufficient prior to the awarding of any substantial financial assistance. At a higher level, it is evident that the private sector develops a clear, simple national strategy and ensures regional execution thereof through clear guidelines and the alignment and linking thereof to local group and individual goals and performance measurement. The latter is perhaps the most evident contrast between the government and the private sector in this regard, as it had not been found discussed in relation to how government executes strategy, in any of the literature reviewed. The writer agrees with the general opinion of the private sector from the literature reviewed, in that government should playa less directly involved and interventionist role and recommended that it should focus on facilitation of the process through creating the· right environment. Typically this will take place through reviewing of legislation and administrative requirements that increases the cost and complexity of doing business. Some proposals include the consolidation of SMME development . . efforts under a single Public Private Partnership (PPP); to ensure alignment and to . draw on the energy, focus and skills of the private sector. The study concludes that close co-operation between the public and private sectors is vital for the improvement of SMME development and that government has a number of options to consider for stimulating a greater private sector effort, while at : the same time becoming less interventionist. / AFRIKAANSE OPSOMMING: Die hoofdoelwit van die studie is om te analiseer en evalueer op watter wyse die strategiee en bedryfsaspekte van die kleinsakeontwikkelingsinisiatiewe van plaaslike regering en die van die privaatsektor by mekaar inskakel. Kleinsakeontwikkeling is reeds in 1994 deur die nuwe regering as een van die sleutels tot die verwesenliking van verskeie sosio-ekonomiese doelwitte geidentifiseer. Die vernaamste hiervan is groei, indiensneming en die (her)verdeling van inkomste. Ten spyte van die insette en finansiele belegging van sowel die regering as die privaatsektor, het hierdie sektor nooit na verwagting gepresteer nie en Suid-Afrika Ie gewoonlik relatief laag op die gepubliseerde ranglyste wat innovasie betref. As agtergrond tot die studie, ondersoek die literatuurstudie kortliks die belangrikheid, sukses en beperkende faktore van kleinsakeontwikkeling in Suid-Afrika. Die data toon duidelik dat die sukses van hierdie sektor, soos in die meeste ontwikkelende lande, 'n sleutelfaktor is in die verwesenliking van sosio-ekonomiese doelwitte, wat weer direk verbind is met die struktuur en sukses van die ekonomie in sy geheel. Die faktore wat 'n meer suksesvolle ontwikkeling van die kleinsakesektor verhoed, is verwant aan (a) die uitwerking wat sosio-politieke doelwitte op ekonomiese beleid het; (b) die feit dat die prestasies van die sektor as gevolg van die ontwikkeling van die informele sektor nie sigbaar is nie; en (c) 'n gebrek aan vaardighede onder entrepreneurs sowel as plaaslike/streeksregering en -agentskappe. 'n Analise van die nasionale en plaaslike regering se kleinsakeontwikkelingstrategiee, -struktuur en -implementering wys die grootste probleemareas uit, naamlik plaaslike regering se interpretasie en implementering van wat op die oog af as 'n redelik goed ontwikkelde nasionale strategie beskou word. Hierdie gaping blyk te wyte te wees aan 'n gebrek aan koordinering en kapasiteit (vaardighede en kennis) op plaaslike regeringsvlak. Die beskrywing van die "KickStart"-program van die SAB, as voorbeeld van privaatsektorinisiatiewe, wys 'n paar faktore uit wat oenskynlik lei tot 'n groter mate van tasbare en direk verwante sukses en onderhoubare groei in klein ondernemings, alhoewel in kleiner getalle. Hierdie faktore hou verband met die vermenging van opleiding en mentorskap wat die entrepreneurs help om selfonderhoudend te wees voordat enige wesenlike finansiele bystand verleen word. Op 'n hoer vlak is dit duidelik dat die privaatsektor tipies 'n duidelike, eenvoudige nasionale strategie ontwikkel en die uitvoering daarvan verseker deur duidelike riglyne en deur dit met plaaslike groeps- en individuele doelwitte en prestasiemeting te verbind. Laasgenoemde is waarskynlik die mees wesenlike kontras tussen die regering en die privaatsektor, aangesien nie enige van die Iitteratuur verwys het na die wyse waarop die regering strategie implementeer nie. Die skrywer stem saam met die algemene opinie van die privaatsektor op grond van die literatuurstudie, naamlik dat die regering 'n minder direkte rol, in kleinsakeontwikkeling behoort te speel, en beveel aan dat die regering op die fasilitering van die proses behoort te fokus deur die skepping van 'n tegemoetkomende besigheidsomgewing, hoofsaaklik deur die hersiening van wetgewing en administratiewe regulasies wat die kompleksiteit en koste van besigheid beinvloed. Van die aanbevelings sluit in die konsolidering van kleinsakeontwikkeling in 'n enkele vennootskap tussen die publieke en privaatsektore, om te verseker dat daar 'n beter gesamentlike poging sal wees en om die energie, fokus en kennis van die privaatsektor beter te benut. Die slotsom is dat samewerking tussen die publieke en privaalsektore krities is vir die suksesvolle ontwikkeling van die kleinsakesektor en dat die regering 'n paar opsies tot sy beskikking het om 'n groter mate van betrokkenheid deur die privaatsektor te stimuleer, terwyl die regering self minder direk betrokke kan wees.

