Submitted in fulfillment of the requirements of a Doctor of Technology: Business Administration Degree, Durban University of Technology, Durban, South Africa, 2014. / The study assesses the impact of trade and economic liberalisation policy reforms on the operations of selected manufacturing small to medium enterprises (SMEs) in Zimbabwe, and then compares the findings with experiences from South Africa’s SMEs. Motivation for the study was premised on two fronts. Zimbabwe and South Africa are currently faced with high unemployment rates (80% for Zimbabwe and 25% for South Africa). It therefore follows that job creation and poverty alleviation are the two pressing challenges facing the governments of Zimbabwe and South Africa. Secondly, the governments of Zimbabwe and South Africa have identified SMEs as the engines of economic growth with a special focus on addressing the twin challenges of unemployment and poverty alleviation. The roles and hopes bestowed on SMEs calls for a thriving and vibrant SME sector. On the other hand the adoption of trade liberalisation policies in the two countries has led some analysts to cast doubts on the ability of SMEs to withstand the fierce competition from established Multi-National Corporations and cheap imports. Employing a combined qualitative-quantitative approach, the study finds that trade and economic liberalisation policy had a negative impact on the operations of manufacturing small to medium enterprises in both Zimbabwe and South Africa. Cash-strapped SMEs have been strangled by resource-rich Multi-National Corporations. So dire is the situation that in the absence of significant government intervention, SMEs face an uncertain future. Compounding the matter is the fact that most SMEs in two countries are not involved in exports due to lack of knowledge and resources. The innovativeness ability of most SMEs remains very low. The study does not find significant differences on the impact of trade liberalisation policy reforms between SMEs in Zimbabwe and those in South Africa. It is recommended that the governments of Zimbabwe and South Africa need to introduce incentives to encourage SMEs to export and thus employ more people. Governments in Zimbabwe and South Africa need to factor in the transfer of technology to SMEs as one of the clauses when they negotiate the entry conditions of MNCs. In addition, the governments in Zimbabwe and South Africa must reintroduce tariffs in certain critical sectors of the economy to curtail cheap imports. It is cautioned that failure to protect SMEs could jeopardise the survival of most SMEs in Zimbabwe and South Africa, translating into increased unemployment, poverty and unequal wealth distribution.

Submitted in partial fulfilment of the requirements for the degree of Masters in Business Administration (MBA), Business Studies Unit, University of Technology in the Faculty of Commerce, 2007 / Entrepreneurship, business knowledge and skills within micro and small businesses play an important part in the economies of countries across the globe by being the drivers of economic growth, as well as, creating employment. The role of micro and small businesses is matching that of big business and in some countries contributes up to ninety per cent of revenue. The difficulties from supply and demand perspectives are receiving increasing attention from government and academic institutions and researchers, and the purpose of this study is to establish to what degree the presence of entrepreneurship is present in the region concerned, as well as, investigating the extent of knowledge and skills within the sample of micro and small business owners. The study uses descriptive statistics drawn from a questionnaire survey, to achieve its purpose. One hundred and seventy micro and small businesses were drawn using a stratified random sampling method. Businesses surveyed were grouped into the following categories: services, manufacturing, hardware, clothing and food. Entrepreneurial traits were found present in the micro and small business owners, however certain behavioural aspects argued against this presence. In terms of knowledge and skills, the extent was found to be limited in terms of both academic qualifications, and business acumen. Growth rates of the businesses in the survey seem to be low and the presence of real entrepreneurship would need further investigation.

