Analysis of food value chains in smallholder crop and livestock enterprises in Eastern Cape Province of South Africa
- Authors: Muchara, Binganidzo
- Date: 2011
- Subjects: Agricultural industries -- South Africa -- Eastern Cape , Food industry and trade -- South Africa -- Eastern Cape , Food supply -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Stochastic processes , Agriculture -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Livestock -- South Africa -- Eastern Cape , Crops -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11158 , http://hdl.handle.net/10353/d1000983 , Agricultural industries -- South Africa -- Eastern Cape , Food industry and trade -- South Africa -- Eastern Cape , Food supply -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Stochastic processes , Agriculture -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Livestock -- South Africa -- Eastern Cape , Crops -- South Africa -- Eastern Cape
- Description: The study was conducted in Mbozi and Ciko villages in Mbhashe Local Municipality of the Eastern Cape Province of South Africa. Two irrigation projects in the area were studied. Consumers and agricultural commodity traders in Willowvale Town, Dutywa, Butterworth and East London were also interviewed. The major objective of the study is to profile and map cabbage, maize and cattle food value chains broadly, and to understand their nature, constraints and opportunities in smallholder agriculture. A multi-stage random sampling procedure was used in which the first stage involved selecting the local government areas. This was followed by the selection of the district and then the respondents. A total of 168 participants were sampled in the proportion of 82 smallholder farmers, 41 consumers, 26 hawkers and 20 agricultural commodity traders. Focus group discussions and key informant interviews were also used during the data collection process. Value Chain mapping was done using the commodity based approach. All value chains under study indicated that they are short and commodities were transacted in unprocessed form. As cabbages and maize move from the farm to retail outlets, value addition start to take place through transportation to the market and processing in supermarkets. The cattle value chain however does not have a forward linkage beyond the two administrative boundaries of the two communities. Less than 3% of the farmers traded livestock, and this was mostly through private sales to neighbours. The farmers‘ major goal in agricultural production is assumed to be an important aspect in lengthening the value chain. As such, results of a Pearson‘s correlation exercise indicated that there is a significant relationship at 0.05% level between goals of the farmers and the village of origin. Some factors that showed significance (p=0.05) in influencing farmers‘ goals are membership of an irrigation project and household sources of income. An analysis of determinants of technical efficiency at farm level was performed using the stochastic frontier model for cabbage, maize and cattle enterprises. The results showed that rainfall adequacy, input costs, market channels and quantity sold are important determinants of cabbage production efficiency. On the other hand, maize production efficiency is positively determined by market price, area under production and rainfall adequacy. Market related variables are major drivers of the cattle value chain efficiency and these include cattle prices, market satisfaction, market channel and farm labour.
- Full Text:
- Date Issued: 2011
- Authors: Muchara, Binganidzo
- Date: 2011
- Subjects: Agricultural industries -- South Africa -- Eastern Cape , Food industry and trade -- South Africa -- Eastern Cape , Food supply -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Stochastic processes , Agriculture -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Livestock -- South Africa -- Eastern Cape , Crops -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc Agric (Agricultural Economics)
- Identifier: vital:11158 , http://hdl.handle.net/10353/d1000983 , Agricultural industries -- South Africa -- Eastern Cape , Food industry and trade -- South Africa -- Eastern Cape , Food supply -- South Africa -- Eastern Cape , Farms, Small -- South Africa -- Eastern Cape , Stochastic processes , Agriculture -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Livestock -- South Africa -- Eastern Cape , Crops -- South Africa -- Eastern Cape
- Description: The study was conducted in Mbozi and Ciko villages in Mbhashe Local Municipality of the Eastern Cape Province of South Africa. Two irrigation projects in the area were studied. Consumers and agricultural commodity traders in Willowvale Town, Dutywa, Butterworth and East London were also interviewed. The major objective of the study is to profile and map cabbage, maize and cattle food value chains broadly, and to understand their nature, constraints and opportunities in smallholder agriculture. A multi-stage random sampling procedure was used in which the first stage involved selecting the local government areas. This was followed by the selection of the district and then the respondents. A total of 168 participants were sampled in the proportion of 82 smallholder farmers, 41 consumers, 26 hawkers and 20 agricultural commodity traders. Focus group discussions and key informant interviews were also used during the data collection process. Value Chain mapping was done using the commodity based approach. All value chains under study indicated that they are short and commodities were transacted in unprocessed form. As cabbages and maize move from the farm to retail outlets, value addition start to take place through transportation to the market and processing in supermarkets. The cattle value chain however does not have a forward linkage beyond the two administrative boundaries of the two communities. Less than 3% of the farmers traded livestock, and this was mostly through private sales to neighbours. The farmers‘ major goal in agricultural production is assumed to be an important aspect in lengthening the value chain. As such, results of a Pearson‘s correlation exercise indicated that there is a significant relationship at 0.05% level between goals of the farmers and the village of origin. Some factors that showed significance (p=0.05) in influencing farmers‘ goals are membership of an irrigation project and household sources of income. An analysis of determinants of technical efficiency at farm level was performed using the stochastic frontier model for cabbage, maize and cattle enterprises. The results showed that rainfall adequacy, input costs, market channels and quantity sold are important determinants of cabbage production efficiency. On the other hand, maize production efficiency is positively determined by market price, area under production and rainfall adequacy. Market related variables are major drivers of the cattle value chain efficiency and these include cattle prices, market satisfaction, market channel and farm labour.