Submitted in partial fulfilment of the requirements for the degree of Masters in Business Administration (MBA), Business Studies Unit--Durban University of Technology, 2008 / The ability of the South African Small Medium Enterprise Development Programme to promote economic growth and employment. The Department of Trade and Industry (DTI) offers the Small Medium Enterprise Development Programme (SMEDP) incentive grant programme to qualifying manufacturers in South Africa. The status of the progress of this incentive grant programme is unknown. The DTI alluded to an impact study in the 2004 DTI Annual Report but no further reference or publication of results of the impact study has been made. The objectives of the study are to investigate the following three criteria of the SMEDP and to develop benchmarks and recommendations for future incentive grants offered by the DTI. • Rationale for implementation of SMEDP; • Exploration of SMEDP merits; and • Measure of SMEDP success. The study is a secondary analysis design with both qualitative and quantitative components. The qualitative component allows the researcher to reflect on the process by which the incentive programme under investigation came into being, whilst the quantitative component allows for comment on the result of the process as per the markers developed in the qualitative component of the design. There were 152 sample cases used in the study. The outcome measures are the output measures stated in the Medium Term Strategic Plan which are: • The number of jobs sustained. v i • The number of jobs created. • The number of Greenfield’s projects supported. • The fixed investment in Rand terms. • The improvement in employment levels. The DTI achieved certain of the stated objectives. The empirical data analysed confirms the achievement of these objectives. There is scope for further empirical investigation for the future development of incentive grants. The contribution of the SMEDP to economic growth and employment growth is evident and such government interventions should be continued. The recommendations from the study include further investigation into the following areas to improve the benefits provided by manufacturing incentive programmes: • Limit the incentive to a specified Rand value per job created; • Volume driven turnover growth not price driven turnover growth; • The continued inclusion of expansions in future programme; and • Specified sector programmes i.e. textile sector.

This qualitative study explored and described the role and contribution of training and skills development for sustainability in SMEs in the manufacturing sector in Durban and East London, South Africa. Individual face-to-face semi-structured interviews took place with 15 SME owners. Five themes and 11 sub-themes emerged in a content thematic analysis. The findings indicate that SMEs acknowledge that training and skills development positively influences their financial performance and sustainability. Whilst SMEs implement learning and skills development interventions, they lack suitably structured human resource development (HRD) policies and strategies; do not properly document training and skills development activities; and experience difficulty in evaluating learning. This study recommends that SMEs formulate and implement well-structured learning and development plans and schedules. It is also advised that SMEs liaise with academics and form Communities of Practice (CoPs), among other initiatives, to implement and monitor training and skills development for their sustainability. / Business Management / M. Com. (Business Management)