Dissertation submitted in partial fulfilment of the requirement for the Masters Degree of Technology: Quality, Durban University of Technology, 2011. / Quality management has not been developed and marketed well in South African based small, medium and micro enterprises (SMME‟s). The focus of SMME‟s has been on product price. In order to improve small business initiatives a culture or the behaviour towards quality needs also to be embraced by SMME‟s. Debenham (2008) finds that focussing on price alone indicates that SMME‟s do not grow and become sustainable. Support from both government and the private sector has focussed primarily on providing financial aid to SMME‟s. Ninety percent of South African small businesses largely remain in the survival stage because of a lack of skills and resources. It has become clear that financial support alone is not enough to grow and sustain SMME‟s. The aim of this study is to investigate the effect that the ISO 9001 quality management system (QMS) has on SMME‟s in the Greater Durban Area with the view to determine the contribution it has made in terms of growth and survival of those SMME‟s. This was a qualitative study investigating SMME‟s in the Greater Durban Metropolitan Area. The sampling frame was made up of two groups of SMME‟s. Unstructured interviews were conducted at 40 SMME‟s, comprising of 20 SMME‟s who have implemented ISO 9001 QMS(have the control/case) and 20 SMME‟s who have not implemented ISO 9001. The raw data was coded into categories and themes. Descriptive statistics, using the statistical package for the social sciences (SPSS), was used to analyse the data. The study indicates that the majority of respondents from both groups had a positive perception towards the ISO 9001 QMS contributing to their growth and survival.

Thesis (M.Tech.: Business Administration)-Durban University of Technology, 2006 vi, 70 leaves / One of the major problems facing SMME’s in the South African clothing industry is the surge of clothing imported particularly from China, which negatively impacts on the ability of local firms to survive in business. Despite this challenge within the volatile business environment some SMME’s within the clothing industry have been resilient and have remained in business. This survey focused on the existing business strategies of SMME’s within the clothing manufacturing sector of Kwa-Zulu Natal. The main aim of the research was to establish the underlying factors of competitive advantage of SMME’s and to determine the strategic action taken by businesses in order to combat the impact of the sale of imported clothing in South Africa. In addition, an evaluation of the success of these strategic choices was carried out so that future business strategies for SMME’s can be developed to ensure sustainable competitive advantage.

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: The findings of this study regarding company and export profiles correlated largely with the findings of the various studies detailed in the literature review. Given the close correlation with other studies on the same subject, it is the researcher's belief that this study will have a broad application among prospective exporting SMEs, both regionally and nationally. The main findings are set out below. The review of the profile of manufacturing SMEs in the Western Capes uncovered: • a preference for their local markets; • the fact that trade frequencies are relatively high; • that the number of countries entered, represented a relatively narrow focus; • that Europe enjoyed significant support from the respondents; • that SADC and the rest of Africa attract relatively low levels oftradc. Although indicated in the national studies, it was still disappointing to discover the relatively low levels of export propensity (as defined by export sales as a function of total sales) prevalent among exporting SMEs. This was reflected by the fact that: • Only a small percentage of medium-sized SMEs are making inroads in this area. • The growth estimates for expected annual export sales are disappointing and possibly even pointing to a declining trend. The surveyed SMEs indicated that their expansion into international markets is motivated primarily by: • the utilisation of excess capacity; and • the opportunity to grow sales. There also seems to be an opportunist approach to the export development process stemming from that fact that: • Almost 50 % of finns responded to unsolicited orders. • Exporting SMEs are drawn into the process passively, rather than through a proactive and conscious decision. The apparent lack of a clear export orientation among exporting SMEs in the Western Cape is of particular concern, as evidenced by the factors identified above. Exporting SMEs have identified the arena of marketing management and market access as key barriers in the process of internationalising their businesses. In addition, they identified a lack of knowledge within this field of study within their organisations, as well as marketing support, as being the