The effectiveness of Coega Development Corporation’s financing subsidiary in enabling small and medium enterprise construction projects
- Authors: Heynes, Vincent Ernest
- Date: 2024-04
- Subjects: Coega Development Corporation , Small business -- Management , Construction industry -- Management , Project managers Project management
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65013 , vital:74006
- Description: Globally, Small and Medium Enterprises (SMEs) are the driving force that keeps the economy of a country going and although the overall economic contribution of SMEs is impressive worldwide, in South Africa (SA), there is a high rate of failure amongst SMEs. Although the survival rate is low, South African SMEs contribute up to 22% to the Gross Domestic Product (GDP) in the economy. SME funding is a critical component of this growth and access to finance is one of the primary challenges that SMEs face in the country, along with a supportive environment to facilitate SME survival and growth. The formation of what was initially Industrial Development Zones (IDZs), now Special Economic Zones (SEZs), was one instrument introduced by the South African government to bolster the economy through upscaling manufacturing capacity, increase exports and create employment. The first SEZ in SA, Coega, managed by the Coega Development Corporation (CDC), a state-owned enterprise (SoE) based in the Nelson Mandela Bay Municipality (NMBM) with operations throughout SA. A major shortcoming in the development of the SMEs operating in the SEZ, was the inability to access the project finance required to commence construction projects once they were awarded a tender. The CDC established an internal finance subsidiary, Small Business Finance and Support (SBFS), in June 2014. The aim of this study, therefore, is to explore the effectiveness of the project financing offered by SBFS in enabling the execution of SME construction clients’ projects. The interpretivist paradigm, following a qualitative research approach was chosen to evaluate the effectiveness of the SBFS operations and determine how their funding enabled the completion of construction SME projects. Input was obtained from 20 participants involved in CDC construction projects, namely three Project Managers, three Programme Managers, two Mentors and 12 Clients via telephonic, face to face and virtual Microsoft Teams using self-developed semi-structured interview schedules. Data was analysed using thematic analysis. The trustworthiness of the study was ensured in terms of credibility through triangulation, dependability through the creation of an audit trail, transferability through generalisation of individuals with similarities, and conformability through verification. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Management Sciences, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Heynes, Vincent Ernest
- Date: 2024-04
- Subjects: Coega Development Corporation , Small business -- Management , Construction industry -- Management , Project managers Project management
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65013 , vital:74006
- Description: Globally, Small and Medium Enterprises (SMEs) are the driving force that keeps the economy of a country going and although the overall economic contribution of SMEs is impressive worldwide, in South Africa (SA), there is a high rate of failure amongst SMEs. Although the survival rate is low, South African SMEs contribute up to 22% to the Gross Domestic Product (GDP) in the economy. SME funding is a critical component of this growth and access to finance is one of the primary challenges that SMEs face in the country, along with a supportive environment to facilitate SME survival and growth. The formation of what was initially Industrial Development Zones (IDZs), now Special Economic Zones (SEZs), was one instrument introduced by the South African government to bolster the economy through upscaling manufacturing capacity, increase exports and create employment. The first SEZ in SA, Coega, managed by the Coega Development Corporation (CDC), a state-owned enterprise (SoE) based in the Nelson Mandela Bay Municipality (NMBM) with operations throughout SA. A major shortcoming in the development of the SMEs operating in the SEZ, was the inability to access the project finance required to commence construction projects once they were awarded a tender. The CDC established an internal finance subsidiary, Small Business Finance and Support (SBFS), in June 2014. The aim of this study, therefore, is to explore the effectiveness of the project financing offered by SBFS in enabling the execution of SME construction clients’ projects. The interpretivist paradigm, following a qualitative research approach was chosen to evaluate the effectiveness of the SBFS operations and determine how their funding enabled the completion of construction SME projects. Input was obtained from 20 participants involved in CDC construction projects, namely three Project Managers, three Programme Managers, two Mentors and 12 Clients via telephonic, face to face and virtual Microsoft Teams using self-developed semi-structured interview schedules. Data was analysed using thematic analysis. The trustworthiness of the study was ensured in terms of credibility through triangulation, dependability through the creation of an audit trail, transferability through generalisation of individuals with similarities, and conformability through verification. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Management Sciences, 2024
- Full Text:
- Date Issued: 2024-04
The performance of small construction firms in South Africa under the cost leadership strategy
- Authors: Karambakuwa, Ngonidzashe
- Date: 2024-04
- Subjects: Construction industry , Construction industry -- Management , Small business -- Management
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/64577 , vital:73768
- Description: Small construction firms in South Africa have been experiencing poor performance over the years. They have not been cost-efficient, resulting in profitability and viability challenges. These challenges have emanated from the firms’ lack of strategic focus. They have not consciously implemented appropriate strategies to enhance their performance. The cost leadership strategy is therefore a viable option for firms to address their viability challenges because winning contracts depends on submitting the lowest tender bids. This research sought to establish how small construction firms in South Africa could best implement the cost leadership strategy to improve their performance through developing a partial least squares structural equation model (PLS-SEM) to implement identified significant financial, human capital, innovation and technology strategies. The research followed a quantitative research approach. Data was collected through questionnaires, which were distributed to a sample of owners and managers of small construction firms in the provinces of South Africa. The population of the study consisted of small construction firms in grades 2 to 4 on the Construction Industry Development Board’s (CIDB) contractors register. The respondents, who were selected through stratified random sampling, were requested to rate the importance of finance, human capital, innovation and technology strategies in supporting the performance of their firms. A total of 155 usable questionnaires were returned. The data was analysed using the software SPSS Statistics - Version 28. Chi-square tests were used to identify the statistically significant financial, human capital, innovation and technology strategies for the performance of the firms. Furthermore, Mann-Whitney U and Kruskal-Wallis tests were used to determine the statistically significant differences in the respondents’ perceptions of the importance of the strategies due to demographics. Thereafter, a structural model was developed through SEM modelling to determine the relationship between the significant strategies and performance. The results established that increasing the available finance, creating higher incomes compared to costs, increasing contracts per annum and supporting the budget