M.Tech. (Construction Management) / This research was conducted to investigate the causes of construction company failure in the Free State Province, for the reason that there are many risks involved in running a construction company due to the nature of the construction industry. The study focused on four major factors involved in common business failures which are Managerial, Financial, Expansion and Economic environmental factors. The objectives of this research were achieved by means of a questionnaire that was distributed to 120 small and medium contractors in the Free State Province. These contractors were identified in the CIDB website and were listed as expired, suspended or deregistered then randomly selected. 102 questionnaires were received and 6 questionnaires were spoilt which meant that the total workable questionnaires were 96 which was at a return rate of 80%. The data analysis that was used was done by quantitative method. The data gathered include the main four factors (managerial, financial, expansion and economic environment) of the study. Financial factors were found to be amongst the leading causes of company failures, whereby most respondents said that their companies did not have adequate cost and accounting practices and systems in place. Delay in payment from clients was also a amongst the major causes for failure because the respondents said their companies always had cash flow problems and had heavy debts to their suppliers.

LL.M. (Commercial Law) / The Companies Act 71 of 2008 (hereinafter referred to as the Act) was passed by Parliament on 19 November 2008 and assented to by the President on 8 April 2009. The Act came into force on 1 May 2011 and contains the provisions regulating the new business rescue proceedings that replace judicial management under the Companies Act 61 of 1973. However, since the introduction of Chapter 6 of the Act, the courts South Africa still appear to be finding their feet with regard to many of the Act’s provisions. In spite of this, the new business rescue practice has become an important part of the South African corporate framework. The outbreak of recent case law has started to shape the direction, which business rescue, as interpreted by the Courts, is taking. An important debate among the courts is whether the courts should rescue a business entity or liquidating the businesses assets in order to settle claims against it. While a liquidation aims to divide the profit from the sale of assets amongst creditors and to dissolve the company, business rescue legislation provides for a restructuring of the financial structure of a distressed debtor to save the business as a going concern and to assist the settlement of claims against the business in full. The business rescue proceedings have been provided for by legislation in the Act, however, the result of the vast recent court decisions show that the Act may not be relied upon unconditionally without proper regard to the circumstances of each case. This research analyses the appropriateness of business rescue as opposed to liquidation by specifically looking at the requirements for a successful business rescue order. This research further analyses whether the decisions of the courts in present case law are on the correct path when interpreting the business recuse provisions in terms of the Act.

The main purpose of this study is to develop a bankruptcy prediction model for the small business firm. Data was collected from the Dallas Small Business Administration (SBA), making this study specific to its decision makers. Existing research has produced models which predominately use financial ratios and information measures either independently or combined, and a few research models have used economic trends. This study varies from past studies in that it includes regional economic variables from the states of Texas. A sample of three-year data for 138 firms included fifteen bankrupt firms. This proportion of bankrupt/nonbankrupt firms approximates the proportion of repayed/defaulted loans in the SBA. Stepwise regression, set at the .15 level of significance, reduced a total of fifty-three variables to nine. These nine variables were then used to test twelve predictive models. All twelve models tested improved the SBA repayment rate and only two of the twelve would have caused the SBA to deny loans to applicants who eventually repaid. The study determined the model that included financial ratios, information measures, and Texas economic variables as best. It was also demonstrated that some of the variables used in this model could be eliminated without decreasing the predictive power of the model. The best of twelve models improved the SBA default rate by 40 percent without denying a loan to any applicant that eventually repaid.

This study examines the factors that contributed to the failure of retrenched Telkom workers to start and run successful businesses after the company had provided them with start-up capital and also funds for training. Many of the factors contributing to the majority of Telkom retrenched employees not establishing businesses will be identified and recommendations that companies could implement in the future to limit the failure of businesses of retrenched employees will be made. The study was descriptive, exploratory and qualitative in nature. Semi-structured interviews and a survey questionnaire specifically developed for this study were used to gather data. The study was conducted on ex-employees of Telkom residing in and around the townships and suburbs situated on the western side of Johannesburg (Mogale City, Randfontein and Soweto). Telkom provided retrenched employees with funds to attend external training so that they could be equipped to start and run their own businesses. Subsequently, Telkom also provided start-up capital so that these employees could start small businesses after they had left the company. Although the funds were provided, most employees did not utilise them to start their businesses and the few that did access the funds and start businesses experienced the failure of their businesses within a very short period of time. Three major issues of concern were identified: many of these ex-employees did not utilise the funds that were allocated for training; many did not make use of the start-up capital and the majority did not start businesses. The study investigated the following issues: a) Why the retrenched employees did not make use of the funds allocated for training b) Why the ex-employees did not make use of the start-up capital c) Why the ex-employees did not start businesses d) Of those that did start businesses, why did they fail within such a short period of time? The findings of the study confirm that most of the retrenched employees did not access either the training or the start-up funds. Detailed reasons for why the funds were not made use of are given and recommendations are also made for what the company should do in future if deciding to embark on a similar exercise. / Business Management / M. Tech. (Business Administration)