- Full Text:
- Date Issued: 2011
Determinants of capital structure of small and medium enterprises in the Buffalo City Municipality Eastern Cape Province South Africa
- Authors: Rungani, Ellen Chenesai
- Date: 2009
- Subjects: Debt-to-equity ratio , Capital , Value , Business enterprises -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com (Business Management)
- Identifier: vital:11317 , http://hdl.handle.net/10353/271 , Debt-to-equity ratio , Capital , Value , Business enterprises -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape
- Description: 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.
- Full Text:
- Date Issued: 2009
- Authors: Rungani, Ellen Chenesai
- Date: 2009
- Subjects: Debt-to-equity ratio , Capital , Value , Business enterprises -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , M Com (Business Management)
- Identifier: vital:11317 , http://hdl.handle.net/10353/271 , Debt-to-equity ratio , Capital , Value , Business enterprises -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape
- Description: 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.
- Full Text:
- Date Issued: 2009
Implementation of a rewards based negotiation module for an e commerce platform
- Authors: Jere, Nobert Rangarirai
- Date: 2009
- Subjects: Computer network architecture -- South Africa -- Design and construction , Internet in public administration -- South Africa -- Eastern Cape , Electronic commerce -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Rural development projects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc (Computer Science)
- Identifier: vital:11378 , http://hdl.handle.net/10353/267 , Computer network architecture -- South Africa -- Design and construction , Internet in public administration -- South Africa -- Eastern Cape , Electronic commerce -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Rural development projects -- South Africa -- Eastern Cape
- Description: Information and Communication Technologies (ICTs) have been widely deployed in developmental programs and this has lead to the creation of a new field – ICT for Development (ICT4D). Within the context of ICT4D, various e-services are being developed, including e-Commerce, e-Government, e-Health and e-Judiciary. ICT4D projects allow Small, Medium and Micro Enterprises (SMMEs) in rural areas to increase sales and gain a market share in the global market. However, many of these ICT4D projects do not succeed, because they fail to bring enough financial value to SMMEs due to the form they currently have. An obvious example is e-Commerce, which should be a source of revenue for business organizations, but most often is not. This thesis presents the design and implementation of a rewarding and negotiation application for a shopping portal to improve the marketing of products for rural entrepreneurs. The shopping portal has been set up for the Dwesa community, a marginalized area in the Eastern Cape province of South Africa. The proposed system, called the Dwesa Rewarding Program (DRP) enables customers buying online to get points for some of the activities carried out on the shopping portal. It also allows customers to negotiate and make offers whilst purchasing and get rewarded for buying online. The novelty of the system is in its flexibility and adaptability. One achievement of this system is the establishment of negotiation rules which allows fairness in rewarding customers. This should in turn lead to increased sales on the e-Commerce platform in marginalized areas and subsequently increased effectiveness of ICT4D for socio-economic development
- Full Text:
- Date Issued: 2009
- Authors: Jere, Nobert Rangarirai
- Date: 2009
- Subjects: Computer network architecture -- South Africa -- Design and construction , Internet in public administration -- South Africa -- Eastern Cape , Electronic commerce -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Rural development projects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSc (Computer Science)
- Identifier: vital:11378 , http://hdl.handle.net/10353/267 , Computer network architecture -- South Africa -- Design and construction , Internet in public administration -- South Africa -- Eastern Cape , Electronic commerce -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Rural development -- South Africa -- Eastern Cape , Rural development projects -- South Africa -- Eastern Cape
- Description: Information and Communication Technologies (ICTs) have been widely deployed in developmental programs and this has lead to the creation of a new field – ICT for Development (ICT4D). Within the context of ICT4D, various e-services are being developed, including e-Commerce, e-Government, e-Health and e-Judiciary. ICT4D projects allow Small, Medium and Micro Enterprises (SMMEs) in rural areas to increase sales and gain a market share in the global market. However, many of these ICT4D projects do not succeed, because they fail to bring enough financial value to SMMEs due to the form they currently have. An obvious example is e-Commerce, which should be a source of revenue for business organizations, but most often is not. This thesis presents the design and implementation of a rewarding and negotiation application for a shopping portal to improve the marketing of products for rural entrepreneurs. The shopping portal has been set up for the Dwesa community, a marginalized area in the Eastern Cape province of South Africa. The proposed system, called the Dwesa Rewarding Program (DRP) enables customers buying online to get points for some of the activities carried out on the shopping portal. It also allows customers to negotiate and make offers whilst purchasing and get rewarded for buying online. The novelty of the system is in its flexibility and adaptability. One achievement of this system is the establishment of negotiation rules which allows fairness in rewarding customers. This should in turn lead to increased sales on the e-Commerce platform in marginalized areas and subsequently increased effectiveness of ICT4D for socio-economic development
