SMEs are important for a country's economy, since they provide benefits such as entrepreneurship, employment, exports and productivity to an economy. An economy that shows substantial growth is usually characterised by a strong and growing SME sector. South African SMEs need to grow to create jobs and benefit the South African economy. One way that SMEs can become strong and grow is through internationalisation. Firms are internationalising faster than ever before (because of advances in telecommunications and transportation) and internationalisation theories that can provide practical guidance to firms are more important today than in the past. The motivation of the study was to identify the areas that the South African government can develop in order to transform the economy into an emerging economy that can be on par with the BRIC countries. SMEs make up a large part of the BRICS economies and they grow through exports. In order to be on par with the BRIC countries, it is necessary to compare South African exporting and non–exporting SMEs with those in the BRIC countries. This will help to identify areas where South African SMEs' competitiveness can improve, especially in South–South trade. The competitiveness of SMEs involved in exporting also tends to improve. Therefore, if SMEs' competitiveness improves, it may be less risky for them to internationalise, which can lead to them being able to export more successfully, grow as a result of exporting and so contribute to employment. The primary objective of the study was to make a comparison between the characteristics of internationalising SMEs in South Africa and the BRICS countries. Data was obtained from the World Bank Enterprise surveys to conduct an empirical analysis on firms in the BRICS countries. The empirical analysis provided descriptive statistics on internationalising firms and SMEs in the BRICS countries. The descriptive statistics was used to make a comparison between the characteristics of internationalising SMEs in the BRICS countries (primary objective). South Africa has the highest percentage of exporting SMEs, followed by India, Brazil, Russia and China. China had the most exporting SMEs with an internationally recognised certification. The top managers of Chinese exporting SMEs are higher educated than those in India and South Africa. SMEs in Russia internationalise at by far the youngest age and thus are likely to follow the rapid international theories. South African SMEs had the highest average age, meaning that SMEs first are established in the domestic market before they internationalise through exports. Internationalisation has become an important strategy for firms that want to achieve further growth, but it is also very tough to survive in the international market. An interesting finding of this study was that the two obstacles South Africa had in the top 5 namely, crime, theft and disorder, and electricity were not a top 5 obstacle for any of the other BRIC countries. Another objective of the study was to empirically determine the characteristics of internationalising SMEs in South Africa. SMEs in South Africa are more likely to internationalise through exports if they are, amongst others, older (longer established in the domestic market), have a larger market share in the South African domestic market, have a top manager with experience and a higher education level (some university training minimum) and have less competitors in the South African domestic market. The comparison between the characteristics of internationalising SMEs of the BRICS countries provided several lessons for the South African government and exporting SMEs. The areas or aspects that the South African government need to develop in order to transform the economy into an emerging economy that can compete with the BRIC countries, include assisting SMEs in exporting at an earlier age, improving the education levels of top managers in SMEs, increasing the national market share of SMEs and lessening, or even eliminating, obstacles like crime, theft and disorder as well as electricity. These aspects, together with the characteristics of internationalising SMEs in South Africa, are vital to improve SME competitiveness. Therefore, if SMEs' competitiveness improves, then it may be less risky for them to internationalise, which can lead to them being able to export more successfully, grow as a result of exporting and so contribute to employment. / Thesis (M.Com. (International Trade))--North-West University, Potchefstroom Campus, 2012.

