One of the major development problems in the southern African region and South Africa in particular relates to the phenomenon of high failure rates among Small Medium and Micro Enterprises (SMMEs). The important role of SMMEs in creating jobs and incomes is widely acknowledged. SMMEs are relatively inexpensive to establish and have the potential to generate economic growth in the southern African region. One major dilemma of this sector, however, is the short lifespans of SMMEs. Past research has focused on understanding failure of small businesses by mainly identifying factors of failure without subjecting them to step-wise causality testing. This research closes that gap and uses a retrospective study, coupled with the critical realist approach, to understand the causes of the high failure rates of SMMEs. The merit of this approach lies in the attention it gives to an historical understanding of past processes and how a determined effort could be initiated to change the current “historical reality” of the factors behind the failures, specifically in South Africa. A sample comprising 254 owner-managers of SMMEs from the Gauteng, Limpopo and Mpumalanga provinces in the Republic of South Africa as well as from Gaborone in Botswana was subjected to an interview between January 2007 and December 2007. Data were collected by means of a semi-structured research instrument which probed the failure of the interviewees’ businesses across a period spanning seven years between 2000 to 2006. The analysis of the data involved the use of both quantitative and qualitative research methodologies. The findings indicate that four explanatory factors were paramount: “monitoring and control” (factor 1); “experience and planning in finance and marketing” (factor 2); “income constraints” (factor 3), and “cash control” (factor 4). Based on the findings, the following recommendations, if implemented, may assist with lowering the high failure rates: First, the mindsets of the owners of the failed businesses were found to be a fundamental factor in the closure of the businesses. Radical programmes for changing these mindsets are therefore critical. Second, with the mindsets changed, venture skills training programmes could then be introduced involving learning and training. By so doing, it is hoped that the void left by low levels of education and business experiences in the SMME sector would be reduced. Finally, at the policy-making level, the required assistance should be tilted more towards government-corporate involvement, in assisting the SMME sector in the form of financial subsidies for start-up capital, small business-builder programmes, and business mentoring programmes, among others. / Thesis (PhD)--University of Pretoria, 2011. / Business Management / unrestricted

Economic development is a relatively new field of economics that started only thirty years ago. Many of the measurements applied in measuring the effectiveness of small businesses in South Africa are based on measuring growth, which is not always related to development. Using capital generation as one of the measurable parameters in economic development, a model was designed to measure the contribution of small business towards capital generation and, subsequently, development. The model considered the contribution of small businesses towards capital generation by measuring growth in assets, owners. incomes, employees. incomes and taxes paid. For these parameters to contribute to growth, additional capital needs to be generated by businesses. Job creation was also measured as an important parameter used to calculate employees. and owners. incomes. The model was tested with actual data gathered through personal interviews with businesses and analyses of the financial information of the businesses. The data were collected to cover a five-year operational period. The model contributed to an understanding of the ability of small businesses to support development in South Africa. The model was used to test the capital contributions of businesses of different age groups and sizes as well as within different manufacturing environments and locations in Gauteng and North West. Reducing the high failure rate of small businesses will play an important role in any future developmental interventions to increase the contributions of these small businesses. If the high failure rate is ignored and if only successful businesses are considered, it is seen that small businesses contribute to job creation. Small businesses, in general, increased employment below the total employment growth rate for the areas of the study, although the businesses which employed fewer than ten people outperformed the industry average. The data suggest that small businesses generally do contribute to capital generation. Small businesses, which employed fewer than 20 people, contributed positively to all aspects of capital contribution, compared to businesses which employed more than 20 people. These businesses performed positively only in tax contribution. It is positive that small businesses invest in, and increase, assets, but it is concerning that tax contribution growth outperforms all other capital generation parameters. Employees. incomes, and especially owners. incomes, showed a negative growth contribution to capital generation. There were definite trends in the data that businesses which employ the most assets, with large salary bills, large owners. payments and large tax contributions showed slower growth than did businesses employing smaller total capital contributions in these parameters. The motor industry, which showed phenomenal growth over the past few years, did not manage to increase the capital it used taking into account the effect of the consumer price index, excluding interest rates on mortgage bonds. This was also clear in the different regions which support the industry. The industry data can be used to study the different industries in more detail. Although more businesses contributed to growth in the four parameters, the net contributions in certain instances, or parameters, were negative. The results show that small business contributes both to economic development and to growth. It is also clear that the model can be used to analyse business contributions to development. It is unclear whether small business is the best way of stimulating development based on growth in capital contributions. The results and the analyses show that the model can be used as a successful management tool to stimulate development-related initiatives. / Thesis (Doctor of Business Administration)--University of Pretoria, 2006. / Graduate School of Management / unrestricted

