Research Article
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Year 2018, Volume: 10 Issue: 2, 0 - 0, 31.12.2018

Abstract

References

  • ANZ Banking Group. 2003. ANZ Survey of Adult Financial Literacy in Australia – Final Report. http://www.financialliteracy.gov.au/media/465156/anz-survey-ofadult-financial-literacy-2003.pdf accessed 9 September 2014. Barte, R. 2012. Financial literacy in micro-enterprises: The case of Cebu fish vendors. Philippine Management Review, 19(1), 91-99.
  • Benzing, C. & Chu, H.M. 2009. A comparison of the motivations of small business owners in Africa. Journal of Small Business and Enterprise Development, 16(1), 60-77.
  • Boubala, H.G.O. 2010. Risk Management of SMMEs. PhD Thesis. Cape Town: Cape Peninsula University of Technology.
  • Bowen, M., Morara, M. & Mureithi, S. 2009. Management of business challenges among small and micro enterprises in Nairobi-Kenya. KCA Journal of Business Management, 2(1), 16-31.
  • Chimucheka, T. & Rungani, E.C. 2011. The impact of inaccessibility to bank finance and lack of financial management knowledge to small, medium and micro enterprises in Buffalo City Municipality, South Africa. African Journal of Business Management, 5(14), 5509-5517.
  • Department of Trade and Industry. 2008. Annual Review of Small Business in South Africa 2005-2007.
  • http://www.dti.gov.za/sme_development/docs/3%20Annual%20Review%20Final %20Report%2011%20Aug%2008.pdf accessed 16 September 2014.
  • Entrepreneur Magazine (2016). DTI Funding. Retrieved from http://www.entrepreneurmag.co.za/advice/funding/government-fundingfunding/dti-funding/ accessed 1 September 2016. European Commission. 2006. Final Report of the Expert Group on Management Capacity Building.
  • http://ec.europa.eu/enterprise/policies/sme/files/support_measures/mcb/mcb_en.p df accessed 16 September 2014.
  • Falissard, B. (2012). Analysis of questionnaire data with R. Boca Raton, FL: CRC Press.
  • Fielden, S.L., Davidson, M.J. & Makin, P.J. 2000. Barriers encountered during micro and small business start-up in north-west England. Journal of Small Business and Enterprise Development, 7(4), 295-304.
  • Headd, B. 2003. Redefining business success: Distinguishing between closure and failure. Small Business Economics, 21(1), 51-61.
  • Irwin, J. 2013. Management decisions are key to business resilience. Grand Rapids Business Journal, 31(45), 22.
  • Kolvereid, L. & Isaksen, E. 2006. New business start-up and subsequent entry into self-employment. Journal of Business Venturing, 21(6), 866-885.
  • Kvedaraite, N. 2014. Reasons and obstacles to starting a business: Experience of students of Lithuanian higher education institutions. Management Journal of Contemporary Management Issues, 19(1), 1-16.
  • Ligthelm, A.A. 2008. A targeted approach to informal business development: The entrepreneurial route. Development Southern Africa, 25(4), 367-382.
  • Louw, J.L. 2009. Financial Literacy Competencies of Third-year University Students: A Case Study. Master’s Dissertation. Potchefstroom: NWU. Lusardi, A. & Mitchell, O.S. 2011. Financial literacy around the world: An overview. Journal of Pension Economics and Finance, 10(04), 497-508.
  • Lusardi, A. & Mitchell, O.S. 2014. The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
  • Mbekeni, T.J. 2009. The Success Rate of Government Programmes to Support SMMEs. MBA Mini-dissertation. Potchefstroom: NWU.
  • Miller, M., Godfrey, N., Levesque, B. & Stark, E. 2009. The Case for Financial Literacy in Developing Countries: Promoting Access to Finance by Empowering Consumers. World Bank, DFID, OECD and CGAP. http://www. oecd.org/dataoecd/35/32/43245359.pdf accessed 23 March 2016.
  • Mthimkhulu, A.M. & Aziakpono, M.J. 2015. What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank enterprise surveys. South African Journal of Business Management, 46(2), 15-28.