for innovation, significantly contributed to the performance of the construction firms. In addition, prioritising skills development, offering basic salaries with incentives, fostering a strong work ethic, and effective coordination of work were significant strategies. Recognising innovations in technology and human resources cost reductions and carefully promoting innovative ideas through the right support infrastructure were the most significant innovation strategies for performance. It was further established that the acquisition and effective use of computer software and hardware, with the relevant technical knowledge and technical tools, were significant technology strategies for firm performance. The study also established the existence of statistically significant differences in the perception of the importance of innovation and technology strategies due to types of work, and differences in the perception of financial strategies due to age (generation). A PSL-SEM implementation model consisting of statistically significant strategies and demographics was developed and presented graphically. It is recommended that small construction firms should adopt the model to strengthen value chain activities for better performance. The government, the CIDB and other stakeholders should fully support the implementation of the model. , Thesis (DPhil) -- Faculty of Engineering, the Built Environment and Technology, School of Built Environment and Civil Engineering, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Karambakuwa, Ngonidzashe
- Date: 2024-04
- Subjects: Construction industry , Construction industry -- Management , Small business -- Management
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/64577 , vital:73768
- Description: Small construction firms in South Africa have been experiencing poor performance over the years. They have not been cost-efficient, resulting in profitability and viability challenges. These challenges have emanated from the firms’ lack of strategic focus. They have not consciously implemented appropriate strategies to enhance their performance. The cost leadership strategy is therefore a viable option for firms to address their viability challenges because winning contracts depends on submitting the lowest tender bids. This research sought to establish how small construction firms in South Africa could best implement the cost leadership strategy to improve their performance through developing a partial least squares structural equation model (PLS-SEM) to implement identified significant financial, human capital, innovation and technology strategies. The research followed a quantitative research approach. Data was collected through questionnaires, which were distributed to a sample of owners and managers of small construction firms in the provinces of South Africa. The population of the study consisted of small construction firms in grades 2 to 4 on the Construction Industry Development Board’s (CIDB) contractors register. The respondents, who were selected through stratified random sampling, were requested to rate the importance of finance, human capital, innovation and technology strategies in supporting the performance of their firms. A total of 155 usable questionnaires were returned. The data was analysed using the software SPSS Statistics - Version 28. Chi-square tests were used to identify the statistically significant financial, human capital, innovation and technology strategies for the performance of the firms. Furthermore, Mann-Whitney U and Kruskal-Wallis tests were used to determine the statistically significant differences in the respondents’ perceptions of the importance of the strategies due to demographics. Thereafter, a structural model was developed through SEM modelling to determine the relationship between the significant strategies and performance. The results established that increasing the available finance, creating higher incomes compared to costs, increasing contracts per annum and supporting the budget for innovation, significantly contributed to the performance of the construction firms. In addition, prioritising skills development, offering basic salaries with incentives, fostering a strong work ethic, and effective coordination of work were significant strategies. Recognising innovations in technology and human resources cost reductions and carefully promoting innovative ideas through the right support infrastructure were the most significant innovation strategies for performance. It was further established that the acquisition and effective use of computer software and hardware, with the relevant technical knowledge and technical tools, were significant technology strategies for firm performance. The study also established the existence of statistically significant differences in the perception of the importance of innovation and technology strategies due to types of work, and differences in the perception of financial strategies due to age (generation). A PSL-SEM implementation model consisting of statistically significant strategies and demographics was developed and presented graphically. It is recommended that small construction firms should adopt the model to strengthen value chain activities for better performance. The government, the CIDB and other stakeholders should fully support the implementation of the model. , Thesis (DPhil) -- Faculty of Engineering, the Built Environment and Technology, School of Built Environment and Civil Engineering, 2024
- Full Text:
- Date Issued: 2024-04
A structural equation model on small business performance: the mediating role of effectuation & entrepreneur identity
- Muchineripi, Justice Ngonidzashe https://orcid.org/0000-0002-8058-731X
- Authors: Muchineripi, Justice Ngonidzashe https://orcid.org/0000-0002-8058-731X
- Date: 2022-08
- Subjects: Small business -- Management , Entrepreneurship
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28806 , vital:75099
- Description: The role of effectuation and entrepreneur identity in the performance of small business has not received much attention in the African small business context. Effectuation plays a critical role in determining the success of a business. All businesses need to have inherent strategies within the business on how to deal with financial and operational challenges. Despite the impact of entrepreneur identity on performance, there is a noted gap in literature on the possible role that effectuation can play. Research purpose: The research aim is to test the structural model on small business performance in the South African small business context. The research thus investigates the mediating role of effectuation on entrepreneur identity and performance amongst small businesses in South Africa. Research approach/design and method: The study was undertaken in the Eastern Cape Province of South Africa. A quantitative research approach was utilised and primary data was collected from 380 Small Medium and Micro Enterprises through structured questionnaires. Structural Equation Modeling was used for testing the hypotheses. Main findings: The findings revealed that spiritual identity and business identity exert a positive effect on subjective performance in Small Medium Micro Enterprises. Findings further revealed that spiritual identity and effectuation significantly predict objective performance. Spiritual identity, social identity and business identity significantly predict effectuation in SMMEs. Contribution: The study makes a major contribution in the body of knowledge for small business practitioners, policymakers and researchers who would like to explore the role of effectuation and entrepreneur identity on small business performance. The study findings encourage effectual decision making by small businesses as it reveals that facing challenges is inevitable, but what is important is that the business should be able to resolve various challenges using available resources. Originality/value: The empirical evidence provided in the study contributes to the growing body of knowledge on the theory of effectuation in the South African context. The study also provides policy guidelines for policymakers to entrepeneurs who would like to venture into business. , Thesis (DBA) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-08
