Determinants of capital structure of small and medium enterprises in the Buffalo City Municipality Eastern Cape Province South Africa

This study investigated the determinants of capital structure of small and medium enterprises (SMEs) in the Buffalo city municipality in the Eastern Cape Province of South Africa. The objectives of the study were, to ascertain whether the use of internal equity (retained profits) was positively or negatively related to the size, age and profitability of the firm. Furthermore the study examined if the use of external equity (capital from owners) was negatively or positively related to the age, size and profitability of the firm. Finally the study wanted to establish if the use of debt was positively or negatively related to the size, age and profitability of the firm. To achieve these objectives, the study hypothesised that age, size and profitability amongst other factors were determinants of capital structure. The study further hypothesised that the use of retained profits by SMEs was negatively related with age, size and profitability of the firm. Furthermore the study hypothesised that the use of external equity by SMEs was negatively related with age, size and profitability of the firm. Finally, the study hypothesised that the use of debt by SMEs was negatively related to the size, age and profitability of the firm. The results revealed that size, age and profitability of the firm were some of the major determinants of capital structure. Finally, the study recommended that SMEs, commercial banks and the South African government take measures to improve access to capital by SMEs. Such measures included government intervention in reducing discrimination from the banks as well as encouragement of SMEs training and education so that they are empowered with business and financial management skills

Gender Differences in Business Related Experience amongst Smmes Owners in King Williams Town, South Africa: A Comparative Analysis

This paper aimed at examining whether or not the level of business related experience conceptualised as managerial, industry and prior-business ownership experience differs across gender amongst SMME owners in King Williams Town, South Africa. Questionnaires were self-administered to 109 respondents (56 male and 53 female-owned SMMEs). Data obtained was statistically analysed by making use of the Chi-Square test to determine whether or not a significant association could be found between gender and the level of business related experience in the selected area of study. The findings revealed that a statistically significant association can be found between gender and the level of management experience as well as in the level of prior-business ownership experience. However, the study’s findings further revealed that no statistically significant association could be found between gender and the level of industry experience. On the basis of the findings, it is proposed that private and public firms should therefore set targets for women in senior roles as this would help female employees to acquire managerial and industry experience considered crucial in case they decide to operate their own Small, Medium and/or Micro Enterprises. Further, it is recommend that the business community, government and the community at large should encourage female business owners to work hand in hand with international networks such as the World Association of Women Entrepreneurs (FCEM) that have the potential for transferring knowledge and business related experience between different continents. DOI: 10.5901/mjss.2014.v5n20p268

The impact of financial support on the success of small, medium and micro enterprises in the Eastern Cape province

Orientation: In developing economies, the growth of the economy could be fostered and enhanced by the expansion of the private sector, as this sector is the engine of economic growth. Consequently, it is necessary to accelerate the success of small, medium and micro enterprises (SMMEs) to achieve sustainability in this sector of the economy. Research purpose: The main aim of this article was to determine the relevance of financial support offered to SMMEs by both private and public sectors on the success of businesses. Motivation for the study: The impact of finance on SMME performance is well documented from an international perspective. However, what lacks in extant literature is the understanding of whether the financial support being offered by both public and private sectors is relevant to the success of businesses. Research design, approach and method: A post-positivist paradigm was used with a quantitative research design, which made use of self-administered questionnaires to assess the relevance of financial support offered to SMMEs by both private and public sectors. Multiple regressions and correlations were computed to test the research hypotheses. Main findings: The findings suggest that SMME success is positively and significantly correlated with financial support for both private and public sectors. Practical/managerial implications: Although financial support is important, it needs to be restructured so as to incorporate practical aspects. Furthermore, private and public sectors should create an enabling environment that encourages the effective use of finances, which, in turn, will improve the success of businesses. Contribution/value-add: This article is of particular value to policymakers for ways to improve the success of SMMEs

Factors influencing student usage of an online learning community: the case of a rural South African university