The humble beginnings of business incubators date back to the 1970s in the USA and United Kingdom, where abandoned industrial buildings were converted to rent out to small businesses. South Africa (SA) was first introduced to business incubation in the 1980s when the Small Business Development Corporation (SBDC) established a number of business ‘hives’ and provided business space to entrepreneurs to operate their businesses. In their most basic form, business incubators provide a safe and nurturing environment for entrepreneurs to establish their small businesses. While in incubation, the Small and Medium Enterprises (SMEs) are supported with a number of services which assist their growth and development until they are able to exit the incubator as sustainable and viable businesses. Global incubator models have matured significantly, and now include assisting with business idea generation, accelerating business start-ups and commercialisation processes, and identifying high-growth orientated SMEs to assist them with gaining market access. The establishment of business incubators was a government-driven initiative, and more than 33 SME incubators exist in SA. Most of the incubators are government-funded, and have focused on the establishment and growth of SMEs to act as a catalyst to promote economic development and alleviate socio-economic challenges such as unemployment and poverty. Despite these noble objectives, incubation in SA has not been fully utilised, and a high SME failure rate still prevails in the country. One of the reasons for SME failure may be ascribed to the lack of an enabling SME incubation environment in SA. When compared to other developing countries such as Brazil with as many as 400 incubators, it is clear that the SA incubation industry still needs further development. The purpose of this study therefore was to ascertain the best practices of global business incubators in both developed and developing countries, and how SA incubators could learn from these best practices to create a more conducive and enabling SME incubation environment. Background literature on business incubation with a specific focus on best practices in world incubators in both developed and developing countries, was reviewed. Some of the literature reviewed included Aernoudt (2004), Buys and Mbewana (2007) and Chandra (2009). From the literature review, four main best practice areas were identified, namely strategic focus, sources of funding, incubator services, and the role of government. The study followed a qualitative approach, and an interview schedule was developed to seek the perceptions of incubator managers on how the four identified best practices can be utilised to create an enabling SA incubation environment. A survey was conducted by interviewing 14 incubator managers (twelve government and two private) in SA. Data was collected over a six-month period, using face-to-face and telephonic interviews. Data was analysed using the content analysis, constant comparison, grounded theory and case study methods. The biographical profiles of the incubator managers and incubators were presented in case studies. An initial analysis was made to identify themes and sub themes within the four best practices explored, using the constant comparison method. Thereafter a provincial comparative analysis was made, as well as a comparison of government funded versus privately funded incubators. The findings suggested that there is a relatively high turnover in incubator management, and that they often do not have incubator management experience. A provincial comparison of SA incubators revealed that their strategic focuses are greatly influenced by the industry prevailing in the various provinces. All SA incubators provide pre- and post incubation services, but few are utilising virtual incubation. Most SA incubators are government-funded, and some use a hybrid funding model. It was evident that most SA incubators are aware of government policies and programmes available to assist them on local, provincial and national levels. A comparison of the best practices of two developing countries and three developed countries, as well as suggestions made by SA incubator managers indicated that SA has indeed followed best practices from both developing and developed countries, but there are areas of non-alignment which provide scope for improvement, to create a more conducive and enabling incubation environment. This study recommends that incubators should have an entrepreneurial focus, and reposition and align their strategic focus with government policies and instruments. SA incubators must pursue opportunities for virtual incubation as well as linkages with academic institutions, in order to offer value-added services such as research, development and commercialisation of the product ideas. Incubators in SA must pursue a hybrid funding model with a combination of government and private funding, and generate some or their own income. With regard to the role of government, it is recommended that the roll-out of more industry-specific incubators be privatised, and that an overseeing body for incubation be established.