  • National Credit Regulator (NCR). 2011. Literature review on small and medium enterprises’ access to credit and support in South Africa. http://www.ncr.org.za/pdfs/Literature%20Review%20on%20SME%20Access%2 0to%20Credit%20in%20South%20Africa_Final%20Report_NCR_Dec%202011. pdf accessed 14 February 2014.
  • National Planning Commission. 2012. National Development Plan 2030: Our future – make it work. Pretoria: The Presidency.
  • Okpara, J.O. & Wynn, P. 2007. Determinants of small business growth constraints in a sub-Saharan African economy. SAM Advanced Management Journal, 72(2), 24-35.
  • Organisation for Economic Co-operation and Development (OECD). 2000. Small and Medium-Sized Enterprises: Local Strength, Global Reach. http://www.oecd.org/cfe/leed/1918307.pdf accessed 14 February 2014.
  • Organisation for Economic Co-operation and Development (OECD). 2004. Promoting SMEs for Development. http://www.oecd.org/cfe/smes/31919278.pdf accessed 3 September 2016.
  • Roberts, B., Struwig, J. & Gordon, S. 2014. Financial literacy in South Africa: Results from the 2013 South African Social Attitudes Survey round. Report prepared by the Human Sciences Research Council.
  • Sabana, B.M. 2014. Entrepreneur Financial Literacy, Financial Access, Transaction Costs and Performance of Micro Enterprises in Nairobi City County, Kenya. PhD Thesis. Nairobi: University of Nairobi.
  • Seikei, J., Wagoki, J. & Kalio, A. 2013. An assessment of the role of financial literacy on performance of small and micro enterprises: Case of equity group foundation training program on SMEs in Njoro district, Kenya. World Academic Journal of Business & Applied Sciences, 1(7), 250-261.
  • Shaver, K.G., Gartner, W.B., Crosby, E., Bakalarova, K. & Gatewood, E.J. 2001. Attributions about entrepreneurship: A framework and process for analyzing reasons for starting a business. Entrepreneurship Theory and Practice, winter, 5- 32.
  • Singer, S., Amorós, J.E. & Arreola, D.M. 2015. Global Entrepreneurship Monitor 2014 Global Report. Global Entrepreneurship Research Association. http://www.gemconsortium.org/report accessed 3 September 2016.
  • Singh, D., Khamba, J.S. & Nanda, T. 2015. Analysis of major problems faced by small firms in north India. International Journal of Engineering Research in Africa, 15(1), 150-160.
  • Small Business Project (SBP). 2013. Developing a New Path for SMEs in South Africa: Reassessing for Growth. http://www.sbp.org.za/index.php?id=8 accessed 28 April 2014.
  • Smit, Y. 2012. A Structured Approach to Risk Management for South African SMEs. PhD Thesis. Cape Town: Cape Peninsula University of Technology.
  • South Africa. 2003. National Small Business Amendment Act No 26 of 2003. (Notice 1732). Government Gazette, 25763, 26 Nov.
  • South African Reserve Bank (SARB). 2015. The Role of Small Business in the Economy. https://www.resbank.co.za/Lists/Speeches/Attachments/452/Role%20of%20small %20business%202015%20.pdf accessed 1 September 2016. IBM. 2016. IBM SPSS Statistics Version 23, Release 23.0.0, IBM Corporation and its licensors, Armonk, NY: IBM.
  • Statistics South Africa (StatsSA). 2014. Poverty Trends in South Africa: An Examination of Absolute Poverty between 2006 and 2011. http://www.statssa.gov.za/publications/Report-03-10-06/Report-03-10- 06March2014.pdf accessed 3 September 2016.
  • Statistics South Africa (StatsSA). 2016. Quarterly Labour Force Survey – Quarter 1: 2016. http://www.statssa.gov.za/publications/P0211/P02111stQuarter2016.pdf accessed 3 September 2016.
  • Van Gelderen, M. & Jansen, P. (2006). Autonomy as a start-up motive. Journal of Small Business and Enterprise Development, 13(1), 23-32.
  • Watson, K., Hogarth-Scott, S. & Wilson, N. 1998. Small business start-ups: Success factors and support implications. International Journal of Entrepreneurial Behaviour & Research, 4(3), 217-238.
  • Zwane, T. 2014. New blood, new vigour: Lindiwe Zulu. City Press, 1 June. http://www.citypress.co.za/business/new-blood-new-vigour-lindiwe-zulu/ accessed 27 June 2014.

ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY

Year 2018, Volume: 10 Issue: 2, 0 - 0, 31.12.2018

Abstract

Small and micro-enterprises are significant contributors to the economy of a
country with regard to growth, employment and poverty alleviation. However,
small and micro-enterprises in South Africa are faced with prevalent threats to
their survival and growth. A lack of access to finance and the basic skills and
knowledge to manage these enterprises create several challenges. This study
analysed the motivations behind start-up and the most prevalent needs, especially
regarding financial literacy, of small and micro-enterprise owners with the aim to
assist these owners in overcoming the challenges. In total 50 small and microenterprise owners from a selected suburb took part in the study. Purposeful
sampling was used. Data was gathered using a newly developed survey and
analysed using SPSS. The study established that a significant number of
enterprises were started out of necessity, with the majority of initial funding
coming from personal capital. The findings further revealed a great need for
financial literacy among the owners; however, funds to grow their enterprises
seemed the greatest need. In addition to contributing to the limited corpus of data
on small and micro-enterprises in South Africa, this study provides valuable
insight into start-up motivation and financial literacy and support needs of small
and micro-enterprises. This should be useful in establishing interventions to spur
on enterprise start-ups and addressing the need for financial literacy. Relevant
government departments should consider implementing an advisory programme
for prospective enterprise owners before funding is granted, as well as a financial
literacy mentorship tier programme for small and micro-enterprises. Furthermore,
an opportunity exists for the Unemployment Insurance Fund to contribute in this
regard by implementing an entrepreneurship training programme.

