https://ir.unisa.ac.za/handle/10500/19910 2026-06-22T11:35:54Z https://ir.unisa.ac.za/handle/10500/32650 The financing of small businesses in the Greater Soweto Area Dhlamini, Alfred Siphiwe Small business plays an important role in the economies of all countries where the free enterprise system is the accepted economic system. Small business, firstly, accounts for a large proportion of the economic activity, and secondly plays a major role in job creation. According to Sunter (1993a:82), 95 per cent of the jobs being created worldwide are in the small business and informal sectors. However, small businesses mostly find it difficult to raise funds to operate due to a number of problems as indicated by Vos loo (1989d: 1). This study seeks to investigate the financing of small businesses in the Greater Soweto Area with particular reference to the different sources of finance available to small business, the factors that influence the capital requirements of small businesses, the actual sources of finance utilized by small businesses in the greater Soweto Area, the extent of the use of informal finance by small businesses .and the financing problems experienced by small businesses in the Greater Soweto Area. The study is divided into three main sections. Firstly, a literature study of the subject is undertaken. Secondly, an empirical study i"s conducted by means of data collected from 400 small businesses in the Greater Soweto Area. The data is analyzed and reported on. Thirdly, a number of conclusions are drawn from the analyses of the data (see section 5.2) and a number of recommendations are made (see Section 5.4). In Section 5.5 areas for further research are proposed 1994-01-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/32649 Stremmende faktore wat inwerk wat bestuursontwikkeling by vulstasies Duvenage, J. B. This summary is a synopsis of the main findings of the thesis. Recommendations are made to indicate how strategies can be implemented in order to counteract elements that hamper management development at filling stations. The scope of the investigation of elements that counteract management development at filling stations was very wide because a large number of elements had to be singled out and described in detail. Specific areas were identified for further study after which perceptions about entrepreneurs had to be tested and analysed statistically. These statistics are part of the research for this thesis and intended researchers of this and other related areas should be able to utilise these fruitfully. Specific problem areas came to the fore. Such elements are singled out briefly and recommendations regarding improved circumstances are made. In South Africa, filling stations and especially small businesses are not only faced with a crisis but also with challenges as a result of the unique business environment in this country. On the one hand, entrepreneurs experience an extensive shortage of schooled and well-trained employees who are suitable for employment. On the other hand, there is extensive unemployment among unschooled, (untrained) employees. It is this researchers opinion that South Africa is being confronted with great challenges including the fact that, within the filling station enterprise, there should be serious attempts to increase productivity. In order to overcome this problem, employees should not only be trained and developed, but there is also an extensive shortage of properly schooled entrepreneurs and supervisors. Training and development are the responsibilities of the relevant business management. During the research phase of this study, entrepreneurs were questioned on which of the following problems filling stations experience most often. A few problem areas were named and were identified through questionnaires after which respondents reacted to a five-point scale. FINDINGS The most significant problems identified by the researcher are: • Low profit margins Low gross and net profit margins were also identified in this research as specific problems within the business enterprise. • Government regulations When considering the respondents, it was found that 38. 7% are of the opinion that government regulations are of little or no importance. In contrast, rural entrepreneurs feel strongly about this aspect as 75.0% feel that this aspect is of the greatest importance, thus requiring attention. Summary • Shortage of quality employees It was found that 11.8% of the respondents are of the opinion that the quality of the employees is of little or no importance. The question is thus how a filling station can continue existing with poor quality employees, particularly considering that a filling station is a business that provides a service. • Inadequate employee training Research has shown that 27.2% of the urban entrepreneurs as opposed to the 16. 7% of rural owners regard employee training as of little or no importance. From the above-mentioned statistics, it is clear that there is a significant shortage of training programmes within filling station enterprises. • Tax (income tax and VAT) A relevant question in this context is why tax should be paid. Experts stress the traditional role of the income tax assessment as means of generating sufficient money for the government coffers but the importance of alternative aims such as the stimulation of economic growth and job creation are also singled out. It has been found that 87.9% of the respondent's regard income tax as an obstacle. The payment and administration of tax within the business enterprise is of greatest importance to the entrepreneur. Particular reference has been made to the shortage of capital and other obstacles Summary such as access to financial sources, the high cost of the administration of tax laws and other government regulations within the filling station enterprise. Deficiencies within the South African system are: • a shortage of qualified employees; • inadequate use of modem technology; • inadequate attempts at policing the system; • more feedback to honest payers regarding the taxing of groups that are difficult to trace. • Business plan There is a shortage of knowledge regarding the composition and implementation of a business plan for the filling station enterprise. • Stock control Entrepreneurs agree that the low gross profit that is achieved is lowered even further by the high cost of the above-mentioned type of enterprise. • Shortage of schooled and well-trained entrepreneurs. As has been mentioned, research has revealed that there is a shortage of schooled and well-trained entrepreneurs. A related problem is that of inadequate managerial knowledge. More or less 51.5% of the respondents indicate that this is a very important aspect within the business and 60.6% of the respondents indicate that an inadequate managerial information system causes extensive problems. A group of Summary 67.9% mean that group training is essential for entrepreneurs. • Communication A significant reason for concern is the fact that only 16.1 % of the total number of entrepreneurs regard communication between the business and community as significant. Communication (one of the seven additional tasks of a manager) is regarded as one of the most important activities both within and outside of the business. In the absence of an effective communication system, no business can survive since contact with the consumer - the lifeline of the business - is severed. By means of extensive