The thesis documents findings of a study conducted to develop a project based financial management system (PBFMS) whose role was viewed as a contributor to the successful delivery of projects leading to improved financial performance of small and medium construction enterprise (SMCEs). In particular, the PBFMS was viewed as a facilitator {function) for the efficient and effective conduction of the strategic management, project planning and control processes. Thus an adequate PBFMS was seen as one which, facilitates the efficient and effective delivery of projects with a view to provide enhanced enterprise performance. In pursuit of this aim, theory and practices relating to the development, operation and use of a PBFMS were investigated and analysed from both literature and field work leading to findings being reported in the thesis. In addition, the actual financial management systems of SMCEs were investigated to determine the extent to which their attributes match those of the proposed PBFMS model. The motivation for embarking on the study was brought about by three aspects observed in Botswana. Firstly, was the frequently documented poor delivery of projects, that is, for a sustained period of time, projects were being delivered beyond stipulated times, above agreed cost, and below specified quality. In some worst scenarios, projects were being abandoned at various stages execution but before completion. Secondly, the investigation was also prompted by the frequent financial failures of enterprises that were being recorded in the construction industry. Thirdly, the conduct of the proprietors of the construction enterprises was also frequently circumspect, particularly in matters relating to financial management. Thus in pursuing the study, a number of premises were made. Firstly, the financial management systems of the SMCEs were considered inadequate to fulfil their functions, that is, they were incapable of facilitating the strategic management, project planning and control process. It was also speculated that management of SMCEs were not committed to the PBFMS i.e. they did not participate, get involved and did not comply with the policies regarding the planning, developing, and operation of financial management systems. As a result, PBFMS were unable to play their role of facilitating to the successful delivery of projects for improved contribution to the financial performance of SMCEs. The second premise was that financial models available are either too generic to guide SMCEs in financial management matters or the strategic component is not linked to the operational plans to execute the strategy. For those which are meant for construction enterprises, they normally prescribe practices for project planning and control without including the strategic element and vice versa. In essence there is a gap in each of the models available for use by the SMCEs. It is the closing of this perceived gap in knowledge that the results of the thesis contribute in finding a solution to the mentioned problem. Thus the study aimed at answering two research questions: (i) Do SMCEs have adequate PBFMS that facilitate the effective delivery of projects for enhanced financial performance? and (ii) Is there a relationship between the adequacy PBFMS and poor performance of SMCEs? To facilitate the answering of these two question two hypothesis were formulated namely: Hoi: The PBFMS of SMCEs are adequate to facilitate the delivery of projects; and Ho2: The adequacy of the PBFMS is positively correlated with the performance of SMCEs. To test the two questions a research process was planned and executed in several steps. Firstly, a survey strategy using the questionnaire was selected as the most appropriate method to provide a snap shot of the existence of attributes of PBFMS and to investigate associated practices relating to their development and operation. The method was considered more appropriate and effective in gathering large data in a short space of time in line with the doctoral time framework. Construction enterprises registered with Public Procurement and Asset Disposal Board (PPADB) for building and civil work in classes A, B, C and D were surveyed. The internal quantity surveyor, estimator or accountant were requested to respond on matters relating PBFMS on behalf of the SMCEs. The sampling frame from which the SMCEs considered for study were obtained from the two government departments which work closely with PPADB, the Department of Building and Engineering Services (DBES) and Department of Roads (DR). The sample sizes for each group category (small and medium) were determined using Krajcie and Morgan (1970) table. Stratified and systematic random sampling was used to select the identity of the members to form a sample fro study from the sampling frame. The second step was to design the questionnaire to probe the three aspects identified as constituting the PBFMS namely the strategic management; project planning and control; and management commitment. Essentially the questionnaire sought to investigate the knowledge, tools, techniques, practices, opinions and attitudes of those who design, develop, operate and use the PBFMS in the SMCEs. To ensure a high quality design, the questionnaire was given to experts in the subject area to provide some comments on its suitability and was also piloted on four enterprises. Data collected was analysed using mainly the SPSS software and involved application of various statistical techniques including cross-tabs, ratio analysis, ttests and correlational tests. A total of 101 completed questionnaires were received, made up of 55% and 46% small and medium enterprises, respectively. The demographic profile of SMCEs confirmed some of the expected results, for example, majority (59%) of the respondents were owner/managers confirming the dominance of the owner in SMCEs. Majority of SMCEs (59%) were more than 9 years old, with medium enterprises being more mature (60% older than 9 years) than the small sized enterprises (49% older than 9 years). Majority (56%) of SMCEs had 10 or more employees, with medium sized enterprises having more employees (75% with 10 or more) than the small sized enterprises (42% with 10 or more). SMCEs performed more of building work alone (48%) than both building and civil work (48%) or maintenance (11%) and no enterprise performed civil work (0%) alone. Majority of SMCEs (65%) acted as main contractors as opposed to sub-contractors, though as expected sub-contracting was seen more in small (20%) than medium (10%) enterprises. Lastly, the public sector (central and local authorities) provided majority (65%) of the SMCEs jobs. However, if parastatals which are wholly owned by government were added, the public sector job market adds up to 73% (65%+8%). The testing of the major two major hypothesis resulted in the following conclusion. The results indicated that the first hypothesis was supported, that is, in a majority of SMCEs operating in Botswana the PBFMS were found to be adequate in facilitating the delivery of projects. The results were therefore not in agreement with the basic premise made at the commencement of the study. In view of the finding, it suggests that SMCEs in Botswana have adequate systems that support the efficient and effective project planning and control. Secondly, management is committed to the 'welfare' of the PBFMS in terms of complying and supporting their development and operation. However, like any human endeavour, there are weaknesses in the PBFMS, for example, they were found inadequate in facilitating the strategic management process, including lack of linking the process to the operational process in order to execute the strategy. They were also found weak in one of the most crucial process of project management; that of project control. The second major investigation showed a weak link between the adequacy of a PBFMS and performance. Secondly, the results also indicated that the SMCEs which had adequate PBFMS performed better than their counterparts. The first results were not surprising since the cause of poor performance were shown as three pillars (business environment, client/representatives and enterprise factors). However, the second results emphasise that SMCEs with adequate PBFMS posted better performance than their counterparts with inadequate systems. In this way the role of PBFMS in contributing to better performance was illustrated by the results. Some recommendations are proposed resulting from the findings and how to achieve a deeper understanding of the subject. Firstly, SMCEs should pay more attention to matters pertaining to strategic management to ensure a long-term view of their enterprises. Secondly, when a strategic plan is developed, it must be implemented through operational plans as a means of executing the strategy. Thirdly, concerted effort should made in ensuring that the projects are controlled as it is the only way to achieve sustained profitability and satisfied customers. Fourthly, as a way of providing a deeper understanding of the subject, it is suggested a longitudinal study could be undertaken to yield a more encompassing investigation than a cross sectional study which captured only one business cycle of the industry (down turn). Lastly, the study could be replicated in another industry with a similar profile like the construction industry in Botswana, for example, Namibia or/and the study could include large enterprises to provide means of comparing the different profiles of enterprises. / Business Management / D. B. L.