areas where they would most like assistance from policy makers. The following were identified as major barriers: • access to, and knowledge of specific markets, • representation in the various markets, and • an effective marketing function. The following represented the area of least knowledge: • international marketing management, and • market entry channels. The following represented the most effective ways in which policy makers could assist: • constraint elimination (Policy making or otherwise). • marketing support. The fundings of the review regarding the use of support institutions revealed that: • Only 45 % of exporting 8MEs actually make use of these institutions. • 72 % of sample indicated that they only make use of these institutions every six months or at even less frequent intervals. Given the findings under this section, it is apparent that those organisations with a vested interest in export promotion, and government in particular, should take particular note of these fmdings. It seems that at present the various export promotion bodies (state or private) are failing to attract 8ME exporters to their products and services, and in so doing make a meaningful impact on export promotion. / AFRIKAANSE OPSOMMING: Die bevindings van hierdie studie ten opsigte van maatskappy- en uitvoerprofiele het grotendeels ooreengestem met dit wat gevind is in ander soortgelyke studies. Gegewe die nou-ooreenstemming met ander studies op dieselfde vakgebied, glo die navorser clat die studie by 'n groot aantal klein en medium (KMO's) uitvoerorganisasies aanklank sal vind, op beide streek en nasionale vlak. Die hoofbevindinge van die studie is soos volg: Die studie van vervaardigingsmaatskappye in die Wes Kaap het die volgende openbaar: • 'n voorkeur vir hul plaaslike markte; • die feit dat handelfrekwensies relatief hoog is; • dat die getal lande wat betree is, 'n relatiewe nou fokus verteenwoordig; • dat Europa noemenswaardige ondersteuning van die respondente geniet het; • dat SADC en die res van Afrika relatieflae vlakke van handel trek. AlhoeweI dit in nasionale studies aanduidend was, is dit steeds teleurstelend om die relatieve lae vlakke van heersende uitvoergeneigdheid onder uitvoer-KMO's te ontdek (soos gedefinieer deur uitvoerverkope as 'n funksie van totale verkope). Dit is weerspieel deur die feit dat: • Slegs 'n klein persentasie van medium-grote KMO's maak inslag in die area. • Die groei vooruitskattings vir verwagte jaarlikse uitvoerverkope was teleurstellend en wys moontlik na 'n dalende tendens. Die studie het getoon dat KMO's se motivering om die uitvoermark te betree deur onder andere die volgende gemotiveer word: • die gebruik van addisionele kapasiteit; en • die geleentheid om bruto opbrengs te bevorder. Die KMO's wat ondersoek is het aangedui dat hulle u:itbreiding tot die intemasionale mark hoofsaaklik gemotiveer is deur: • die aanwending van oorskotkapasiteit; en • die geleentheid om verkope te verhoog. Daar blyk ook 'n opportunistiese benadering te wees rakende die uitvoerontwikkelingsproses, voortspruitend uit die feit dat: • Sowat 50 % van die firma's het reageer op ongevraagde plasings. • Uitvoerende KMO's word passiewelik tot die proses ingetrek, eerder dan deur 'n proaktiewe en bewustelike besluit. Die oenskynlike gebrek aan 'n duidelike uitvoer orientasie tussen uitvoerende KMO's in die Wes-Kaap is van besondere kommer, soos verduidelik met die bogemelde gei"dentifiseerde faktore. Uitvoerende KMO's het die arena van bemarkingsbestuur en marktoegang identifiseer as sleutel hindemisse in die proses van intemasionalisering van hulle besigbede. Bykomend hiertoe het hulle 'n tekort aan kennis identifiseer binne hierdie studieveld in hulle organisasies, sowel as bemarkingsondersteuning, as die areas waar hulle die meeste ondersteuning benodig van beleidsmakers. Die volgende is identifiseer as sleutel hindemisse: • toegang tot, en kennis van die spesifieke markte, • verteenwoordiging in die verskeie markte, en • 'n effektiewe bemarkingsfunksie. Die volgende verteenwoordig die areas met die minste kennis: • internasionale bemarkingsbestuur, en • markbetredingskanale. Die volgende verteenwoordig die mees effektiewe wyse waarbinne beleidsmakers kan ondersteun: • beperkingseliminasie (beleidsmakers of andersins). • bemarkingsbystand. Die bevindinge van die oorsig bertreffende die gebruik van ondersteuningsinstellings het aan die lig gebring dat: • Slegs 45 % van die uitvoerende KMO's maak werklik gebruik van hierdie instellings. • 72 % van steekproef dui daarop dat hulle net van hierdie instellings elke ses maande of op minder gereelde intervalle gebruik maak. Gegewe die bevindinge onder hierdie afdeling, is dit duidelik dat daardie organisasies met 'n gevestigde belang in uitvoerpromosie, en vernaarn die staat, besondere kennis moet neem van die bevindinge. Op hede blyk dit dat die verskeie uitvoerpromosie- liggame (staat of openbaar) faal om uitvoerende KMO's te trek tot hulle produkte en dienste, en sodoende 'n betekenisvolle impak te maak op uitvoerpromosie.