SMEs are important for a country's economy, since they provide benefits such as entrepreneurship, employment, exports and productivity to an economy. An economy that shows substantial growth is usually characterised by a strong and growing SME sector. South African SMEs need to grow to create jobs and benefit the South African economy. One way that SMEs can become strong and grow is through internationalisation. Firms are internationalising faster than ever before (because of advances in telecommunications and transportation) and internationalisation theories that can provide practical guidance to firms are more important today than in the past. The motivation of the study was to identify the areas that the South African government can develop in order to transform the economy into an emerging economy that can be on par with the BRIC countries. SMEs make up a large part of the BRICS economies and they grow through exports. In order to be on par with the BRIC countries, it is necessary to compare South African exporting and non–exporting SMEs with those in the BRIC countries. This will help to identify areas where South African SMEs' competitiveness can improve, especially in South–South trade. The competitiveness of SMEs involved in exporting also tends to improve. Therefore, if SMEs' competitiveness improves, it may be less risky for them to internationalise, which can lead to them being able to export more successfully, grow as a result of exporting and so contribute to employment. The primary objective of the study was to make a comparison between the characteristics of internationalising SMEs in South Africa and the BRICS countries. Data was obtained from the World Bank Enterprise surveys to conduct an empirical analysis on firms in the BRICS countries. The empirical analysis provided descriptive statistics on internationalising firms and SMEs in the BRICS countries. The descriptive statistics was used to make a comparison between the characteristics of internationalising SMEs in the BRICS countries (primary objective). South Africa has the highest percentage of exporting SMEs, followed by India, Brazil, Russia and China. China had the most exporting SMEs with an internationally recognised certification. The top managers of Chinese exporting SMEs are higher educated than those in India and South Africa. SMEs in Russia internationalise at by far the youngest age and thus are likely to follow the rapid international theories. South African SMEs had the highest average age, meaning that SMEs first are established in the domestic market before they internationalise through exports. Internationalisation has become an important strategy for firms that want to achieve further growth, but it is also very tough to survive in the international market. An interesting finding of this study was that the two obstacles South Africa had in the top 5 namely, crime, theft and disorder, and electricity were not a top 5 obstacle for any of the other BRIC countries. Another objective of the study was to empirically determine the characteristics of internationalising SMEs in South Africa. SMEs in South Africa are more likely to internationalise through exports if they are, amongst others, older (longer established in the domestic market), have a larger market share in the South African domestic market, have a top manager with experience and a higher education level (some university training minimum) and have less competitors in the South African domestic market. The comparison between the characteristics of internationalising SMEs of the BRICS countries provided several lessons for the South African government and exporting SMEs. The areas or aspects that the South African government need to develop in order to transform the economy into an emerging economy that can compete with the BRIC countries, include assisting SMEs in exporting at an earlier age, improving the education levels of top managers in SMEs, increasing the national market share of SMEs and lessening, or even eliminating, obstacles like crime, theft and disorder as well as electricity. These aspects, together with the characteristics of internationalising SMEs in South Africa, are vital to improve SME competitiveness. Therefore, if SMEs' competitiveness improves, then it may be less risky for them to internationalise, which can lead to them being able to export more successfully, grow as a result of exporting and so contribute to employment. / Thesis (M.Com. (International Trade))--North-West University, Potchefstroom Campus, 2012.

Firm competitiveness is no longer an industry-specific or regional phenomenon, but it has evolved to have global impacts. The increase in intensity of regional and international competition, ineffectiveness of regional development policies and models has led to the focus on regional economic development. In particular, a focus on industrial cluster promotion, both in developed and developing countries has proliferated owing to their increased success as a sustainable source of economic growth and development. Industrial clusters are a geographically proximate group of inter-connected companies and associated institutions in a particular field, linked by commonalities and complementarities. In addition to industrial cluster formation, firms can also maintain competitiveness through internationalisation. Internationalisation ensures that firms are able to serve many markets from existing manufacturing bases without having to establish production plants in other markets. It reduces the over dependence on domestic markets and business risks associated with dependence on one market. This study identified industrial clusters for the North West Province (NWP) of South Africa using the Structural Path Analysis (SPA) method, as a strategy to enhance firm competitiveness. It contributes to the methods to identify industrial clusters by applying the Power of Pull (PoP) method to prioritise the number of clusters for the NWP. The ten identified industrial clusters and their respective PoP rankings were (i) communication; (ii) real estate; (iii) grain mill, bakery and animal feed products; (iv) building and other construction; (v) basic metal products; (vi) other food products; (vii) agriculture; (viii) non-metallic mineral products; (ix) trade; and (x) dairy products. This study identified the most important centres, in terms of the most contributions