- Authors: Muchineripi, Justice Ngonidzashe https://orcid.org/0000-0002-8058-731X
- Date: 2022-08
- Subjects: Small business -- Management , Entrepreneurship
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28806 , vital:75099
- Description: The role of effectuation and entrepreneur identity in the performance of small business has not received much attention in the African small business context. Effectuation plays a critical role in determining the success of a business. All businesses need to have inherent strategies within the business on how to deal with financial and operational challenges. Despite the impact of entrepreneur identity on performance, there is a noted gap in literature on the possible role that effectuation can play. Research purpose: The research aim is to test the structural model on small business performance in the South African small business context. The research thus investigates the mediating role of effectuation on entrepreneur identity and performance amongst small businesses in South Africa. Research approach/design and method: The study was undertaken in the Eastern Cape Province of South Africa. A quantitative research approach was utilised and primary data was collected from 380 Small Medium and Micro Enterprises through structured questionnaires. Structural Equation Modeling was used for testing the hypotheses. Main findings: The findings revealed that spiritual identity and business identity exert a positive effect on subjective performance in Small Medium Micro Enterprises. Findings further revealed that spiritual identity and effectuation significantly predict objective performance. Spiritual identity, social identity and business identity significantly predict effectuation in SMMEs. Contribution: The study makes a major contribution in the body of knowledge for small business practitioners, policymakers and researchers who would like to explore the role of effectuation and entrepreneur identity on small business performance. The study findings encourage effectual decision making by small businesses as it reveals that facing challenges is inevitable, but what is important is that the business should be able to resolve various challenges using available resources. Originality/value: The empirical evidence provided in the study contributes to the growing body of knowledge on the theory of effectuation in the South African context. The study also provides policy guidelines for policymakers to entrepeneurs who would like to venture into business. , Thesis (DBA) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-08
Problems facing governance of small business in South Africa: non-owner perspective
- Mabotha, Mathipe Pontsho Ramakgahlele
- Authors: Mabotha, Mathipe Pontsho Ramakgahlele
- Date: 2021-04
- Subjects: Small business -- Management , New business enterprises -- South Africa , Corporate governance -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51787 , vital:43372
- Description: Small businesses have been perceived to have governance problems in South Africa. The problem is that in SA there is a limited amount of research available regarding these complex investigations into the problems of governance of SMEs in South Africa. The objectives of this study were to conduct an extensive literature review on governance of small businesses, and the factors which affect the governance of such small businesses and what key resources could be identified and built up for the successful adoption of innovations in the sector, to lead to an understand of weaknesses in the current capacity-building of SMEs. It also sought to determine the current situations contributing to the weaknesses of SMEs; to understand challenges in the governance of small businesses in South Africa, to determine the types of financial support that exists and the contribution of financial support to the development of SMEs and to understand the ways government can help and develop SMEs. Qualitative research was used because it is more subjective and relies on experiences and opinions of participants. The study used exploratory research. An interview protocol for semi-structured face-to-face interviews was designed and used to obtain the views of SME owners and managers. The findings of the study showed that a lack of financial support is one of the challenges in the current capacity-building of small businesses. Moreover, the findings of the study showed that access to information on available markets and on the creation of new opportunities is another weakness in the current capacity-building of small businesses. SMEs need access to buyers, information on product demand, pricing knowledge and standards. The findings of the study also showed that the lack of support through business management knowledge is one of the weaknesses in the current capacity-building of small businesses. The findings showed that, most small business owners do not have the needed business management knowledge to transform their businesses. The study recommends that the government assist small businesses with financial support. It is also suggested that small businesses have human resource management knowledge to manage people who help them develop their businesses. Moreover, the study recommends that small businesses embrace new technology to boost their business by easy operations using new technologies. Moreover, the study recommends that small businesses owners use the same strategies, approaches and novel technology to compete with other businesses all over the world since there is fierce competition due to globalization. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Mabotha, Mathipe Pontsho Ramakgahlele
- Date: 2021-04
- Subjects: Small business -- Management , New business enterprises -- South Africa , Corporate governance -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51787 , vital:43372
- Description: Small businesses have been perceived to have governance problems in South Africa. The problem is that in SA there is a limited amount of research available regarding these complex investigations into the problems of governance of SMEs in South Africa. The objectives of this study were to conduct an extensive literature review on governance of small businesses, and the factors which affect the governance of such small businesses and what key resources could be identified and built up for the successful adoption of innovations in the sector, to lead to an understand of weaknesses in the current capacity-building of SMEs. It also sought to determine the current situations contributing to the weaknesses of SMEs; to understand challenges in the governance of small businesses in South Africa, to determine the types of financial support that exists and the contribution of financial support to the development of SMEs and to understand the ways government can help and develop SMEs. Qualitative research was used because it is more subjective and relies on experiences and opinions of participants. The study used exploratory research. An interview protocol for semi-structured face-to-face interviews was designed and used to obtain the views of SME owners and managers. The findings of the study showed that a lack of financial support is one of the challenges in the current capacity-building of small businesses. Moreover, the findings of the study showed that access to information on available markets and on the creation of new opportunities is another weakness in the current capacity-building of small businesses. SMEs need access to buyers, information on product demand, pricing knowledge and standards. The findings of the study also showed that the lack of support through business management knowledge is one of the weaknesses in the current capacity-building of small businesses. The findings showed that, most small business owners do not have the needed business management knowledge to transform their businesses. The study recommends that the government assist small businesses with financial support. It is also suggested that small businesses have human resource management knowledge to manage people who help them develop their businesses. Moreover, the study recommends that small businesses embrace new technology to boost their business by easy operations using new technologies. Moreover, the study recommends that small businesses owners use the same strategies, approaches and novel technology to compete with other businesses all over the world since there is fierce competition due to globalization. , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