Technology adoption within higher education is becoming popular. This has often resulted in hubs of learning referred to as an online learning community. The success of such platforms is dependent on full system utilisation. The study draws on a quantitative empirical investigation into the factors that influence the adoption of an online learning community amongst 252 first year students at a rural university in South Africa. The results of the study show that a positive relationship exists between online course design and student ratings of perceived usefulness and perceived interaction (PI) concerning the utilisation and usage of an online learning community. Furthermore, the online learning community’s interface design was found to be positively related to ratings of perceived ease of use but not with PI. Based on these findings, interventions are proposed, which have ramifications in working within online learning communities to benefit both the student and the lecturer

A Support Framework for SMME Success in the Eastern Cape Province, South Africa

DBA, North-West University, Mahikeng CampusPolicy makers and researchers are in agreement to the fact that entrepreneurship is crucial for the development of any economy, and therefore it is seen as the economic engine of many countries. Majority of entrepreneurs operate as small, micro and medium enterprises (SMMEs) and they contribute significantly to employment creation, gross domestic product (GDP), poverty reduction and equitable distribution of income in both developed and developing countries. The main purpose of this study was to develop a support framework for the success of SMMEs in the Eastern Cape province of South Africa. The secondary objectives of this study were to determine the effect of financial and non-financial support on the success of the business as well as determining the perceptions of SMMEs on the relevancy of SMME support from both the private and public sectors. Furthermore, the study determined if monitoring and evaluation of SMMEs performance is done after training as well as ascertaining if successful SMMEs plough back to the SMME sector. A post-positivistic paradigm was adopted and a mixed method research design was followed in conducting this research . A census of three hundred and fifty SMMEs registered in the Eastern Cape Development Agency formed part of the research population. The Statistical Package for Social Sciences (SPSS) was used to analyses data. Descriptive statistics, t-test, Chi-Square tests, Pearson Correlation, simple linear regression and multiple regression were used to analyse data. It was found that there is a significant relationship between financial support given by the public sector and SMME success used in the model however, there is no significant relationship between non-financial support given by the private and public sector and SMME success used in the model, there is concurrence in business interventions delivered by private and public sector institutions and SMMEs needs used in the model, a gap exists between SMME expectations and support provided by both the public and private sectors, monitoring and evaluation of business success after intervention and support by the private and public sector is not done and the majority of SMMEs (95%) highlighted that do not plough back to the public and private sector. These results are useful for the development of the SMME sector, which is important to South Africa. Some recommendations, including the new SMME support framework were provided to entrepreneurs, aspiring entrepreneurs, public and private sectors.Doctora

Introduction to Business Management: BEC 123F

Introduction to Business Management: BEC 123F, supplementary examination, January 2012

Introduction to Business Management: BEC 112F

Examination on Introduction to Business Management: BEC 112F, June 2011

Introduction to Business Management: BEC 121 & 121E

Introduction to Business Management: BEC 121 & 121E, Supplementary examination January 2012

Influence of gender on SME performance in emerging economies

Research purpose: The aim of this article was to establish whether or not performance between male-owned and female-owned small and medium-sized entities (SMEs) differs significantly and to assess the extent to which the gender gap in SME performance (if any) could be allocated to gender differences in levels of business-related experience. Motivation for the study: The influence of gender on SME performance is well documented from an international perspective. However, what lacks in extant literature is the understanding of whether the performance gap between male and female entity owners with similar business-related experience exists or not. This study investigated gender influence through data collected from both male and female entity owners. Research design, approach and method: The study was descriptive by design. Primary data were collected through self-administered questionnaires. Data analysis was undertaken through t-test and chi-square analysis. Main findings: The findings confirm that male- and female-owned SMEs perform at similar levels, given that such owners possess high business-related experience. Therefore, gender gap in firm performance does not exist among male and female entrepreneurs who fall either in low or high business-related experience categories. Contribution/value-add: The value of this research lies in the findings contrary to extant literature; that gender plays no role in the performance of SMEs. However, the level of business-related experience the owner holds, regardless of gender, influences the entity’s performance. Conclusion: Contrary to evidence provided in literature, the study concludes that focusing on the impact of gender on entrepreneurship with the aim of comparing business outcomes of male- and female-owned entities, while ignoring the role of key variables such as business-related experience, may yield misleading results