THE INFLUENCE OF PRIVATE AND PUBLIC FINANCE ON THE PERFORMANCE OF SMMEs IN THE FREE STATE: A CASE OF AFRO HAIR SALONS IN MANGAUNG METROPOLITAN AREA

Published ThesisThis study examines the combined influence of public and private funding on the growth and profitability of small, micro and medium enterprises (SMMEs) in the beauty and cosmetology industry. The study drew from an awareness of the fact that the growing body of literature that identifies finance as a major obstacle to the performance of SMMEs in developing countries tends to be indiscriminate about the nature and source of funding. The scant literature that examines the isolated influences of private and public funding on SMME performance makes the unravelling of the combined influence of these different funding sources on the performance of emerging firms a distant reality. More so, the literature on the environmental and organisational variables that mediate the funding-performance relationship in small, emerging firms remains deeply fragmented, hence the study. The choice of the beauty and cosmetology industry was informed by the fact that many hair saloon businesses are predominantly owned by foreign nationals, who frequently struggle to finance their businesses due to their disqualification from public and private funding on nationality and perceived risk grounds. The study drew on a quantitative approach and survey research design, in which 150 structured questionnaires were administered to Afro hair salon SMMEs in the Mangaung Metropolitan Area, which covers Bloemfontein, Botshabelo and Thaba Nchu. A total of 110 questionnaires were correctly completed and returned, representing a response rate of 73%. The combined influence of private and public finance on performance was established using correlational analysis to reveal the significance and size of these relationships. The findings suggest that there is a weak relationship between the both sources of funding and firm performance. Furthermore, the study revealed that most SMMEs depend on private funding, especially loans from Matshonisas (i.e. individual private lenders located in former townships), community or group savings, and family and friends than public funding. The study recommends multiple interventions that broaden access to public funding, improve SMME owner/managers awareness of public funding institutions and improve financial inclusion in funding options available for SMMEs

Report to the Low Pay Commission on the impact of the national minimum wage on the hairdressing sector

This report was commissioned by the Low Pay Commission in order to explore the impact of the National Minimum Wage (NMW) on the hairdressing sector. The research was undertaken by a team from the University of Greenwich (the Greenwich team). It was conducted in partnership with the National Hairdressers' Federation (NHF), the Hairdressing Employers' Association (HEA) and the Hairdressing and Beauty Industry Authority (HABIA) who assisted with information about salons

The Influence Of Private And Public Finance, Organisational And Environmental Variables On The Performance Of Beauty Salons In The Free State, South Africa: A Theoretical Perspective

Although small, micro and medium enterprises (SMMEs), such as hair salons, have harnessed a subtle combination of private and public funding to bankroll their business operations, literature on the performance of SMMEs in developing countries that often identifies finance as a major obstacle to the SMMEs’ survival, tends to be uncritical about the nature and sources of funding. In view of the fragmented nature of the literature that examines the isolated influences of private and public funding on performance, it becomes difficult to unpack the combined influence of these different funding sources on the performance of emerging firms. The problem is compounded further by the existence of limited literature that focuses on the environmental and organisational variables that mediate the funding-performance relationship in small emerging firms. This article considers a critical integrated approach that is located at the intersection of types of funding (private and public funding), mediating organisational and environmental factors and performance, in explaining the SMME performance, well aware that there is a potential for large firms to crowd out the growth opportunities of SMMEs and the insufficiency of the “wicked financial problem” in explicating the performance of such firms. The theoretical study adopts hair salons as a metaphor for an otherwise large, complex beauty and cosmetological industry in its exploration of the combined influence of private and public funding on the performance of SMMEs, with organisational and environmental concepts as mediating variables. The study deviates from mainstream studies that tend to accord significance solely to finance in SMME development and therefore, places financing, organisational and environmental variables as key variables in explaning successful business performance. The main contribution of this paper is a conceptual framework that is based on the view that financing-performance does not occur in vacuum, but is rather mediated by organisational (human resources, technological acquisition, staff training and education) and environmental (technology acquisition, firm location, competition) variables

Awareness of the minimum wage in the hairdressing industry : an evaluation of the DTI/HMRC targeted campaign : a research report for the Low Pay Commission

