{"title":"The state of business incubation in the Northern Cape: A service spectrum perspective","authors":"Stephanus J.H. van der Spuy","doi":"10.4102/sajesbm.v11i1.271","DOIUrl":"https://doi.org/10.4102/sajesbm.v11i1.271","url":null,"abstract":"Background: Business incubation has the purpose of recruiting weak yet promising tenant-entrepreneurs or incubates. The weaknesses may include a lack of skills and abilities, lack of resources or lack of knowledge. The business case or opportunity should be promising. Further to the purpose, business incubators attempt to turn these deficient businesses into sustainable entities that can exit or graduate the incubator and survive on their own devices. Without this intervention through the incubator, it is extremely unlikely that these tenant-entrepreneurs or incubates will survive. In order to achieve the maximum likelihood of successful graduate-entrepreneurs and sustainable start-ups, business incubators must offer a full spectrum of services. These services should include access to physical premises, communal equipment, administrative support, training for skills development, access to professional and specialised skills, access to financial support, access to networking and access to mentorship. Objectives: It is the purpose of this study, firstly, to investigate and determine which of these services business incubators within the Northern Cape Province of South Africa offer. Secondly, it is the further purpose of this study to benchmark the incubators within the Northern Cape Province to international best practice models. Method: A qualitative research methodology was employed in this study. Data were collected through semi-structured interviews, transcribed and analysed through qualitative software. The sample consisted of 63 respondents from 7 business incubators within the province. The sampling method was purposive. Results: The research results obtained indicated that four incubators within the province boast a very weak service offering. Furthermore, only one incubator truly benchmarked competitively against international best practice models. Conclusion: The study provides recommendation with regards to specialist mentoring, skills development and training of entrepreneurs and incubation-practitioners, as well as access to funding and physical upgrades of incubators. The research contributes to a very sparse body of existing research on small, medium and micro-enterprise (SMME) development within the Northern Cape Province. The study provides future research questions for academic researchers.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117315445","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The influence of absorptive capacity and networking capabilities on small and medium enterprises","authors":"W. Munyanyi, David Pooe","doi":"10.4102/sajesbm.v11i1.231","DOIUrl":"https://doi.org/10.4102/sajesbm.v11i1.231","url":null,"abstract":"Background: In response to the ever-growing complexity in the business environment that has resulted from the dramatic technological transformation, businesses have altered the way they conduct business. The influence of the external business environment is increasing in significance, rendering traditional methods of operating business outdated and forcing the adoption of new methods.Objective: The aim of this study is to investigate how organisational capabilities influence small and medium enterprises’ (SMEs) operational performance (OP), by specifically looking at absorptive capacity (ACAP), networking capabilities (NCs) and customer relational capabilities (CRCs).Setting: This study was conducted in Zimbabwe and was spread across the 10 provinces, focusing on 388 randomly selected SMEs.Methods: Data were collected through self-administering questionnaires to respondents, using the drop-off or pickup technique and making telephonic follow-ups to increase the response rate. Analysis of the data in this study was largely quantitative in nature and it was performed using a two-step structural equation modelling approach.Results: The results of the study indicate that CRCs lead both ACAP and NCs to improve OP.Conclusion: This study enlightens both SMEs’ managers and policymakers on the significance of capabilities, as opposed to resources, in the growth of the SMEs sector. In light of the results, it is imperative that firms orientate themselves to embrace networking and ACAP as central tenets of their day-to-day operations while attending to customers timely and innovatively.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"518 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123112128","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The influence of economic motivation, desire for independence and self-efficacy on willingness to become an entrepreneur","authors":"H. Shava, W. Chinyamurindi","doi":"10.4102/sajesbm.v11i1.234","DOIUrl":"https://doi.org/10.4102/sajesbm.v11i1.234","url":null,"abstract":"Background: Employees involved in dirty work lack a desired social identity because of stigma attached to their occupation. Pursuing entrepreneurship as a career choice could be one corrective measure they can take to achieve a high-standing position in society. Aim: This study was undertaken with the goal of investigating the predictive capacity of desire for independence (DI), economic motivation (EcoM) and entrepreneurial self-efficacy (ESE) regarding willingness to become an entrepreneur (WEE) for employees involved in dirty work. Setting: Although this study is grounded in well-developed theories, the study is of value given that it provides new insights with respect to the impact of EcoM, ESE and DI on WEE among employees involved in dirty work who are facing stigma. Methods: This study adopted a positivist paradigm. Data were gathered through a self-administered questionnaire. To analyse the data, factor analysis and multiple linear regression were used. Results: This study found that in the quest to achieve a high-standing position in society by employees involved in dirty work, EcoM and ESE play more crucial roles than DI as far as WEE is concerned. Conclusion: This study concluded that in the quest to achieve a high-standing position in the society, EcoM and ESE play more crucial roles than DI on WEE for employees involved in dirty work.