References

  • ANZ Banking Group. 2003. ANZ Survey of Adult Financial Literacy in Australia – Final Report. http://www.financialliteracy.gov.au/media/465156/anz-survey-ofadult-financial-literacy-2003.pdf accessed 9 September 2014. Barte, R. 2012. Financial literacy in micro-enterprises: The case of Cebu fish vendors. Philippine Management Review, 19(1), 91-99.
  • Benzing, C. & Chu, H.M. 2009. A comparison of the motivations of small business owners in Africa. Journal of Small Business and Enterprise Development, 16(1), 60-77.
  • Boubala, H.G.O. 2010. Risk Management of SMMEs. PhD Thesis. Cape Town: Cape Peninsula University of Technology.
  • Bowen, M., Morara, M. & Mureithi, S. 2009. Management of business challenges among small and micro enterprises in Nairobi-Kenya. KCA Journal of Business Management, 2(1), 16-31.
  • Chimucheka, T. & Rungani, E.C. 2011. The impact of inaccessibility to bank finance and lack of financial management knowledge to small, medium and micro enterprises in Buffalo City Municipality, South Africa. African Journal of Business Management, 5(14), 5509-5517.
  • Department of Trade and Industry. 2008. Annual Review of Small Business in South Africa 2005-2007.
  • http://www.dti.gov.za/sme_development/docs/3%20Annual%20Review%20Final %20Report%2011%20Aug%2008.pdf accessed 16 September 2014.
  • Entrepreneur Magazine (2016). DTI Funding. Retrieved from http://www.entrepreneurmag.co.za/advice/funding/government-fundingfunding/dti-funding/ accessed 1 September 2016. European Commission. 2006. Final Report of the Expert Group on Management Capacity Building.
  • http://ec.europa.eu/enterprise/policies/sme/files/support_measures/mcb/mcb_en.p df accessed 16 September 2014.
  • Falissard, B. (2012). Analysis of questionnaire data with R. Boca Raton, FL: CRC Press.
  • Fielden, S.L., Davidson, M.J. & Makin, P.J. 2000. Barriers encountered during micro and small business start-up in north-west England. Journal of Small Business and Enterprise Development, 7(4), 295-304.
  • Headd, B. 2003. Redefining business success: Distinguishing between closure and failure. Small Business Economics, 21(1), 51-61.
  • Irwin, J. 2013. Management decisions are key to business resilience. Grand Rapids Business Journal, 31(45), 22.
  • Kolvereid, L. & Isaksen, E. 2006. New business start-up and subsequent entry into self-employment. Journal of Business Venturing, 21(6), 866-885.
  • Kvedaraite, N. 2014. Reasons and obstacles to starting a business: Experience of students of Lithuanian higher education institutions. Management Journal of Contemporary Management Issues, 19(1), 1-16.
  • Ligthelm, A.A. 2008. A targeted approach to informal business development: The entrepreneurial route. Development Southern Africa, 25(4), 367-382.
  • Louw, J.L. 2009. Financial Literacy Competencies of Third-year University Students: A Case Study. Master’s Dissertation. Potchefstroom: NWU. Lusardi, A. & Mitchell, O.S. 2011. Financial literacy around the world: An overview. Journal of Pension Economics and Finance, 10(04), 497-508.
  • Lusardi, A. & Mitchell, O.S. 2014. The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
  • Mbekeni, T.J. 2009. The Success Rate of Government Programmes to Support SMMEs. MBA Mini-dissertation. Potchefstroom: NWU.
  • Miller, M., Godfrey, N., Levesque, B. & Stark, E. 2009. The Case for Financial Literacy in Developing Countries: Promoting Access to Finance by Empowering Consumers. World Bank, DFID, OECD and CGAP. http://www. oecd.org/dataoecd/35/32/43245359.pdf accessed 23 March 2016.
  • Mthimkhulu, A.M. & Aziakpono, M.J. 2015. What impedes micro, small and medium firms’ growth the most in South Africa? Evidence from World Bank enterprise surveys. South African Journal of Business Management, 46(2), 15-28.
  • National Credit Regulator (NCR). 2011. Literature review on small and medium enterprises’ access to credit and support in South Africa. http://www.ncr.org.za/pdfs/Literature%20Review%20on%20SME%20Access%2 0to%20Credit%20in%20South%20Africa_Final%20Report_NCR_Dec%202011. pdf accessed 14 February 2014.
  • National Planning Commission. 2012. National Development Plan 2030: Our future – make it work. Pretoria: The Presidency.
  • Okpara, J.O. & Wynn, P. 2007. Determinants of small business growth constraints in a sub-Saharan African economy. SAM Advanced Management Journal, 72(2), 24-35.
  • Organisation for Economic Co-operation and Development (OECD). 2000. Small and Medium-Sized Enterprises: Local Strength, Global Reach. http://www.oecd.org/cfe/leed/1918307.pdf accessed 14 February 2014.
