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Development of a business framework to integrate informal SMMEs and entrepreneurs with the formal South African economyBrand, Riaan 12 1900 (has links)
Thesis (MScEng (Industrial Engineering))--University of Stellenbosch, 2006. / South Africa has an uneven distribution of economic wealth. The political history of recent
decades is the main reason for this phenomenon and has led to a situation where vast
numbers of citizens did not receive the necessary training and development to embark on
self-employment or to be employed at existing companies. These circumstances place a
burden on the present government to fight poverty and crime, and in return establish national
well being and economic stability. It requires them to find innovative ways by which they
can promote business development and create sustainable jobs for unemployed people.
Various programmes to improve the delivery of essential social services to the majority of
the population are under way. However, the vast numbers of people in desperate need for
employment or other income generating activities outstrip the support programmes already
implemented by the government.
Actions from the government are aimed at supporting and training previously disadvantaged
entrepreneurs to become active contributors to the economy. One method of generating
employment opportunities is through the deployment of SMMEs (Small Medium and Micro
Enterprises) that can operate as part of the formal economy. “South Africa's 2-million small
businesses represent 98% of the country's total number of firms, employ 55% of the labour
force and contribute 42% of the country's wage bill. Yet 87% of these enterprises are
survivalist and operate outside the formal economy” (Le Roux, 2006).1 Ideally, one would
like to see previously disadvantaged entrepreneurs as owners of these SMMEs. However,
these entrepreneurs do not necessarily have the capacity to take up business responsibilities
and management.
This research project focuses mainly on situations in the South African economic
environment with specific attention given to SMMEs. The primary objective is to find a
sustainable solution that ensures effective and successful deployment of SMMEs. A solution
is proposed in the form of a Business Framework where similar informal SMMEs are
grouped together to operate under a governing body. This governing body (Business
Framework) provides the necessary infrastructure to support the development of products
and services within these SMMEs. Entrepreneurs and SMMEs affiliated to this Business
Framework are nurtured till they are mature enough to partake in the formal economy. The
Business Framework therefore focuses on the possibilities of incorporating survivalist
1 Source: Business Day, June 27, 2006.(informal) SMMEs with formal economic activities and by doing so, tries to improve their
sustainability and create long-term income generating enterprises.
Development of such a Business Framework requires investigations of the economic
circumstances in which these SMMEs operate. This includes a study of current government
support programmes and the influences of the formal and informal economies on each other.
Various engineering tools and methodologies are applied to evaluate and characterise these
SMMEs. Through the use of Enterprise Life Cycle and Value Chain analyses, internal
business processes of informal SMMEs are studied and shortcomings in terms of business
processes are identified. A GAP-Analysis is performed and from this a list of requirements is
drawn up that the Business Framework should fulfil.
A generic Business Framework is developed using the Zachman Enterprise Reference
Architecture. This concept of a Business Framework is tested by means of a case study and
documented at the end of the report.
This document serves not only to describe project related issues from an academic
perspective, but shares a concept that can be used by governments and private organisations
to deploy business development more dynamically and effectively.
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Factors which foster the survival of long-lived small firmsPower, Bernadette January 2004 (has links)
This thesis focuses on those factors which foster the long-run survival, or continued existence, of the small firm. Using fieldwork methods, new data were gathered in face-to-face interviews with 63 owner-managers of mature small firms in Scotland (average age of 251/2 years). An instrument incorporating novel ways of calibrating organisational change and performance was designed specifically for this study. The unique body of data enabled a number of new hypotheses to be tested in structural econometric models of small firm performance and growth. A mix of quantitative and qualitative data was also used to construct illustrative case studies of seven enterprise profiles. New measures of flexibility and firm-specific turbulence are used to explain the performance of mature small firms, and Heckman sample selection estimation is undertaken of this performance equation. Performance was measured using an index constructed fi-om Likert scales over 28 distinct attributes. It was found that firm- specific turbulence had a large negative effect on performance. Measures of flexibility (viz. agility and speed) enhanced the long run prospects of the mature small firm. Evidence of a trade-off relationship was found between measures of flexibility. Real options logic was found to be useful in interpreting the results. This evidence indicated that entrepreneurs should be alert to precipitators of organisational change, but should not act impulsively in responding to them. The tendency of the long-lived small firm to remain small is considered using structural modelling techniques. In a three-equation simultaneous model, performance, size and a third variable (viz. market extent and size of competitive strategy space) are jointly determined. An array of system estimation techniques (e.g. 2SLS, SSLS, H3SLS) was employed to estimate the behavioural models. A trade-off is found between firm size and performance, thus embedding this result in a larger structural model. It is found that small firms need to adjust downwards in size, and to cultivate a varied competitive strategy in niche or localised markets, to attain higher equilibrium values of performance and to promote longevity.
