Enhancing sustainability of small black businesses in the Buffalo City Municipality
- Authors: Didi, Mzikhaya Welcome
- Date: 2013
- Subjects: Sustainable development -- South Africa -- Buffalo City , Business enterprises, Black -- South Africa -- Buffalo City , Small business -- South Africa -- Buffalo City
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8887 , http://hdl.handle.net/10948/d1020810
- Description: Governments all over the world cannot downplay the economic role of small businesses. It is accepted world-wide that this sector of the economy alleviates unemployment, creates wealth, encourages innovation and the entrepreneurial spirit. Various factors, both internal and external, make it difficult for small businesses to reach their true potential or realise their objectives. Internal factors would refer to areas such as lack of financial acumen, operational management expertise and marketing skills. External factors such as the business environment, competition, legislation, commercial institutions, amongst others, also contribute to the downfall of small businesses. The support that small businesses require is vital at the start-up phase of the business as it lays a solid base from which to proceed. The research emanates from a high failure of Small Black Businesses in the country, with the focus being on the Buffalo City Municipality (BCM). This section of the business community has a vital role to play in the well-being of this region. According to the South African Cities Network, BCM has a high rate of unemployment. The success of Small Black businesses in the area could offer many opportunities for productive people who would otherwise be condemned to unemployment. The literature review revealed a plethora of factors that hinder the success and development of small businesses. It has therefore become important to research these factors and come up with recommendations that are going to assist small businesses and society at large. There is an outcry against insufficient government support in assisting small businesses. Due to the research being qualitative in nature, date collection was by means of a structured questionnaire. The questionnaire was designed in such a manner as to provide responses that would assist in addressing the challenges faced by small businesses. Data analysis entailed its transcription in order to allow the researcher to make notes. The next step was to do a preliminary data analysis in order to highlight emerging issues, identify relevant data and to give direction for seeking more data. A summary all the issues was subsequently prepared for interpretation. The study revealed that the problems experienced by small businesses are both internally and externally influenced. Small businesses have it within themselves to manage and control the internally influenced problems, contrary to the externally influenced factors. The study recommends additional governmental support in terms of providing skills development, financial support, removal of red tape, eradication of corruption and so on. Commercial financial institutions also have a vital role to play by removing some of the requirements that make it difficult for small businesses to access funding.
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- Date Issued: 2013
The role of small, medium and micro-sized enterprises (smm's) in the socio-economic development of Buffalo City
- Authors: Sinxoto, Nomhle Beauty
- Date: 2007
- Subjects: Small business -- South Africa -- Buffalo City , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8738 , http://hdl.handle.net/10948/793 , Small business -- South Africa -- Buffalo City , South Africa -- Economic conditions
- Description: Thirteen years in the new democratic South Africa, South Africa is still faced with socio-economic problems such as high rates of unemployment, shortage of housing, crime and HIV/Aids. Buffalo city falls within the Amathole District Municipality (ADM). ADM population is estimated at + 1, 67 million, being predominantly rural and living in low socio-economic conditions. The demographic trends of ADM population depict high poverty, illiteracy and unemployment rates, rendering them prone to high morbidity and mortality (www.amathole.gov.za, 2007). The aim of this research was to assess the role of the SMMEs in the socio-economic development of Buffalo City. This study is based on exploratory quantitative and qualitative research methodologies. Using a convenience sampling technique structured questionnaires were used to collect data amongst 28 SMMEs in Buffalo City. The findings of this study suggest that SMMEs play a vital role in the socio-economic development of Buffalo City. The SMMEs create employment and incomes; provide human capital investment in form of training programs and HIV/Aids programs; make donations to community structures; give sponsors to various sports clubs and food to the homeless. Finally SMMEs contribute towards tax revenues that in turn help reduce poverty and redistribute wealth. However, SMMEs in Buffalo City face a number of constraints, namely, lack of access to funding, lack of operating space, and high cost of property to lease and difficulty in finding trained competent staff. Further, the perceptions of the SMMEs about the adjudication of tenders was some biasness in the adjudication of tender in favour of those who were close to the public officials. There was no accountability and professionalism amongst the adjudicating officials. Finally the government was not doing enough to encourage SMME development in Buffalo City. In view of the socio-economic benefits of the SMMEs in Buffalo city, it is recommended that support programmes to the SMMEs should be enhanced. On the basis of the findings in this study, it is suggested that assistance to the SMMEs should go beyond institutional support such as Ntsika, Khula, DTI and/or SEDA but should be targeted to funding opportunities for the SMMEs. Commercial banks should be involved in ensuring that SMMEs obtain access to funding. Infrastructural facilities such as affordable business premises should be provided for the SMMEs. Affordable premises will reduce the overhead costs of the SMMEs and in turn increase the profits of these SMMEs. Increase the profits of the SMMEs will ensure the survival of the SMMEs and will in turn contribute towards the upliftment of the socio-economic status of the people who would have otherwise been unemployed, destitute and poor.
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- Date Issued: 2007