Exploratory study : how do Somali shop owners (SSO) succeed in running businesses in Soweto : a South African perspective
- Authors: Mokitlane, Ofentse Clifford
- Date: 2014
- Subjects: Business enterprises, Foreign -- South Africa , Small business -- Management , Small business -- South Africa , Foreign workers -- South Africa , Employment in foreign countries , Entrepreneurship -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:842 , http://hdl.handle.net/10962/d1015653
- Description: This is a qualitative study which seeks to understand how Somali shop owners run successful businesses in the township of Soweto in South Africa. This research report has three sections, namely (1) the academic paper which comprises a shortened literature review, the research method, findings, and the discussion; (2) an extended literature review and (3) the research methodology. It is important to mention that these three sections are related and not necessarily stand-alone sections. Despite the hostilities faced by the Somali shop owners from the host communities in South Africa, it is notable that they are successful, small-sized entrepreneurs in most townships of South Africa (SA). Previous research on Somalis has predominantly focused on their assimilation into the societies in their host countries, and on how they are led into self-employment because of the unfavourable labour markets in the host country. In this vein, there is a need to understand how they run successful businesses in the townships of SA. This study seeks to answer the following research question: How Do Somali Shop Owners Succeed in Running Businesses in Soweto, South Africa (SA)? In pursuit of answers to the above research question, this study was confined to three locations in Soweto, namely Orlando West, Chiawelo and Rockville which have a relatively high number of Somali entrepreneurs who have been in operation for longer than three years. This qualitative study explored the multiple perspectives of reality of Somali shop owners. Purposively, 14 Somali shop owners were identified initially using purposive sampling. Subsequently, theoretical sampling was used to identify Somali shop owners who were interviewed regarding how they successfully run their businesses in the locations of Orlando West, Chiawelo and Rockville in the township of Soweto. A total of eighteen semi-structured, in-depth and face-to-face interviews were conducted with these shop owners as a means of gathering data to the point of saturating their perspectives. Data collection ceased when new perspectives were no longer evident as interviewees were being repetitive. Open-coding and constant comparison was used to analyse the data. The findings of the study show that ethnicity plays a predominant role in the success of the Somali shop owners. The intra-ethnic networks and trust-based support systems are pivotal to how Somali shop owners run successful businesses in Soweto. The key findings manifested showed that various forms of support came from Somali communities, family and fellow countrymen which were also central to their success. Another key finding showed that Somali shop owners run their businesses by complementing, rather than predominantly competing with the other local businesses, which ultimately differentiates them in this way. The study also revealed that responsiveness to local customer needs by enhancing the value of their business to the locality is also characteristic of how Somali shop owners build customer loyalty. This study contributes to our understanding of how Somali entrepreneurs conduct successful businesses in a hostile host country. The findings have implications for business development training and programmes which support immigrant entrepreneurs. The findings may also be extended to inform how business development programmes would be designed to equally support local entrepreneurs.
- Full Text:
- Date Issued: 2014
- Authors: Mokitlane, Ofentse Clifford
- Date: 2014
- Subjects: Business enterprises, Foreign -- South Africa , Small business -- Management , Small business -- South Africa , Foreign workers -- South Africa , Employment in foreign countries , Entrepreneurship -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:842 , http://hdl.handle.net/10962/d1015653
- Description: This is a qualitative study which seeks to understand how Somali shop owners run successful businesses in the township of Soweto in South Africa. This research report has three sections, namely (1) the academic paper which comprises a shortened literature review, the research method, findings, and the discussion; (2) an extended literature review and (3) the research methodology. It is important to mention that these three sections are related and not necessarily stand-alone sections. Despite the hostilities faced by the Somali shop owners from the host communities in South Africa, it is notable that they are successful, small-sized entrepreneurs in most townships of South Africa (SA). Previous research on Somalis has predominantly focused on their assimilation into the societies in their host countries, and on how they are led into self-employment because of the unfavourable labour markets in the host country. In this vein, there is a need to understand how they run successful businesses in the townships of SA. This study seeks to answer the following research question: How Do Somali Shop Owners Succeed in Running Businesses in Soweto, South Africa (SA)? In pursuit of answers to the above research question, this study was confined to three locations in Soweto, namely Orlando West, Chiawelo and Rockville which have a relatively high number of Somali entrepreneurs who have been in operation for longer than three years. This qualitative study explored the multiple perspectives of reality of Somali shop owners. Purposively, 14 Somali shop owners were identified initially using purposive sampling. Subsequently, theoretical sampling was used to identify Somali shop owners who were interviewed regarding how they successfully run their businesses in the locations of Orlando West, Chiawelo and Rockville in the township of Soweto. A total of eighteen semi-structured, in-depth and face-to-face interviews were conducted with these shop owners as a means of gathering data to the point of saturating their perspectives. Data collection ceased when new perspectives were no longer evident as interviewees were being repetitive. Open-coding and constant comparison was used to analyse the data. The findings of the study show that ethnicity plays a predominant role in the success of the Somali shop owners. The intra-ethnic networks and trust-based support systems are pivotal to how Somali shop owners run successful businesses in Soweto. The key findings manifested showed that various forms of support came from Somali communities, family and fellow countrymen which were also central to their success. Another key finding showed that Somali shop owners run their businesses by complementing, rather than predominantly competing with the other local businesses, which ultimately differentiates them in this way. The study also revealed that responsiveness to local customer needs by enhancing the value of their business to the locality is also characteristic of how Somali shop owners build customer loyalty. This study contributes to our understanding of how Somali entrepreneurs conduct successful businesses in a hostile host country. The findings have implications for business development training and programmes which support immigrant entrepreneurs. The findings may also be extended to inform how business development programmes would be designed to equally support local entrepreneurs.
