Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: Since many Small Medium Sized Enterprises (SMEs) have a lack of resources and knowledge of foreign markets, they tend to develop their activities in the domestic market ftrst. When the home market limits opportunities for expansion. pro-active SMEs naturally progress to international activities by exporting to foreign markets. This natural evolution culminates in decisions of how to enter foreign markets and which markets to enter. Selection of overseas markets and entry modes lies at the heart of any international strategy. The value of the small business sector is recognised in economies worldwide. The SMEs' contribution towards growth, job creation and social progress is valued highly and small business is regarded as an essential element in a successful formula for achieving economic growth. It is thus postulated that SMEs will be one of the driving forces to grow the South African economy. By gaining an understanding of the internationalisation process of International Active Enterprises it is hoped to provide the South African SMEs with a tool that can be used for their international expansion programs. The author starts by reviewing relevant and related literature. He then investigates and highlights the different schools of thought on intemationalisation by looking at process, models, strategy and motivation. The research then describes the different modes of market entry and continues by listing the basic factor categories for market entry mode selection. The penultimate step highlights the various factors for selection of foreign markets and applies these factors into a holistic market entry and mode selection model. Finally the internationalisation is focused on SME and more specifically South African SMEs. Their internationalisation behaviour is explained in the light of the model that was developed. The author explains the framework that will be used to model an international market selection and the mode of entry into that international market. This model can guide SMEs into initial international market entry and to make decisive choices as to which international market and mode of entry they select to penetrate international markets. / AFRIKAANSE OPSOMMING: Klein en medium grootte sake-ondernemings het 'n tekort aan bronne en kennis van oorsese markte en dienooreenkomstig ontwikkel hulle eers hul besigheidsaktiwiteite in die binnelandse markte. Wanneer die binnelandse besigheidsgroei-geleenthede versadig word, sal sodanige pro-aktiewe klein en medium grootte sake-ondernemings huI produkte begin uitvoer in 'n poging om nuwe markgroei te stimuleer. Hierdie natuurlike evolusie dwing die onderneming om besluite te neem oor hoe om sodanige buitelandse markte te betree, asook die markkeuse op sigself. Die markkeuse en markbetredings metodiek is die kern van enige internasionale strategie. Die ekonomiese waarde van die klein en medium grootte sake-ondememingsektor word wereldwyd erken. Hulle bydrae tot groei, werkskepping, en sosiale ontwikkeling word wyd erken. So word klein en medium grootte sake-ondememings dan gesien as 'n kardinale bestanddeel om ekonomiese groei te behaal. Dit word dus gestel dat klein en medium grootte sake-ondememings een van die dryfvere vir ekonomiese ontwikkeling in Suid-Afrika sal wees. Die ondersoek van die intemasionaliseringsproses van buitelands-aktiewe ondernemings sal 'n model formuleer wat die Suid-Afrikaanse klein en medium grootte sake-ondememings kan bystaan met hul buitelandse markgroei. Die skrywer begin om die relevante literatuur te bestudeer en beklemtoon die verskillende denkwyses oor buitelandse groei deur te kyk na prosesse, modelle, strategiee en motiverings. Die navorsingstuk beskryf dan die verskillende metodes van markbetreding en Iys die verskillende faktore wat 'n invloed het op die betredingsvraagstuk. Die voorlaaste stap in die model beskryf die verskillende faktore wat 'n rol speel op die buitelandse markkeuse. Al hierdie mark- en betredingsfaktore word in 'n globale model gestruktureer. Laastens word daar gefokus op die Suid-Afrikaanse klein en medium grootte sake-ondememings en hulle internasionaliseringsoptrede word in die lig van die model geskets. Die skrywer verduidelik dus die raamwerk wat gebruik word om buitelandse markbetreding en markkeuse te modelleer. Hierdie model toon rigting aan klein en medium grootte sakeondememings se aanvanklike buitelandse belangstelling en ook hoe om daadwerklike besluite te neem oor buitelandse markbetreding en buitelandse markkeuses.