to output, employment and profit at the local municipal level across all the ten identified clusters. These centres were Madibeng, Rustenburg, City of Matlosana, Mafikeng and Ditsobotla. This indicates that efforts to stimulate cluster formation in this sector should be focused in these regions. This study also determined whether any association exists between the identified industrial clusters‟ products and services and the realistic export opportunities according to the DSM for products and the DSM for services. Four of the six product clusters were found to have REOs according to the DSM for products, namely grain mill, bakery and animal feeds products, agriculture, non-metallic mineral products and the basic metal products clusters. In terms of services, only two service clusters, namely communication and building and other construction services clusters, were found to have with REOs according to the DSM for services. This study further demonstrated the effects of industrial cluster formation on the regional economy, using social accounting matrix (SAM) multipliers. SAM multiplier analysis was used to demonstrate the output, employment, employment income and gross domestic product (GDP) supported by cluster formation for the NWP. The supported activity for the agriculture and trade clusters was less than the actual activity. The following clusters‟ supported activity was greater than the actual activity; communication; real estate; grain mill, bakery and animal feed products; building and other construction; basic metal products; other food products; non-metallic mineral products; and dairy products. The identified industrial clusters‟ REOs were explored further to provide more details on the products or services identified as having REOs. In addition, the countries to which the identified REOs (products and services) can be exported were discussed. In terms of product clusters identified to have REOs, the export potential values, cell classifications and market accessibility index scores were discussed. In terms of the service clusters identified as having REOs, countries, market access, market openness, import demand and cell classifications were discussed. / PhD (International Trade), North-West University, Potchefstroom Campus, 2014

Firm competitiveness is no longer an industry-specific or regional phenomenon, but it has evolved to have global impacts. The increase in intensity of regional and international competition, ineffectiveness of regional development policies and models has led to the focus on regional economic development. In particular, a focus on industrial cluster promotion, both in developed and developing countries has proliferated owing to their increased success as a sustainable source of economic growth and development. Industrial clusters are a geographically proximate group of inter-connected companies and associated institutions in a particular field, linked by commonalities and complementarities. In addition to industrial cluster formation, firms can also maintain competitiveness through internationalisation. Internationalisation ensures that firms are able to serve many markets from existing manufacturing bases without having to establish production plants in other markets. It reduces the over dependence on domestic markets and business risks associated with dependence on one market. This study identified industrial clusters for the North West Province (NWP) of South Africa using the Structural Path Analysis (SPA) method, as a strategy to enhance firm competitiveness. It contributes to the methods to identify industrial clusters by applying the Power of Pull (PoP) method to prioritise the number of clusters for the NWP. The ten identified industrial clusters and their respective PoP rankings were (i) communication; (ii) real estate; (iii) grain mill, bakery and animal feed products; (iv) building and other construction; (v) basic metal products; (vi) other food products; (vii) agriculture; (viii) non-metallic mineral products; (ix) trade; and (x) dairy products. This study identified the most important centres, in terms of the most contributions to output, employment and profit at the local municipal level across all the ten identified clusters. These centres were Madibeng, Rustenburg, City of Matlosana, Mafikeng and Ditsobotla. This indicates that efforts to stimulate cluster formation in this sector should be focused in these regions. This study also determined whether any association exists between the identified industrial clusters‟ products and services and the realistic export opportunities according to the DSM for products and the DSM for services. Four of the six product clusters were found to have REOs according to the DSM for products, namely grain mill, bakery and animal feeds products, agriculture, non-metallic mineral products and the basic metal products clusters. In terms of services, only two service clusters, namely communication and building and other construction services clusters, were found to have with REOs according to the DSM for services. This study further demonstrated the effects of industrial cluster formation on the regional economy, using social accounting matrix (SAM) multipliers. SAM multiplier analysis was used to demonstrate the output, employment, employment income and gross domestic product (GDP) supported by cluster formation for the NWP. The supported activity for the agriculture and trade clusters was less than the actual activity. The following clusters‟ supported activity was greater than the actual activity; communication; real estate; grain mill, bakery and animal feed products; building and other construction; basic metal products; other food products; non-metallic mineral products; and dairy products. The identified industrial clusters‟ REOs were explored further to provide more details on the products or services identified as having REOs. In addition, the countries to which the identified REOs (products and services) can be exported were discussed. In terms of product clusters identified to have REOs, the export potential values, cell classifications and market accessibility index scores were discussed. In terms of the service clusters identified as having REOs, countries, market access, market openness, import demand and cell classifications were discussed. / PhD (International Trade), North-West University, Potchefstroom Campus, 2014