The Low Pay Commission (LPC) commissioned Professors White and Croucher to carry out an evaluation of the Department for Trade and Industry (DTI) and HM Revenue and Customs’ (HMRC) pilot targeted National Minimum Wage enforcement campaign in the hairdressing sector. The aim of the project was to evaluate the effectiveness of DTI/HMRC’s first targeted enforcement campaign to raise awareness of the minimum wage and tackle non-compliance in the hairdressing sector. The project was to focus on the awareness side of the campaign. Specifically, the research should identify: · Whether the level of awareness of the minimum wage, amongst both workers and employers, has increased as a result of the campaign. · The aspects of the campaign that were most effective, and those that have had least impact. · Particular areas of the minimum wage provision where there is confusion or misunderstanding. · Levels of awareness of the NMW Helpline and how to make a minimum wage complaint. · Any changes that could be made to future campaigns to increase their impact. · Any evidence arising on the campaign’s effectiveness in tackling noncompliance

RELATIONSHIP MARKETING MODEL FOR HAIR SALONS IN THE FREE STATE PROVINCE

Published ThesisThe increasing rate of the establishment of hair salons in the Free State province has led to fierce competition in hair salons’ businesses. With increased competition, it is hoped that a framework to support competitive activities that meet and exceed customer preferences and requirements could be helpful. This study develops and presents relationship marketing framework that provides support for hair salons competitiveness and growth. The study applied both qualitative and quantitative research method. The quantitative phase used survey data collection method, to collect data from 145 respondents, randomly selected owner/managers of hair salons and customers from Bloemfontein in the Free State Province of South Africa. These responses were supported with personal interview (i.e. qualitative) to improve generalizability of research finding. The empirical findings show evidence of lack of awareness and importance of relationship marketing activities in the hair salons for competitiveness. Despite the lack of awareness, a positive relationship between relationship marketing framework and hair salon competitiveness and growth was found. The relationship marketing model adopted would provide strategic support and adequate information on small business performance which would prove useful for their marketing planning

Applying behavioural theory to the challenge of sustainable development: using hairdressers as diffusers of more sustainable hair-care practices

The challenges presented by sustainable development are broadly accepted, yet resource use increases unabated. It is increasingly acknowledged that while technical solutions may play a part, a key issue is behaviour change. In response to this there has been a plethora of studies into how behaviour change can be enabled, predominantly from psychological and sociological perspectives. This has resulted in a substantial body of knowledge into the factors that drive behaviour change and how they can be manipulated to achieve desired social goals. In this paper we describe a study that draws on this body of knowledge to design an intervention to drive behaviour change across the hairdressing sector, and by the process of diffusion, across the vast social networks of this occupational group to influence domestic hair-care practices. The intervention was successful: hairdressers indicated positive intentions to adopt more sustainable practices within their salons and pass them onto their customers. The customer survey (N=776) confirms this: customers surveyed after their hairdresser attended the Green-Salon-Makeover intervention were significantly more likely to report that environmental issues had been considered in their salon visit and that they themselves would consider such issues in their hair-care practices at home than customers who were surveyed before the intervention

The status and influence of marketing research on the economic performance of hair saloons in the Bophirima region

Thesis (M. Tech. ( Business administration )) - Central University of technology, Free State, 2012Proliferation of the hair salon business in the Bophirima region has led to intense competition for customers and this can have unfortunate consequences for hair salon’s competitiveness hence survival and economic performance. The only choice left for hair salons in the words of owner/managers who were informally interviewed is to obtain accurate information on market trends and customer preferences so as to tailor products and services to meet customer preferences. From a strategic management perspective, it makes perfect sense that in the highly competitive arena that hair salons in the Bophirima find themselves, research on industry environment to obtain accurate information on market trends and customer preferences so as to tailor products and services that meet customer preferences is a must if they are to prosper. In other words, hair salons in the Bophirima region need to conduct marketing research if they must prosper. Conceptually, it is argued in this study that market research will reveal variables such as market demand, market opportunities, market threats, etc. which if scientifically analysed can produce information that can aid management in making informed decision that can lead to superior business performance. Unfortunately, there is the perception among the few hair salon operators informally interviewed in the Bophirima region that for small businesses such as hair salons, engaging in marketing research will be too expensive, cumbersome, and time consuming hence unnecessary. However, this perception may not be true as normative assertions and research evidence elsewhere suggests that for service organisations, regardless of size, marketing research leads to superior performance. The purpose of this study was to determine the status of marketing research within the hair salons in the Bophirima region and the impact that hair salon’s engagement in generally accepted (conventional) elements of marketing research activities have on the economic performance (as measured by profitability). Analysis of data obtained from 118 owner managers suggest that marketing research may not be something they engage in although they are very much aware of the business benefits of engaging in marketing research. The findings also suggest possible positive link between marketing research activity and profitability. Details of the research as well as conclusions and recommendations are presented and discussed in the report that follows