- Full Text:
- Date Issued: 2009
A business model for SMME's in the telecommunications sector in the Border Region
- Oberholzer, Stephanus Marius
- Authors: Oberholzer, Stephanus Marius
- Date: 2007
- Subjects: Business planning -- South Africa -- Eastern Cape , Telecommunication -- Planning -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8736 , http://hdl.handle.net/10948/795 , Business planning -- South Africa -- Eastern Cape , Telecommunication -- Planning -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape
- Description: The telecommunications landscape in South Africa is changing. The monopolistic nature of the sector, previously dominated by Telkom has come to an end. Telecommunications companies, in particular SMMEs face the opportunity as well as challenges to find new ways of doing business successfully in this changing landscape. The research problem states a business model for SMMEs in the telecommunications sector. The author’s research is aimed to assist SMMEs in this sector to reposition them and be successful. The literature review focused on the local telecommunications market in South Africa, a comparisons between telecommunications markets in relation to other countries with similarities in their telecoms sectors as well as the opportunities and challenges SMMEs face in the market space. Regulation and new technologies pose opportunities but also potential dangers for business owners to conduct business. Traditionally, a typical resell model would be fully dependant on the way the monopolist determined the shape and structures of small companies, but the research indicated innovation and creativity will be the drivers to be successful today. The research design was done by using a survey questionnaire to telecoms end users. The literature review and a survey aimed at the consumer market were done and the findings highlights focus areas where SMMEs need to direct their energy and resources in to establish the business model. With reference to both the literature review and the empirical findings, the business model can be formulated and supported by a strong entrepreneurial person or group of people. In addition, the recommended business-level strategy is an integrated and coordinated set of commitments and actions the SMMEs will use to gain a competitive advantage by exploiting core competencies in specific telecoms markets.
- Full Text:
- Date Issued: 2007
- Authors: Oberholzer, Stephanus Marius
- Date: 2007
- Subjects: Business planning -- South Africa -- Eastern Cape , Telecommunication -- Planning -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8736 , http://hdl.handle.net/10948/795 , Business planning -- South Africa -- Eastern Cape , Telecommunication -- Planning -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape
- Description: The telecommunications landscape in South Africa is changing. The monopolistic nature of the sector, previously dominated by Telkom has come to an end. Telecommunications companies, in particular SMMEs face the opportunity as well as challenges to find new ways of doing business successfully in this changing landscape. The research problem states a business model for SMMEs in the telecommunications sector. The author’s research is aimed to assist SMMEs in this sector to reposition them and be successful. The literature review focused on the local telecommunications market in South Africa, a comparisons between telecommunications markets in relation to other countries with similarities in their telecoms sectors as well as the opportunities and challenges SMMEs face in the market space. Regulation and new technologies pose opportunities but also potential dangers for business owners to conduct business. Traditionally, a typical resell model would be fully dependant on the way the monopolist determined the shape and structures of small companies, but the research indicated innovation and creativity will be the drivers to be successful today. The research design was done by using a survey questionnaire to telecoms end users. The literature review and a survey aimed at the consumer market were done and the findings highlights focus areas where SMMEs need to direct their energy and resources in to establish the business model. With reference to both the literature review and the empirical findings, the business model can be formulated and supported by a strong entrepreneurial person or group of people. In addition, the recommended business-level strategy is an integrated and coordinated set of commitments and actions the SMMEs will use to gain a competitive advantage by exploiting core competencies in specific telecoms markets.