- Full Text:
- Date Issued: 2014
Strategic planning as a tool for investment decision-making for SMEs in Nelson Mandela Metropole
- Authors: Kikine, Bereng Nimrode
- Date: 2013
- Subjects: Small business -- Management , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/6455 , vital:21092
- Description: All around the world, SMEs are perceived as the engine room of economic growth, job creation and poverty alleviation, due to their flexibility and quick adaptability to change. It is believed that, for developing countries to address their social and economic challenges, it would be beneficial if they leverage the potential that the SME sector potentially possess. However, despite the government focus on supporting and encouraging the establishment of SMEs through the small business development programmes in order to address these social challenges, SME sector has experienced a high degree of business mortality, which impacts negatively on the ability to create sustainable employment opportunities in the long term. This view is supported by the work of (Ligthelm and Cant 2003). According to the global economic monitor (GEM), the small business mortality in South Africa is among the highest in the world. It is said that that most newly established SMEs will not survive beyond 48 months Von Broembsen, as cited in Olawale and Garwe (2010: 730). One of the reasons that lead to the high failure rate of SMEs is the lack of strategic planning and the poor allocation of resources. The literature review suggests that SMEs that embark on strategic planning are the ones that are most likely to experience sales growth, personnel growth and asset value growth, as opposed those that do not do any strategic planning at all. The primary objective of this research was to establish how a strategic planning process can be used as an investment decision-making tool for manufacturing SMEs in the Nelson Mandela Metropole. In order to address this research problem, the following sub-problems had to be solved: - What strategic planning processes do current SME managers use? - What strategic performance measurement systems do SME owner-managers currently use? - What capital budgeting techniques are currently being used by SME’s in the region? - How do SME owner-managers evaluate the risk of the projects at hand? The research design was methodological triangulation in nature, that is, using both qualitative and quantitative methodologies, though a quantitative paradigm was more dominant that the qualitative paradigm. A questionnaire was designed as a primary source of data collection from a selected sample group. The empirical study revealed that there is some level of strategic planning amongst SMEs, however, it is mostly informal and unstructured. It also emerged that strategic planning can be used as more than just a performance measurement tool, it can contribute more effectively to strategic alignment, organisational learning and diffusion of knowledge throughout the organisation. The empirical study also suggests that SMEs understand that capital budgeting is critical for the success of the organisations. However, very few SMEs have a formal capital budgeting process. It also became evident that most SMEs are still relying on the traditional capital budgeting techniques; that is, ‘gut feel’ and the payback methods of evaluating projects. The empirical study suggests that the largest group of SMEs rely on break-even analysis and scenario planning as the major indicators of the impact the projects will or may have on the organisation. The recommendations have thus been made to address the challenges facing SMEs with regard to strategic planning, strategic performance measurement, capital budgeting and project risk evaluation.
- Full Text:
- Date Issued: 2013
- Authors: Kikine, Bereng Nimrode
- Date: 2013
- Subjects: Small business -- Management , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/6455 , vital:21092
- Description: All around the world, SMEs are perceived as the engine room of economic growth, job creation and poverty alleviation, due to their flexibility and quick adaptability to change. It is believed that, for developing countries to address their social and economic challenges, it would be beneficial if they leverage the potential that the SME sector potentially possess. However, despite the government focus on supporting and encouraging the establishment of SMEs through the small business development programmes in order to address these social challenges, SME sector has experienced a high degree of business mortality, which impacts negatively on the ability to create sustainable employment opportunities in the long term. This view is supported by the work of (Ligthelm and Cant 2003). According to the global economic monitor (GEM), the small business mortality in South Africa is among the highest in the world. It is said that that most newly established SMEs will not survive beyond 48 months Von Broembsen, as cited in Olawale and Garwe (2010: 730). One of the reasons that lead to the high failure rate of SMEs is the lack of strategic planning and the poor allocation of resources. The literature review suggests that SMEs that embark on strategic planning are the ones that are most likely to experience sales growth, personnel growth and asset value growth, as opposed those that do not do any strategic planning at all. The primary objective of this research was to establish how a strategic planning process can be used as an investment decision-making tool for manufacturing SMEs in the Nelson Mandela Metropole. In order to address this research problem, the following sub-problems had to be solved: - What strategic planning processes do current SME managers use? - What strategic performance measurement systems do SME owner-managers currently use? - What capital budgeting techniques are currently being used by SME’s in the region? - How do SME owner-managers evaluate the risk of the projects at hand? The research design was methodological triangulation in nature, that is, using both qualitative and quantitative methodologies, though a quantitative paradigm was more dominant that the qualitative paradigm. A questionnaire was designed as a primary source of data collection from a selected sample group. The empirical study revealed that there is some level of strategic planning amongst SMEs, however, it is mostly informal and unstructured. It also emerged that strategic planning can be used as more than just a performance measurement tool, it can contribute more effectively to strategic alignment, organisational learning and diffusion of knowledge throughout the organisation. The empirical study also suggests that SMEs understand that capital budgeting is critical for the success of the organisations. However, very few SMEs have a formal capital budgeting process. It also became evident that most SMEs are still relying on the traditional capital budgeting techniques; that is, ‘gut feel’ and the payback methods of evaluating projects. The empirical study suggests that the largest group of SMEs rely on break-even analysis and scenario planning as the major indicators of the impact the projects will or may have on the organisation. The recommendations have thus been made to address the challenges facing SMEs with regard to strategic planning, strategic performance measurement, capital budgeting and project risk evaluation.
- Full Text:
- Date Issued: 2013
Strategic planning as a tool for investment decision-making for SMEs in Nelson Mandela Metropole
- Authors: Kikine, Bereng Nimrode
- Date: 2013
- Subjects: Small business -- Management , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/6465 , vital:21094
- Description: All around the world, SMEs are perceived as the engine room of economic growth, job creation and poverty alleviation, due to their flexibility and quick adaptability to change. It is believed that, for developing countries to address their social and economic challenges, it would be beneficial if they leverage the potential that the SME sector potentially possess. However, despite the government focus on supporting and encouraging the establishment of SMEs through the small business development programmes in order to address these social challenges, SME sector has experienced a high degree of business mortality, which impacts negatively on the ability to create sustainable employment opportunities in the long term. This view is supported by the work of (Ligthelm and Cant 2003). According to the global economic monitor (GEM), the small business mortality in South Africa is among the highest in the world. It is said that that most newly established SMEs will not survive beyond 48 months Von Broembsen, as cited in Olawale and Garwe (2010: 730). One of the reasons that lead to the high failure rate of SMEs is the lack of strategic planning and the poor allocation of resources. The literature review suggests that SMEs that embark on strategic planning are the ones that are most likely to experience sales growth, personnel growth and asset value growth, as opposed those that do not do any strategic planning at all. The primary objective of this research was to establish how a strategic planning process can be used as an investment decision-making tool for manufacturing SMEs in the Nelson Mandela Metropole. In order to address this research problem, the following sub-problems had to be solved: What strategic planning processes do current SME managers use?; What strategic performance measurement systems do SME owner-managers currently use?; What capital budgeting techniques are currently being used by SME’s in the region?; How do SME owner-managers evaluate the risk of the projects at hand?. The research design was methodological triangulation in nature, that is, using both qualitative and quantitative methodologies, though a quantitative paradigm was more dominant that the qualitative paradigm. A questionnaire was designed as a primary source of data collection from a selected sample group. The empirical study revealed that there is some level of strategic planning amongst SMEs, however, it is mostly informal and unstructured. It also emerged that strategic planning can be used as more than just a performance measurement tool, it can contribute more effectively to strategic alignment, organisational learning and diffusion of knowledge throughout the organisation. The empirical study also suggests that SMEs understand that capital budgeting is critical for the success of the organisations. However, very few SMEs have a formal capital budgeting process. It also became evident that most SMEs are still relying on the traditional capital budgeting techniques; that is, ‘gut feel’ and the payback methods of evaluating projects. The empirical study suggests that the largest group of SMEs rely on break-even analysis and scenario planning as the major indicators of the impact the projects will or may have on the organisation. The recommendations have thus been made to address the challenges facing SMEs with regard to strategic planning, strategic performance measurement, capital budgeting and project risk evaluation.