Nikita Cabeleireiros wants to improve the efficiency of its customer relationship management by adopting an appropriate CRM strategy

The positions SMBs (Small and Medium Businesses) have in national economies have been increasing, being extremely important to the development of the economies. SMBs are seeking more and more CRM applications, for this reason, CRM as been having a rapid development in the last years. My master project will study a CRM implementation on Nikita Cabeleireiros, a small business in a common local market, and examine the CRM key risks and benefits. Another concept is presented, CEM (Customer experience Management), as the next competitive advantage and differentiator factor between SMBs. The literature review resulted from an intensive research and will analyze previous research concerning the topics mentioned above. The outcome of this research shows that SMBs should embrace a customer-centric strategy, as CRM strategy, in order to achieve higher customer service which will lead to higher customer retention and customer loyalty. This study should be a useful tool to SMBs adopting CRM and to initiate further investigation regarding these topics.A posição que as PMEs (Pequenas e Médias Empresas) ocupam nas economias nacionais tem vindo a crescer, sendo extremamente importantes para o desenvolvimento das economias. A procura de aplicações de CRM nas PMEs tem vindo a aumentar, por esta razão, a estratégia de CRM tem apresentado um rápido desenvolvimento nos últimos anos. A minha tese de mestrado, consiste num estudo aprofundado sobre a implementação de uma estratégia de CRM na Nikita Cabeleireiros, uma PME num mercado comum. Examina, também, os principais riscos e benefícios da implementação de uma estratégia de CRM. Outro conceito é apresentado, CEM (Gestão das experiências do cliente), como próximo factor competitivo e elemento de diferenciação entre PMEs. A revisão da literatura resulta de uma pesquisa intensiva e analisa artigos e documentos referente aos tópicos anteriormente mencionados. O resultado desta pesquisa mostra que PMEs devem “abraçar” uma estratégia focada no cliente, tal como a estratégia de CRM, com a finalidade de melhorar o serviço ao cliente o que irá aumentar a taxa de retenção dos clientes e a respectiva, lealdade. Este estudo acredito que será uma evidência útil para as PMEs adoptarem um estratégia de CRM e iniciar mais investigações relativamente a estes tópicos

The Impact of Small Business Leadership on Employee Turnover

Employee turnover creates a skill loss and negatively affects productivity, reducing organizational effectiveness as well as increasing costs for recruitment and training of new employees. This important to business owners who want to sustain employees, prevent loss of profit, and productivity. Herzberg’s two-factor theory was the conceptual lens for this qualitative multiple case study which explored hair salon owners’ strategies to reduce employee turnover. The participants were 5 hair salon owners in the state of South Carolina. Data were collected through semistructured interviews and an analysis of company documents. Data were analyzed using Yin’s 5 phase process to identify patterns and themes. Member checking was completed to ensure accuracy and credibility. Three themes emerged: employee support, communication, and employee training. Investing in employees’ ideas and growth was a fundamental aspect of employee support. Having open lines of communication and creating and promoting employee training opportunities were essential in fostering employee retention. A key recommendation includes having opportunities for employees to communicate with owners. By improving their communication with employees, small business hair salon owners may reduce turnover and promote job sustainability. The implications for positive social change include the potential for salon owners to create jobs, retain employees, and support economic development in their communities