Submitted in partial fulfillment of Master’s Degree in Management Sciences (Business and Administration), Durban University of Technology, Durban, South Africa, 2016. / Small and Medium Enterprises (SMEs) in South Africa (SA) contribute significantly to job creation, wealth, social stability and economic growth. Growth is stimulated endogenously, through motivation, while employment is a natural consequence of a larger number of SMEs as well as the expansion of small businesses into larger enterprises. Although it has been noted that SMEs are viable avenues through which jobs can be created, relatively few studies have explicitly investigated the link between intrinsic motivation and small business growth; this study filled the gap by exploring the impact of intrinsic motivation on SMEs’ growth. This is particularly important when one considers that the failure rate of SMEs in SA is very high and it is of great importance to investigate the factors that can impact on the growth of SMEs. Why some individuals are more successful in business than others is a major question in SME research. The common view is that there are a numbers of factors involved related to the entrepreneur or business owners and the business and the business environment. Building on the concept of human capital and psychological theories, this study investigated the influence of intrinsic motivational factors in SME business growth in the eThekwini Metropolitan Area, in South Africa. The target population for this study was SMEs in the furniture manufacturing sector. Based on census study, the sample size of the study was 68 owners of SMEs in the eThekwini Metropolitan Area. Both primary and secondary data sources were used in the study. A quantitative research design was adopted to conduct this research. The survey method, by way of a self-administered questionnaire, was used to collect primary data. Various techniques such as descriptive statistics, Analysis of Variances (ANOVA), factor analysis, Chi-square, and regression analysis were used to analyse the data. The findings of this study revealed that intrinsic motivational factors of SME managers positively impact on the growth of SMEs in SA. The findings further revealed that creativity and necessary entrepreneurial skills influence implementation of sustainable growth of SMEs, and the entrepreneur’s success depends on the identification of crucial entrepreneurial skills for starting a business as well as for helping the business to survive and grow in the early years. Therefore, capacity building for SME owners to sustain business growth is recommended. / M

Thesis (MComm)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: At present the population in South Africa continues to grow at a higher rate than the rate of job creation. Traditional sources of job creation, such as large enterprises and state departments, are unable to provide enough jobs to combat the increasing rate of unemployment. An important component of the government's effort to address the unemployment problem, should be the emphasis on the development of entrepreneurship. In a study done in Bulgaria by Bartlett and Rangelava the contribution of small business to job creation became clear. Bulgaria, like South Africa, is also plagued by a high rate of unemployment (1997: 330). As the small business is seen as the natural port of entry for the entrepreneur to the business world, it would only be logical if efforts to encourage entrepreneurship are focussed on small business development. In essence entrepreneurial activity can be regarded initially as a local phenomenon which then spreads to the larger economy. In this regard research suggested that a mega event in a local context might result in an increase in entrepreneurial activity. The development of the Saldanha Steel project