Exploring business and owner traits of small and medium enterprises that exhibit increased revenues in South African townships : the case of selected townships in Strand

[摘要] ENGLISH ABSTRACT:Apart from meeting basic customer needs, small and medium enterprises in the townships are a source of employment and livelihood for many. Businesses in the townships of the Strand have mushroomed from a formerly neglected area, like others in various townships throughout South Africa. Yet very little is known about them and their owners. What are their characteristics? What traits distinguish those that make higher revenues from the rest?Many of these small businesses have emerged without government assistance, even though such support is often seen as a non-factor in determining the rate of an enterprise's growth. Entrepreneurship, as literature often explains, is a dynamic endeavour which requires a business founder to display both determination and skill. Yet very few businesses normally survive the early stages. Many aspects of entrepreneurship need to be practically learned to enable the business to overcome many prevalent obstacles, and thus enable the enterprise to grow and contribute to job-creation.Not all entrepreneurs are alike in their capability to spot an opportunity. Also, entrepreneurs differ in their ability to either steer or set up systems to take an enterprise through its various transitions. Yet still, the financial strategic decisions made at inception stage often influence the rate at which businesses will generate revenues later in existence. Government, both local and national, has a responsibility to provide an enabling environment for businesses to thrive.Using a study of spaza and informal trade done in the past by Unisa and by Bojanala Platinum District Municipality as a baseline, this study surveyed 60.6 percent of businesses in the Strand townships that were identified through the database of both Khanyolwethu School and Sinobulumko Business Association. The main areas of focus were – the socio-economic and demographic profile, the physical characteristics, financing, relationship with suppliers, transport, income/turnover and traits that distinguish higher-revenue businesses from others.Analyses through the Mann-Whitney U, the Spearman's rank correlation coefficient, the chi-square and the Kruskal-Wallis test then showed that the businesses that tend to make larger monthly revenues are those that are owned by males, using cheque accounts for the business, and those whose main suppliers deliver merchandise to their premises. The businesses that make larger daily revenues were shown to be those that are owned by males, registered with CIPRO, using cheque accounts for the business and those whose owners have Grade 7 to 9 qualifications and above.For government, the results of this study call for a further refining of the criteria used for loaning to businesses in townships, as well as to make the public more aware of the assistance provided by government's business support agencies. For banks, the study calls for the designing of a 'Spaza Account', tailored to the needs and skills level of businesses owners in the townships. Socially, the study calls for the tearing down of all the walls that make it difficult for open trade to take place

[发布机构] Stellenbosch University