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Componentes de um modelo virtual de baixo custo para a realização de atividades e a gestão de pequenas empresasGranado, Fernanda Oliveira January 2010 (has links)
Atualmente, é fácil perceber que as pessoas estão envolvidas em vários projetos simultaneamente e que têm que organizar suas agendas dividindo tempo entre vida pessoal, acadêmica, empresarial, etc. Este cenário traz uma necessidade de possuir poder de mobilidade e capacidade de trabalhar assincronamente e em locais diferentes e distantes; e isto pode ser propiciado por ferramentas virtuais. Para atingir seus objetivos, muitas organizações estão explorando diversos níveis de virtualização ou trabalho remoto facilitado pela tecnologia. Desta forma, o objetivo geral do trabalho é propor componentes de um modelo que seja operado e esteja disponível na internet, de baixo custo, estejam eles ou não integrados. A finalidade é a facilitação das atividades e da gestão de pequenas empresas de TI. Para atingir tal objetivo, foram realizadas três atividades de campo, num estudo de caráter exploratório. As duas primeiras atividades foram realizadas em laboratório de informática, com alunos de graduação em Administração, e a terceira em empresa de pequeno porte que atua no ramo de TI. O intuito é que, ao final de tais atividades, se chegue a um modelo que possa ser utilizado por empresas de pequeno porte que já disponham de infra-estrutura tecnológica (computadores e internet), com a finalidade de auxiliá-las na realização de suas principais atividades e na sua gestão, de forma virtual, remota e compartilhada. / Currently, it is easy to notice that people are simultaneously involved in several projects and have to organize their schedules sharing their time between personal, academic, and business life, etc. This scenario brings the need of mobility power and the ability to work asynchronously and in different and distant places. This can be brought about by virtual tools. To achieve their goals, many organizations are exploring different levels of virtualization or remote work facilitated by technology. Thus, the overall objective of the study is to propose components and tools of a model that is operated and is available on the Internet, free to use, whether they are integrated or not. The purpose is to facilitate the operation and the management of small IT companies and consulting management. To achieve this goal, there have been realized three field activities, with exploratory characteristics. The first two activities were held in a computer lab with undergraduate management students, and the third, in a small business that operates in the IT industry. The intention is, at the end of such activities, to reach a model that can be used by small businesses that already have the technological infrastructure (computers and Internet) in order to assist them in performing their key management activities, in a virtual, remote and shared way.
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The strategic issues management by small businesses in the Mamelodi metropolitan areasTshabalala, Daniel Bonginkosi 31 July 2007 (has links)
No abstract available / Business Management and Entr / M. Tech. (Business Administration)
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Componentes de um modelo virtual de baixo custo para a realização de atividades e a gestão de pequenas empresasGranado, Fernanda Oliveira January 2010 (has links)
Atualmente, é fácil perceber que as pessoas estão envolvidas em vários projetos simultaneamente e que têm que organizar suas agendas dividindo tempo entre vida pessoal, acadêmica, empresarial, etc. Este cenário traz uma necessidade de possuir poder de mobilidade e capacidade de trabalhar assincronamente e em locais diferentes e distantes; e isto pode ser propiciado por ferramentas virtuais. Para atingir seus objetivos, muitas organizações estão explorando diversos níveis de virtualização ou trabalho remoto facilitado pela tecnologia. Desta forma, o objetivo geral do trabalho é propor componentes de um modelo que seja operado e esteja disponível na internet, de baixo custo, estejam eles ou não integrados. A finalidade é a facilitação das atividades e da gestão de pequenas empresas de TI. Para atingir tal objetivo, foram realizadas três atividades de campo, num estudo de caráter exploratório. As duas primeiras atividades foram realizadas em laboratório de informática, com alunos de graduação em Administração, e a terceira em empresa de pequeno porte que atua no ramo de TI. O intuito é que, ao final de tais atividades, se chegue a um modelo que possa ser utilizado por empresas de pequeno porte que já disponham de infra-estrutura tecnológica (computadores e internet), com a finalidade de auxiliá-las na realização de suas principais atividades e na sua gestão, de forma virtual, remota e compartilhada. / Currently, it is easy to notice that people are simultaneously involved in several projects and have to organize their schedules sharing their time between personal, academic, and business life, etc. This scenario brings the need of mobility power and the ability to work asynchronously and in different and distant places. This can be brought about by virtual tools. To achieve their goals, many organizations are exploring different levels of virtualization or remote work facilitated by technology. Thus, the overall objective of the study is to propose components and tools of a model that is operated and is available on the Internet, free to use, whether they are integrated or not. The purpose is to facilitate the operation and the management of small IT companies and consulting management. To achieve this goal, there have been realized three field activities, with exploratory characteristics. The first two activities were held in a computer lab with undergraduate management students, and the third, in a small business that operates in the IT industry. The intention is, at the end of such activities, to reach a model that can be used by small businesses that already have the technological infrastructure (computers and Internet) in order to assist them in performing their key management activities, in a virtual, remote and shared way.