Thesis (PhD)--Stellenbosch University, 2004 / ENGLISH ABSTRACT: To the world community at large globalisation has been a gradual process, whereas its impact in South Africa was more intensive and concentrated over a shorter period of time - in particular since South Africa's return to the international community in the early to middle 1990s, its economy, inter alia, has had to adjust to this phenomenon. It is within this environment that all enterprises constituting the South African economy also had to adapt and adjust to a new world environment. From the middle 1980s a new discourse in the literature on the effect of a "new" style of leadership (based on continuous learning, renewal, innovation and entrepreneurship) was reported on in which these leaders brought about significant change in organisations. These leaders recognise the need for change in their organisations. They create a new vision. They bring about change in their organisations to meet the challenges from the changing environment and have been accordingly recognised as transformational leaders. This leadership style has been extensively reported on in large organisations, in both the private and the public sectors. For example, literature and research abound on the impact of transformational leaders in large business enterprises (e.g. Lee lacocca of Chrysler, Jack Welch of General Electric) and government institutions, such as education, the military and health (e.g. Nelson Mandela of South Africa, Mahatma Ghandi of India). A review of the literature on the impact of transformational leadership in large organisations, without fail, reports significant manifestations of success in those organisations' growth, cohesion and development into' more successful and competitive units. Concomitantly, it is generally acknowledged by the World Bank, the International Monetary Fund, the European Union, the Asian Development Bank and other organisations of similar position, that small to medium-sized enterprises (SMEs) shape the very foundation of the majority of successful economies. The impact of transformational leadership in small and medium-sized enterprises (SMEs) has not been measured and reported on in an empirical appraisal and surprisingly little has been forthcoming on the role and impact of transformational leadership in SMEs globally. However, from an entrepreneurial perspective, much has been researched and written on the qualities that support risk-taking, innovation and competition in SMEs. It is within this context that it was decided to investigate the concept of transformational leadership in entrepreneurs, i.e. that group of people who are generally referred to as the drivers of the economy. This dissertation reviews the literature on leadership practices and styles in organisations as a basis to specifically identify the co-producers of leadership in entrepreneurs in SMEs. It is within this context that an empirical study on aspects of transformational leadership in SMEs in a South African context was conducted. This empirical survey verifies the relationship between characteristics of these entrepreneurs and characteristics typically associated with transformational leaders, as manifested in large organisations. Therefore, given the above empirical evidence, the model developed for this study defines the qualities of a transformational leader which will enable those leaders/entrepreneurs (in SMEs with growth potential) to take their organisations from average performance levels to levels comparable to world-class leadership and competitiveness. / AFRIKAANSE OPSOMMING: Vir die wêreldgemeenskap in sy geheel was globalisering 'n geleidelike proses, terwyl die impak daarvan op Suid-Afrika meer intensief en gekonsentreerd oor 'n korter tydperk plaasgevind het - meer spesifiek sedert Suid-Afrika se terugkeer gedurende die vroeë tot middel 1990s tot die internasionale gemeenskap waartydens die ekonomie, onder andere, tot hierdie verskynsel moes aanpas. Dit is binne hierdie omgewing waarbinne alle ondernemings wat die basis van die ekonomie vorm, tot die nuwe wêreldomgewing moes aanpas. Vanaf die middel 1980s is daar redevoering in die literatuur oor die invloed van 'n "nuwe" leierskapstyl (met die uitgangspunte van verandering, innovering en entrepreneurskap) waarvolgens hierdie leiers aansienlike verandering in hul organisasies teweegbring. Hierdie leiers begryp die noodsaaklikheid van verandering en skep sodoende 'n nuwe visie binne hulorganisasies. Hulle bring verandering binne hierdie organisasies teweeg en aanvaar die uitdagings vanuit die omgewing - hierdie leiers word as transformasieleiers uitgeken. Vanuit die oogpunt van beide groot, privaat- en openbare organisasies, word hierdie leierskapstyl omvattend vermeld; byvoorbeeld, in navorsing en literatuur is voldoende verwysings oor die invloed van transformasieleierskap in groot ondernemings (bv. Lee lacocca van Chrysler, Jack Welch van General Electric) en in staatorganisasies, soos in opvoeding, die militêre asook gesondheid (bv. Nelson Mandela van Suid-Afrika, Mahatma Ghandi van Indië). 