The purpose of this study is to investigate the role of Operational Risk Management (ORM) in the successes of Small Medium Enterprise (SME’s) and to establish whether ORM has a direct correlation to the survival rate of SME’s, which have been operational for a minimum period of five years. The study was limited geographically to Gauteng South Africa, in particular the Kya Sands Industrial area. The South African Government is focusing on promoting small business to reduce the high unemployment rate and to increase the growth of the economy through developing SME’s. Statistics states that South Africa currently has an unemployment rate of 25.5 per cent, in the third quarter of 2015 (Statistic South Africa, 2015), which is the worst rate since the first Labor Forces Survey in 2008. It is well known that SME’s contribute significantly to the world’s economy. After conducting a significant literature review, it was found that no applicable research has been done globally or locally regarding ORM in SME’s as per NG & Kee (2012). Most research in ORM is focused on large organisations, specifically the banking industry. The need for this study arose as literature reviews reveals a high rate of SME failures, regardless of various financial assistance programs from Government for starting and assisting SME’s. In determining the impact of ORM by addressing the high probability of failure of SME’s in emerging markets this research will be the first step in determining the value and trajectory of additional insights for SME sustainability . Thus ORM could indirectly provide assistance in undertaking and addressing the unemployment and economic freedom challenges in South Africa. This is unique and new knowledge generating ground breaking finding s as ORM was not regarded nor researched, as a critical contributing success factor for smaller companies. This research had a positive approach and was of a quantitative and exploratory nature to investigate the research question and problem statements. The research instrument was a self-designed semi-structured enumerated questionnaire. Personal ii interviews were conducted with willing participants in order to obtain first hand data. This was an avant-garde study. The results based on the facts and perception of the owners and managers indicated the extent of implementation of ORM in the various business departments of the SME’s. It was found that ORM is a contributing factor regarding the success of SME’s. As a result, the main research problem and sub- problems were answered. Therefore ORM definitely plays a vital role in the survival rate of a SME and can be regarded as a critical success factor for SME’s if implemented and managed. Through identifying the facts and perceptions of the owners and managers of SME’s regarding ORM, further research can be conducted to identify the extent that ORM can have on the SME’s successes. / Graduate School of Business Leadership (SBL) / M.Tech. (Business Administration)

The focus of this study was to investigate the employment difficulties faced by individuals who had been retrenched from the insurance industry during the years 2000 to 2013 in order to develop an understanding of the continuity in the specialist type of work after their retrenchment. The study also aimed to investigate the actual and perceived barriers that need to be addressed in the South African small business environment and the specific soft skills and business skills of small business owners and non-small business owners. The research design of this exploratory study entailed a positivist research philosophy using a deductive research approach. This quantitative research was conducted by means of a survey questionnaire. A questionnaire was designed and used to determine the level of importance and the level of own skills for small business owners and non-small business owners respectively in terms of predetermined soft and business management skills. The answers provided on these questions were then analysed to determine whether there was a gap between the level of importance assigned to these skills and their own skill ratings. This research determined the barriers faced by small businesses in South Africa as well as the level of agreement regarding the predetermined actual and perceived barriers pertaining to the small business environment. Notable findings of this study include that there was a distinct lack of continuity in the specialist type of work by the small business owner respondents in the insurance industry. There was a marked difference between the level of portance and own skill ratings assigned to the predetermined soft skills and business management skills with non-small business owner respondents mostly rating themselves as better skilled than small business owners did. However, the fact that these non-small business owner respondents did not start their own small businesses points towards higher risk aversion. This study also found that small businesses in South Africa are facing pronounced barriers within the small business environment. / Business Management / M. Com. (Business Management)

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)