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129106337","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The perceived adequacy and effectiveness of internal control activities in South African small, medium and micro enterprises","authors":"Juan-Pierré Bruwer, Philna Coetzee, J. Meiring","doi":"10.4102/SAJESBM.V11I1.148","DOIUrl":"https://doi.org/10.4102/SAJESBM.V11I1.148","url":null,"abstract":"Background: South African small, medium and micro enterprises (SMMEs) add significant socio-economic value to the national economy. Unfortunately, up to 80% of these business entities fail after being in existence for only 4 years. Previous research shows that a probable reason for the latter dispensation is that these business entities make use of ineffective and/or inadequate internal control systems which, inter alia , comprises inadequate internal control activities. Objectives: This study seeks to ascertain whether internal control activities implemented in South African SMMEs have an effect on the perceived adequacy and effectiveness of their overall internal control systems. Method: Though exploratory in nature, this study followed an empirical stance through the assistance of survey research. Data were collected from 119 SMME managers and 98 employees of South African SMMEs operating in the fast-moving consumer goods industry. Results: Although only 18 of the 64 tested relationships are found to be statistically significant, none of the formulated hypotheses can be rejected as relevant statistically significant predictions can be made in relation to the perceived adequacy and effectiveness of internal control systems when applicable internal control activities of these business entities are taken into account. Conclusion: This study provides a foundation for future studies to both scrutinise and enhance the internal control environment in South African SMMEs, ultimately improving the sustainability rate of South African SMMEs.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128955469","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Small business barriers to occupational health and safety compliance","authors":"Elriza Esterhuyzen","doi":"10.4102/SAJESBM.V11I1.233","DOIUrl":"https://doi.org/10.4102/SAJESBM.V11I1.233","url":null,"abstract":"Background: The Constitution of South Africa indicates that all people have the right to an environment that is not harmful to their health and well-being. This right is reiterated in the Occupational Health and Safety Act 83 of 1993. However, small business owners and/or managers experience specific barriers to occupational health and safety (OHS) compliance. The study was conducted in Gauteng, KwaZulu-Natal and the Western Cape provinces of South Africa, as these three provinces account for 82% of active businesses in South Africa.Objective: This article discusses barriers to OHS compliance as perceived by South African small business owners and/or managers.Method: A total of 350 small business owners and/or managers from the three above-mentioned provinces participated in a questionnaire survey, with one section focussing on barriers to OHS compliance. Participants rated 11 predetermined barriers to OHS compliance and could indicate and rate additional barriers. Descriptive and inferential statistics were used to report on these perceived barriers.Results: Results indicated that the perceived barriers to OHS compliance can be categorised as human and resource barriers.Conclusion: South African small business owners and/or managers experience barriers to compliance that prevent them from full compliance with OHS directives, which can be costly. Small business owners and/or managers need to take cognisance of applicable OHS directives as well as identified barriers to compliance. These barriers need to be addressed to allow small businesses to comply with OHS directives and to enhance the sustainability of small businesses. The question is not whether small businesses can afford OHS compliance, but if they can afford not to overcome barriers and comply.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125536043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Towards customer satisfaction and loyalty: What cuts it in a hair salon?","authors":"C. Eresia-Eke, Caitlin Jammine, Callon Locke","doi":"10.4102/SAJESBM.V11I1.215","DOIUrl":"https://doi.org/10.4102/SAJESBM.V11I1.215","url":null,"abstract":"Background: The importance of customer loyalty, and customer satisfaction as well as patron’s perceptions of service quality and value cannot be over-emphasised. Despite this, academic literature remains scant as it relates to possible relationships that could exist between these important variables within the hairdressing industry, although emerging entrepreneurs appear to find the hairdressing business attractive. Objectives: The purpose of this study was to determine the existence and nature of the relationships between perceived value, perceived service quality, customer satisfaction and customer loyalty in hairdressing salons. Method: The quantitative study was executed from a positivist philosophical position and employed a non-probability sampling method to select its respondents. The study utilised data that were collected