The relationship between human, social and financial capital and small and medium enterprise (SME) performance in South Africa
- Authors: Siso, Masiso Nomakha
- Date: 2024-10-11
- Subjects: Small business South Africa , Small and medium enterprises , Enterprise performance management , Financial literacy , Human capital , Social capital (Sociology) , Financial capital , Resource-based view
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/462823 , vital:76338
- Description: The COVID-19 pandemic has had a severe impact on developing countries, exacerbating economic stagnation, high poverty rates, and unemployment. South Africa, in particular, faces significant challenges, with a 35.3 percent unemployment rate and a 17.4 percent GDP decline in 2021. Small and Medium Enterprises (SMEs) are crucial during these economic challenges, traditionally employing a substantial workforce and contributing significantly to the GDP. Despite their importance, SMEs often struggle, with a small percentage surviving the initial two years. Limited research has been conducted on the resources and capabilities crucial for enterprise performance in South Africa. While studies in developed countries exist, few explore the relationship between resources and capabilities facilitating SME performance in developing contexts. This study focuses on human capital, bonding, bridging, and linking social capital, and financial capital as key resources and capabilities. Given the backdrop that many entrepreneurs in South Africa may not possess formal education or extensive work experience, this study contends that financial literacy—encompassing financial knowledge, behaviour, and attitude—serves as a proxy for human capital. Additionally, a notable portion of entrepreneurs in South Africa face a deficit in the skills and knowledge essential for identifying entrepreneurial opportunities. Even among those possessing these capabilities, the challenge lies in the lack of necessary resources, including social and financial capital, to effectively transform such prospects into viable new ventures. This study employed a causal research design and adopted a quantitative research approach within a post-positivist paradigm. The primary objective was to investigate the relationship between the following independent variables; human (where financial literacy was used as a proxy which consisted of financial knowledge, attitude and behaviour), bonding, bridging and linking social capital, and financial capital and the dependent variable; SME performance. An online self-administered questionnaire was used to gather data from SME owners/managers. A pilot study was undertaken, in which an electronic link to the questionnaire was sent to potential respondents. Potential respondents were identified using purposive and convenience sampling methods. Data collection yielded 334 usable responses from SME owners/managers in South Africa. After cleaning the data, the analysis examined the relationship between independent and dependent variables. Confirmatory Factor Analysis (CFA) and Cronbach Alpha Coefficient analysis were used to confirm the validity and reliability of the measurement instrument, respectively. Descriptive statistics, regression, and correlation results were reported. Furthermore, a group mean analysis, including independent sample t-tests and one-way ANOVAs, were performed to investigate potential significant differences in variables based on demographic and enterprise related variables. The findings revealed a significant positive relationship between financial capital and SME performance. This indicates that an entrepreneur's ability to access financial capital or possess financial capital contributes to the performance and success of enterprises in South Africa. This finding underscores the crucial role of financial capital in facilitating the growth and sustainability of enterprises, as it provides a buffer against unfavourable economic shocks, enables entrepreneurs to pursue more capital-intensive strategies, and affords them more time to learn and overcome challenges. Conversely, no significant relationships were found between financial knowledge, behaviour, and attitude, bonding, bridging, and linking social capital, and SME performance. This study contributes to the development of SMEs in South Africa by identifying the critical resources and capabilities essential for their survival and growth. Additionally, it offers valuable recommendations for policymakers to create a conducive environment for entrepreneurs and suggests potential educational initiatives and support structures. Furthermore, this study advocates for the exploration of innovative financing approaches to build a financial cushion and bolster resilience against economic upheavals. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2024
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Customer perceptions on Customer Relationship Management (CRM) and its possible influence on Revenue Management (RM) at a selected water board in South Africa
- Authors: Manyonganise, Joshua Anesu
- Date: 2021-04
- Subjects: Customer relations -- Management , Revenue management -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , Water-supply -- South Africa -- Eastern Cape , Amatola Water (Utility) , South Africa. National Water Act, 1998
- Language: English
- Type: thesis , text , Masters , MCom
- Identifier: http://hdl.handle.net/10962/177214 , vital:42800
- Description: The primary activity of water boards is to provide water services (bulk portable, and bulk wastewater) to other water services institutions within its respective service areas. They may perform other activities under conditions set out in the Water Services Act of 1997. Water boards’ revenues come from the municipalities they deliver services to. Not all municipalities have been paying for the services delivered to them, which led to the aim of this study being to gauge the perceptions of Water Board X and Water Board X’s customers of selected Customer Relationship Management (CRM) factors (service quality, customer involvement, customer value, information technology, and management commitment) that may possibly influence Revenue Management (RM). This could possibly assist Water Board X in the future to improve its revenue and debt collection. This thesis employed an interpretivist qualitative research methodology to explore its research aims and objectives. Open-ended semi-structured interviews were conducted with thirteen participants from Water Board X and four municipalities which Water Board X provides services. The data collected from the interviews were analysed manually through thematic analysis. The outcome of the interviews noted that an organisation that delivered high levels of service quality to its customers, could possibly improve its RM as the customers are of the opinion that their needs and requirements have been met and would be willing to pay for the services rendered. It was furthermore found that an organisation that involves its customers could possibly improve its RM as the organisation constantly communicates with its customers during, for example, the different stages of a project to ensure that the organisation does not deliver a project that does not meet the customers’ requirements at the end of the project life cycle. In addition the use of information technology played a pivotal in an organisation as the use of information technology assisted to develop effective methods in customer relationship management such as, data management, improving communication within the organisation, and with the customers, and the decision making. Furthermore, this study suggested the importance for an organisation to add value to the services that they deliver and for an organisation’s management to be committed to ensure that their customers’ expectations and requirements are met. The findings of the study suggest that CRM factors (service quality, customer involvement, customer value, information technology, and management commitment) could influence RM, and it is suggested that Water Board X adopts CRM strategies accordingly to improve its RM. Some of these strategies include adopting a coherent and sustainable revenue strategy through the use of appropriate tariff structures that are simple, equitable, affordable, financially sustainable, and transparent for all; showing commitment by prioritising water loss management and by properly auditing water supplies and water treatment revenue while increasing efficiency in supply and revenue recovery as this allowed Water Board X to better serve its customers, improve its financial standing, and allocate funding for water infrastructure upgrades and to adopt technologies that are on the market as these technologies can detect leakages, manage payments, control water flow and transmit data. , Thesis (MCom) -- Faculty of Commerce, Department of Management, 2021
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