Thesis (M.Com. (Bussiness Managemet)) -- University of Limpopo, 2020 / SMEs play an important role in the economy as they contribute to job creation, poverty alleviation, innovation, economic growth and development. However, they tend to fail due to business challenges such as poor performance. One of the solutions to business failure is entrepreneurs’ level of self-efficacy towards normal and challenging business activities, which consequently leads to sustainable performance. The aim of this study was to investigate the relationship between entrepreneurial self-efficacy (ESE) and sustainable performance. A quantitative method was used and self-administered questionnaires were distributed for the purpose of data collection. The questionnaire covered three sections which are made of demographic information, entrepreneurial self-efficacy measures and sustainable performance. This study used non probability sampling where convenience sampling and snowball sampling methods were used to select the sample. Convenience and snowball sampling were used because a sample frame of SMEs in the study area does not exist. 320 questionnaires were issued to SME owners in Polokwane Municipality, Limpopo Province. A total of 180 questionnaires were returned. Descriptive statistics was undertaken to evaluate respondents against ESE and sustainable performance. The Statistical Package of Social Sciences (SPSS) software was used to analyse collected information for confirmation of accuracy and reliability of results. ANOVA and T-test samples were used to determine the significant difference between ESE and sustainable performance according to owners’ demographic characteristics. Correlation and regression were used to determine the relationship between ESE and sustainable performance. The Cronbach’s alpha was applied to measure reliability. Findings of the study revealed that ESE positively impacts the sustainable performance of SMEs. Recommendations were made for improvement on ESE and sustainable performance of SMEs.

Small business manufacturing enterprises represent viable means of creating employment, stimulating economic growth, and accelerating development. Many newly formed small business enterprises do not continue beyond 5 years after formation. The purpose of this multiple case study was to explore the strategies used by small business manufacturing leaders in Lagos, Nigeria to sustain their businesses, using general systems theory as the conceptual framework. The sample comprised 3 small business leaders who have sustained their business enterprises beyond 5 years after formation in Lagos, Nigeria. The data collections were through semistructured, in-person interviews and the review of business feasibility and planning documents, handbills and contract documents. The results from computer-aided qualitative data analysis, methodological triangulation of the data sources, and Rowley's 4 step analysis led to the emergence of 10 major themes: minimizing debt and overhead expenses, proper record keeping, skills, and expertise are essential for small business success. Small business leader participants in the study achieved longer-term successes by engaging in research, strategic planning, and preparation before launching their business ideas. Applications of findings from this study might influence positive social change if future and current small business leaders' implementation of the strategies identified leads to the longer-term success of their business enterprises. Successful business enterprises provide continued employment for the business leaders and their employees, better living standards for the community by offering goods and services, and enhanced quality of life for the community because the government can now provide improved social amenities with increased tax revenues.

Zimbabwe's entrepreneur owners of small and medium enterprises (SMEs) comprise approximately 94% of business owners but contribute only 50% of the country's gross domestic product. Entrepreneur owners play an important role in strengthening Zimbabwe's economy because they create approximately 60% to 80% of employment opportunities. The purpose of this multiple case study was to explore the strategies owners of SME in Zimbabwe use to sustain their businesses. The population consisted of 5 owners of SMEs who have successfully implemented the strategies to sustain their businesses for over 5 years. The general systems theory was the conceptual framework of the study. Data were collected using semistructured interviews and review of company financial documents. Member checking and methodological triangulation were used to enhance the credibility and trustworthiness of the findings of the study. The data analysis process was conducted using Yin's 5-phases of qualitative data analysis. Four themes emerged from data analysis, including passion and dedication, quality of products and services, customer satisfaction, and employing staff with the right skills. The results of the study could lead to positive social change for SMEs and the communities by helping owners of SME to create growth strategies, increase revenues for the country, and create long-term employment opportunities for the communities. The findings from the study could catalyze positive social change by improving workforce capabilities, creating awareness of the success of entrepreneurs in Zimbabwe, and increasing the interest of financial institutions in lending to SMEs.