from customers of hair salons in Pretoria, South Africa. Responses were obtained in a cross-sectional manner by relying on the central-location intercept survey technique. Descriptive and inferential statistical tools were utilised for the analysis of the data. Results: The hypothesised relationships between the independent variables of customer satisfaction and perceived value and the dependent variable of customer loyalty were statistically significant and positive. A similar association was found between perceived service quality and perceived value as independent variables and customer satisfaction as the dependent variable. The study also revealed that perceived service quality correlates positively with perceived value. Conclusion: These findings contribute to broadening the scope of academic discourse in the quality management and customer service domains, particularly from a South African perspective, and the identified relationships bear important practical implications for hair salon owners or managers.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129245610","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A tax compliance risk profile of guesthouse owners in Soweto, South Africa","authors":"Marina Bornman, Pusheletso Ramutumbu","doi":"10.4102/sajesbm.v11i1.181","DOIUrl":"https://doi.org/10.4102/sajesbm.v11i1.181","url":null,"abstract":"Background: A conceptual framework to assess the particular tax situation of small business owners identifies three key aspects that distinguish small business owners’ perceptions of their tax obligation. These aspects are: they are likely to perceive more opportunities not to comply than employed taxpayers; they are likely to lack meaningful taxation knowledge and they are likely to frame the paying of taxes as a loss.Aim: The aim of this article was to sketch a tax compliance risk profile of guest house owners in Soweto to suggest strategies to negate those factors that may negatively influence their compliance behaviour.Setting: Tax compliance is a priority for tax administrations, especially in developing countries such as South Africa where small businesses are a high compliance risk group. Small guest houses’ income is usually variable and/or cash-based and not easily verifiable against third-party data, which creates a high risk of non-compliance.Methods: A mixed methods research approach was followed. Empirical evidence in the form of semi-structured questionnaires administered face-to-face with 23 guest house owners in Soweto was statistically and thematically analysed to compile a profile of the tax compliance risk according to the framework for tax compliance behaviour of small business owners.Results: Factors such as age, gender and tax morale show favourable results for tax compliant behaviour. However, perceptions of fairness, perceived opportunity for non-compliance, knowledge deficits, decision frames, industry, business size and social norms embrace a high risk of non-compliance for this population.Conclusion: Information pointing out the factors that could negatively influence tax compliance behaviour in this population was obtained. Strategies for empowering small business owners to comply voluntarily with their tax obligations are suggested and include, for example, taxpayer education and improved communication efforts from the revenue authority.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117055045","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The relationship between entrepreneurial competencies and the recurring entrepreneurial intention and action of existing entrepreneurs","authors":"Melodi Botha, T. Carruthers, Marc W. Venter","doi":"10.4102/SAJESBM.V11I1.191","DOIUrl":"https://doi.org/10.4102/SAJESBM.V11I1.191","url":null,"abstract":"Background: Many scholars focus their research efforts on the entrepreneurial intention of students and non-entrepreneurs, yet most of these scholars found empirical evidence that intention does not necessarily lead these individuals to start businesses (entrepreneurial action). Possible explanations for this could be that: (1) previous studies focused on the wrong samples; (2) they measured entrepreneurial intention as a single construct; and (3) there is a missing link between intention and action. Aim: To address these gaps, we determine the relationship between recurring entrepreneurial intention attitudes and action as well as entrepreneurial intention behaviours and action of 154 existing entrepreneurs in South Africa. By focusing on a sample of existing entrepreneurs who have already started a business, we shed light on the set of entrepreneurial competencies as a missing link between intention and action. This article is of academic importance as it focuses on the recurring process that entrepreneurs follow instead of the initial intention that is often overemphasised in literature. As far as could be determined, no other studies have investigated the relationships between entrepreneurial competencies, recurring entrepreneurial intention attitudes, recurring entrepreneurial intention behaviours and recurring entrepreneurial action. Setting: The research was conducted on 154 existing entrepreneurs in South Africa. Methods: A self-administered survey was used and the findings indicate that entrepreneurial competencies have a positive relationship with recurring entrepreneurial action, recurring entrepreneurial intention behaviours and recurring entrepreneurial intention attitudes. Results: There was no significant relationship between entrepreneurial action and recurring entrepreneurial intention behaviours. This is an unexpected finding as a positive relationship was expected for a sample that had prior entrepreneurial experience and already engaged in prior behaviours. However, this study contributes to the entrepreneurial intention–action literature by suggesting that existing entrepreneurs with recurring intention should also be measured in these relationships, in comparison to other research that mainly focused on the intentions of students and non-entrepreneurs. Conclusion: The practical contribution of this article is in the identification of specific entrepreneurial competencies, such as creative problem-solving, opportunity recognition and value creation that existing entrepreneurs relied on the most when engaging in entrepreneurial action. Potential, nascent, existing and serial entrepreneurs could focus on these competencies if they wish to engage in entrepreneurial action as well as recurring entrepreneurship.