could be seen as an example of such a mega event in the West Coast region. This event inevitably led to an increase in entrepreneurial activity, which manifested in the establishment of many formal and informal businesses. At the completion of the project, however, few businesses survived. This raises the question whether the opportunity perceived by the mega event rather than the market on the long term initiated the decision to start-up. In this study it will be argued that the businesses that survived the so-called mega event were started as a result of long-term market considerations characterized by the critical success factors underlying an entrepreneurial decision. The objective of this research is to prove that the critical factors for entrepreneurial success play a more important role in eventual success and survival of the enterprise than the opportunistic entrepreneurial behavior sparked by a mega event only. Consequently the critical success factors for entrepreneurial success of businesses established in anticipation of the mega event that survived and surviving businesses established in the ten year period prior to the mega event, will be compared in order to test the hypothesis. / AFRIKAANSE OPSOMMING: Tans is die bevolkingsaanwas in Suid-Afrika hoër as wat die toename in die skepping van werksgeleenthede is. Tradisionele bronne vir werkskepping, soos groot sakeondernemings en staatsdepartemente, kan nie voldoende werksgeleenthede skep om die toename in werkloosheid teë te werk nie. 'n Belangrike komponent in die regering se poging om die werkloosheidprobleem aan te spreek, behoort 'n fokus op die ontwikkeling van entrepreneurskap te wees. 'n Studie wat deur Bartlett en Rangelova in Bulgarye gedoen is, toon duidelik dat klein- en mediumsakeondernemings 'n bydrae tot werkverskaffing lewer. Bulgarye, soos Suid-Afrika, is ook die prooi van 'n hoë werkloosheidsyfer (1997: 330). Kleinsakeondernemings word beskou as die natuurlike deurgang vir die entrepreneur tot die sakewêreld en dit sou net logies wees om pogings om entrepreneurskap aan te moedig, op die ontwikkeling van klein sakeondernemings te fokus. In wese kan entrepreneursaktiwiteite beskou word as 'n aanvanklike plaaslike verskynsel wat geleidelik uitbrei na die groter ekonomiese sektor. Navorsing suggereer, derhalwe, dat 'n grootskaalse gebeurtenis binne plaaslike konteks kan lei tot 'n toename in entrepreneursaktiwiteite. Die ontwikkeling van die Saldanha Staal-projek kan beskou word as sodanige gebeurtenis in die Weskusstreek. Hierdie projek het onvermydelik tot 'n toename in entrepreneursaktiwiteite gelei wat in die vestiging van verskeie formele en informele sakeondernemings gemanifesteer het. Na voltooiing van die projek het min van die ondernemings egter bly voortbestaan. Dit laat die vraag ontstaan of dit die potensiële geleentheid van hierdie grootskaalse gebeurtenis, eerder as die langtermyn mark is wat hierdie ondernemingsbesluite geïnisieer het. In hierdie studie sal daar van die standpunt uitgegaan word dat die ondernemings wat die grootskaalse gebeurtenis oorleef het, die is wat die resultaat van langtermyn markoorwegings was en gekenmerk is deur kritiese suksesfaktore onderliggend aan 'n entrepreneursbesluit. Die doel van hierdie navorsing is om te bewys dat die kritiese suksesfaktore vir entrepreneursukses 'n belangriker rol in die uiteindelike sukses en oorlewing van 'n onderneming speel as die opportunistiese entrepreneursgedrag wat slegs deur 'n grootskaalse gebeurtenis aangevuur is. Om die hipotese te toets sal daar 'n vergelyking getref word tussen die kritiese suksesfaktore vir entrepreneursukses van ondernemings wat in afwagting van die grootskaalse gebeurtenis begin is en nog bestaan, en dié van ondernemings wat in die tien jaar periode voor die verwagte gebeurtenis begin is en nog bestaan.