- Full Text:
- Date Issued: 2007
The application of quality models and techniques in selected SMMEs in the Eastern Cape
- Authors: Murray, Andrew Thomas
- Date: 2007
- Subjects: Business enterprises -- South Africa -- Eastern Cape , Quality management -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:9608 , http://hdl.handle.net/10948/832 , Business enterprises -- South Africa -- Eastern Cape , Quality management -- South Africa -- Eastern Cape
- Description: With the increase of imports from China and more pressure being put on the Small, Medium and Micro enterprises (SMME’s) from their larger customers, survival has become more and more difficult, quality is no longer being a choise but a prerequisite if the companies want to survive. This research evaluates the use of quality and productivity or the lack thereof in selected SMMEs in the Eastern Cape environment from both the SMME and Larger companies’ point of view. The research has focused on the effectiveness and understanding of what has been put in place by the SMMEs, what is available for the SMMEs to use, governmental support, and the requirements of the customers. Certain shortcomings have been highlighted as to the use and benefits of the processes that have been implemented. The researcher made use of both quantitative and qualitative data to determine the outcome of the research. The thesis concludes that the SMME sector knows the importance of the use of quality; it is the effectiveness and management thereof that is the concern.
- Full Text:
- Date Issued: 2007
- Authors: Murray, Andrew Thomas
- Date: 2007
- Subjects: Business enterprises -- South Africa -- Eastern Cape , Quality management -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:9608 , http://hdl.handle.net/10948/832 , Business enterprises -- South Africa -- Eastern Cape , Quality management -- South Africa -- Eastern Cape
- Description: With the increase of imports from China and more pressure being put on the Small, Medium and Micro enterprises (SMME’s) from their larger customers, survival has become more and more difficult, quality is no longer being a choise but a prerequisite if the companies want to survive. This research evaluates the use of quality and productivity or the lack thereof in selected SMMEs in the Eastern Cape environment from both the SMME and Larger companies’ point of view. The research has focused on the effectiveness and understanding of what has been put in place by the SMMEs, what is available for the SMMEs to use, governmental support, and the requirements of the customers. Certain shortcomings have been highlighted as to the use and benefits of the processes that have been implemented. The researcher made use of both quantitative and qualitative data to determine the outcome of the research. The thesis concludes that the SMME sector knows the importance of the use of quality; it is the effectiveness and management thereof that is the concern.
- Full Text:
- Date Issued: 2007
An evaluation of the Nelson Mandela Metropole as a location to attract investment
- Authors: Nonxuba, Philile Zipho
- Date: 2006
- Subjects: Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) , Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) -- Economic conditions , Economic development -- South Africa -- Eastern Cape , Manufacturing industries -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:973 , http://hdl.handle.net/10962/d1002707 , Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) , Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) -- Economic conditions , Economic development -- South Africa -- Eastern Cape , Manufacturing industries -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape
- Description: The Nelson Mandela Metropole is the largest contributor to the Eastern Cape Province’s economy and its share of the production of the Eastern Cape is about 41, 3 % per annum. This requires that the competitiveness of the Metropole be improved in order to enable it to meet the challenges of the Province. The objective of the GEAR policy strategy places a focus on the leading coastal industrial locations of South Africa. Furthermore, the national government has shifted the responsibility of service delivery to local governments in an effort to reinforce the integrated development planning process in municipalities. To meet those challenges, the Metropole has focused its attention on improving local resources. To enhance the performance of the manufacturing industry of the Metropole, it is necessary to ensure that the Metropole has locational attributes to attract new investment. Such attributes include creation of closely located industries. This will help the firms to engage in competition as well as engage in co-operative activities among themselves. The study employs a variety of theories to highlight the need to enhance productivity of industries in order to attract new investment. These theories include the new (endogenous) growth theory that argues that productivity growth is determined by introduction of new technologies. Such technologies accrue because ideas that contribute to their development are nonrival, and thus their creation has a fixed cost and zero marginal cost. The property of fixed cost in the creation of ideas results in the emergence of increasing returns to scale. The Porter’s Diamond framework is used in the study to take the issue of productivity growth further. Its thrust is that in particular nations some industries experience high productivity growth rates. It further argues that the locational attributes are responsible for these industries in registering high productivity growth levels. These attributes include the creation of advanced resources such as a skilled labour force. The data obtained from the survey of the research on the manufacturing industries forms part of this study. The findings of the survey reveal that although the manufacturing sector of the South African region has registered some significant success, there is still some room for improving its competitiveness. It revealed that development of the local markets through competition and cooperation among the industries would help to render these industries internationally competitive. This study concludes with some recommendations. These recommendations place emphasis on improvement of infrastructure, quality of labour force, and development of the region’s market. In order to carry out the recommendations effectively, government policy has to be repositioned so as to enhance its visibility among the stakeholders in the economy. Of importance is to ensure the promotion of policy that supports geographically concentrated businesses.