Роль малого бизнеса в экономике страны с каждым годом возрастает, что связано со спецификой его развития и преимуществами, среди которых можно выделить высокую приспосабливаемость к нестабильному внешнему окружению, гибкость и эффективность в вопросе принятия и реализации решений, наличие перспективы старта деятельности во множестве отраслей с относительно малым начальным капиталом, независимость в воплощении идей субъекта предпринимательской деятельности. Целью работы является совершенствование методов учета и анализа финансово-хозяйственной деятельности малых предприятий. В ходе исследования разработаны направления совершенствования учетной политики с учетом совокупного влияния отраслевой и региональной специфики на сферу деятельности предприятий малого бизнеса. Предложен алгоритм сочетания традиционных методов финансового анализа с элементами стратегического анализа, позволяющий проводить всестороннюю оценку результатов деятельности малых предприятий и перспектив их дальнейшего развития, используя единую информационную базу. Практическая значимость работы связана с тем, что методический инструментарий и предложенные практические рекомендации могут быть применены в деятельности предприятий малого бизнеса для повышения эффективности учетной политики и аналитической деятельности. / The role of small business in the country's economy is increasing every year, which is associated with the specifics of its development and advantages, among which there is a high adaptability to an unstable external environment, flexibility and efficiency in the issue of making and implementing decisions, the presence of the prospect of starting activities in many industries with relatively small initial capital, independence in the embodiment of the ideas of the business entity. The aim of the work is to improve the methods of accounting and analysis of the financial and economic activities of small enterprises. In the course of the study, directions for improving the accounting policy have been developed, taking into account the cumulative influence of industry and regional specifics on the scope of activities of small businesses. An algorithm is proposed for combining traditional methods of financial analysis with elements of strategic analysis, which allows for a comprehensive assessment of the performance of small enterprises and the prospects for their further development using a single information base. The practical significance of the work is due to the fact that the methodological tools and the proposed practical recommendations can be applied in the activities of small businesses to improve the effectiveness of accounting policies and analytical activities.

Во Введении обоснована актуальность темы исследования, описана методологическая и эмпирическая база исследования, поставлены цель и задачи. В первой главе представлен обзор научной и методологической литературы, выявлена система определений объекта и предмета, отвечающие цели исследования. Систематизированы сложившиеся модели, подходы и методы к оценке стоимости предприятий, выявлены те из них, которые наиболее полно отвечают реалиям настоящего времени. Вторая глава посвящена аналитическому описанию формирования финансовых резервов на малых предприятиях и финансовому анализу трех предприятий малого бизнеса. Здесь же сформулирована проблема недостатка единого подхода к формированию финансовых резервов на малых предприятиях. В третьей главе проведена апробация разработанного подхода на трех исследуемых малых предприятиях. Произведен перерасчет коэффициентов и налоговой нагрузки. Итоговые выводы по работе в целом приведены в Заключении. / The Introduction substantiates the relevance of the research topic, describes the methodological and empirical base of the study, sets the goal and objectives. The First Chapter provides an overview of scientific and methodological literature, identified a system of definitions of the object and subject that meet the objectives of the study. The existing models, approaches and methods for assessing the value of enterprises are systematized, those that most fully meet the realities of the present time are identified. The second chapter is devoted to an analytical description of the formation of financial reserves in small enterprises and the financial analysis of three small businesses. The problem of the lack of a unified approach to the formation of financial reserves in small enterprises is also formulated here. In the third chapter, the approbation of the developed approach was carried out at three small enterprises studied. The coefficients and tax burden were recalculated. The final conclusions on the work as a whole are given in the Conclusion.

No description available.

The main objective of the master's thesis is the development of measures to improve the taxation of small business in the Russian Federation. The first chapter deals with the theoretical aspects of the development of small business in the Russian Federation. The second chapter analyzes the specifics of taxation of small business in the Russian Federation. The third chapter presents a program of measures to improve the taxation of small business in the Russian Federation. The calculation of events and conclusions throughout the work as a whole. / Основной целью магистерской диссертации является разработка мероприятий по совершенствованию налогообложения малого бизнеса в Российской Федерации. В первой главе рассмотрены теоретические аспекты развития малого предпринимательства в Российской Федерации. Во второй главе проведен анализ специфики налогообложения малого бизнеса в Российской Федерации. В третьей главе представлена программа мероприятий по совершенствованию налогообложения малого бизнеса в Российской Федерации. Произведен расчет мероприятий и сделаны выводы по всей работе в целом.