Thesis (MPA)--Stellenbosch University, 2013. / ENGLISH ABSTRACT: Macro-economic policy interventions have been driven by the South African national government in order to create economic and trade opportunities for small businesses within the first economy. This macro-economic policy intervention of the government which advocates the active and inclusive participation of small business in the first economy has set the trajectory for small business development and support by both provincial and local government. The significant contribution of small businesses (SBs) to local economic development in the locality of municipalities has thus seen the prioritizing of small business support and development by local government as a focal point of municipal Local Economic Development programmes. However these small businesses are often subject to a myriad of challenges compared to larger established businesses that fall outside the classifications of small businesses. These challenges thus make it impossible for SBs to compete with established businesses and to actively participate in the first economy. The Eden District Municipality, a renowned and reputable tourism destination, offers substantial business opportunities that favour small tourism businesses. This is all to the good, but the question is what programmes are on offer by the Eden District Municipality that may assist small tourism businesses (STBs) to tap into these business opportunities. Furthermore, do such programmes address the needs of STBs to access trade and economic opportunities? In the light of the foregoing, this study sets out to establish the areas in which STBs require support, to establish the current level of support received from the Eden District Municipality, as well as the participation levels of STBs themselves in the development of tourism strategies. This study investigates the coherence between interventions and support programmes provided by the Eden District Municipality and seeks to identify the areas in which small tourism businesses (STBs) require support and assistance. The population sample employed comprises small businesses from a previously disadvantaged background in the Eden District Municipality. A quantitative research design was followed and questionnaires were used to elicit responses from STBs which constitute the primary data to address the research question. It is anticipated that the findings of this research will assist the Eden District Municipality with the identification of future required interventions that will augment accessibility to trade and economic opportunities for STBs. By using the findings of the study as a yardstick, the Eden District can assess its own efforts and ensure that programme responses are designed to meet the identified needs of STBs. The findings highlight an overall need for broader consultation with STBs when support programmes and interventions are developed, and can be used as a benchmark by other researchers and local municipalities in the development of support programmes and interventions for STBs. / AFRIKAANSE OPSOMMING: Makro ekonomiese beleids intredes word deur die nasionale regering bestuur om sodoende ekonomiese- en handelsgeleenthede vir kleinsakeondernemings binne die eerste ekonomie te skep. Hierdie makro-ekonomiese beleidsintredess van die Suid- Afrikaanse regering bevorder die aktiewe en inklusiewe deelname van kleinsakeondernemings in die eerste ekonomie en stel baan daardeur die weg vir ontwikkelingsprogramme deur provinsiale en plaaslike regering ter ondersteuning van hierdie ondernemings. Die noemenswaardige bydrae van kleinsakeondernemings tot plaaslike ekonomiese ontwikkeling in plaaslike munispaliteite het gelei tot die prioritisering van ondersteunings- en ontwiklelingsprogramme deur plaaslike regering as ‘n fokus punt van munisipaliteite se plaaslike ekonomiese ontwikkelingsprogramme. Hierdie kleinsakeondernemings word dikwels gekonfronteer deur verskeie struikelblokke vergeleke met groter gevestigde besighede wat buite die klassifikasie van klein besighede val. Die struikeblokke maak dit dus onmoontlik vir kleinsakeondernemings om te kompteer met gevestigde besighede en sukkel om aktiewe deelname te hê aan die ekonomie. Die Eden Distriks Munisipaliteit is bekend as ‘n geloofwaardige toerisme bestemming en bied substansiële besigheidsgeleenthede waarby kleinsake toerisme ondernemings kan baat. Dit is alles tot voordeel maar watter hulpprogramme bied die Eden Distriksmunisipaliteit aan klein toerisme sakeondernemings om toegang tot besigheids geleenthede te verkry. Die vraag is of hierdie programme die behoeftes van klein toerisme sakeondernemings se behoefte tot toetrede tot ekonomiese geleenthede bevredig. In die lig hiervan sal hierdie studie die ondersteuningsbehoeftes van klein toerisme sakeondernemings bepaal, die huidige vlak van ondersteuning vanaf die Eden Distriks Munisipaliteit vastel, sowel as die deelname van klein toerisme sakeondernemings in die ontwikkeling van toerisme strategiëe. Hierdie studie ondersoek dus die verband tussen intredes- en ondersteuningsprogramme wat deur die Eden Distriks munisipaliteit verskaf word en die gebiede waarop kleinsakeondernemings in toerisme bystand benodig. Daar word in die vooruitsig gestel dat die bevindinge van hierdie navorsing die Eden Distriks Munisipaliteit sal help om toekomstige intredes te identifiseer wat toegang tot handel en ekonomiese geleenthede vir klein toerisme sakeondernemnings sal bevorder. Deur die bevindinge van die studie te gebruik as ʼn maatstaf kan die Eden Distriks Munisipaliteit sy eie werk evalueer en gebruik om te verseker dat programme met die behoeftes van klein toerisme sakeondernemings bevredig. Die bevindinge beklemtoon ‘n behoefte vir brëer konsultasie met klein toerisme sakeondernemings wanneer programme en intredes ontwikkel word, en kan ook deur ander navorsers en plaaslike munisipaliteite gebruik word as verwysingsraamwerk in die ontwikkeling van ondersteuningsprogramme en intredes.

