The relationship between financial sector deepening and income inequality in South Africa
- Authors: Mandleni, Siyanda
- Date: 2024-10-11
- Subjects: Financial services industry South Africa , Income distribution South Africa , Autoregression (Statistics) , Small business South Africa , Business enterprises, Black South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/462790 , vital:76335
- Description: This research analyzes the relationship between financial sector deepening and income inequality in South Africa from 1980 to 2019, using data from the World Bank Database and the Standardized World Income Inequality Database. An autoregressive distributed lag (ARDL) model is used to explore both the long- and short-run relationships that exist between these variables. Additionally, control variables like GDP, inflation, and structural changes that occurred, which include 1994 and 2005 are considered. According to the findings, the financial sector exacerbates income inequality in the long run. These findings highlight the need for policymakers to prioritize inclusive financial sector reforms. One recommendation is to enhance the access of Small, Medium, and Micro Enterprises (SMMEs) to formal financial services. For example, promoting more black industrialists and SMMEs in the supply of financial products and services. Possible reforms may include adjusting credit requirements for different income groups or offering lower interest rates on loans for businesses. Ensuring that more financial sector gains are retained within black communities can foster inclusive growth by generating jobs and ensuring a more equitable distribution of income. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-10-11
- Authors: Mandleni, Siyanda
- Date: 2024-10-11
- Subjects: Financial services industry South Africa , Income distribution South Africa , Autoregression (Statistics) , Small business South Africa , Business enterprises, Black South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/462790 , vital:76335
- Description: This research analyzes the relationship between financial sector deepening and income inequality in South Africa from 1980 to 2019, using data from the World Bank Database and the Standardized World Income Inequality Database. An autoregressive distributed lag (ARDL) model is used to explore both the long- and short-run relationships that exist between these variables. Additionally, control variables like GDP, inflation, and structural changes that occurred, which include 1994 and 2005 are considered. According to the findings, the financial sector exacerbates income inequality in the long run. These findings highlight the need for policymakers to prioritize inclusive financial sector reforms. One recommendation is to enhance the access of Small, Medium, and Micro Enterprises (SMMEs) to formal financial services. For example, promoting more black industrialists and SMMEs in the supply of financial products and services. Possible reforms may include adjusting credit requirements for different income groups or offering lower interest rates on loans for businesses. Ensuring that more financial sector gains are retained within black communities can foster inclusive growth by generating jobs and ensuring a more equitable distribution of income. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-10-11
The relationship between human, social and financial capital and small and medium enterprise (SME) performance in South Africa
- Authors: Siso, Masiso Nomakha
- Date: 2024-10-11
- Subjects: Small business South Africa , Small and medium enterprises , Enterprise performance management , Financial literacy , Human capital , Social capital (Sociology) , Financial capital , Resource-based view
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/462823 , vital:76338
- Description: The COVID-19 pandemic has had a severe impact on developing countries, exacerbating economic stagnation, high poverty rates, and unemployment. South Africa, in particular, faces significant challenges, with a 35.3 percent unemployment rate and a 17.4 percent GDP decline in 2021. Small and Medium Enterprises (SMEs) are crucial during these economic challenges, traditionally employing a substantial workforce and contributing significantly to the GDP. Despite their importance, SMEs often struggle, with a small percentage surviving the initial two years. Limited research has been conducted on the resources and capabilities crucial for enterprise performance in South Africa. While studies in developed countries exist, few explore the relationship between resources and capabilities facilitating SME performance in developing contexts. This study focuses on human capital, bonding, bridging, and linking social capital, and financial capital as key resources and capabilities. Given the backdrop that many entrepreneurs in South Africa may not possess formal education or extensive work experience, this study contends that financial literacy—encompassing financial knowledge, behaviour, and attitude—serves as a proxy for human capital. Additionally, a notable portion of entrepreneurs in South Africa face a deficit in the skills and knowledge essential for identifying entrepreneurial opportunities. Even among those possessing these capabilities, the challenge lies in the lack of necessary resources, including social and financial capital, to effectively transform such prospects into viable new ventures. This study employed a causal research design and adopted a quantitative research approach within a post-positivist paradigm. The primary objective was to investigate the relationship between the following independent variables; human (where financial literacy was used as a proxy which consisted of financial knowledge, attitude and behaviour), bonding, bridging and linking social capital, and financial capital and the dependent variable; SME performance. An online self-administered questionnaire was used to gather data from SME owners/managers. A pilot study was undertaken, in which an electronic link to the questionnaire was sent to potential respondents. Potential respondents were identified using purposive and convenience sampling methods. Data collection yielded 334 usable responses from SME owners/managers in South