'n Literatuuroorsig oor die invloed van transformasieleierskap op groot organisasies dui sonder uitsondering op 'n beduidende invloed van sukses in die groei van hierdie ondernemings aan, asook beter spanwerk en die ontplooiing van meer suksesvolle en mededingengde eenhede binne hierdie organisasies. Insgelyks, word dit algemeen deur die Wêreldbank, die Internasionale Monetêre Fonds, die Europese Gemeenskap, die Asiese Ontwikkelingsbank en ander soortgelyke organisasies aanvaar dat klein tot middelgroot-ondernemings (KMOs) die onderbou van die meerderheid van susksesvolle ekonomië vorm. Vanuit 'n entrepreneuriese perspektief is 'n aansienlike hoeveelheid navorsing en publikasies reeds oor die faktore gedoen wat entrepreneurskap in KMOs ondersteun, naamlik risikoneming, innovering en mededining. Dog, vanuit 'n empiriese benadering, is daar nog nie navorsing oor die invloed van transformasieleierskap in KMOs gelewer nie. Dit is binne hierdie konteks dat die besluit geneem is om die konsep van transformasieleierskap in entrepreneurs te ondersoek, m.a.w. daardie groep mense waarna oor die algemeen as die dryfkrag van die ekonomie verwys word. As vertrekpunt ondersoek hierdie verhandeling die literatuur met betrekking tot leierskapgebruike en -style in organisasies, om sodoende meer spesifiek die medeprodusente van leierskap in entrepreneurs in KMOs te bepaal. Vanaf hierdie vertrekpunt word die empiriese ondersoek geloods en voltooi om die teenwoordigheid van transformasieleierskap in KMOs in Suid-Afrika te bepaal. Die empiriese navorsing bevestig die verwantskap tussen die eienskappe van hierdie entrepreneurs en die eienskappe wat tipies aan transformasieleiers in groot organisasies toegeskryf word. Gegewe die bogenoemde empiriese bevindinge omskryf die model (wat gevolglik vir hierdie studie ontwikkel is) die eienskappe van transformasieleiers wat vir leiers/entrepreneurs (in KMOs met groeimoontlikhede) van nut sal wees om sodoende hulondernemings tot prestasievlakke te neem wat met wêreldleierskap en mededingingheid vergelyk kan word.

Thesis (MBA)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: South Africa’s construction industry plays a key role in the development of the economy, not least through creating jobs and wealth. However, currently the distribution of economic benefits being enjoyed by construction companies is highly skewed, with a very small number of large firms being awarded a big stake of public-sector tender awards. It is against this background that government departments and institutions, including the Coega Development Corporation, have developed and implemented SMME-development programmes. They recognise the development of emerging contractors as an engine to alleviate unemployment and poverty in our country, especially among the youth. It can also be seen as a tool to spread the wealth of the construction industry more widely. These efforts resulted in a sharp influx of emerging contractors on the entry-level grades of the Construction Industry Development Board’s database. The study analyses the current situation of SMMEs in the construction industry and the challenges hindering their growth and development. Although the study focuses on the Coega Development Corporation’s SMME-Development Programme as implemented by the CDC’s Small Business Unit, the lessons from the sample survey and programme analysis are meant to have broader relevance. This relates in particular to the need to encourage and help dynamic and well-managed SMMEs to advance faster on the road towards highergrade contracts. It also stresses the need to get closer co-operation between the different players in efforts to support small-construction entrepreneurs.

Thesis (MBA)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: South African businesses might be missing out on the benefits of commercial barter trading, which has seen considerable adoption in other parts of the world. Commercial barter is the non-monetary exchange of products and services between organisations specifically from the small to medium business sector. The research aim was to unpack and understand the level of awareness, engagement and perceptions of commercial barter in order to assess the viability, scope and scale of commercial barter as a trade instrument across small to medium businesses in South Africa. The research took on a quantitative approach surveying representatives of 68 firms primarily situated in Cape Town, South Africa. The research results suggested that commercial barter is a viable method of trade for small to medium businesses. Although viable, the scale to which it will propagate is dependent on the growth of awareness as well as the growth of knowledge on barter practices amongst firms that form part of the small to medium business sector. The study further found that commercial barter is favourable to organisations that offer either goods or services, more so to firms that are part of business services, information technology, hospitality and personal services industries. With commercial barter displaying viability, a Barter Exchange Network is suggested for mass introduction to South Africa. The generic business model was described using the Business Model Canvas by Alexander Osterwalder.

