Economic stagnation in sub-Saharan Africa since 1970 is well documented. While the causes are varied, the paradigm of nationalistic state-led economic development has changed. Economic development occurs in a global marketplace. Manufacturing has shifted from developed to less developed countries, an opportunity that was seized in Asia and Latin America. South Africa’s labour, unskilled and costly by world standards, is at a disadvantage as an agile and competitive world market seeks skilled labour at the lowest cost. South Africa’s Gear economic policy suggests that 300 000 new jobs need to be created annually until 2004 in order to reduce unemployment. Small, medium and microenterprise growth is central to meeting this target. Numerous government structures to assist small enterprises have been created. Few, however, assist small business with the demands of the marketplace. Most focus on generic skills training and questionable small business finance. This thesis suggests that interfirm linkages between large and small enterprises is one strategy that can assist the growth of small business, create employment and, increase labour skills. International experience shows that generic training is less effective in promoting small business than linking business training to actual market-demands. Interfirm linkages, most often through subcontracting, is a strategy used successfully in Taiwan, Indonesia, Malaysia and Brazil. Such linkages are usually government supported and provide incentives for both large and small businesses to work together productively. Three South African interfirm linkage case studies are critiqued. Case study findings indicate that interfirm linkages expose emerging businesses to market conditions, and can provide access to process technology training, low cost raw materials, creative finance, and new markets. Small business ‘learns by doing’ and also ‘learns while earning’. The state has a role in the development of a vibrant small, medium and microenterprise sector in South Africa. Current support strategies are largely unrelated to market conditions. Interfirm linkages are an approach that applies market forces in the development of small business. Government policy would be wisely directed to support such business interactions.

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2014. / The majority of craft retail outlets in Cape Town are owned by immigrants mostly from the SADC and elsewhere on the continent. However, a notable proportion of African immigrant-owned survivalist and micro businesses that do not grow and develop into small and medium size enterprises (SMEs). Despite many studies conducted on craft businesses generally, little information exists on factors affecting the growth of African immigrant-owned craft businesses. The main objective of this study is to determine these factors. This study focused on four craft markets in the Cape Town area: Greenmarket Square, Stellenbosch, Franschhoek and Hout Bay.The population of the study comprised all African immigrants at the selected craft markets and the municipal managers responsible for managing these selected markets. The sample frame of this study constitutes African immigrant entrepreneur-owned businesses that are three or more years old, registered and located in one of the selected markets. The study utilised a mixed method approach to collect and analyse data. Questionnaires (Quantitative) were administered to 122 African immigrant entrepreneurs and in-depth interviews (Qualitative) were conducted with the three municipal managers responsible for the four selected craft markets. Quantitative data was analysed separately using Statistical Packages for Social Sciences (SPSS) software, and face-to-face interviews were analysed by means of content analysis. The results of both methods were presented in tabulated format. Pushed by the need to survive and pulled by the many tourists in South Africa, African immigrant entrepreneurs turned to the craft business. In terms of the challenges faced, it was noted that limited access to finance and difficulty in acquiring a business location were start-up challenges, whereas the growth challenges were the seasonal and irregular nature of trade and xenophobia. Emanating from the findings of this study, recommendations were made to municipality managers to persuade the financial agencies to extend their funding assistance to deserving African immigrant entrepreneurs. Local government should grant immigrants trading permits and relax some of the restrictions to allow them to have a stall and do business. The municipalities should organise workshops to educate African immigrant entrepreneurs on the benefits of selling unique products and anti-xenophobic sentiment.

Thesis (PhD)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: This thesis, presented in six thematic chapters, investigates an approach for promoting the growth of small businesses in South Africa. Chapter 1 motivates the thesis by discussing the contested role of small businesses in reducing unemployment and fostering social equity. Chapter 2 reviews the small business development policy in South Africa and explicates the socioeconomic conditions underpinning the policy. Chapters 3, 4 and 5 are empirical analyses using data from the World Bank Enterprise Surveys of 2003 and 2007, and the World Bank Financial Crisis Survey of 2010 to determine key impediments to the growth of small businesses and characteristics of firms creating and retaining most jobs in South Africa. Chapter 3 uses two methods to investigate the key impediments. The first method is based on a count of obstacles that entrepreneurs rate as seriously affecting enterprise operations. The second estimates the effects of the obstacles on growth through sequential multivariate regressions and identifies binding constraints for different categories of firms. It emerges that medium-sized firms are mildly affected by most obstacles but micro and small firms are significantly affected by crime, electricity and transportation problems. The chapter provides important insight on the sequencing of interventions to address the impediments to growth. Chapter 4 studies the finance constraint. It evaluates the importance of the constraint firstly by assessing whether firms rating finance as a serious problem underperform firms rating the problem as less important. Thereafter, the chapter studies the experiences of firms when seeking external finance and identifies four levels of the finance constraint. Using an ordered logit model and a binary logit model, the chapter explores the profile of financially constrained firms. Results show that firms owned by ethnic groups disadvantaged in the apartheid era are more likely to be credit-constrained. The results also suggest that the likelihood of being credit-constrained decreases with higher levels of formal education. The results inform policy on the types of firms that financial interventions must target. Chapter 5 builds on a growing body of evidence which shows that a small proportion of firms in an economy account for over 50 percent of net new jobs. The evidence from the literature suggests that such high-growth enterprises have distinct characteristics that could make it possible for interventions to nurture or for other firms to emulate. The chapter employs two methods to investigate the characteristics of high-growth firms. The first is logit regression, which the investigation uses to determine characteristics of firms that create more jobs than the average firm. The characteristics are also interacted to identify interaction terms most associated with growth. The second method is quantile regression, which makes it possible to assess the importance of each characteristic for firms in different levels of growth rates. The results show that the typical high-growth firm is more likely to be black-owned. The results of the chapter however highlight the need for further research into characteristics that may perhaps explain high-growth firms more robustly than variables in the survey instrument. The research ends with a summary, a discussion of areas of further research, and policy recommendations in Chapter 6.