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129382372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Creating and maintaining a commercially viable executive coaching practice in South Africa","authors":"N. Terblanche, Rajesh J. Jock, M. Ungerer","doi":"10.4102/SAJESBM.V11I1.192","DOIUrl":"https://doi.org/10.4102/SAJESBM.V11I1.192","url":null,"abstract":"Background: The executive coaching industry is growing internationally and in South Africa. As is typical of small businesses, many struggle to survive. Factors contributing to small business success have been researched, but research in the context of the executive coaching industry in South Africa is sparse. Aim: The aim of this study was to investigate the factors that contribute to creating and maintaining a commercially viable executive coaching practice by examining executive coaching businesses through the lens of a standard business model template consisting of value network, value architecture, value proposition and value finance dimensions. Method: A qualitative methodology was followed to gather data from executive coaches in South Africa. Data from two focus groups (eight participants) and four semi-structured interviews were analysed using deductive content analysis to ascertain the nature of executive coaching practices in terms of a standard business model template. Results: The most significant factors contributing to a successful executive coaching business include forming alliances, leveraging previous experience, employing multiple income streams and evolving as business owner. Significant factors that present challenges include the lack of a business strategy, finding clients and underestimating earnings potential. These findings could assist aspiring and established executive coaches to plan and structure their coaching business. Executive coach training providers could incorporate these findings into their curricula to prepare new coaches for the realities of running a coaching business. Conclusion: Empirical evidence of factors that contribute to successful executive coaching businesses may help guide coaches to a more realistic view of the profession, in the process contributing to the maturing of the growing executive coaching industry in South Africa.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"284 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122163915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The importance of tolerance for failure and risk-taking among insurance firms in hyperinflationary Zimbabwe","authors":"Oliver Kapepa, J. Vuuren","doi":"10.4102/SAJESBM.V11I1.142","DOIUrl":"https://doi.org/10.4102/SAJESBM.V11I1.142","url":null,"abstract":"Background: At the dawn of the 21st century, Zimbabwe started moving towards dangerous levels of the infamous hyperinflation trajectory that made management of businesses a nightmare. Many businesses failed. Aim: This study seeks to explore if entrepreneurship, and in particular the aspects of risk-taking and tolerance of failure, could have saved the few companies that survived the menace that ravaged the insurance industries among many other sectors of the economy. Setting: The study looks at this particular entrepreneurial behaviour of risk-taking among insurance companies in Zimbabwe during the hyperinflationary environment that ravaged and defied economic logic and fundamentals. Savings were being eroded at a pace faster than anywhere in the world ever before, taking a toll on businesses as they struggled to survive. Methods: Using a survey sample of insurance companies in Zimbabwe, a quantitative approach was adopted. Questionnaires were used to extract data from participants to establish the nature and extent of risk-taking, and in particular tolerance for failure during this period. Therefore, tolerance of failure in corporate entities is discussed in this article as a critical aspect of risk-taking that enhances entrepreneurial innovation and ultimate prospects of corporate prosperity among insurance companies. A measure is developed to gauge the extent of tolerance of failure from the perspective of employees in the insurance industry in Zimbabwe. Results: The benefit of tolerance of failure or the lack thereof was measured on the dimension of profitability and growth. Results revealed that tolerance of failure is a necessary entrepreneurial virtue that encourages knowledge acquisition by both experimental and experiential learning – a risk element that also spurs entrepreneurial innovation and ultimately encourages both profitability and growth of the business entity, if well managed. Conclusion: The study concluded that firms that tolerate failure are more likely to be entrepreneurially innovative and perform better than those that are risk-averse and do not tolerate failure.","PeriodicalId":274251,"journal":{"name":"The Southern African Journal of Entrepreneurship and Small Business Management","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127875983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}