Dissertation (PhD)--University of Stellenbosch, 2007. / ENGLISH ABSTRACT: This thesis is made of stand-alone essays on the capital structure and financing of Small and Medium Enterprises (SMEs) in Ghana and South Africa. Chapter Two reviews issues on SME development in Ghana and South Africa. Chapter Three compares the capital structures of large, quoted firms and SMEs in Ghana. The results show that quoted firms exhibit higher debt ratios than those of SMEs. The results suggest that age, size, asset structure, and profitability of the firm affect the capital structures of quoted firms and SMEs. For the SME, it is evident that level of education and gender of the entrepreneur, industry, and location of the firm are also important in explaining their capital structure. Chapter Four examines the determinants of bank financing of SMEs in Ghana. The results reveal that bank financing accounts for less than a quarter of SMEs’ debt financing, with short-term bank credit representing the greater proportion of bank finance. The results show that age, size, asset tangibility, and growth of the firm have positive associations with long-term bank debt, while profitability is negatively related to long-term bank debt. The short-term debt indicates a positive relationship with size, but negative relationships with profitability, and growth. Chapter Four also investigates the awareness and use of various financing schemes available to the Ghanaian SME sector. The results reveal low awareness and usage levels of these financing initiatives. Chapter Five explores the determinants of Ghanaian small and medium sized non-traditional exporters’ (NTEs) choice of formal/informal finance. The results show that NTEs depend on formal financing sources with bank finance representing the greater percentage of NTEs’ financing. The results suggest that, newer firms depend more on formal finance and less on informal finance. The results show positive relationships between formal finance and size, and growth of the firm. Chapter Six assesses how corporate governance affects the performance of SMEs in Ghana and what the implications are for financing opportunities. The results reveal that better corporate governance structures lead to better performance of SMEs. The paper concludes that the adoption of good corporate governance structures could lead to better management decisions and enable SMEs to attract financing resources. Chapter Seven examines the relationship between agency factors and the capital structure of quoted SMEs in South Africa. The results indicate that firms with one institutional blockholder are able to monitor the opportunistic behaviour of management more effectively than those with more than one institutional blockholders. Chapter Eight looks at the financial market and financing choice of SMEs and large firms in South Africa. The results indicate that developments in the financial market affect both longterm debt/equity and short-term debt/equity decisions of large firms. However, for SMEs, it is the long-term debt/equity decision that is affected by the financial market. The final essay examines the effect of debt policy on the performance of SMEs in Ghana and South Africa. The results indicate that long-term debt and total debt ratios negatively affect performance of SMEs. These findings have important implications for policy-makers, entrepreneurs and managers of SMEs. / AFRIKAANSE OPSOMMING: Hierdie tesis bestaan uit losstaande essays oor die kapitaalstruktuur en finansiering van kleinen middelgrootte-ondernemings (KMO's) in Ghana en Suid-Afrika. Hoofstuk Twee kyk na kwessies oor KMO-ontwikkeling in Ghana en Suid-Afrika. Hoofstuk Drie vergelyk die kapitaalstrukture van groot genoteerde maatskappye en KMO's in Ghana. Die resultate dui daarop dat genoteerde maatskappye groter skuldverhoudings as KMO's toon. Hierdie resultate wys ook dat ouderdom, grootte, batestruktuur en die winsgewendheid van die maatskappy die kapitaalstruktuur van genoteerde maatskappye en KMO's beïnvloed. Dit is vir die KMO voor die hand liggend dat die opvoedingsvlak en geslag van die entrepreneur, die bedryf en die ligging van die maatskappy ook belangrik