Browsing by Subject "SMMEs"

Now showing 1 - 6 of 6
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    Open Access
    Digital Spaza-shops and the Digitalisation of SMMEs' in South Africa
    (2022) Matsietsi, Lisema; Alhassan, Abdul Latif
    The purpose of the study investigates the institution of an exclusive financing model to digitalise South African SMMEs to encompass both the sourcing and the administration of development funds for digitalisation. The SMME 4IR (digitalisation) financing model provides finance for SMMEs digitalisation, especially for e-commerce and operational efficiencies. The need for SMME 4IR financing model is driven by fewer digitalised SMMEs given the increasing share of participation in digital marketplaces. SMMEs' finance is provided for the entire scope of business operations, and there exists no special digitalisation finance. The study employed the convergent parallel mixed methods research (MMR) approach to first, to examine the effect of economic factors on internet usage among the population in South Africa using annual secondary data between 1997 and 2017. The second discovered tech SMMEs in South African business incubators and their potential to digitalise other SMMEs. The last objective developed a model for the digitisation of SMMEs in South Africa. The last two objectives followed a qualitative approach. From the quantitative analysis, the study found long run negative relationship is between SMME and Economy and internet usage while Census/Economy and SMME/ICT Services exhibited long run positive effect on internet usage. The qualitative component explored the digitalisation potential of SMMEs using a sample of Tech SMME, venture capitalist (VC), angel investors, and business incubators' public domain (websites). The study found that tech SMMEs embodied significant potential to digitalise other SMMEs. This potential resides in a network of business incubators with private support, VC firms and angel investors-supported programmes. The SMME 4IR financing model has been proposed to address the need to digitalise SMMEs. This model is a hybrid between a equity-based crowdfunding model, existing tech start-up finance, ICT development funds, alternative (innovative) SME fund generation, and other government initiatives relating to SMMEs and 4IR. Business incubators are suitable to administer funds sourced using the SMME 4IR finance model in partnership with business schools. A partnership has been identified as appropriate to solve the lack of expertise associated with finance designed for SMME digitalisation.
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    Open Access
    Exploring the impact of COVID-19 on private sector SMME incubation support in South Africa
    (2024) De Waal, Anelia; Hall, Martin
    The COVID-19 pandemic had globally disruptive repercussions, resulting in the resiliency of numerous support systems being tested, including the support ecosystem for small, micro, and medium-sized enterprises (SMMEs). Small business development initiatives, such as incubation and acceleration programmes, ostensibly provide a supportive environment for SMMEs to overcome economic pressures and market failures. They provide a critical role in the development of SMMEs and, by extension, healthy, inclusive economies. Given the catastrophic impact of the COVID-19 pandemic on the number of SMMEs closing down, particularly in South Africa, ensuring that future support mechanisms are geared towards adaptability and resiliency is imperative. In pursuit of this, efforts to understand how enterprise support organisations involved in incubation-style small business development programmes experienced the COVID-19 pandemic is a critical step in developing frameworks for future crisis responses. In aid of this goal, the research project focused on the experiences of 12 practitioners representing enterprise support organisations, using qualitative research methods to code and compare emerging experiences. The research found a correlation between the influence of power and agency on multi-level decision-making, and how this determines capacity to adapt and respond in inclusive and meaningful ways. It is the recommendation of this study that small business development organisations develop adaptive support practices that centre inclusivity and leverage micro-agency. Key mechanisms found in the study include the adoption of limited hierarchical operation practices, open dialogue that prioritises collaboration, and continuous learning and improvement initiatives. Future research needs to be conducted from the perspective of SMMEs within development programmes during COVID-19, to bolster the study findings, and aid in determining the degrees to which support initiatives were effective.