- Full Text:
- Date Issued: 2013
- Authors: Kikine, Bereng Nimrode
- Date: 2013
- Subjects: Small business -- Management , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/6465 , vital:21094
- Description: All around the world, SMEs are perceived as the engine room of economic growth, job creation and poverty alleviation, due to their flexibility and quick adaptability to change. It is believed that, for developing countries to address their social and economic challenges, it would be beneficial if they leverage the potential that the SME sector potentially possess. However, despite the government focus on supporting and encouraging the establishment of SMEs through the small business development programmes in order to address these social challenges, SME sector has experienced a high degree of business mortality, which impacts negatively on the ability to create sustainable employment opportunities in the long term. This view is supported by the work of (Ligthelm and Cant 2003). According to the global economic monitor (GEM), the small business mortality in South Africa is among the highest in the world. It is said that that most newly established SMEs will not survive beyond 48 months Von Broembsen, as cited in Olawale and Garwe (2010: 730). One of the reasons that lead to the high failure rate of SMEs is the lack of strategic planning and the poor allocation of resources. The literature review suggests that SMEs that embark on strategic planning are the ones that are most likely to experience sales growth, personnel growth and asset value growth, as opposed those that do not do any strategic planning at all. The primary objective of this research was to establish how a strategic planning process can be used as an investment decision-making tool for manufacturing SMEs in the Nelson Mandela Metropole. In order to address this research problem, the following sub-problems had to be solved: What strategic planning processes do current SME managers use?; What strategic performance measurement systems do SME owner-managers currently use?; What capital budgeting techniques are currently being used by SME’s in the region?; How do SME owner-managers evaluate the risk of the projects at hand?. The research design was methodological triangulation in nature, that is, using both qualitative and quantitative methodologies, though a quantitative paradigm was more dominant that the qualitative paradigm. A questionnaire was designed as a primary source of data collection from a selected sample group. The empirical study revealed that there is some level of strategic planning amongst SMEs, however, it is mostly informal and unstructured. It also emerged that strategic planning can be used as more than just a performance measurement tool, it can contribute more effectively to strategic alignment, organisational learning and diffusion of knowledge throughout the organisation. The empirical study also suggests that SMEs understand that capital budgeting is critical for the success of the organisations. However, very few SMEs have a formal capital budgeting process. It also became evident that most SMEs are still relying on the traditional capital budgeting techniques; that is, ‘gut feel’ and the payback methods of evaluating projects. The empirical study suggests that the largest group of SMEs rely on break-even analysis and scenario planning as the major indicators of the impact the projects will or may have on the organisation. The recommendations have thus been made to address the challenges facing SMEs with regard to strategic planning, strategic performance measurement, capital budgeting and project risk evaluation.
- Full Text:
- Date Issued: 2013
The cultural determinants of success in Indian owned family businesses
- Authors: Adams, Leigh Christie
- Date: 2009
- Subjects: Family-owned business enterprises -- Management , Indian business enterprises , Small business -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8543 , http://hdl.handle.net/10948/1258 , Family-owned business enterprises -- Management , Indian business enterprises , Small business -- Management
- Description: Family owned businesses play a vital role in the economy of a country, therefore their sustainability and succession is a topic that requires adequate research and analysis. This is required to determine the impact and contribution at a socioeconomic level and future development of the family owned business. Within the Nelson Mandela Metropolitan area previous research has been conducted analysing the above with regard to Greek family businesses. There is a little evidence to suggest similar studies have been conducted on Indian owned family businesses, specifically businesses operating at a third generation level. This research will therefore analyse Indian owned family businesses that are at a minimum level of third generation within the Nelson Mandela Metropolitan area. The purpose is to investigate whether there is any specific cultural attributes of the Indian culture which have contributed to their success.
- Full Text:
- Date Issued: 2009
- Authors: Adams, Leigh Christie
- Date: 2009
- Subjects: Family-owned business enterprises -- Management , Indian business enterprises , Small business -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8543 , http://hdl.handle.net/10948/1258 , Family-owned business enterprises -- Management , Indian business enterprises , Small business -- Management
- Description: Family owned businesses play a vital role in the economy of a country, therefore their sustainability and succession is a topic that requires adequate research and analysis. This is required to determine the impact and contribution at a socioeconomic level and future development of the family owned business. Within the Nelson Mandela Metropolitan area previous research has been conducted analysing the above with regard to Greek family businesses. There is a little evidence to suggest similar studies have been conducted on Indian owned family businesses, specifically businesses operating at a third generation level. This research will therefore analyse Indian owned family businesses that are at a minimum level of third generation within the Nelson Mandela Metropolitan area. The purpose is to investigate whether there is any specific cultural attributes of the Indian culture which have contributed to their success.