is om die kapitaalstruktuur daarvan te verduidelik. Hoofstuk Vier ondersoek die bepalende faktore vir bankfinansiering vir KMO's in Ghana. Die resultate toon aan dat bankfinansiering rekenskap gee van minder as 'n kwart van die KMO se skuldfinansiering en dat korttermynbankkrediet die grootste gedeelte van die bankfinansiering verteenwoordig. Die resultate toon aan dat ouderdom, grootte, die tasbaarheid van bates en maatskappygroei op 'n positiewe verwantskap met langtermynskuld dui, terwyl winsgewendheid 'n negatiewe verband met langtermynbankskuld het. Die korttermynskuld toon 'n positiewe verwantskap met grootte maar 'n negatiewe verwantskap met winsgewendheid en groei aan. Hoofstuk Vier ondersoek ook die bewustheid en gebruik van verskeie finansieringskemas wat aan die Ghanese KMO-sektor beskikbaar is. Die resultate bring 'n lae bewustheid en gebruiksvlakke van hierdie finansieringsinisiatiewe aan die lig. Hoostuk Vyf verken die bepalende faktore van die Ghanese klein- en middelgrootte nie-tradisionele uitvoerders (NTU's) se keuse van formele/informele finansiering. Die resultate toon aan dat NTU's op formele finansieringsbronne staat maak en dat bankfinansiering die grootste persentasie van die NTU's se finansiering uitmaak. Uit die resultate kan afgelei word dat nuwer maatskappye meer op formele finansiering staat maak en minder op informele finansiering. Die resultate dui op 'n positiewe verwantskap tussen formele finansiering en grootte, en die groei van die maatskappy. Hoofstuk Ses evalueer die invloed van korporatiewe bestuur op die prestasie van KMO's in Ghana en watter implikasies dit vir finansieringsgeleenthede inhou. Die resultate toon aan dat beter korporatiewe finansieringstrukture by KMO's tot beter prestasie lei. Hierdie essay kom tot die gevolgtrekking dat die aanvaarding van goeie korporatiewe bestuurstrukture tot beter bestuursbesluite kan lei en KMO's in staat kan stel om finansieringsbronne te lok. Hoofstuk Sewe ondersoek die verwantskap tussen agentskapfaktorering en die kapitaalstruktuur van genoteerde KMO's in Suid-Afrika. Die resultate dui daarop dat maatskappye met een institusionele blokhouer die opportunistiese gedrag van bestuur meer doeltreffend kan monitor as dié met meer as een institusionele blokhouer. Hoofstuk Agt kyk na die keuses wat KMO's en groot maatskappye in Suid-Afrika ten opsigte van finansiële markte en finansiering maak. Resultate toon aan dat ontwikkelings in die finansiële mark besluite oor die langtermynskuld/aandelekapitaal sowel as die korttermynskuld/aandelekapitaal van groot maatskappye beïnvloed. By KMO's is dit egter besluite oor langtermynskuld/aandelekapitaal wat deur die finansiële mark beïnvloed word. Die laaste essay ondersoek die uitwerking van skuldbeleid op die prestasie van KMO's in Ghana en Suid-Afrika. Die resultate toon aan dat langtermynskuld en totale skuldverhoudings die prestasie van KMO's negatief beïnvloed. Hierdie bevindinge het belangrike implikasies vir beleidmakers, entrepreneurs en die bestuurders van KMO's.

D.Comm. / The small-business enterprise is becoming evermore important to economies worldwide, even to those of first-world countries. In South Africa, the small-business sector plays an even greater part. Research has shown that computer technology can be implemented in the small-business environment to increase productivity and even to gain a competitive edge over one's competitors. Despite the fact that small-business enterprises stand to derive great benefits from computerisation, many managers lack the necessary expertise to computerise their businesses. Although the necessary expertise may be acquired by engaging consultants, the associated cost often is beyond the financial means of the smallbusiness enterprise. The principal aim of this study, therefore, is to identify mechanisms in terms of which the necessary expertise could be made available to the small-business enterprise at a fair price. The study furthermore proposes a consultation model in terms of which the costs can be shared by enough small-business enterprises so that it would still be affordable to small-business enterprises and financially viable for consultants.