Thesis (MDF)--University of Stellenbosch, 2011. / Using a case study design, this study described the relationship between a government department and a commercial bank aimed at increasing access to finance by SMMEs and improve service delivery. The study examined whether SMME contractors are able to deliver on contracted products and services without access to bank funding to answer the question: “Is access to funding as a constraint to SMME Development over-emphasised?” Commercial Bank A and Gauteng Department of Agriculture and Rural Development signed a partnership agreement which resulted in nine SMMEs that were awarded tenders by the Gauteng Department of Agriculture and Rural Development being referred to Commercial Bank A for loan funding application. All the nine SMMEs’ application for funding were unsuccessful due to various reasons including short term contracts, insufficient information, adverse listings in credit bureaux and improved cash flows of business after they received payment from GDARD. SMMEs delivered their goods and services as expected, but they experienced minor challenges which included delayed payments, officials not understanding specifications causing misunderstandings with the service provider, beneficiaries not understanding tender specifications, wrong beneficiaries who were not supposed to benefit from the service, and unavailability of stock of certain products from suppliers. From the mentioned challenges, it is clear that access to loan finance is not cited as a major challenge. SMMEs were able to deliver on goods and services despite their applications not being approved by Commercial Bank A. SMMEs used alternative sources of funding to deliver on the tenders awarded to them. The main source was credit from suppliers of goods and services. Own savings and borrowings from friends and families were also used. Once the first payment is received from GDARD, SMMEs are able to deliver on subsequent deliverables. This shows that payment on time is very crucial for the continued supply of goods and services by SMMEs. The partnership between Commercial Bank A and Gauteng Department of Agriculture and Rural Development had good intentions even though none of the SMMEs referred got access to funds. There is a need for the improvement of the way the partnership operates to ensure a high success rate. Success in this case refers to the number of SMMEs whose funding applications are approved by Commercial Bank A. The areas that need improvement are communication among the department, the Bank and SMMEs, the lending criteria, duration of the tenders (contracts), and training of SMMEs.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Business persons engaging in BEE deals, pertaining to ownership, encounter many obstacles and challenges relating to the formulation of appropriate structures and solutions during the deal process. The SMME market is arguably one of the most critical contributors towards the SA GDP and a sector of the economy with the most growth potential as noted from recent history, especially relating to BEE ownership. It is in the above frame of reference that the research report attempts to follow a logical flow of events that the business persons in the SMME market would encounter. The report therefore has a holistic approach to this market and although many of the concepts could be applied to a variety of industries and even to other market segments, based on size, the primary objective and research has been centred around SMME’s. The core concepts that are covered relate to: - Understanding the essence of BEE and BBBEE as well as Government’s role as conduit to empowerment. The various elements under the BEE scorecard will also be a prominent factor as ownership only accounts for a portion of the entire BBBEE rating. - Aligning the BEE deal to strategy is a crucial consideration and entails attracting the right partner and ensuring that the BEE transaction is directed at value creation, growth and sustainability of the business. The transaction should make strategic and economic sense. - Determining firm value is in all probability one of the most complex issues and business owners should merely attempt to understand and interpret the vastly complicated process that may be presented by business brokers or valuers that facilitate the BEE deal. The fair value concept and required adjustments could be influential in the valuation process as well as choosing the correct valuation methodology. - Business tax structure. This is also a complex