  • Organisation for Economic Co-operation and Development (OECD). 2004. Promoting SMEs for Development. http://www.oecd.org/cfe/smes/31919278.pdf accessed 3 September 2016.
  • Roberts, B., Struwig, J. & Gordon, S. 2014. Financial literacy in South Africa: Results from the 2013 South African Social Attitudes Survey round. Report prepared by the Human Sciences Research Council.
  • Sabana, B.M. 2014. Entrepreneur Financial Literacy, Financial Access, Transaction Costs and Performance of Micro Enterprises in Nairobi City County, Kenya. PhD Thesis. Nairobi: University of Nairobi.
  • Seikei, J., Wagoki, J. & Kalio, A. 2013. An assessment of the role of financial literacy on performance of small and micro enterprises: Case of equity group foundation training program on SMEs in Njoro district, Kenya. World Academic Journal of Business & Applied Sciences, 1(7), 250-261.
  • Shaver, K.G., Gartner, W.B., Crosby, E., Bakalarova, K. & Gatewood, E.J. 2001. Attributions about entrepreneurship: A framework and process for analyzing reasons for starting a business. Entrepreneurship Theory and Practice, winter, 5- 32.
  • Singer, S., Amorós, J.E. & Arreola, D.M. 2015. Global Entrepreneurship Monitor 2014 Global Report. Global Entrepreneurship Research Association. http://www.gemconsortium.org/report accessed 3 September 2016.
  • Singh, D., Khamba, J.S. & Nanda, T. 2015. Analysis of major problems faced by small firms in north India. International Journal of Engineering Research in Africa, 15(1), 150-160.
  • Small Business Project (SBP). 2013. Developing a New Path for SMEs in South Africa: Reassessing for Growth. http://www.sbp.org.za/index.php?id=8 accessed 28 April 2014.
  • Smit, Y. 2012. A Structured Approach to Risk Management for South African SMEs. PhD Thesis. Cape Town: Cape Peninsula University of Technology.
  • South Africa. 2003. National Small Business Amendment Act No 26 of 2003. (Notice 1732). Government Gazette, 25763, 26 Nov.
  • South African Reserve Bank (SARB). 2015. The Role of Small Business in the Economy. https://www.resbank.co.za/Lists/Speeches/Attachments/452/Role%20of%20small %20business%202015%20.pdf accessed 1 September 2016. IBM. 2016. IBM SPSS Statistics Version 23, Release 23.0.0, IBM Corporation and its licensors, Armonk, NY: IBM.
  • Statistics South Africa (StatsSA). 2014. Poverty Trends in South Africa: An Examination of Absolute Poverty between 2006 and 2011. http://www.statssa.gov.za/publications/Report-03-10-06/Report-03-10- 06March2014.pdf accessed 3 September 2016.
  • Statistics South Africa (StatsSA). 2016. Quarterly Labour Force Survey – Quarter 1: 2016. http://www.statssa.gov.za/publications/P0211/P02111stQuarter2016.pdf accessed 3 September 2016.
  • Van Gelderen, M. & Jansen, P. (2006). Autonomy as a start-up motive. Journal of Small Business and Enterprise Development, 13(1), 23-32.
  • Watson, K., Hogarth-Scott, S. & Wilson, N. 1998. Small business start-ups: Success factors and support implications. International Journal of Entrepreneurial Behaviour & Research, 4(3), 217-238.
  • Zwane, T. 2014. New blood, new vigour: Lindiwe Zulu. City Press, 1 June. http://www.citypress.co.za/business/new-blood-new-vigour-lindiwe-zulu/ accessed 27 June 2014.
There are 41 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Erica Derbyshire This is me

Jaco Fouché This is me

Publication Date December 31, 2018
Published in Issue Year 2018 Volume: 10 Issue: 2

Cite

APA Derbyshire, E., & Fouché, J. (2018). ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY. International Journal of Business and Management Studies, 10(2).
AMA Derbyshire E, Fouché J. ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY. IJBMS. December 2018;10(2).
Chicago Derbyshire, Erica, and Jaco Fouché. “ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY”. International Journal of Business and Management Studies 10, no. 2 (December 2018).
EndNote Derbyshire E, Fouché J (December 1, 2018) ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY. International Journal of Business and Management Studies 10 2
IEEE E. Derbyshire and J. Fouché, “ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY”, IJBMS, vol. 10, no. 2, 2018.
ISNAD Derbyshire, Erica - Fouché, Jaco. “ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY”. International Journal of Business and Management Studies 10/2 (December 2018).
JAMA Derbyshire E, Fouché J. ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY. IJBMS. 2018;10.
MLA Derbyshire, Erica and Jaco Fouché. “ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY”. International Journal of Business and Management Studies, vol. 10, no. 2, 2018.
Vancouver Derbyshire E, Fouché J. ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY. IJBMS. 2018;10(2).