- Full Text:
- Date Issued: 2009
An investigation into employee empowerment strategies for Small, Medium, and Micro Enterprises (SMMEs)
- Authors: Pandle, Nolubabalo Leeanne
- Date: 2006
- Subjects: Employee empowerment , Business enterprises , Small business -- Management , Affirmative action programs
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:9344 , http://hdl.handle.net/10948/d1012138 , Employee empowerment , Business enterprises , Small business -- Management , Affirmative action programs
- Description: Employee empowerment is a strategy that small business managers can deploy to add value to the business. This strategy is aimed at cultivating the power and ability of employees in their jobs. A business is a business by people working in it though they differ in many ways their contribution to the success of the organization is very important. However, these people are not often recognized as value contributors in the success of the business and for this reason they do not intend to add value to the business and they become demotivated to do their jobs properly. People are the business storehouse of knowledge and they are central to the organization's competitive advantage. Well educated, coached, and highly motivated people are critical to the development and execution of strategies, especially in today's fast-paced market, where top management can no longer assure the business competitiveness in isolation. In the business world, almost all businesses are doing the same, small businesses should strive to do things differently, and the only way that they can achieve that uniqueness is through instilling frankness and liberty to employees so that they act as if the business also belongs to them. The reason behind this success is the strategy the business is using to get into the heart of its customers, and this strategy is “employee empowerment”. People are the business's most underutilized resource; involvement in an organization is no longer a one-way road. In today's corporate environment a manager must work towards engaging the organization forcefully enough to achieve its objectives. New knowledge-based enterprises are characterized by flat hierarchical structures and a multi-skilled workforce. Managers assume more leadership and coaching tasks and work hard to provide employees with resources and working conditions they need to accomplish the goals they have agreed to. In brief, managers work for their staff, and not the reverse and this makes employees feel valued. Small business owners should tap into a new dimension of utilizing employee empowerment strategies in their businesses as these are proficient and are not costly. This paper investigates employee empowerment strategies that can be used by small, medium and micro enterprises (SMME's). An important reason for this investigation is that small businesses have incompetent skilled labour force due to the fact that they operate under a limited budget from which it would be difficult to get skilled workers who will demand higher salaries, as a result they need to put their energies rather on equipping and educating their employees through empowerment, which could at the end make them feel valued and part of the business. It is imperative to firstly assess the current situation of small business commitment to employee empowerment strategies; to what extent do they use employee empowerment strategies in their businesses In terms of the empirical study it was determined that small businesses were not aware of the concept of employee empowerment, but are in actual fact practicing employee empowerment strategies that have been theoretically revealed, according to the researcher’s observation, they were not aware of the impact of employee empowerment in the organization and that they can be implemented into the business. Therefore, by introducing the concept of employee empowerment and the strategies that can be used in small businesses, SMME's can enhance their services to customers, increase productivity and contribute to the welfare of employees to add value to the individual, the business and the country.
- Full Text:
- Date Issued: 2006
- Authors: Pandle, Nolubabalo Leeanne
- Date: 2006
- Subjects: Employee empowerment , Business enterprises , Small business -- Management , Affirmative action programs
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:9344 , http://hdl.handle.net/10948/d1012138 , Employee empowerment , Business enterprises , Small business -- Management , Affirmative action programs
- Description: Employee empowerment is a strategy that small business managers can deploy to add value to the business. This strategy is aimed at cultivating the power and ability of employees in their jobs. A business is a business by people working in it though they differ in many ways their contribution to the success of the organization is very important. However, these people are not often recognized as value contributors in the success of the business and for this reason they do not intend to add value to the business and they become demotivated to do their jobs properly. People are the business storehouse of knowledge and they are central to the organization's competitive advantage. Well educated, coached, and highly motivated people are critical to the development and execution of strategies, especially in today's fast-paced market, where top management can no longer assure the business competitiveness in isolation. In the business world, almost all businesses are doing the same, small businesses should strive to do things differently, and the only way that they can achieve that uniqueness is through instilling frankness and liberty to employees so that they act as if the business also belongs to them. The reason behind this success is the strategy the business is using to get into the heart of its customers, and this strategy is “employee empowerment”. People are the business's most underutilized resource; involvement in an organization is no longer a one-way road. In today's corporate environment a manager must work towards engaging the organization forcefully enough to achieve its objectives. New knowledge-based enterprises are characterized by flat hierarchical structures and a multi-skilled workforce. Managers assume more leadership and coaching tasks and work hard to provide employees with resources and working conditions they need to accomplish the goals they have agreed to. In brief, managers work for their staff, and not the reverse and this makes employees feel valued. Small business owners should tap into a new dimension of utilizing employee empowerment strategies in their businesses as these are proficient and are not costly. This paper investigates employee empowerment strategies that can be used by small, medium and micro enterprises (SMME's). An important reason for this investigation is that small businesses have incompetent skilled labour force due to the fact that they operate under a limited budget from which it would be difficult to get skilled workers who will demand higher salaries, as a result they need to put their energies rather on equipping and educating their employees through empowerment, which could at the end make them feel valued and part of the business. It is imperative to firstly assess the current situation of small business commitment to employee empowerment strategies; to what extent do they use employee empowerment strategies in their businesses In terms of the empirical study it was determined that small businesses were not aware of the concept of employee empowerment, but are in actual fact practicing employee empowerment strategies that have been theoretically revealed, according to the researcher’s observation, they were not aware of the impact of employee empowerment in the organization and that they can be implemented into the business. Therefore, by introducing the concept of employee empowerment and the strategies that can be used in small businesses, SMME's can enhance their services to customers, increase productivity and contribute to the welfare of employees to add value to the individual, the business and the country.