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Dimensions for evaluating information systems service quality expectations of e-Commerce SMMEsApril, Graham January 2007 (has links)
Thesis (MTech (Information Technology))--Cape Peninsula University of Technology, 2007 / With growing invesbnent in WWW technologies bye-Commerce businesses
the measurement of Information Systems (IS) effectiveness in this area has
become increasingly important over the last decade. As business users
have become reliant on outsourced IS service providers for a wide range of
services, the quality of service rendered by the latter is an important issue
which impacts on IS effectiveness. Researchers have for many years
recognised the importance of service quality as a measure of IS performance.
Service quality measurement tools such as SERVQUAL from the marketing
field, have been proven to be applicable to the IS domain. However, empirical
studies in this regard are concentrated in the context of large, non- eCommerce
organisations only.
In South Africa, e-Commerce has been recognised as an important driver for
growth in SMMEs. The literature suggests that IS service delivery to eCommerce
businesses needs to be evaluated differently to that of traditional
brick-and-mortar businesses. There is however a paucity of research
regarding IS evaluation in e-Commerce environments, including that of the
application of service quality principles. It is thus difficult for managers of IS
service providers in this context to develop a complete picture of the
effectiveness of the IS they deliver. Furthermore, because e-Commerce
SMMEs are almost wholly reliant on these service providers for the supply of
IS and support, their service expectations could be different from those in
traditional businesses.
The primary objective of this research was to investigate whether IS service
quality criteria applied in large traditional businesses, are also applicable to
SMME e-Commerce businesses. The applicability of a service quality
measurement instrument, based on SERVQUAL, was tested in an ev
Commerce SMME context. Specifically, this instrument measures the service
quality expectations that e-Commerce SMMEs have of IS service providers.
A SERVQUAL measurement scale from a recent MISQ paper was adapted
and used to collect data concerning service quality expectations of e·
Commerce SMMEs. Using a structured survey method, the research was
delineated to e-Commerce enabled bed-and-breakfast and self-catering
accommodation businesses in the Western Cape, South Africa.
The research results indicate that, although SERVQUAL principles were
applicable to the e-Commerce SMME context, the service quality
dimensionality was different. There are four derived dimensions for service
quality expectations of e-Commerce SMMEs in this research, viz., Credibility,
Expertise, Availability and Supportiveness. A fifth dimension is the Tangibles
dimension, which is retained from SERVQUAL. Furthermore the results
indicate that the Credibility was the most important dimension in this research
context, while the Tangibles dimension was the least important.
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Risk management of SMMEsBoubala, Helene Gesika Oumbahouin January 2010 (has links)
Thesis (MTech (Internal Auditing))--Cape Peninsula University of Technology, 2010 / Developing countries face the great challenge of balancing growth with equity and
justice. Growth, in all its fairness, should translate into equitable opportunity for all,
but as is observed, the distributional effect of growth often does not filter down to the
majority of the socially and economically disadvantaged communities. It is imperative
in these situations to embark on a process of developmental change to improve the
quality of life of the majority of the disadvantaged community.
South Africa used this strategy to endeavour to encounter or reverse the political
history of the country, by encouraging entrepreneurs of previously disadvantaged
racial groups through the Department of Trade and Industry (DTI) to open small
businesses. The South African Government believes that the development, growth and
sustainability of the Small, Medium and Micro Enterprise (SMME) sector will help
the country to decrease the high unemployment rate, and lead the country as a whole
to a sustainable economical development. Research has shown that this aim can no
longer be achieved by only facilitating access to finance to entrepreneurs. They argue
that some management strategies such as risk management should be introduced,
understood and applied by small business owners, in order for their businesses to go
beyond their actual estimated survival period referred as 3 to 5 years maximum.
This research provides background to which risk management techniques are applied
within the ambit of small enterprises. The data were collected from eighty eight
companies drawn from a possible of 150 small enterprises found in the Cape
Metropole. The analysis of data of those who responded has shown that very few
SMME owners, managers, entrepreneurs or key designated employees make use of
risk management tools and techniques within their businesses, to achieve growth and
sustainability. However, the majority agreed to the high importance of risk
management in the success of a business enterprise.