Submitted in accordance with the requirement for the degree of Doctor of Philosophy in Business Administration at the University of the Witwatersrand Johannesburg March 2016 / The principal aim of this study is to analyse how the three (3) labour legislations, namely, (a) the Labour Relations Act 66 of 1995, (b) the Basic Conditions of Employment Act 75 of 1997 and (c) the Employment Equity Act 55 of 1998 influence the growth, management and governance of small enterprises in Gauteng Province of South Africa. This research also investigates if the complete exclusion, selective exclusion or parallel application of the above three labour legislations will help in the management, growth and good governance of small enterprises in Gauteng Province. In addition to the above issues, this research also investigates how disputes are resolved in small enterprises. Furthermore, this research investigates the issue of organisational rights in small enterprises.To investigate all the above issues, the researcher used both qualitative and quantitative research techniques and both techniques were quite useful in the data analysis.The inference that was drawn from the data analysis is that application of the three (3) labour legislations in terms of complete exclusion, selective exclusion and parallel application of the three labour legislations is very important for the growth, management and good governance of small enterprises and this is fully discussed in the thesis. The analysis of the research data indicates that small enterprises cannot benefit from the organisational rights entrenched in the Labour Relation Act of 1995 and the reasons for this are discussed in the thesis. This research also found that small enterprises cannot resolve their disputes efficiently through the current process of dispute resolution as stipulated in Section 135 of the LRA. The reasons why small enterprises find it difficult to follow the process is discussed in the thesis. The recommendations in this thesis, attempt to offer solutions to the identified problems. / MB2016

Submitted in partial fulfillment of the requirements for the degree of Master of Commerce in Information Systems (Coursework) at the School of Economic and Business Sciences, University of the Witwatersrand, June 2017 / Small Medium Enterprises (SMEs) are now recognized as the driving force behind most thriving economies. This is mainly attributed to the role they play in most economies in reducing unemployment and their contribution towards Gross Domestic Product. This means that SMEs should have the right resources to enable them to enhance performance. Choosing the right technology to support their businesses is one of the important decisions that SMEs should make. Understanding the benefits and challenges of different technologies is often a problem for most SMEs. One of the new technologies that has gained prominence in recent years is cloud computing. Even though the value associated with this technology has been widely researched especially for large enterprises, the rate at which SMEs adopt cloud computing still remains low. The purpose of this research sought to explore and describe the determinants influencing the adoption of cloud computing by SMEs in South Africa. The study used Technology Organization Environment (TOE) framework as the theoretical lens in understanding the adoption of Could Computing phenomenon. Further, this qualitative exploratory and descriptive study used semi-structured interviews to collect data from five SMEs based in Johannesburg, Gauteng Province, operating in different industries and belonging to the National Small Business Chamber. The main factors that were identified as playing an important role in the adoption of cloud computing by SMEs are, relative advantage, complexity, compatibility, awareness, trialability, culture, top management support, size, regulation and trade partner relationship. It is worth noting that there was not enough evidence that competitive pressure played a significant role in SME cloud adoption. / XL2018

Thesis (Ph.D.)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2017. / The study is aimed at empirically investigating the dynamic interaction between the demand and supply factors affecting SMME access to credit in the Eastern Cape. The study is also aimed at conducting a comparative evaluation of lending criteria used by development finance institutions (DFIs) and commercial banks in evaluating SMME funding applications. The study is geared towards proposing a funding framework aligned to the characteristics of SMMEs which can be used by both DFIs and commercial banks to assess applications for SMME funding. In order to meet the objectives of the study, a sample of 80 SMMEs from the manufacturing, construction, services, agriculture, automotive, mining, security, merchandising and retail sectors was, through proportionate stratified sampling, selected from the population of all the SMMEs from the eight metropolitan and district municipalities (Nelson Mandela, Buffalo City, Joe Gqabi, Chris Hani, OR Tambo, Cacadu, Alfred Nzo and Amathole) constituting the Eastern Cape Province. Three separate structured open and closed-ended questionnaires were used to collect data from the 80 SMMEs owner/managers, 8 DFIs’ regional/branch managers and 5 major commercial banks branch managers in the province. The design of both questionnaires was underpinned by the credit rationing theoretical framework as well as the 5C’s of credit (capacity, collateral, capital, condition and character). A response rate of 100% was achieved. Content analysis and Relative Importance Index (RII) were used to analyse data. The results of the dynamic interaction between the supply and demand factors affecting SMME access to credit show that generally, there is an alignment between the SMME and the funding institutions survey results. This shows that the lending criteria of funding institutions are transparent. On the other hand, it is evident that there is poor awareness of the funding institutions criteria by