The Role of Basic Business Skills Development and Their Influence on South African Small, Medium and Micro Enterprise Sustainability
Keywords:
Basic business skills, Small, Medium & Micro Enterprises, South Africa, sustainability
Abstract
South African Small, Medium and Micro Enterprises (SMMEs) have received vast amounts of attention from both government and scholars over the years, mainly due to the socio-economic value they add to the national economy. Notwithstanding the importance of these business entities to the South African economy, prior research suggests that South African SMMEs have one of the worst sustainability rates in the world; mainly attributable to the influence of unmanaged economic factors. Included in these economic factors is the matter of a scarcity of skills, particularly that of basic business skills. Though limited research has been conducted on the individual business skills which require development in South African SMMEs the perception was formulated that the development of basic business skills in these business entities may have a positive influence on their attainment of key businesses objectives in the foreseeable future. As such, empirical research was performed which fell within the positivistic research paradigm; data were gleaned from South African SMME management through means of a questionnaire. Stemming from the results, it was found that although there is a dire need for the development of basic business skills in South African SMMEs. It can be argued that some basic business skills were more important to develop than others as only a few had a positive influence on the attainment of business objectives.
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References
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Mateus, A., Allen-Ile, C. & Iwu, C. (2014). Skills Shortage in South Africa: Interrogating the Repertoire of Discussions. Mediterranean Journal of Social Sciences, 5(6), 36-73. Meyer, D. (2016). Predictors of poverty: A comparative analysis of low income communities in the Northern Free State region, South Africa. International Journal of Social Sciences and Humanity Studies, 8(2), 132-149. Mittelstaedt, E. & Wiepcke, C. (2007). Ökonomische Bildung zur nachhaltigen Entwicklung von Business Skills. Moloi, N. (2013). The sustainability of construction small-medium enterprises (SMEs) in South Africa. University of Witwatersrand. Johannesburg: Unpublished Manuscript (dissertation). Mouloungui, S. (2012). Assessing the impact of finance on small business development in Africa: the cases of South Africa and Gabon. Tswane University of Technology. Twsane: Unpublished Manuscript (dissertation). Mughan, T., Lloyd-Reason, L. & Zimmerman, C. (2004). Management Consulting and International Business Support for SMEs: Need and Obstacles. Education and Training, 46(8/9), 424-432. Nagarajan, G. & Sheriff, J. (2013). Emerging challenges and prospects of FMCG product development in India. International Journal of Marketing, Financial Services & Management Research, 2(1), 41-52. Naidoo, R. & Urban, B. (2010). The relevance of operational skills towards business sustainability: a focus on SMME manufacturers in the Vaal Triangle region. Acta Commercii, 10(1), 234-248. OECD. (2015). OECD Economic Surveys: South Africa 2015. Retrieved from http://www.treasury.gov.za/publications/other/OECD%20Economic%20Surveys%20South%20Afr ica%202015.pdf Olawale, F. & Garwe, D. (2010). Obstables to the growth of new SMEs in South Africa: A principal component analysis approach. African Journal of Business Management, 4(5), 729-738. Onoh, B. (2011). Basic Accounting Skills Needed by self-Employed Building craftsmen Through Entrepreneurship Education. International Technology Research Journal, 2(1). Panco, R. & Korn, H. (1999). Understanding factors of organizational mortality: considering alternatives to firm failure. Retrieved from http://www.eaom.org/AnnualMeetings/Philadelphia1999/Papers/PancoRobert.html Polity. (2013). Statement by the National Treasury, on the Youth Employment Tax Incentive. Retrieved from http://www.polity.org.za/print-version/sa-statement-by-the-national-treasury-on-the-youthemployment-tax-incentive-20092013-2013-09-20 Radas, S. & Božić, L. (2009). The antecedents of SME innovativeness in an emerging transition economy. Technovation, 29(6-7), 438-450. Ramukumba, T. (2014). Overcoming SMEs challenges through critical success factors: A case of SMEs in the Western Cape Province. South Africa. Economic and Business Review, 16(1), 19-38. SAICA. (2015). SAICA history. Retrieved from https://www.saica.co.za/About/SAICAHistory/tabid/70/language/en-ZA/Default.aspx Siwangaza, L., Smit, Y., Bruwer, J. P. & Ukpere, W. (2014). The status of internal controls in fast moving small medium and micro consumer goods enterprises within the Cape Peninsula. Mediterranean Journal of Social Sciences, 5(10), 163-175. South Africa. (1996). National Small Business Act No. 102 of 1996. Pretoria: Government Printer. South Africa. (2016). National Assessment Curricula No. 3 of 2016. Pretoria: National Government. Strydom, J. W.& Tustin, D. (2003). Small business skills audit in PERI-URBAN areas of Northern Tshwane. Bureau of Market Research. Thabethe, E. (2013). Speaker at the SMME Breakfast Seminar. Bulawayo, Zimbabwe. Thórisson, K., Nivel, N., Steunebrink, B., Helgason, H., Pezzulo, G., Sanz Bravo, R.& Jonsson, G. (2014). Autonomous Acquisition of Natural Situated Communication. IADIS International Journal on Computer Science And Information Systems, 9(2), 115-131. Thornhill, S.& Amit, R. (2003). Learning about failure: bankruptcy, firm age and the resource based view. Organisation Science, 14(5), 497-509. Trading Economics. (2017). South Africa Unemployment Rate. Retrieved from http://www.tradingeconomics.com/south-africa/unemployment-rate Tregenna, F.& Tsela, M. (2012). Inequality in South Africa: The distribution of income, expenditure and earnings. Development Southern Africa, 29(1), 35-61.
Van Calker, K., Berentsen, P., Giesen, G.& Huirne, R. (2005). Identifying and ranking attributes that determine sustainability in Dutch dairy farming. Agriculture and Human Values, 22(1), 53-63. Wiese, J. (2014). Factors determining the sustainability of selected small and medium-sized enterprises. North-West University. Potchefstroom: Unpublished Manuscript (thesis). Woolard, I., Kneebone, P.& Lee, D. (2003). Human resources development review 2003: Education, employment and skills in South Africa. Cape Town: HSR. World Bank. (2017).Country Dashboard: South Africa. Retrieved from http://povertydata.worldbank.org/poverty/country/ZAF World Economic Forum. (2014). Matching Skills and Labour Market Needs – Building Social Partnerships for Better Skills and Better Jobs.Global Agenda Council on Employment. Worldometers. (2017). South Africa Population. Retrieved from http://www.worldometers.info/worldpopulation/south-africa-population/.
Published
2018-05-19
How to Cite
Bruwer, J.-P., & Smith, J. (2018). The Role of Basic Business Skills Development and Their Influence on South African Small, Medium and Micro Enterprise Sustainability. Journal of Economics and Behavioral Studies, 10(2(J), 48-62. https://doi.org/10.22610/jebs.v10i2(J).2216
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Research Paper
Copyright (c) 2018 Juan-Pierré Bruwer, Judith Smith
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