Africa. After cleaning the data, the analysis examined the relationship between independent and dependent variables. Confirmatory Factor Analysis (CFA) and Cronbach Alpha Coefficient analysis were used to confirm the validity and reliability of the measurement instrument, respectively. Descriptive statistics, regression, and correlation results were reported. Furthermore, a group mean analysis, including independent sample t-tests and one-way ANOVAs, were performed to investigate potential significant differences in variables based on demographic and enterprise related variables. The findings revealed a significant positive relationship between financial capital and SME performance. This indicates that an entrepreneur's ability to access financial capital or possess financial capital contributes to the performance and success of enterprises in South Africa. This finding underscores the crucial role of financial capital in facilitating the growth and sustainability of enterprises, as it provides a buffer against unfavourable economic shocks, enables entrepreneurs to pursue more capital-intensive strategies, and affords them more time to learn and overcome challenges. Conversely, no significant relationships were found between financial knowledge, behaviour, and attitude, bonding, bridging, and linking social capital, and SME performance. This study contributes to the development of SMEs in South Africa by identifying the critical resources and capabilities essential for their survival and growth. Additionally, it offers valuable recommendations for policymakers to create a conducive environment for entrepreneurs and suggests potential educational initiatives and support structures. Furthermore, this study advocates for the exploration of innovative financing approaches to build a financial cushion and bolster resilience against economic upheavals. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-10-11
- Authors: Siso, Masiso Nomakha
- Date: 2024-10-11
- Subjects: Small business South Africa , Small and medium enterprises , Enterprise performance management , Financial literacy , Human capital , Social capital (Sociology) , Financial capital , Resource-based view
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/462823 , vital:76338
- Description: The COVID-19 pandemic has had a severe impact on developing countries, exacerbating economic stagnation, high poverty rates, and unemployment. South Africa, in particular, faces significant challenges, with a 35.3 percent unemployment rate and a 17.4 percent GDP decline in 2021. Small and Medium Enterprises (SMEs) are crucial during these economic challenges, traditionally employing a substantial workforce and contributing significantly to the GDP. Despite their importance, SMEs often struggle, with a small percentage surviving the initial two years. Limited research has been conducted on the resources and capabilities crucial for enterprise performance in South Africa. While studies in developed countries exist, few explore the relationship between resources and capabilities facilitating SME performance in developing contexts. This study focuses on human capital, bonding, bridging, and linking social capital, and financial capital as key resources and capabilities. Given the backdrop that many entrepreneurs in South Africa may not possess formal education or extensive work experience, this study contends that financial literacy—encompassing financial knowledge, behaviour, and attitude—serves as a proxy for human capital. Additionally, a notable portion of entrepreneurs in South Africa face a deficit in the skills and knowledge essential for identifying entrepreneurial opportunities. Even among those possessing these capabilities, the challenge lies in the lack of necessary resources, including social and financial capital, to effectively transform such prospects into viable new ventures. This study employed a causal research design and adopted a quantitative research approach within a post-positivist paradigm. The primary objective was to investigate the relationship between the following independent variables; human (where financial literacy was used as a proxy which consisted of financial knowledge, attitude and behaviour), bonding, bridging and linking social capital, and financial capital and the dependent variable; SME performance. An online self-administered questionnaire was used to gather data from SME owners/managers. A pilot study was undertaken, in which an electronic link to the questionnaire was sent to potential respondents. Potential respondents were identified using purposive and convenience sampling methods. Data collection yielded 334 usable responses from SME owners/managers in South Africa. After cleaning the data, the analysis examined the relationship between independent and dependent variables. Confirmatory Factor Analysis (CFA) and Cronbach Alpha Coefficient analysis were used to confirm the validity and reliability of the measurement instrument, respectively. Descriptive statistics, regression, and correlation results were reported. Furthermore, a group mean analysis, including independent sample t-tests and one-way ANOVAs, were performed to investigate potential significant differences in variables based on demographic and enterprise related variables. The findings revealed a significant positive relationship between financial capital and SME performance. This indicates that an entrepreneur's ability to access financial capital or possess financial capital contributes to the performance and success of enterprises in South Africa. This finding underscores the crucial role of financial capital in facilitating the growth and sustainability of enterprises, as it provides a buffer against unfavourable economic shocks, enables entrepreneurs to pursue more capital-intensive strategies, and affords them more time to learn and overcome challenges. Conversely, no significant relationships were found between financial knowledge, behaviour, and attitude, bonding, bridging, and linking social capital, and SME performance. This study contributes to the development of SMEs in South Africa by identifying the critical resources and capabilities essential for their survival and growth. Additionally, it offers valuable recommendations for policymakers to create a conducive environment for entrepreneurs and suggests potential educational initiatives and support structures. Furthermore, this study advocates for the exploration of innovative financing approaches to build a financial cushion and bolster resilience against economic upheavals. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