Thesis (MComm (Business Management))--University of Stellenbosch, 2005. / This study seeks to analyse the critical factors that influence the success and failure of Small Medium Enterprises (SMEs) in Namibia in the Khomas Findings of the study indicate that there is a problem of business failure in the Khomas Region. Although business owners of successful and unsuccessful businesses recognise the support from the government, most unsuccessful business owners feel that the lack of proper governmental assistance is still one of the most critical factors that led to failure. Finally the major recommendation of the study highlights the issue that the government should come up with strategic measures (such as business incubators) that will prolong the survival of SMEs. Region. To achieve this, the objectives of this study are to confirm whether there is a problem of business failure in Namibia in the Khomas Region. This will be done by identifying the causes of the problems and to search for practical solutions, given the causes of the problems. It is important that the problems associated with business success and failure be understood. Through an analysis of theoretical information and empirical results it is possible to establish how to facilitate more innovative and effective development that is much needed in developing countries, such as Namibia. From the literature it became clear that there are numerous advantages and disadvantages associated with operating an SME. There will be always disadvantages for which we may never find solutions. Despite this, it is evident that SMEs are crucial for the development of any country, as they offer benefits such as subcontractors for larger organisations, economic growth and employment generation. Data were colleted from respondents by means of forty structured questionnaires (twenty for successful firms and twenty for unsuccessful firms) consisting of 23 questions (plus three open-ended questions). Nineteen of the questionnaires were returned of which twelve were from successful firms and nine from unsuccessful firms. The sample was drawn from a list of all the SME owners in Namibia in the Khomas Region.