analysis of collected and determined statistics it was found that 19.3% of entrepreneurs held the viewpoint that communication between the business and community is of little or no importance. From this analysis it can be deducted that communication within and outside of the filling station enterprise is not of adequate standard and that conscious attempts must be made to improve this situation. Successful communication is one of the most serious problems confronting the entire South African population. In general people, especially business people, communicate poorly since reading skills have been neglected. • Competition Research done for this doctoral thesis has revealed clearly that competition is a very inhoudsopgawe important, yet simultaneously inhibiting and non-inhibiting factor, within the enterprise. There are a fair number of techniques and methods that can be utilised in order to counteract unhealthy competition. • Inflation In general, 87.9% of the respondents indicated that inflation has an extensive influence on the business enterprise. Subsequently, it is regarded as of great significance. Statistics show that there were no respondents in rural areas that were of the opinion that inflation is of no or little importance. In contrast, 19.1% of the urban entrepreneurs are of the opinion that inflation is unimportant. RECOMMENDATIONS Recommendations can be found in Chapter 6 (see Low profit margins, p 218, Government regulations, p 223, Shortage of quality employees, p 224, Inadequate employee training, p 227, Tax (income tax and VAT), p 227, Business plan, p 233, Stock control, p 234, Shortage of schooled and well-trained entrepreneurs, p 237, Communication, p 238, ompetition, p 239 and Inflation, p 243). CONCLUSION Additional significant inhibiting elements were identified. These can be researched and analysed further through follow-up studies. Within the context of this study, the above-mentioned elements are regarded as the most significant. 2000-07-14T00:00:00Z https://ir.unisa.ac.za/handle/10500/32647 Outsourcing in the forestry industry in South Africa: a study of the indicators for long-term sustainability Van Loggerenberg, Carl The business environment is changing globally more rapidly than most individuals and organisations are willing to accept or are prepared to anticipate. The forestry industry itself is faced with various changes in the political, economical and social environment. Change is marked by the globalisation of timber markets, new technology, reformed political regulations and changing values in rural societies. Initially outsourcing was all about costs - finding someone who could do the same job, better, faster, cheaper or all three. Outsourcing then became strategic - the focus encompassing the even larger opportunity costs savings that come when an organisation reinvests the freed resources back into even higher value producing processing capabilities. Management is currently looking at their outsourcing partners to do all these things and to become sources of innovation - helping them to create new ways of doing business. However, companies often do not choose outsourcing partners with any degree of science or structure and then they fail to appreciate that business is dynamic. The deal negotiated today will probably be obsolete before pen is put to paper. Outsourcing initiatives require governance and ongoing management to ensure success. Governance ensures that the partners understand the what, when and how of the outsourcing agreement, as well as the roles and responsibilities of each partner. Ongoing management ensures cost savings don't just come from labour arbitrage but from improved productivity as well. Outsourcing does not remove the principle companies need to manage the process. A comprehensive outsourcing arrangement requires monitoring and redefining as well as strategic management and other retained functions. Every time an organisation outsources successfully, it lowers its costs, improves its balance sheet, reduces its business risks, and expands its capabilities. If outsourcing is to continue to grow over the next ten years and to be sustainable then organisations will have to produce better results with greater regularity and at lower costs. Doing this will take a collaborative effort from all the stakeholders. This research document will explore the presence of indicators for sustainable outsourcing. The approach will be to deal with both the 'hard' management tools and processes which should be uitilised and the 'softer' issues of what should be being communicated and the personal styles and attributes required to achieve outstanding sustainable results 2006-01-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/32646 Is the manufacturing sector an engine of growth in South Africa? an analysis of the Eastern Cape Dyubhele, N. (Noluntu) In this thesis the manufacturing sector is assumed to be an engine of growth in South Africa, specifically in the Eastern Cape. The nature of the study is set out in Chapter 1. lts importance in the future economic growth and development of South Africa and the Eastern Cape is stressed by the various theories that are discussed in Chapter 2. Chapters 3 and 4 survey general evidence on the manufacturing industry in South Africa and the Eas1ern Cape. The manufacturing industry in South Africa and the Eastern Cape is at present passing through a difficult period of reorientation and reassessment. lts very success in industrial expansion has created problems. Chapter 5 analyses the problems encountered by the manufacturing industry, both in South Africa and the Eastern Cape. Finally, a summary of the main findings and recommendations on the study are outlined in Chapter 6. The manufacturing industry in South Africa began with the production of certain products for the mining industry. Furthermore, consumer goods were produced for the small and protected home market. The manufacturing sector has been performing below its potential since the early 1990s. This has inhibited growth, employment and development. Since the late 1990s, the manufacturing industry has been on the road to recovery. It is universally acknowledged that the manufacturing industry bas to face international competition in order to strengthen its role as the leading sector. South Africa and the Eastern Cape have to achieve a satisfactory growth rate in total output and employment. This is mainly due to the pressure of a rapidly growing population, a large part of which has a relatively low standard of living. The manufacturing industry, however, is regarded as the key to growth in an economy. This is mainly because of the limited development opportunities in agriculture and mining, and the unsustainable nature of service sector. In fact, the manufacturing industry is closely integrated with the primary sector and the service sector. Employment is one of the indicators of the size and importance of manufacturing. The declining share of employment in manufacturing is a world-wide problem. This problem cannot be easily solved. The service sector has not solved the employment problem. Empirical evidence shows that economies which can generate wealth from manufacturing and have innovative manufacturing activities, increase their chances of creating more employment opportunities. Hence, the manufacturing sector is estimated to be an engine of growth even in South Africa and the Eastern Cape. 2000-01-01T00:00:00Z