COMPARISON BETWEEN SOUTH AFRICAN SERVICE INDUSTRY SECTORS’ REQUIREMENTS FROM UNIVERSITY BUSINESS INCUBATORS

Year 2020, Volume: 12 Issue: 1, 225 - 240, 19.02.2020

Rita Klonaridis

Abstract

The South African economy is in dire need of a boost as it is currently being characterised by low growth, high unemployment and poverty. The South African government has prioritised the development of small, medium and micro enterprises (SMMEs) as they are capable of stimulating the economy. However, small organisations face multiple challenges in the stringent economy. University Business Incubators (UBIs) offer support to small organisations and supplement their development to an extent where they may become self-sustainable in the market. UBIs offer incubation programmes, which include a variety of services ranging from physical facilities, general business services, management services, networking and professional services, financial consulting services and university services. To be successful, UBIs should create a balanced fit between their service offerings and the needs of small organisations, as a one-size-fits-all service offering may not succeed when considering different industries, countries and regions. The purpose of this study was to determine the difference between the service industry sectors, namely auto, estate agents and property management, health care and beauty, hospitality and accommodation and professional services, service offering requirements from UBIs. A descriptive research design was followed, whereby a non-probability judgment sample of 108 small service organisations (SSOs), situated in the Vaal Triangle region of South Africa, was taken. A structured self-administered questionnaire, containing the various UBI service offerings, was distributed to the owners or managers of the SSOs. The statistical analysis of the collected data included descriptive statistics and one-way ANOVA. The findings indicate that statistically significant differences were found between the service industry sectors, relating to the physical facilities and networking and professional service offerings of the UBI. These statistically significant differences were found to have medium effect sizes, pointing towards practical significance. As such, it is recommended that UBIs utilise their service offerings to develop unique marketing strategies for the service industry sectors.

Keywords

Small organisations, SMMEs, University Business Incubators (UBIs), service industry, South Africa

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