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Considerations for a start-up SMME in the water quality management arena in South Africa

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: South Africa’s efforts to ensure safe drinking-water provision to all have resulted in an
admirable reduction in the backlog in drinking-water provision since 1994. However, in
the non-metro areas of South Africa poor drinking-water quality is common and,
combined with inadequate sanitation, results in a significant and deleterious primary
health impact. Given the South African government’s commitment to co-operative
government and good governance, and a willingness to both mobilize government funds
and to involve the private sector in addressing poor water services delivery by local
government, it can be expected that a significant opportunity exists for a
“service/product” combination that assists local, provincial and national government in
both, (i), the progressive realization of suitable drinking-water quality via a consultative
audit, and (ii), an environmental governance function to ensure that acute and chronic
issues are timeously identified and resolved.
Drinking-Water Quality Management (DWQM) procedures developed and operated by
the government research organization, CSIR, have been shown to be effective in
achieving (i) and (ii) above. However, CSIR is not the appropriate business environment
from which to roll out a commercialized service. This study assesses the prospects of a
start-up Small, Medium and Micro Enterprise (SMME) to access and develop the DWQM
market in South Africa.
A thorough review of the role of governance in the delivery of water services in South
Africa is provided, and it is confirmed that DWQM procedures can be expected to
contribute towards improvement in drinking-water quality in non-metro South Africa and
satisfy government’s requirement of demonstrated good governance (co-operative and
regulatory governance) and co-operative government.
A situational analysis of the internal (CSIR) and external business environment confirms that a win-win opportunity exists for entrepreneurs from within CSIR to “spin-out” the
DWQM services, and thereby fulfill CSIR’s mandate of supporting SMME’s and Black
Economic Empowerment (BEE).
A summary of considerations for a start-up SMME in South Africa emphasizes the
importance of some key factors. A key factor for a SMME selling services to
government is the satisfaction of BEE requirements. Additional key factors include the
business marketing factors of customer relationship management, delivering value and
ongoing evolvement of marketing strategy. A case study involving Stellenbosch
Municipality is used to demonstrate the customer centric nature of DWQM, and the
positive Value Impact delivered to the client.
The above are used to critically consider a Business Action Plan (which has a focus on
the first year of operation) and to identify amendments required for the future and
separate preparation of a full Business Plan. The short term focused Business Action
Plan (BAP) confirms that market forces and opportunities combine with the skills and the
background of the start-up team to provide a positive prospect for the startup SMME.
Conversion of the BAP to a fully fledged Business Plan will require the development of a
full business strategy, and supportive marketing strategy, as the short term focus
strategies are inadequate. Importantly, adjustments to the black equity holding should
be brought in line with the requirements of the Broad-Based BEE Act. / AFRIKAANSE OPSOMMING: Suid-Afrika se deurlopende pogings om veilige drinkwater te verskaf het gesorg vir ‘n
benydenswaardige vermindering in die agterstand in verskaffing van drinkwater sedert
1994. In die nie-metropolitaanse areas van Suid-Afrika is swak drinkwater gehalte egter
steeds algemeen en is verantwoordelik, saam met ontoereikende sanitêre infrastruktuur,
vir beduidende en dodelike primêre gesondheidsrisikos. Die Suid-Afrikaanse regering is
toegewyd tot samewerking met die private sektor en die toepassing van goeie
besigheidsbeginsels. Dit is ook gewillig om regeringsfondse beskikbaar te stel indien die
betrokkenheid van die privaat sektor kan help om swak waterdienste lewering deur die
regering aan te spreek. Daar kan dus verwag word dat ‘n daadwerklike geleentheid
bestaan om ‘n “diens/produk” kombinasie daar te stel wat plaaslike, provinsiale en
nasionale regering sal bystaan in beide die: (i), progressiewe verwesenliking van
geskikte gehalte drinkwater deur middel van ‘n konsultatiewe oudit, en (ii), ‘n omgewings
oorsig funksie om te verseker dat akute en kroniese probleme tydig geidentifiseer en
opgelos word.
Drinkwater Gehalte Bestuur (DWGB) prosedures ontwikkel en toegepas deur die
regeringsnavorsingseenheid, die WNNR, is bewys as effektief in die bereiking van (i) en
(ii) soos hierbo gemeld. Die WNNR is egter nie ‘n geskikte besigheids-omgewing vir die
wyer kommersiële toepassing en verskaffing van sodanige dienste nie. Hierdie studie
evalueer die vooruitsigte van Klein, Medium en Mikro Ondernemings (SMME) om die
DWGB mark in Suid-Afrika te betree en te ontwikkel.
‘n Deeglike oorsig van die rol van etiese bestuur in die verskaffing van waterdienste in
Suid-Afrika word gedoen. Daar word bevestig dat DWGB prosedures na verwagting sal
bydra tot die verbetering van drinkwater gehalte in die nie-metropolitaanse Suid-Afrika,
maar ook sal voldoen aan die regering se vereistes van daadwerklike en sigbare etiese
bestuur (samewerkings en regulatoriese etiese bestuur) en samewerking van die
regering en derde partye. ‘n Omgewingsondersoek van die interne (WNNR) en eksterne sake omgewing bevestig
dat ‘n wen-wen geleentheid bestaan vir entrepreneurs binne die WNNR om DWGB
dienste af te stig, en sodoende ook vir die WNNR om sy mandaat te vervul, by name die
ondersteuning van SMME’s en Swart Ekonomiese Bemagtiging (SEB).
‘n Opsomming van die saaklike kwessies vir die stigting van ‘n SMME in Suid-Afrika lei
tot die identifisering van ‘n aantal sleutel suksesfaktore se belangrikheid. ‘n Sleutel
suksesfaktor vir ‘n SMME, wat dienste aan die regering verkoop, is die voldoening aan
SEB vereistes. Verdere sleutel suksesfaktore sluit in die sake bemarkingsfaktor van
kliënte verhoudingsbestuur, die lewering van waarde en die volgehoue evolusie van
bemarkingstrategie. ‘n Gevallestudie waarin Stellenbosch Munisipaliteit betrokke was
word gebruik om die kliënt-gesentreerde toepassing van DWGB te demonstreer, en die
positiewe waarde wat aan die kliënt gelewer is, word uitgelig.
Laastens word die bogenoemde gebruik om ‘n kritiese evaluering te doen van ‘n
Besigheids Aksie Plan (met ‘n fokus op die eerste jaar se bedrywighede). Veranderinge
wat vereis sou word vir die voorbereiding van ‘n toekomstige en afsonderlike volledige
Besigheids Plan word geidentifiseer. Die korttermyn gefokusde Besigheids Aksie Plan
(BAP) bevestig dat marktendense en geleenthede tesame met die vaardighede en
agtergrond van die Kleinsake-span ‘n positiewe verwagting skep vir die voornemende
kleinsake-bedryf. Die omskakeling van die BAP na ‘n volledige Besigheids Plan vereis ‘n
volle Sakestrategie en ‘n ondersteunende Bemarkingsplan, aangesien die korttermyn
gefokusde strategieë ontoereikend is. Verdere aanpassings tot die swart
aandeelhouding moet gedoen word om te voldoen aan die vereistes van die breëbasis
SEB-wetgewing.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/85173
Date03 1900
CreatorsMackintosh, Grant S.
ContributorsGevers, Wim, Naude, Peter, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format1 v. (various pagings) : col. ill
RightsStellenbosch University

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