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    Open Access
    Investigating the impact of organisational resources, entrepreneurial orientation dimensions and big data analytics on business performance of South African E-commerce SMMEs
    (2025) Mogale, Marungwane; Budree, Adheesh
    Small, Medium and Micro Enterprises (SMMEs) are key contributors to economic growth in South Africa. It is important to understand the essential organisational resources (IT Infrastructure, IT human resources and financial resources) and dimensions of entrepreneurial orientation (EO) (innovativeness, proactiveness and risk-taking) that influence the utilisation of big data analytic (BDA) capabilities. It is also important to understand the impact of big data analytic (BDA) capabilities on business performance (productivity and profitability). Leveraging insights from BDA capabilities is believed to create economic value, especially in e-commerce which generates large volumes of data. This study investigated the combined impact of organisational resources and EO dimensions on BDA capabilities, and ultimately on the business performance of South African e-commerce SMMEs. The study uses both the resource-based view and dynamic capabilities view to build a theoretical framework. The study was guided by a conceptual model developed through a literature review and utilised quantitative methods to analyse data collected from SMME owners, partners and managers. A probability simple random sampling technique was used for this study. Data were collected from 288 responses to a questionnaire and were analysed using Partial Least Squares Structural Equation Modelling. The findings revealed that IT infrastructure, IT human resources and financial resources have a significant positive impact on BDA capabilities. Furthermore, innovativeness and risk-taking (EO dimensions) enhanced BDA capabilities positively and significantly while another EO dimension, proactiveness, had an insignificant impact on BDA capabilities. The mediation analyses revealed that BDA capabilities fully mediate the relationship between organisational resources and business performance, while the EO dimensions are partially mediated. The study makes important theoretical and practical contributions and future research directions are discussed. A framework is provided that can be tested in future academic studies, specifically in the context of South Africa. Practically, the study indicates areas of investment for South African SMMEs engaged in e-commerce which may support their expansion and long-term sustainability, profitability and productivity. Both the resource-based view and dynamic capabilities view theories are context-sensitive, these findings should be considered limited in their generalizability and relevance to different contexts.
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    Open Access
    Leveraging technology to enhance impact measurement of SMMEs and social enterprises in South Africa
    (2021) Venter, Marelize; Alhassan, Abdul Latif
    The global economy as we know it is changing: stakeholders' priorities have shifted towards businesses that provide demonstrable impact on their communities and the environment. But are South African Small-, Micro- and Medium- Enterprises (SMMEs) prepared to rise to the challenge of measuring and communicating their impact? The adoption of Impact Measurement among enterprises has scarcely been covered in empirical literature, where the limited research available has put a strong emphasis on impact measurement for investors, and not necessarily the enterprises creating the impact. Furthermore, there is a dearth of information available on the use of Impact Measurement in South Africa, arguably a country desperate for effective, impact-driven capital allocation. Technology provides the opportunity to make Impact Measurement more accessible to these organisations, as it has the power to provide solutions at scale, giving enterprises across the world a unified platform to measure and communicate their impact. This two-phased study leveraged the power of mixed-methods research to gain an understanding of the impact measurement adoption behaviour of South African SMMEs. Phase 1 was initiated with the utilization of a Partial Least Squares – Structured Equation Model (PLS-SEM) based on the framework of the Technology Acceptance Model (TAM) using a sample size of 90 SMMEs. This was followed by interviewing candidates and using a deductive qualitative research approach to create an understanding of their adoption behaviour based on the Technology, Organisation, Environment (TOE) framework. Furthermore, the second phase of the study made use of a systematic review based on Kuo et al.'s adapted PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses), followed by interview questions regarding user requirements to identify the appropriateness of existing impact measurement technologies in the South African SMME market. The first phase of the study revealed that even though SMMEs are aware of the significant impact they have on society, it is often based on informal measurement techniques and subjective opinion. This is mainly due to a lack of understanding of what impact measurement means, or how to even go about it. Furthermore, this is reinforced by the strong influence of social norms in this emerging impact economy, where there is very little emphasis or expectation to provide robust impact measurement. The main drivers of impact measurement adoption were found to include the affordability, the business' intent on creating impact and that businesses are likely to adopt impact measurement if there is a perceived value in doing so. The second phase of the study revealed that some of the major drivers behind the lack of adoption of Impact Measurement Software is the lack of awareness on available platforms, the lack of understanding of how to measure the impact, and finally the prohibitively high cost of acquiring the software – even though there isn't necessarily one piece of software that fits all requirements, it was found that there are various platforms that do meet the needs of South African SMMEs in some ways. This study has added to the knowledge of understanding the behaviour on impact measurement adoption among South African SMMEs and scoped the field of suitable, available technologies in a time where it is critical to rebuild the economy in a more equitable and impact-driven approach, after the devastating economic impact of COVID-19.