This dissertation deals with the effect of value-added tax on small to medium-sized developers of residential properties in South Africa. Firstly, the way value-added tax is applied to residential properties in South Africa was established. It was ascertained that no special concessions exist with regard to housing. Secondly, the application of value-added tax to residential properties in the United Kingdom was discussed. It was ascertained that supplies relating to new residential premises are zero-rated. Thirdly, the application of goods and services tax to residential properties in Canada was discussed. Canadian goods and services tax and harmonious sales tax legislation contains a broad range of special concessions relating to residential property developments. The harmonious sales tax which applies in some provinces, is a combination of goods and services tax and a provincial sales tax. Fourthly, the way goods and services tax is applied to residential property developments in Australia was determined. Australian legislation provides for a margin scheme to be applied to the development of residential properties. In terms of the margin scheme, goods and services tax is payable on the basis of profit rather than turnover. Transfer duty as applied in South Africa was examined as an alternative to the value-added tax being applied on residential properties developed by developers registered for value-added tax purposes. The legislation with regard to developers of residential properties registered for value-added tax, goods and services tax and harmonious sales tax purposes was measured against the principles of taxation. On the basis of these results, an alternative to the current application of value-added tax relating to developers registered for value-added tax purposes in South Africa was proposed that would be in line with that of the selected countries. / Economics / M. Com. (Accounting)

Small and Medium Enterprises (SMEs) contribute substantially in economies around the world and in South Africa in particular. This study aimed to explore and describe the financial performance measures currently used by manufacturing SMEs in Pretoria. Semi-structured interviews were conducted at the participant SMEs’ premises in order to gather the information. It was found that most of the respondents use financial ratios, but to a limited extent, when measuring their financial performance. The use of bankruptcy prediction models is totally absent among the participants. It has been recommended that SMEs use more ratios from the literature that have been proven to be the best financial measures, and the six ratios that have worked well for some of the participants in the study. It is also recommended that SME owners enrol their financial staff for training in bankruptcy prediction models, and use financial software packages if they can afford them. / Graduate School for Business Leadership / (M.Tech. (Business Administration))

The small, medium and micro enterprises sector in South Africa is critical in addressing poverty, job creation and social instability inherited by the democratic government. The transformation of the economy has seen various pieces of legislation being enacted in order to promote a favourable environment for the growth of the SMME sector. As such, instruments such as the Industrial Development Zones were put in place to facilitate investment, create jobs and promote exports with one of the main objectives to grow the SMME sector. In this study, the case of the East London Industrial Development Zone (ELIDZ) in supporting the growth of the SMME sector in economic growth and addressing socio-economic challenges was analysed. The exploratory qualitative research methodology was used in the study. Structured questionnaires and a semi-structured interview guide were used to collect data from the 49 identified participants and an Executive Management representative from the ELIDZ in order to present the data obtained precisely. The study recommends that an integrated model of SMME growth by the private and public sector be developed in ensuring that there are clear expectations on the determinants of growth for the sector. In addition, the Buffalo City Metropolitan Municipality must have in place a consolidated database of SMMEs in order for the private and public institutions to elect the SMMEs which can be participants in their SMME development programmes.

Thesis (MTech(Business Administration))--Cape Technikon, Cape Town, 2004 / The procurement of goods and services in the public sector accounts for a huge portion of domestic spending. An improvement in government procurement has a direct effect on the country's economic performance. Government procurement systems are subject to increasing scrutiny and reform due to domestic and international pressure. Procurement reform is being driven by the principles of democracy and fairness, the opening of the global market, and the small, medium and micro enterprises (SMMEs) that have been excluded from government procurement. Research has been done on the development of SMMEs in South Africa, highlighting the barriers experienced by these enterprises. As only limited research has been done on the barriers experienced by the sub-category of African black SMMEs, this study focuses on those barriers experienced by African black SMMEs in the construction industry in the Western Cape, with specific emphasis on the Emerging Contractor Development Programme (ECDP) of the National Department of Public Works in Cape Town. The purpose of this study was to determine the reasons why African black contractors cannot find the opportunities that they seek. The opportunities may be available, but the financial capacity of these contractors is limited. The lack of finance or the lack of access to finance causes these contractors not to be able to perform as anticipated. The survey was done among African Black contractors to determine from them what their experiences were with the Emerging Contractor Development Programme. It also focused on the number of opportunities given to them by the National Department of Public Works and the effect of the lack of finances.

