Small and Medium enterprises (SMEs) play an important role as employers and in the economic growth of South Africa and in Africa as a whole. SMEs comprise over 90 percent of African business operations and contribute to over percent of African employment and GDP. SMEs sector has shown positive signs in South Africa, Mauritius and North Africa. SMEs constitute 95 percent of formal manufacturing activity in Nigeria. Senegal and Kenya have provided an environment which is conducive for SMEs (African Development Bank 2005). In August 2006, flood damage to small businesses and residential premises in the Nelson Mandela Metropolitan Area was estimated at R120million (SABC News 2006). The holding of an insurance cover by SMEs is crucial and beneficial to the economy and to the survival and success of the Small and Medium Enterprise sector. If a business has an insurance policy and a relationship with its insurer it becomes easier for the company to over come such a catastrophe. However, literature has shown that insurance companies are not willing to insure SMEs and it is the aim of this research to establish whether a relationship between the two constructs exists. An article entitled New Deal In The Offering for SMMEs, the author stated that the insurance industry prefer to deal only with established businesses (Mthimkhulu 2008). The aim of this research is to establish the importance of business relationship between Insurance companies and SMEs. The research will show how beneficial such a relationship is to both industries. The data for the research was collected through a survey type structured questionnaire that was developed and validated. The questionnaire was administered to the owners or managers of SMEs in the Nelson Mandela Metropolitan Area. The primary objective of this research was to establish whether SMEs in the Nelson Mandela Metropolitan Area have insurance policies for their businesses, and the results have shown that most of the SMEs in the Nelson Mandela Metropolitan Area do not have insurance policies for their businesses.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ufh/vital:11318 |
| Date | January 2009 |
| Creators | Chodokufa, Kudakwashe |
| Publisher | University of Fort Hare, Faculty of Management & Commerce |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, M Com (Business Management) |
| Format | 151 leaves; 30 cm, pdf |
| Rights | University of Fort Hare |
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