Submitted in fulfillment oof part of the requirements for the Masters ooff Business Administration, Durban University of Technology, Durban, South Africa, 2017. / Small businesses form the backbone of any nation’s economy, especially where unemployment is extremely high. South Africa is one of the many countries that struggle with low economic growth resulting in low employment. This study investigates the relationship between entrepreneurial orientation, business performance and competitive advantage. South Africa’s small business sector is under pressure as evidence exists that the failure rate is well above 70 percent, and to an extent, up to 90 percent depending on various conditions. This study was conducted in Durban, South Africa. The study sought to answer the two questions namely: a) Is there a significant relationship between entrepreneurial orientation and business performance? and b) Is there a mediating role of competitive advantage in the relationship between entrepreneurial orientation and business performance? These questions were targeted to small business owners or managers in Durban, South Africa. Therefore, 177 participants responded, and both questions were tested and yielded positive results. Data were collected by means of a questionnaire consisting of 24 items. Indeed, the finding was that there is a positive and significant relationship between entrepreneurial orientation and business performance, and that competitive advantage does mediate the relationship between business performance and entrepreneurial orientation. Finally, many studies examined in this study support the findings of this research pointing out that a strong positive relationship exists between business performance and entrepreneurial orientation. Similarly, there seems to be an agreement that there is some relationship between competitive advantage, entrepreneurial orientation and business performance. However, the literature reviewed did not clarify if competitive advantage does actually mediate the relationship between entrepreneurial orientation and business performance whilst this study found that mediation does exist between the entrepreneurial orientation and business performance link. Hence, small businesses need to learn more about this relationship so to take advantage of possible synergies that may arise from it. Further, both the government of South Africa and the private sector should keep supporting small businesses by making use of research studies like this one and many more which are based on theory and practice. / M

Submitted in partial fulfilment of the academic requirement for the Masters in Technology: Entrepreneurship, Durban Insititute of Technology, 2003. / South Africa has been classified as an upper-middle mcome developing country with a growth rate of 2.6%. In order to improve the quality of lives of all its citizens that includes the lowering of the unemployment rate, South Africa needs to achieve a growth rate of not less than 7%. One of the pre-requisites for economic growth is entrepreneurship. The SMME sector has been universally accepted as having the potential for generating employment and contributing to economic growth. In South Africa the SMME sector is a major contributor to the economy. Research has revealed that SMMEs fail in the first five years of start up or. stagnate in terms of development because of lack of skills, management expertise, finance and lack of basic infrastructure (such as electricity, physical premises and telecommunication). South Africa's entry into the global economy makes it imperative for businesses to have access to Information Communication Technologies regardless of the size of the business. The de-regulation of the Telecommunication Act 106 of 1996 made provision for SMMEs to provide telecommunication access to under serviced areas. This is a double-edged opportunity for the Durban Institute of Technology (M L Sultan campus) in that, the Durban Institute of Technology (M L Sultan campus) could become a Service Provider for Telecommunications access and at the same time provide SMMEs within its vicinity with Information Communication Technology access. This research outlines the various elements that a Higher Education Institution such as the Durban Institute of Technology (M L Sultan campus) needs to take into consideration for developing a Business Model to provide Information Communication Technologies to SMMEs within the vicinity of the Durban Institute of Technology. A sample of the SMMEs around the Durban Institute of Technology (M L Sultan campus) was interviewed to determine their ICT needs and their understanding of the impact of access to ICT on their business. It was found, inter-alia, that many SMMEs had no access what so ever and that there was a lack of understanding of the potential impact of ICT on their enterprise. / M

M.Comm. / There has been renewed focus recently on the small business sector, particularly from the South African government. However, there are many and serious questions in the media with regard to the effectiveness of efforts made to stimulate this sector, especially from governement. This study attempts to determine effective and efficient ways of stimulating small business in South Africa and recommend changes in current strategies.

The South African government has attempted to find a balance of interests between the employer and the employee by the introduction of the Labour Relations Act in 1995 and the Basic Conditions of Employment Act in 1997. It is critical to the health of the South African economy that these labour laws do not impact small businesses to the extent that the Gross Domestic Product of the country is negatively affected. There are conflicting reports as to how these labour laws affect small businesses. It is therefore important for government to be able to understand, define and measure the impact of its labour laws on small businesses, in order for it to strategise corrective measures, which may include reconsidering the application of the legislative directive, regulated flexibility, if required. The study was limited in the sense that it was solely based on evidence collected from employers. An interpretivist approach was applied as a research methodology to data collected through in-depth interviews. The main findings of the empirical analysis demonstrate that labour legislation does not heavily impact small firms. It was thus determined that extensive measures were not needed with regard to correcting the framework of regulated flexibility.

