Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: The main objective of this study is to analyse and evaluate the alignment between
the strategies and operational aspects of small business promotion initiatives of
regional government with those of the private sector.
Small business development had been identified by the post-apartheid government
as one of the keys to addressing a number of social problems - growth, employment
and (re)distribution of wealth. Despite efforts and investment from both government
and the private sector, this sector had never performed as expected and South Africa
usually ranks relatively poorly in terms of innovation, according to the published
rankings.
To provide context, a literature review briefly explores the importance, success and
inhibiting factors of small business development in South Africa. From the data, it is
: clear that the success of the Small, Medium and Micro Enterprise (SMME) sector in
South Africa, as in most developing countries, is key to the achievement of socioeconomic
goals which are linked directly to the structure and success of the larger
economy. The factors inhibiting a more successful development of the SMME sector
relate to (a) the influence of socia-political goals on the economic policies, (b) the
invisibility of SMME track records because of the development of the informal sector
and (c) lacking skills, both among entrepreneurs and regional/local government and
agencies.
A brief review of the SMME strategies and implementation by national and regional
government highlights the major problem areas, being regional interpretation and
implementation of what seems to be generally accepted as a fairly well-developed
national SMME strategy. This appears to be due mostly to lacking co-ordination and
capacity (skills and knowledge) at the regional and local levels of government.
The description of the South African Breweries' KickStart programme as an example
of private sector SMME development efforts highlights a few aspects that seem to
ensure a greater degree of tangible, directly attributable success of SMMEs
developing into a sustainable business, albeit in smaller numbers. These aspects
relate to a mixture of training and mentoring that assists the entrepreneurs in
becoming self-sufficient prior to the awarding of any substantial financial assistance.
At a higher level, it is evident that the private sector develops a clear, simple national
strategy and ensures regional execution thereof through clear guidelines and the
alignment and linking thereof to local group and individual goals and performance
measurement. The latter is perhaps the most evident contrast between the
government and the private sector in this regard, as it had not been found discussed
in relation to how government executes strategy, in any of the literature reviewed.
The writer agrees with the general opinion of the private sector from the literature
reviewed, in that government should playa less directly involved and interventionist
role and recommended that it should focus on facilitation of the process through
creating the· right environment. Typically this will take place through reviewing of
legislation and administrative requirements that increases the cost and complexity of
doing business. Some proposals include the consolidation of SMME development . .
efforts under a single Public Private Partnership (PPP); to ensure alignment and to
. draw on the energy, focus and skills of the private sector.
The study concludes that close co-operation between the public and private sectors
is vital for the improvement of SMME development and that government has a
number of options to consider for stimulating a greater private sector effort, while at :
the same time becoming less interventionist. / AFRIKAANSE OPSOMMING: Die hoofdoelwit van die studie is om te analiseer en evalueer op watter wyse die
strategiee en bedryfsaspekte van die kleinsakeontwikkelingsinisiatiewe van plaaslike
regering en die van die privaatsektor by mekaar inskakel.
Kleinsakeontwikkeling is reeds in 1994 deur die nuwe regering as een van die
sleutels tot die verwesenliking van verskeie sosio-ekonomiese doelwitte
geidentifiseer. Die vernaamste hiervan is groei, indiensneming en die (her)verdeling
van inkomste. Ten spyte van die insette en finansiele belegging van sowel die
regering as die privaatsektor, het hierdie sektor nooit na verwagting gepresteer nie
en Suid-Afrika Ie gewoonlik relatief laag op die gepubliseerde ranglyste wat innovasie
betref.
As agtergrond tot die studie, ondersoek die literatuurstudie kortliks die belangrikheid,
sukses en beperkende faktore van kleinsakeontwikkeling in Suid-Afrika. Die data
toon duidelik dat die sukses van hierdie sektor, soos in die meeste ontwikkelende
lande, 'n sleutelfaktor is in die verwesenliking van sosio-ekonomiese doelwitte, wat
weer direk verbind is met die struktuur en sukses van die ekonomie in sy geheel. Die
faktore wat 'n meer suksesvolle ontwikkeling van die kleinsakesektor verhoed, is
verwant aan (a) die uitwerking wat sosio-politieke doelwitte op ekonomiese beleid
het; (b) die feit dat die prestasies van die sektor as gevolg van die ontwikkeling van
die informele sektor nie sigbaar is nie; en (c) 'n gebrek aan vaardighede onder
entrepreneurs sowel as plaaslike/streeksregering en -agentskappe.
'n Analise van die nasionale en plaaslike regering se kleinsakeontwikkelingstrategiee,
-struktuur en -implementering wys die grootste probleemareas uit, naamlik plaaslike
regering se interpretasie en implementering van wat op die oog af as 'n redelik goed
ontwikkelde nasionale strategie beskou word. Hierdie gaping blyk te wyte te wees
aan 'n gebrek aan koordinering en kapasiteit (vaardighede en kennis) op plaaslike
regeringsvlak.
Die beskrywing van die "KickStart"-program van die SAB, as voorbeeld van
privaatsektorinisiatiewe, wys 'n paar faktore uit wat oenskynlik lei tot 'n groter mate
van tasbare en direk verwante sukses en onderhoubare groei in klein ondernemings,
alhoewel in kleiner getalle. Hierdie faktore hou verband met die vermenging van
opleiding en mentorskap wat die entrepreneurs help om selfonderhoudend te wees
voordat enige wesenlike finansiele bystand verleen word. Op 'n hoer vlak is dit
duidelik dat die privaatsektor tipies 'n duidelike, eenvoudige nasionale strategie
ontwikkel en die uitvoering daarvan verseker deur duidelike riglyne en deur dit met
plaaslike groeps- en individuele doelwitte en prestasiemeting te verbind.
Laasgenoemde is waarskynlik die mees wesenlike kontras tussen die regering en die
privaatsektor, aangesien nie enige van die Iitteratuur verwys het na die wyse waarop
die regering strategie implementeer nie.
Die skrywer stem saam met die algemene opinie van die privaatsektor op grond van
die literatuurstudie, naamlik dat die regering 'n minder direkte rol, in
kleinsakeontwikkeling behoort te speel, en beveel aan dat die regering op die
fasilitering van die proses behoort te fokus deur die skepping van 'n
tegemoetkomende besigheidsomgewing, hoofsaaklik deur die hersiening van
wetgewing en administratiewe regulasies wat die kompleksiteit en koste van
besigheid beinvloed. Van die aanbevelings sluit in die konsolidering van
kleinsakeontwikkeling in 'n enkele vennootskap tussen die publieke en
privaatsektore, om te verseker dat daar 'n beter gesamentlike poging sal wees en om
die energie, fokus en kennis van die privaatsektor beter te benut.
Die slotsom is dat samewerking tussen die publieke en privaalsektore krities is vir die
suksesvolle ontwikkeling van die kleinsakesektor en dat die regering 'n paar opsies
tot sy beskikking het om 'n groter mate van betrokkenheid deur die privaatsektor te
stimuleer, terwyl die regering self minder direk betrokke kan wees.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/70660 |
| Date | 03 1900 |
| Creators | Ackermann, Chris |
| Contributors | De Coning, T. J., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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