Thesis (M. Tech. (Business Administration)) -- Central University of Technology, Free State, 2014 / This exploratory study seeks to contribute to the theoretical and empirical understanding of the transition of small businesses from the informal to the formal sector. It builds on the role of the informal sector as “engines” for economic and socio-cultural development. Using selected businesses in the Mangaung area of the Free State province as case studies, this study investigates the motives for transition of informal businesses to the formal sector in South Africa, challenges encountered in the process of formalisation and the coping strategies relied upon to deal with challenges encountered in the process of formalisation. Key indicators were identified from the literature and were further developed for investigation. A qualitative approach was used for the collection of data from selected transited businesses in the Bloemfontein area using semi-structured interviews. Findings from the study suggest that the decision by small business owners to formalise is motivated by their desire to grow and expand their businesses; access to proper banking services; and to access government contracts and tenders. The results also reveal that the quest for growth is however hindered by long queues endured by business applicants during the process of formalisation; lack of adequate and relevant information on the process of formalisation; coupled with the lack of government support for informal businesses’ transitioning to the formal sector. Findings further revealed that adequate information on the process of formalisation and self-trust are key coping mechanisms needed by small business owners to successfully progress/ transit to the formal sector. Based on these findings, the study recommends that government both provincial and national play a more proactive role in regulating the informal economy by creating an environment conducive for their growth and development, and facilitating their transition to the formal sector. Informal small business owners also must be provided with information on the process of formalisation and of the existing government structures put in place to support businesses in their transition phase.

by Chan Chi-Hong, Timothy. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1988. / Bibliography: leaves 42-43.

Introduction: During the past decade, companies have examined their core business, and anything that was not related to this, or did not add value to their product, was outsourced. One of the functions which fell into this category was the distribution operation, or more commonly known as transportation (in and out bound). In many instances, the distribution function was given up for tender, and specialised transport businesses, called third party logistic providers, whose core business was transport, were given the opportunity of taking over the distribution function. Some progressive companies went a little beyond the traditional approach and created opportunities for their own employees to be involved in the newly created, outsourced distribution network. This was largely an empowerment opportunity, with the aim of creating SME’s (Small-Medium-Enterprises), and providing people from a previously disadvantaged background (black people and other ethnic minorities) the opportunity to go into a business enterprise for themselves. The latter, although, politically the correct thing to do, simultaneously created opportunities and problems. Many of the companies that empowered their own employees, through Owner-Driver schemes, used the driving competency levels as the main criteria for the transition process. The other required skills were often overlooked or ignored. This empowerment process was driven to promote “Black Economic Empowerment”, an important national imperative. Although this process was an honorable gesture on the part of many companies, the process often took place without much foresight The viability and long-term continuity of the business were not taken into account. It is the researchers personal view, based on interviews with O-D’s and companies operating O-D schemes that the O-D’s which were empowered to operate their own business ventures, had limited or insufficient business skills and the very businesses that were given to them to improve their lifestyle were at risk of becoming unviable enterprises. This is clearly evident in some of the schemes being operated by companies such as Autonet and South African Breweries (hereinafter referred to as SAB). Other Eastern Cape companies that operate Owner-Driver schemes include Italtile, Shatterprufe and Ready Mix Materials (hereinafter referred to as RMM), and according to Management consultants spoken to, have obtained mixed levels of success with their schemes. The above schemes were confirmed with the various companies mentioned.