- Full Text:
- Date Issued: 2006
An investigation into problems facing small-to-medium sized enterprises in achieving growth in the Eastern Cape : enhancing the strategy for developing small 'growth potential' firms in the Eastern Cape
- Authors: Sha, Shafeek
- Date: 2006
- Subjects: Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1173 , http://hdl.handle.net/10962/d1002789 , Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Description: As the world economy continues to move towards increased integration, some of the greatest opportunities for Small-to-Medium Sized Enterprises (SMEs) will derive from their ability to participate in the global marketplace. It is generally accepted that SMEs are becoming increasingly important in terms of employment, wealth creation, and the development of innovation. However, there are considerable doubts about the quality of management in this sector with policy-makers suggesting that there are particular weaknesses in innovation, a lack of financial acumen, marketing, entrepreneurial flair, practical knowledge, and human resource management. As a result, many firms do not reach their full potential and fail to grow. According to organisational life cycle models, the introductory phase is particularly important since it is generally known and accepted that there is a high mortality rate of SMEs within the first two years. Given this high failure rate, it becomes vital to research the factors/characteristics/management abilities that are required to enable the SME to survive and indeed progress to the growth phase of the organizational life cycle. This research seeks to investigate the internal and external factors that are consistent in the success of SMEs who have reached the growth phase. A significant contribution to the enhancement of the growth potential of a firm will be made through the understanding of these factors.
- Full Text:
- Date Issued: 2006
- Authors: Sha, Shafeek
- Date: 2006
- Subjects: Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1173 , http://hdl.handle.net/10962/d1002789 , Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Description: As the world economy continues to move towards increased integration, some of the greatest opportunities for Small-to-Medium Sized Enterprises (SMEs) will derive from their ability to participate in the global marketplace. It is generally accepted that SMEs are becoming increasingly important in terms of employment, wealth creation, and the development of innovation. However, there are considerable doubts about the quality of management in this sector with policy-makers suggesting that there are particular weaknesses in innovation, a lack of financial acumen, marketing, entrepreneurial flair, practical knowledge, and human resource management. As a result, many firms do not reach their full potential and fail to grow. According to organisational life cycle models, the introductory phase is particularly important since it is generally known and accepted that there is a high mortality rate of SMEs within the first two years. Given this high failure rate, it becomes vital to research the factors/characteristics/management abilities that are required to enable the SME to survive and indeed progress to the growth phase of the organizational life cycle. This research seeks to investigate the internal and external factors that are consistent in the success of SMEs who have reached the growth phase. A significant contribution to the enhancement of the growth potential of a firm will be made through the understanding of these factors.
- Full Text:
- Date Issued: 2006
The determination of critical success factors that impact on the performance of SMEs in e-commerce
- Authors: Zeelie, Eben Johannes
- Date: 2002
- Subjects: Electronic commerce , Small business -- Management , New business enterprises -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10905 , http://hdl.handle.net/10948/118 , Electronic commerce , Small business -- Management , New business enterprises -- Management
- Description: The research problem addressed in this study is the determination of the critical success factors for SMEs in e-commerce. To achieve the objective, an integrated list of critical success factors, gathered from practitioner- and academic literature, had to be identified. The integrated list was developed through the following sub-processes: · The first consisted of a literature survey of the sources and the identification of critical success factors, which lead to insights into the role of critical success factors in strategic management and the objectivity of the CSF identification process. The second comprised surveying the literature dealing specifically with the unique characteristics of SMEs, to identify factors that are critical to the survival and growth of SMEs. · The third consisted of a survey of the academic and practitioner literature dealing with critical success factors in e-commerce, in order to develop an integrated list of critical success factors for SMEs in ecommerce. The integrated list that emerged from the literature study consisted of the following seventeen critical success factors: 1. Target the right customers 2. Involve all stakeholders 3. Provide access to all customer information 4. User-friendly web design 5. Let customers help themselves 6. Offer online and offline assistance to customer enquiries 7. Deliver personalized service 8. Foster online community 9. Top management support 10. Technical infrastructure 11. Security and control of the e-commerce system 12. Promotion of site 13. Financial planning and control of project 14. Loyalty 15. Development of a business plan 16. Branding of the site 17. Shipping and fulfilment The integrated list was used as the basis for the compilation of a survey questionnaire to identify the eight most critical success factors for SMEs in ecommerce. The survey questionnaire was sent to SMEs that are members of the Port Elizabeth Chamber of Commerce and Industry, have a website and comply with the criteria for SMEs. The empirical study identified the eight most critical success factors for SMEs in e-commerce and indicated strong concurrence with the unique characteristics of SMEs.
- Full Text:
- Date Issued: 2002
- Authors: Zeelie, Eben Johannes
- Date: 2002
- Subjects: Electronic commerce , Small business -- Management , New business enterprises -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10905 , http://hdl.handle.net/10948/118 , Electronic commerce , Small business -- Management , New business enterprises -- Management
- Description: The research problem addressed in this study is the determination of the critical success factors for SMEs in e-commerce. To achieve the objective, an integrated list of critical success factors, gathered from practitioner- and academic literature, had to be identified. The integrated list was developed through the following sub-processes: · The first consisted of a literature survey of the sources and the identification of critical success factors, which lead to insights into the role of critical success factors in strategic management and the objectivity of the CSF identification process. The second comprised surveying the literature dealing specifically with the unique characteristics of SMEs, to identify factors that are critical to the survival and growth of SMEs. · The third consisted of a survey of the academic and practitioner literature dealing with critical success factors in e-commerce, in order to develop an integrated list of critical success factors for SMEs in ecommerce. The integrated list that emerged from the literature study consisted of the following seventeen critical success factors: 1. Target the right customers 2. Involve all stakeholders 3. Provide access to all customer information 4. User-friendly web design 5. Let customers help themselves 6. Offer online and offline assistance to customer enquiries 7. Deliver personalized service 8. Foster online community 9. Top management support 10. Technical infrastructure 11. Security and control of the e-commerce system 12. Promotion of site 13. Financial planning and control of project 14. Loyalty 15. Development of a business plan 16. Branding of the site 17. Shipping and fulfilment The integrated list was used as the basis for the compilation of a survey questionnaire to identify the eight most critical success factors for SMEs in ecommerce. The survey questionnaire was sent to SMEs that are members of the Port Elizabeth Chamber of Commerce and Industry, have a website and comply with the criteria for SMEs. The empirical study identified the eight most critical success factors for SMEs in e-commerce and indicated strong concurrence with the unique characteristics of SMEs.
- Full Text:
- Date Issued: 2002
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