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The working-capital management practices of small medium and micro enterprises in the Cape MetropoleTabot, Enow Samuel January 2015 (has links)
Thesis (MTech (Cost and Management Accounting))--Cape Peninsula University of Technology, 2015. / The broad aim of this research was to investigate the working-capital
management practices of Small Medium and Micro Enterprises (SMMEs) in the
Cape Metropole. The study was motivated by a lack of research on the workingcapital management practices of SMMEs. Data was collected by means of a questionnaire that comprised closed-ended questions. The findings of the study indicate that most SMMEs manage their cash effectively; however only a minority hold cash for speculative purpose, invest their surplus cash profitably and use computers to manage cash. By contrast, only a minority of the SMMEs sell on credit. Of those that do, only a minority review their credit criteria annually, send reminders to debtors, charge interest for delayed payment, send prompt statements and use computers to manage their receivables. Likewise, only a minority of the SMMEs purchase on credit. Of those that do, a majority pay promptly to take advantage of discounts and thus only a minority settle their accounts on the last date allowed. Interestingly, most of the SMMEs that purchase on credit use computers to manage their payables. Only a minority of the SMMEs perceive a lack of skills, resources, personnel and time as factors that inhibit them from managing their workingcapital effectively. The findings of this study provide invaluable insights on the weaknesses in the working-capital management practices of SMMEs, which could be used to inform future endeavours of the Government when establishing interventions meant to
improve the survival rates of these entities. The findings may also assist SMMEs
to gauge and review their working management practices, particularly their
receivables and payables, with a view to optimising the benefits derived from
these components of working-capital.
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Management accounting skills of decision makers of small, medium and micro tourism enterprises in Western Cape, South AfricaMbumbo, Ernest Pierre Tsague January 2015 (has links)
Thesis (MTech (Cost and Management Accounting))--Cape Peninsula University of Technology, 2015. / Small medium micro enterprises (SMMEs) in general and small medium and micro tourism enterprises (SMMTEs) in particular are considered as one of the viable vehicles to reduce the high unemployment rate and increase economic participation in South Africa. Due to the lack of management skills, among other factors, SMMTEs may not fully realise their potential. The question that arises is: to what extent do the decision makers of SMMTEs employ management-accounting tools to inform their business decisions? The aim of this study is to investigate and to evaluate the ways decision-makers of the SMMTEs in the Western Cape of South Africa use management-accounting skills to make their decisions. Data was collected by means of a questionnaire that comprised closed-ended questions. The findings may assist SMMEs to improve the management of their businesses as they will be able to see how employees with different management-accounting skills and experience compare to each other when it comes to running the business, and or if management-accounting skills influence business decisions.
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Componentes de um modelo virtual de baixo custo para a realização de atividades e a gestão de pequenas empresasGranado, Fernanda Oliveira January 2010 (has links)
Atualmente, é fácil perceber que as pessoas estão envolvidas em vários projetos simultaneamente e que têm que organizar suas agendas dividindo tempo entre vida pessoal, acadêmica, empresarial, etc. Este cenário traz uma necessidade de possuir poder de mobilidade e capacidade de trabalhar assincronamente e em locais diferentes e distantes; e isto pode ser propiciado por ferramentas virtuais. Para atingir seus objetivos, muitas organizações estão explorando diversos níveis de virtualização ou trabalho remoto facilitado pela tecnologia. Desta forma, o objetivo geral do trabalho é propor componentes de um modelo que seja operado e esteja disponível na internet, de baixo custo, estejam eles ou não integrados. A finalidade é a facilitação das atividades e da gestão de pequenas empresas de TI. Para atingir tal objetivo, foram realizadas três atividades de campo, num estudo de caráter exploratório. As duas primeiras atividades foram realizadas em laboratório de informática, com alunos de graduação em Administração, e a terceira em empresa de pequeno porte que atua no ramo de TI. O intuito é que, ao final de tais atividades, se chegue a um modelo que possa ser utilizado por empresas de pequeno porte que já disponham de infra-estrutura tecnológica (computadores e internet), com a finalidade de auxiliá-las na realização de suas principais atividades e na sua gestão, de forma virtual, remota e compartilhada. / Currently, it is easy to notice that people are simultaneously involved in several projects and have to organize their schedules sharing their time between personal, academic, and business life, etc. This scenario brings the need of mobility power and the ability to work asynchronously and in different and distant places. This can be brought about by virtual tools. To achieve their goals, many organizations are exploring different levels of virtualization or remote work facilitated by technology. Thus, the overall objective of the study is to propose components and tools of a model that is operated and is available on the Internet, free to use, whether they are integrated or not. The purpose is to facilitate the operation and the management of small IT companies and consulting management. To achieve this goal, there have been realized three field activities, with exploratory characteristics. The first two activities were held in a computer lab with undergraduate management students, and the third, in a small business that operates in the IT industry. The intention is, at the end of such activities, to reach a model that can be used by small businesses that already have the technological infrastructure (computers and Internet) in order to assist them in performing their key management activities, in a virtual, remote and shared way.
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