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2015. / The aim of this study was to determine the extent of constraints to entrepreneurial development in the townships supporting the Cape Town economy, specifically that of Khayelitsha, and to establish whether any government incentives were available to develop this township economy. These small, medium and micro sized businesses face numerous constraints. The vital role of small businesses in stimulating economic activity, in poverty alleviation, and in the raising of living standards, has been widely recognised in most countries. In fact, in several countries, small businesses are used as catalysts to generate economic activities within relatively poor communities. The City of Cape Town has developed economic initiatives to provide assistance to entrepreneurs with recommendations on how innovations should be encouraged to help entrepreneurs in such poor communities as Khayelitsha to start new businesses, and to create jobs. In order to obtain information on the Khayelitsha business community both qualitative and quantitative approaches were used. Questionnaires were employed to answer open and closed ended questions dealing with economic activities in the area, as well as interviews with formal and informal business persons. Generally, the findings reveal numerous constraints of trade facing businesses in Khayelitsha including governmental restrictions, lack of a skilled workforce, poor infrastructure, and services delivery. The recommendations made could lead to an improvement in operating conditions as this study argues that the existence of positive business conditions, in terms of social, economic, and personal factors, are necessary for business ventures and entrepreneurs to succeed. However, innovation is essential for small businesses to be able to respond effectively to the changing environment that has been triggered by globalisation forces.

Thesis (MTech (Cost and Management Accounting))--Cape Peninsula University of Technology, 2018. / Small and Medium Enterprises (SMEs) operating in the hotel industry in South Africa are perceived to be failing/underperforming partly due to their reluctance to use Non-Financial Performance Measures (NFPMs). The main purpose of this study was to determine the extent to which SMEs in the hotel industry use three categories of NFPMs, namely; customer oriented, internal business process as well as learning and innovation, for running their businesses. This objective requires quantitative data to determine the percentage of SMEs in the hotel sector that make use of NFPMS. Specifically, the study aimed to determine the types of NFPMs used by the SMEs, the purposes for which these measures are used, the perceived effectiveness of the NFPMs currently used, as well as the factors that inhibit SMEs from using NFPMs. To this end, a questionnaire survey was administered on owners/managers of 100 hotels operating in the Cape Metropole. Purposeful sampling method was employed. Test of reliability of questionnaire was done during the experimental stage to ensure the stability, consistence, repeatability, or reproduction of the same results if questionnaires were to be administered to the same population using the same methodology at different times. The results of the study revealed that customer oriented measures were the most frequently used NFPMs, while learning and innovation related measures were the least frequently used NFPMs by the sampled SMEs. Concerning the purpose for which SMEs use NFPMs, the results revealed that SMEs used the NFPMs mainly for: improving the profitability of their business, improving productivity and effectiveness, as well as for improving decision–making. As far as the perceived effectiveness of the NFPMs currently used by SMEs, the results revealed that customer oriented measures were perceived by the sampled respondents to be the most effective of the three NFPMs. With respect to the factors inhibiting SMEs’ use of NFPMs, the results revealed that the main factors were high cost of implementing these measures, incomparability of the measures to those of other SMEs due to their entity specific nature, difficulty in quantifying the NFPMs measures, as well as employee resistance. This study fills a gap in the literature by making a significant contribution on the usage of NFPMs by SMEs. The study provides useful information on the usage of NFPMs that the Department of Small Business Development and Small Enterprise Development agency(SEDA) can use to inform the development of interventions aimed at reducing SMEs’ failure. These findings may also help SMEs to improve their usage of NFPMs in order to capitalise on the benefits gained from using these measures. Furthermore, these findings may help SMEs to overcome the factors that inhibit them from using NFPMs.