This doctoral submission represents over ten years of focused research that has resulted in a unique collection of academic and professional articles. The epithet "unique" is adopted to reflect that over those years this area of study has been relatively untouched by other academic researchers. This submission presents a total of eight academic and seven professional journal publications that chronicle the major output of numerous research projects undertaken between 1992 and 2002. The publications adhere to a central aim - to investigate the practical use and complex interactions between stakeholders of the individual insolvency rescue vehicle the Individual Voluntary Arrangement (IVA). The research projects employed a variety of relevant methodologies to populate an emerging conceptual model of the prime factors affecting the incidence, usage and outcomes of IVA cases. The first five articles report and develop the data collected during the various projects. The articles build on each other, analysing results and comparing these with previous studies to underline reliability in the data. The final three articles draw threads from the research data and develop the conceptual model further. As a research progression this submission contains all of the necessary ingredients of a doctoral thesis. It focuses on a discrete body of knowledge, builds on a conceptual model, gathers valuable data and tests it, draws strong conclusions and, finally, establishes and contributes new theory in this area of study.

In 1982, the Financial Accounting Board (FASB) issued Statment of Financial Accounting Standards No. 69 (SFAS No. 69) which required oil and gas producing companies to disclose supplementary information to the basic financial statements. These disclosures include, costs incurred, capitalized costs, reserve quantities, and a standardized measure of discounted cash flows. The FASB considered these disclosures to be necessary to compensate for the deficiencies in historical cost financial statements. The usefulness of the new signals created by SFAS No. 69, however, is an empirical question and research regarding that objective is lacking. The objective of the study is to test the usefulness of SFAS No. 69. The research strategy used to achieve that objective is to compare the discriminant and predictive power of SFAS No. 69 signals or SFAS No. 69 signals combined with financial signals to that of financial signals alone. The research hypothesized that SFAS No. 69 signals by themselves or as supplmentary to financial signals have more discriminant and predictive ability for business failure in oil and gas industry than do financial signals alone. In order to test that hypothesis, the study used the multiple discriminant analysis technique (MDA) to develop three equations. The first is based on SFAS NO. 69 signals, the second on financial statement signals, and the third on joint financial and SFAS No. 69 signals. Data were collected from the 10-K's arid the annual reports of 28 oil and gas companies (14 failed and 14 nonfailed). The analysis was repeated for four time bases, one year before failure, two years before failure, three years before failure, and the average of the three years immediately before failure. After assessing the discriminant and predictive ability of each equation in the four time bases, a t-test was used to determine a significant difference in the discriminant and predictive power existed between SFAS No. 69 signals or SFAS No. 69 signals combined with financial signals and financial signals alone. The study concluded that SFAS No. 69 signals by themselves or as supplementary to financial statements have more discriminant and predictive power for business failure than financial signals alone in the analyses of the third year before failure and of the average of three years before failure. The study, however, found no significant difference in the discriminant and predictive ability in the analyses of one year and two years before failure. The results indicated that SFAS No. 69 signals are useful for financial report users in detecting the deterioration of the financial position of an oil and gas company before failure.

In the first decade of the 21st century, the number of functioning business organizations in Nigeria decreased by 45%. The high rate of business failures in Nigeria has left many questions about what is needed for creating business success. The purpose of this qualitative phenomenological study was to explore the influence of internal and external dynamics on leaders in Nigerian microfinance organizations. Twenty leaders from microfinance institutions participated in face-to-face semistructured interviews. The data analysis process involved the use of Moustakas's modified van Kaam method, which resulted in the emergence of 12 themes. The themes that emerged included: (a) staff turnover, (b) financial fraud, (c) knowledge gap, (d) lack of real-time technology, (e) ethical behavior of leaders, (f) organizational bureaucracy, (g) foreign exchange fluctuation, (h) poor state of Nigerian economy, (i) competition from unethical practices of other organizations, (j) constant changes of government policies and poor regulatory controls, and (k) noncompliance with the Microfinance Policy and Framework by stakeholders. There was a common perception among the participants that there was a need for government intervention in providing improved infrastructure and adequate regulatory controls. The findings provide indications from participants' responses that business success is dependent upon business leaders' effectiveness in their roles and ethical practices as perceived by the followers. The study is significant in that its findings may assist businesses and government to focus on the effectiveness of leaders, increase labor relations, and increase the overall success of business which in turn improve the economy of Nigeria.

Mercantile Law / LL. M. (Corporate Law)