The aim of the study is to determine the extent of Total Quality Management training by the government business support institutions in the enterprise development of Small Medium Micro Enterprises in Buffalo City Metro area. The study reflects on the Total Quality Management elements and enterprise development activities by the government institutions located in the Buffalo City Metro area. The researcher conducted literature review to ascertain what does Total Quality Management training entails. The study discussed the enterprise development services offered by the Government business support agencies in Buffalo City Metro. The empirical study conducted determined the views of Small Medium Micro Enterprises assisted by government business support service towards Total Quality Management. The researcher collected quantitative data from the judgemental sample using five point linkert scale questionnaire. The study achieved the response rate of 52.5 percent. Descriptive statistics of the data was analysed using MS Excel, and the internal consistency or reliability was determined using SPSS software. The data achieved the Chronbach’s Alpha co-efficient of 0.879. The research finding has certain limitations, and these limitations provide opportunities for further research studies. The limitation of this study was the fact that the sample was judgemental. It is possible that if another sampling method is used, it could arrive at a different conclusion. The results from the study indicate that the government business support institutions in Buffalo City area do not provide total quality management training. Although it was not a focus of the research, the study found that the three government institutions also located in Buffalo City Metro area are not used by the Small Medium Micro Enterprises. Government business support institutions need to offer total quality management training as part of enterprise development.

Submitted in fulfillment of the requirements for the degree of Masters in Business Administration, Business Studies Unit, Durban University of Technology, Faculty of Commerce, 2008. / It is estimated, that 90% of small businesses in South Africa fail within the first two years of their operation. The South African Government has improved business support services to small businesses. However, it has called on all South Africans to become involved in supporting small businesses and not to leave this responsibility to a single role player. Improving individual entrepreneurial capabilities should therefore be a focus area for all stakeholders involved in the promotion of entrepreneurship in South Africa. Changes brought on by growth, competition and many other factors, frequently require businesses to quickly identify alternatives, for driving significant improvements in their businesses. Business assessment tools generally provide a framework to assist business leaders to review the operations of their businesses. It was against this background that this research study was undertaken. The main aim of this research study was to develop a guide which can be used to assess small businesses. This study identified and evaluated six business diagnostic tools currently used nationally and internationally. The information gathered from evaluating these assessment tools were verified through discussions with five expert business practitioners who have relevant experience and knowledge on assessment tools. A self – assessment can be defined as a comprehensive, systematic and regular review of an organization‟s activities and results. Of the six assessment tools evaluated, it was found that the Baldrige Quality Programme, best satisfied the research questions, in terms of applicability of content, procedures and effective administration of diagnostic tools. The guide for self - assessments for small businesses was therefore, developed by using the Baldrige Quality Programme as a benchmark. This research study demonstrated, by means of an exploratory case study methodology, that self - assessment diagnostic tools do have a critical role to play in improving entrepreneurial and organizational performance of small businesses. Through the use of the self - assessment guide, developed in this study, entrepreneurs have an opportunity to take an integrated approach towards the improvement of business leadership, management and general business capabilities. This self - assessment guide fully involves the small business owner in the planning, implementation and monitoring phases of operating his or her business. There is also an element of skills transfer designed into the administration aspects of the tool, as guidelines are included in the tool, where possible. The researcher strongly feels that the use of this self - assessment tool can contribute to enhancing the success rate of small businesses in South Africa.

Submitted in compliance with the requirements for the Masters Degree in Technology: Business Administration, Department of Entrepreneurial Studies and Management, Durban University of Technology, 2009. / The purpose of this study is to identify the influence of customer-supplier relationships through facilitation of credit on the development of Micro enterprises in the Sobonakhona Makhanya Tribal Area of KZN. This study originates from the fact that there are many SMME‟s in South Africa, absorbing about 15 million people (DTI, 1995:7). Even though this sector is providing most of the employment in the country, they still find it difficult to arrange funds to start or expand their businesses. Lending institutions do not want to provide finance for them, and if they do, they do it with reluctance and reservations. As a result, SMME‟s are not able to grow and develop into big businesses. This is a quantitative and exploratory research study which was used to explore, for the first time in Sobonakhona Makhanya Tribal area, the relationship between customer-supplier relationships and accessibility of credit facilities. The study made use of questionnaires to obtain the respondents‟ perceptions on the research questions developed. A questionnaire that consisted of 35 questions was distributed to 50 SMME owners in Adams Mission, Madundube and Umbumbulu (AMU) villages. Cronbach‟s reliability analysis was not applied as it was not appropriate for use with this questionnaire. The research showed that a relationship between customers and suppliers assists SMME‟s to obtain access to credit facilities. Added to this, SMME owners, who had access to credit facilities, experienced positive changes in their businesses. This serves to prove that access to credit is essential for the development of SMME‟s. As a result, recommendations to train and educate SMME owners on how to manage their businesses, how to apply for credit and the requirements needed for applications have been set out.