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    Open Access
    Procurement policies and sustainability on SMMEs: a case study of Gauteng Province
    (2021) Kraai, Nonhlanhla Daliah; Alhassan, Abdul Latif; Makoni, Patricia
    SMME targeted procurement policies in South Africa gets swapped and changed every couple of years before they take hold and assessed against initially set desired outcomes, this makes them unsustainable. As such, it has become necessary for research to be undertaken to investigate those SMMEs that do business with State Owned Enterprises (SOEs), with the aim of establishing whether the preferential procurement policies are supportive of the growth and sustainability of their businesses. The study also sought to further ascertain whether the targeted procurement policies are achieving the objectives they were created for in the first place, which is to promote growth and empowerment through the growing of the SMME businesses or are they non-responsive. Lastly, this study intended to understand whether the continued swapping and changing of the targeted procurement policies is resulting in their unsustainability to grow a sustainable SMME sector in South Africa which in turn raises a question of whether the designing and implementation of these policies is well informed by the actual challenges bedevilling the sector to be able to address these challenges on the ground. The study was a qualitative study that enabled the expression and description of feelings and opinions regarding whether the targeted policies had achieved their objectives and the concerns respondents would express. From the data was collected through interviews, the respondents indicated that the policies were theoretical and do not address the actual challenges that bedevil small businesses in South Africa. If anything, the policies have not attained their set objectives of growing and empowering SMMEs but rather made doing and growing their businesses difficult due to an unfriendly business environment. In addition, high taxes, inflexible labour laws, access to finance, inability to market their companies and products, delayed payments for services rendered are some of the problems faced by SMMEs. The SMME sector is dwindling, the small businesses are folding, and the targeted policies have proved unsustainable. Based on the findings of this study the targeted procurement policies needs to be reviewed and in certain instance overhauled to improve their efficacy. Policymakers need to establish forums where small business raise their concerns, shortcomings of the policies and put forward their ideas of making the policies more beneficial to them. There is a great need to also identify and address impediments pertaining to the operating environment and make it truly pro SMMEs.
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    Open Access
    Rural electrification in Zimbabwe reduces poverty by targeting income-generating activities
    (2007-04) Mpako Maxwell; Prasad Gisela
    National electrification programmes are given priority in many developing countries and the level of electrification is generally seen as one of the key indicators of development. Utilities find rural electrification programmes a challenge because the returns on the investment made in grid extension are minimal given the usually low levels of power consumption in rural areas. An approach, adopted in Zimbabwe that promises to address this problem is to target income-generating activities, mainly the small and medium scale enterprises (SMMEs) in the areas where the electricity grid is extended. This will have the benefits of potentially increasing the return on the utility’s investment by also stimulating small-scale commercial and industrial activities in the areas reached by the grid. It is however important to understand the SMMEs and their needs in order to tailor any support appropriately. When extending the grid to the growth points the Rural Electrification Agency may also provide loans and deliver to site electrical machinery like grinding mills, irrigation equipment and welding machines that entrepreneurs may order. This paper discusses the findings of recent case studies among small enterprise beneficiaries of rural electrification in the arid southwest of Zimbabwe and highlights key lessons learnt.