Thesis (MDF (Development Finance))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The need for Small, Micro and Medium Enterprise (SMME) growth in South Africa is beyond question. Government sees SMMEs as an important vehicle to boost the economy of the country because of the contribution they make to job creation. According to recent estimates by the Department of Trade and Industry (DTI), small businesses represent 98% of the total number of registered firms, employ 55% of the country’s labour force and account for 35% of GDP. Unfortunately South Africa has a low survival rate among start-up businesses compared to other developing economies. Some believe that the reason for the failure of government programmes to support small businesses is due to poor delivery. This is one of the key issues to be addressed by all business support players. The key to success is to pursue a private sector led approach where experienced business advisors and mentors can add value to the businesses of customers. The research focuses solely on support organisations within the Siyanda region. The findings support the notion that Seda, as government’s small business support vehicle, will have to utilise support organisations more in order to make a success of its mandate. The investigation has identified some recommendations that may lead to an improvement in the current environment. The first approach is to ensure that people who render small business support have business experience and understand small enterprises. Secondly, to ensure that sector programmes are focused on a particular objective and that the overall strategy remains integrated and focused. In order to achieve this, the private sector should participate and share the costs. In recommending measures to improve the promotion of small business support at a local level, it is important to focus on what works best and that is ultimately privatesector organisations. / AFRIKAANSE OPSOMMING: Die behoefte aan groei van Klein, Mikro en Medium Ondernemings (SMMEs) in Suid-Afrika word nie debateer nie. Die regering sien SMMEs as ‘n belangrike medium om die land se ekonomie ‘n hupstoot te gee vanweë die bydrae wat hulle tot werkskeppping maak. Volgens onlangse skattings van die Departement van Handel en Nywerheid, verteenwoordig kleinsake-ondernemings 98% van die totale aantal geregistreerde ondernemings en verskaf hulle werk aan 55% van die land se arbeidsmag, en dra hulle by tot 35% van die bruto binnelandse produk. Ongelukkig het Suid-Afrika ‘n lae oorlewingsyfer onder nuwe besighede in vergelyking met ander ontwikkelende ekonomieë. Sommige mense glo die rede vir die mislukkig van regeringsprogramme wat kleinsake-ondernemings ondersteun, is swak dienslewering. Hierdie is een van die sleutelkwessies wat aangespreek behoort te word deur alle sake-ondersteuningspartye. Die sleutel tot sukses is om ‘n privaatsektor-gedrewe aanslag te volg waar ervare sake-adviseurs en -mentors waarde kan toevoeg tot kliënte se besighede. Die ondersoek het sekere aanbevelings geidentifiseer wat mag lei tot ‘n verbetering van die huidige omstandighede. Die eerste stap is om te verseker dat mense wat kleinsake-ondersteuning bied wel sake-ondervinding het en die kleinsakebedryf verstaan. Tweedens, om te verseker dat die sektor se programme wel gefokus is op ‘n spesifieke doelwit en dat die oorkoepelende strategieë geïntegreerd en gefokus bly. Ten einde dit te bereik, moet die privaatsektor deelneem en die kostes deel. By die soeke na stappe om die bevordering van kleinsake op plaaslike vlak te verbeter, is dit belangrik om te kyk wat (elders) reeds geslaag het. Dit is alte dikwels stappe wat deur die privaatsektor onderneem word.

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

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 debate concerning small firm access to finance continues. The proliferation of research of the issue underlines the importance attached in promoting a strong entrepreneurial culture within a country. Small firms are significant to economic growth if they are growing. Central to this significance is ascertaining the role of finance and in particular bank finance in accelerating small growth potential. The case study, through its ontological, epistemological and methodological position, draws on a document review and interview material from small firm owners and key informants to explore the role of bank finance in small firm growth. Case study evidence reveals that small firm owners do not intend to finance firm growth with bank finance but prefer to finance growth with internally generated funds. The owners indicate that non-financial and behavioural factors, such as, maintaining decision-making control, experience accessing bank finance, the perception of the banking relationship and growth aspirations of owners may be more important in dertermining the finance structure for firm growth. From the bank's perspective, findings suggest that risk assessment, financial viability of the enterprise and provision of collateral are more important in the lending decisions; findings supported by an analysis of selected documents. The small sample of small firm owners, bank representatives, experts and documents makes it difficult to generalize the findings. However, the findings are significant because exploring the issue from different perspectives presents invaluable insights, which can be investigated further to assist small firm owners, to develop finance products geared for small firm operations, and in the development of the knowledge base on finance-related issues in the South African context.