process that may vary significantly from business to business. Certain legislative impediments are influential and various amendments may also influence future structuring of BEE deals. The use of SPV’s is a prominent theme highlighted in this research report as it is very often the most preferred structure. - The BEE deal. This may have to consider hybrid financial solution from various sources, such as senior debt, franchise funding, mezzanine debt including venture capitalists, non-traditional lending sources and alternative supporting or indirect funders to the business. The lending criteria principles relating to cash conversion cycle, free cash flow and sustainable growth rate have also briefly been covered. BEE transactions inevitably enter an area of uncertainty for business persons when it comes to drafting business plans, determining the BEE scorecard, structuring the new shareholding and many other factors. In other words, they may not have the necessary business or financial acumen to prepare a satisfactory business proposal to attract lenders to the deal. It is therefore crucial to understand the different elements of the BEE deal formulation process, which is exactly the intent of this research report. / AFRIKAANSE OPSOMMING: Besigheidspersone wat SEB-transaksies met betrekking tot eienaarskap aangaan, ondervind baie struikelblokke en uitdagings in verband met die formulering van toepaslike strukture en oplossings wanneer die transaksie aangegaan word. Die KMMO-mark is stellig een van die mees kritieke bydraers tot die SA BBP en ’n sektor van die ekonomie met die meeste groeipotensiaal, soos die onlangse geskiedenis ons geleer het, veral met betrekking tot SEB-eienaarskap. Dit is met bogenoemde in gedagte dat hierdie navorsingsverslag poog om ’n logiese vloei van gebeure te volg wat die sakepersone in die KMMO-mark sal teëkom. Die verslag het dus ’n holistiese benadering tot hierdie mark en hoewel baie van die konsepte op ’n verskeidenheid nywerhede en selfs op ander marksegmente, gegrond op grootte, toegepas kan word, is die primêre doelwit en navorsing op KMMO’s gerig. Die kernkonsepte wat behandel word, het betrekking op: - Begrip van die kern van SEB en BBSEB asook die Regering se rol as geleibuis tot bemagtiging. Die verskillende elemente van die SEB-telkaart is ook ’n belangrike faktor aangesien eienaarskap net ’n gedeelte van die algehele BBSEB-aanslag verteenwoordig. - Die inlynstelling van die SEB-transaksie met die strategie is ’n kritieke oorweging en behels die lok van die regte vennoot en die versekering dat die SEB-transaksie tot waardeskepping, groei en volhoubaarheid van die besigheid gerig is. Die transaksie moet strategiese en ekonomiese sin maak. - Die bepaling van stewige waarde is in alle waarskynlikheid een van die mees komplekse kwessies en besigheidseienaars moet bloot probeer om die enorme gekompliseerde proses te verstaan en te interpreteer wat deur besigheidsmakelaars en waardeerders wat die SEB-transaksie fasiliteer, voorgelê word. Die billikewaarde-konsep en die vereiste regstellings kan invloedryk op die waardasieproses asook die keuse van die korrekte waardasiemetodologie wees. - Besigheidsbelastingstrukturering is ook ’n komplekse proses wat aansienlik van besigheid tot besigheid verskil. Sekere wetlike struikelblokke is invloedryk en verskeie wysigings kan ook toekomstige strukturering van SEB-transaksies beïnvloed. Die gebruik van SDV’s is ’n prominente tema wat in hierdie dokument uitgelig word aangesien dit in die reël die verkieslikste struktuur is. - Die SEB-transaksie sal moontlik hibridiese finansiële oplossings van verskeie bronne soos seniorskuld, franchise-befondsing, tussenskuld insluitend waagkapitaliste, nie-tradisionele uitleenbronne en alternatiewe ondersteunende of indirekte befondsers van die besigheid moet oorweeg. Die uitleenkriteriabeginsels met betrekking tot kontantomskeppingsiklus, vry kontantvloei en volhoubare groeikoers word ook kortliks gedek. SEB-transaksies betree onvermydelik ’n gebied van onsekerheid vir sakepersone wanneer dit kom by die opstel van besigheidsplanne, die bepaling van die SEB-telkaart, die strukturering van die nuwe aandeelhouding en baie ander faktore. Met ander woorde, hulle kan moontlik nie die nodige besigheids- of finansiële vernuf hê om ’n bevredigende besigheidsvoorlegging op te stel wat uitleners na die transaksie sal aantrek nie. Dit is dus kritiek om die verskillende elemente van die formulering van die SEB-transaksie te verstaan, wat presies die doel van hierdie navorsingsverslag is.