Based on the importance of small and medium-sized family businesses, with regard to their economic contributions, as well as the fact that their high failure rates limit their ability to positively contribute to the economic growth of South Africa, this study focused on selected marketing and branding practices of South African family SMEs, and whether these practices influence their financial performance and ultimately their survival. Against this background, the primary objective of this study was to investigate selected marketing and branding practices adopted by family SMEs in the Eastern Cape. An overview of the literature was provided whereby the nature and importance of SMEs, and more specifically family SMEs, were described. The various challenges SMEs face were explored, with marketing and branding being identified as one of the main challenges that contributes to the high failure rate of family SMEs. In addition to the marketing challenges faced by non-family SMEs, family SMEs face extra marketing hurdles, given the overlapping subsystem of family and business. However, despite these challenges, family SMEs are able to make use of their familial aspect by marketing and branding the business as family-owned. A positivistic research paradigm and quantitative research methodology was adopted for this study, using a descriptive research approach. The primary data collection procedures involved selecting the population, the sample, sampling techniques, and sample size. For the purpose of this study, the population consisted of all family SME owners operating within the borders of the Eastern Cape province. From the population, a sample was selected using both judgemental and convenience sampling. A total of 500 questionnaires were distributed, which resulted in 325 usable questionnaires, giving an effective response rate of 65.00 per cent. Given the cross-sectional nature of this study, a survey research method using a structured, selfadministered questionnaire was used to collect the primary data. The scales used to measure the factors under investigation were developed based on previous research. In order to assess the validity of the ordinal scales, tests for unidimensionality were undertaken. Only factor loadings exceeding the 0.5 cut-off point were considered significant. Not all the items loaded as expected. Only five of the original six items intended to measure the dependent variable Perceived financial performance loaded onto this factor. The researcher, together with two experts in the field of marketing and family businesses, deemed the items for the dichotomous questions to show evidence of content validity. The reliability of the ordinal scales was assessed by calculating Cronbach’s alpha coefficients, whereby coefficients greater than 0.7 were deemed a scale to be reliable. Cronbach’s alpha coefficients of greater than 0.7 were returned for all the factors measured using ordinal scales, except one factor namely Customer service differentiation. This factor was not considered for any further statistical analyses. The reliability of the dichotomous questions was assessed using the Kuder-Richardson Formula 20 (K-R 20). For the purpose of this study, Kuder-Richardson values greater than 0.5 deemed the dichotomous questions to be reliable. Kuder-Richardson values of greater than 0.5 were reported for the dichotomous items relating to Branding of the family name, but not for Marketing function. However, given that the questions were used for descriptive purposes only, the items measuring Marketing function were used for statistical analysis. The independent variables returned mean scores of between 3.220 and 3.773, with the majority of respondents feeling neutral or agreeing with the statements measuring these factors. The dependent variable Perceived financial performance returned the highest mean score of all the factors with the majority of respondents agreeing with the statements measuring this factor. The dichotomous questions relating to the Marketing function indicated that majority of respondents did not have a written marketing strategy or a separate department that deals with marketing for their family business. The dichotomous questions relating to Branding of the family name revealed that in most instances the family name (surname) does not appear in the name, brand, logo or advertising material of the family business. Most of the independent variables (Promotion of family business, Family business image and Stakeholder perception) reported significant and positive relationships with each other. The independent variable Perceived financial performance reported significantly positive relationships with two independent variables, namely Product differentiation and Family business image. The multiple regression analyses undertaken revealed that only one of the independent variables, namely Product differentiation, had a significant positive influence on the dependaet variable Perceived financial performance. This study found that the independent variables Promotion of family business and Family business image did not have a significant influence on the dependent variable Perceived financial performance. The results of the two single regression analyses revealed that a significant positive linear relationship exists between Stakeholder perception and Promotion of family business, as well as between Stakeholder perception and Family business image. The findings of the analysis of variance found that Number of employees was the only demographic variable that exerted a significant influence on Product differentiation. The results also indicated that Age of respondent, Generation ownership and Nature of family business had an influence on Promotion of family business. However, the post-hoc Scheffé test revealed that only Generation ownership had a significant influence on Promotion of family business. The analysis of variance also found that the demographic variables Age of respondent, Generation ownership and Number of employees exerted a significant influence on Family business image; however, the post-hoc Scheffé found that only Generation ownership had a significant influence on Family business image. Based on the findings of this study, numerous recommendations were proposed to assist the owners of family SMEs to ultimately improve their business’s financial performance by adopting appropriate marketing and branding practices. The findings of this study showed that by adopting a Product differentiation competitive orientation, family SME owners can enhance their financial performance. It is hoped that the findings of this study will provide family SME owners with practical suggestions on how to use a product differentiation competitive orientation to ultimately increase their longevity, and that the suggestions for future research will inspire future researchers to continue investigating the unique marketing and branding practices of family SMEs.