Impact of the department of small business and development on the performance of small, medium and micro enterprises in Durban, South Africa.
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Date
2018
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Abstract
This inquiry unpacks the challenges constraining the active contribution of the Small
Medium and Micro Enterprises (SMME’s) by putting the focus on the role that is played
by institutions like the Ministry of Small Business that has been created by the
government to support SMME’s. The objective of the study was to find out from the
SMME’s the extent to which the Department of Small Business Development (DSBD)
and other institutions have been able to address the factors that have been identified
as hindering the growth of the SMME’s. The review of literature focused on theories
such as economic growth, institutional theory, network theory and social
entrepreneurship theory. The extent of the literature review examined the emerging
markets in terms of the authorities’ handling of the SMME’s performance oriented
endeavours and aspirations. The study was conducted in KwaZulu Natal, within
eThekwini Municipality. The population of the study comprised of 800 SMME’s of
which a sample of 260 was chosen. The research approach that was employed was
the quantitative methodology. Data was collected by means of structured selfadministered questionnaire. The results of the study revealed that the majority of
SMME’s have never received grants, loans, finances, favourable discounts, and
favourable credits. The result of the study revealed that the majority of SMME’s have
never received grants, loans, finances, favourable discounts and credits form
conventional banks and big companies. Furthermore the majority of the respondents
indicated that DSBD has not been able to assist them as it was envisaged it would do.
The study showed that the technical support, access to markets, business
environment, business climate, competitive business landscape and the external
environment in general is not conducive for the SMME’s to thrive. The study revealed
that there is stride that DSBD is playing concerning the creations of networks,
collaborative partnership and associations although less than 50% indicated so. It is
recommended that the financial resources be made more accessible by the SMME’s
irrespective of where they are and that the policy-makers must reinforce the laws that
compels big companies to spend the 3% of the post-tax profit as the compliant
requirement in the support of SMME’s. It is further, recommended that the DSBD
should do more in stimulating the Economic Growth Factors on behalf of the SMME’s
should facilitate the coordination of different institutions in assisting them not to work
silos. . Lastly, the study recommended that the SMME innovation and capacity
building, which translate into market opportunities, should be the focal point of
attention for the DSBD.
The literature review explored various concepts, theories and typologies that influence
policy directives that provides stimulus for entrepreneurial activation. Theoretical
framework focused on various theories that has levelled the entrepreneurial playing
field for the SMME’s to thrive. The research design employed was the quantitative
methodology. Data was collected by means of structured self-administered
questionnaire. Furthermore, the majority of the respondents indicated that the DSBD
has not been able to assist them as envisaged.
Description
Doctoral Degree. University of KwaZulu-Natal, Durban.