- Full Text:
- Date Issued: 2024-10-11
A proposed management framework for water stewardship for small business in South Africa
- Authors: Huxtable, Collette
- Date: 2022-12-12
- Subjects: Water-supply Management , Small business South Africa , Water-supply Economic aspects , Triple bottom line , Sustainable development reporting , Competitive advantage
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419090 , vital:71615
- Description: Climate change, severe weather events, population growth and, urbanisation are just a few of the leading causes contributing to the global water crisis. This global water crisis is negatively impacting the environment, and society, which includes business (large and small). Businesses are facing many water risks and challenges in their daily operations, such as water scarcity, water stress and water pollution, which are resulting in them being negatively impacted financially. For all business to overcome these risks and challenges which are negatively impacting their operations and to assist in protecting the scarce water resources left on the planet, the implementation of water stewardship practices will play a very important role. The literature has fallen short in addressing water stewardship frameworks and practices for small business. Through a sustainability lens underpinned by Natural Resource Based View Theory, this research study sets out to develop a water stewardship framework for implementation by small business to provide them with a competitive advantage. By reviewing the current literature and frameworks available to large business organisations, the insights gained allowed for a draft water stewardship framework to be developed from this literature, suitable for small business. This draft water stewardship framework for small business was used to gather further information on its suitability for small business, through an interview process. A qualitative interview process with seven small businesses in Makhanda (South Africa), allowed for data to be gathered and used to refine and adjust the draft water stewardship framework for small business. The findings from this research study show that small business do not have a global awareness of water problems and are not aware of the concept of water stewardship. Small business were very receptive to the draft water stewardship framework for small business and felt that its implementation would make a difference in saving scarce water resources and create a competitive advantage for them. The study concludes by recommending a water stewardship framework for small business (WSF4SB), who will play a leading role in fighting the water crisis. The implementation of the WSF4SB aims to provide small business with a sustainable competitive advantage by looking after scarce water resources ensuring there is sufficient water for current and future generations. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2023
- Full Text:
- Date Issued: 2022-12-12
- Authors: Huxtable, Collette
- Date: 2022-12-12
- Subjects: Water-supply Management , Small business South Africa , Water-supply Economic aspects , Triple bottom line , Sustainable development reporting , Competitive advantage
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419090 , vital:71615
- Description: Climate change, severe weather events, population growth and, urbanisation are just a few of the leading causes contributing to the global water crisis. This global water crisis is negatively impacting the environment, and society, which includes business (large and small). Businesses are facing many water risks and challenges in their daily operations, such as water scarcity, water stress and water pollution, which are resulting in them being negatively impacted financially. For all business to overcome these risks and challenges which are negatively impacting their operations and to assist in protecting the scarce water resources left on the planet, the implementation of water stewardship practices will play a very important role. The literature has fallen short in addressing water stewardship frameworks and practices for small business. Through a sustainability lens underpinned by Natural Resource Based View Theory, this research study sets out to develop a water stewardship framework for implementation by small business to provide them with a competitive advantage. By reviewing the current literature and frameworks available to large business organisations, the insights gained allowed for a draft water stewardship framework to be developed from this literature, suitable for small business. This draft water stewardship framework for small business was used to gather further information on its suitability for small business, through an interview process. A qualitative interview process with seven small businesses in Makhanda (South Africa), allowed for data to be gathered and used to refine and adjust the draft water stewardship framework for small business. The findings from this research study show that small business do not have a global awareness of water problems and are not aware of the concept of water stewardship. Small business were very receptive to the draft water stewardship framework for small business and felt that its implementation would make a difference in saving scarce water resources and create a competitive advantage for them. The study concludes by recommending a water stewardship framework for small business (WSF4SB), who will play a leading role in fighting the water crisis. The implementation of the WSF4SB aims to provide small business with a sustainable competitive advantage by looking after scarce water resources ensuring there is sufficient water for current and future generations. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2023
- Full Text:
- Date Issued: 2022-12-12
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