SMMEs. SMMEs seem not to know what funding institutions are looking for when they evaluate funding applications. The results also pointed out that the characteristics of SMMEs in the study are representative of those of SMMEs countrywide. SMMEs in the study are characterised by poor/no business plans, lack of financial statements, lack of collateral, tax clearance certificates, poor cash flow, lack of owners’ contribution and lack of previous industry experience. The results also indicate that funding institutions’ lending criteria do not take into account the unique characteristics of SMMEs in the Eastern Cape. The results of the comparative evaluation of the lending criteria of DFIs and commercial banks show that there are no substantive differences between how commercial banks and DFIs evaluate the credit applications made by SMMEs. Both groups of lenders place significance on the business plans, financial statements, cash flows, owners’ contribution, collateral and experience of owner/managers. Moreover, the study also found that there is significant discrepancy between what the lending documentation of DFIs and commercial banks indicates as key requirements and what the survey results indicate. This means that what funding institutions practice is not congruent with what is enshrined in their lending criteria/policy. If we proxy lend in practice with what the key informants indicated as critical variables, the results show that both groups are more stringent in practice in key areas of their lending criteria. The review of the characteristics of SMMEs in South Africa showed that they lack collateral, are low on savings and experience. Furthermore, they have little capacity for writing business plans and cash flow management. The results here indicate that these are the very same areas which the financial institutions place significant importance on. The findings indicate that the lending criteria used by both groups tend to favour large and well established firms which have the required capacities. Based on the above findings, it is evident that in order to address the SMME access to credit constraint, a new framework that can be used by DFIs to lend to SMMEs needs to be developed. The framework must take into account the peculiar nature of SMME characteristics. Without such an approach, the funding gap for SMMEs in SA will continue. In response to the above findings, the study proposes that government must incentivise funding institutions to innovatively provide capacity building and training programmes targeted at improving the skills and expertise of their staff. It is proposed that DFIs should simplify their loan application forms to cater for the historically low literacy levels of SMMEs in the Eastern Cape. In addition, DFIs should adopt a more streamlined loan application process as well as a shared due diligence process. Credit application forms as well as key lending documents should be standardised. DFIs should conduct road shows to take their potential SMME customers through their application form, how they must be completed and the documents to accompany the form. SMMEs must be personally involved in the gathering of the relevant business plan information as well as in the writing up of their business plans. DFIs must organise quarterly workshops aimed at taking their potential clients through their lending criteria. The SEFA Credit Guarantee Scheme must be reviewed. Government must provide support to its venture capital industry by creating a good investment climate. The study proposes that a knowledge portal that will enable the sharing of knowledge and learning among SMMEs in the Eastern Cape be established. DFIs must set up SMME divisions or units to provide specialised credit services to their SMME customers. DFIs should evaluate SMME credit applications based on alternative risk evaluation methodologies such as the psychometric screening developed by the Harvard University’s Entrepreneurial Finance Laboratory. DFIs should explore alternative means of financing that do not require collateral. To increase SMME access to credit, government should establish specialised banks that can exclusively cater for the needs of the SMME sector. Government could consider granting certain incentives to funding institutions that actively promote SMME financing and have achieved a sizeable SMME loan book. / MT 2017

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 (ENVC) Johannesburg, 2017 / The ability of immigrants to craft successful livelihoods in the harsh economic climate that seems to overwhelm the local population has led to them being blamed for the unfortunate plight of South Africa’s poor, with the result that there has been targeted violence on immigrants in recent years. Informal sector entrepreneurship is at the heart of this with immigrants said to be outperforming local entrepreneurs, and taking away the last option of earning an income. Entrepreneurship is quoted as the only lasting solution to the poverty and unemployment that plagues developing countries. The ability of immigrants to succeed in a sector that is considered unproductive is worth investigating. In this study, cross sectional data is used to compare the antecedents of Entrepreneurial Performance between foreign Immigrants and South Africans. The findings are that, while both group’s performance is affected by Entrepreneurial Action; South African performance is driven mainly by deprivation, a factor that has no effect on immigrants. This puts the recent explosive response of local entrepreneurs to immigrant competition into perspective, and necessitates interventions that will, not only curb further xenophobic violence, but up-skill local entrepreneurs and enable them to make a living out of informal sector entrepreneurship. Contrary to popular belief, none of the population’s performance was linked to Social Capital. There is no use allowing people into the country only to stifle their ability to sustain themselves. Immigrant Entrepreneurship is a reality that South Africa needs to embrace. / MT2017