- Full Text:
- Date Issued: 2006
- Authors: Nonxuba, Philile Zipho
- Date: 2006
- Subjects: Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) , Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) -- Economic conditions , Economic development -- South Africa -- Eastern Cape , Manufacturing industries -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:973 , http://hdl.handle.net/10962/d1002707 , Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) , Nelson Mandela Metropolitan Municipality (Eastern Cape, South Africa) -- Economic conditions , Economic development -- South Africa -- Eastern Cape , Manufacturing industries -- South Africa -- Eastern Cape , Business enterprises -- South Africa -- Eastern Cape , Investments -- South Africa -- Eastern Cape
- Description: The Nelson Mandela Metropole is the largest contributor to the Eastern Cape Province’s economy and its share of the production of the Eastern Cape is about 41, 3 % per annum. This requires that the competitiveness of the Metropole be improved in order to enable it to meet the challenges of the Province. The objective of the GEAR policy strategy places a focus on the leading coastal industrial locations of South Africa. Furthermore, the national government has shifted the responsibility of service delivery to local governments in an effort to reinforce the integrated development planning process in municipalities. To meet those challenges, the Metropole has focused its attention on improving local resources. To enhance the performance of the manufacturing industry of the Metropole, it is necessary to ensure that the Metropole has locational attributes to attract new investment. Such attributes include creation of closely located industries. This will help the firms to engage in competition as well as engage in co-operative activities among themselves. The study employs a variety of theories to highlight the need to enhance productivity of industries in order to attract new investment. These theories include the new (endogenous) growth theory that argues that productivity growth is determined by introduction of new technologies. Such technologies accrue because ideas that contribute to their development are nonrival, and thus their creation has a fixed cost and zero marginal cost. The property of fixed cost in the creation of ideas results in the emergence of increasing returns to scale. The Porter’s Diamond framework is used in the study to take the issue of productivity growth further. Its thrust is that in particular nations some industries experience high productivity growth rates. It further argues that the locational attributes are responsible for these industries in registering high productivity growth levels. These attributes include the creation of advanced resources such as a skilled labour force. The data obtained from the survey of the research on the manufacturing industries forms part of this study. The findings of the survey reveal that although the manufacturing sector of the South African region has registered some significant success, there is still some room for improving its competitiveness. It revealed that development of the local markets through competition and cooperation among the industries would help to render these industries internationally competitive. This study concludes with some recommendations. These recommendations place emphasis on improvement of infrastructure, quality of labour force, and development of the region’s market. In order to carry out the recommendations effectively, government policy has to be repositioned so as to enhance its visibility among the stakeholders in the economy. Of importance is to ensure the promotion of policy that supports geographically concentrated businesses.
- Full Text:
- Date Issued: 2006
The development of a model of competencies for small, medium and microsized enterprises (SMME'S) to achieve competitive advantage in the East Cape Motor Industry Cluster
- Authors: De Beer, Lloyd
- Date: 2003
- Subjects: Business enterprises -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10854 , http://hdl.handle.net/10948/121 , Business enterprises -- South Africa -- Eastern Cape
- Description: The research problem addressed in this study was to identify the generic strategies that small, medium and micro enterprises (SMME’s) are required to implement in order to achieve competitive advantage in the highly competitive global automotive market. Markets have merged into one huge global marketplace, increasing the competitive forces on all the participants in the automotive markets. Strategies to achieve competitive advantage has changed from the traditional domestic strategies to that of strategies required for global competitive advantage. This has created challenges for SMME’s to attain competitive advantage essential in the fast-changing global markets. The East Cape Motor Industry Cluster (ECMIC) is the heart of the SA automotive industry with three of the major automobile manufacturers having their assembly plants located in the Buffalo and Nelson Mandela Metropoles. A significant number of component manufacturers and their suppliers serve these manufacturers, as well as the other automobile manufacturers located elsewhere in South Africa. Many of these component manufacturers and suppliers are SMME’s. The need to become globally competitive is thus critical for SMME’s in the region. This study investigates the generic strategies that SMME organisations are required to implement in order to achieve competitive advantage in the ECMIC, and based on this and the empirical study that seeks opinion from management of SMME firms in the ECMIC, a model of generic strategies to create competitive advantage is developed.
- Full Text:
- Date Issued: 2003
- Authors: De Beer, Lloyd
- Date: 2003
- Subjects: Business enterprises -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10854 , http://hdl.handle.net/10948/121 , Business enterprises -- South Africa -- Eastern Cape
- Description: The research problem addressed in this study was to identify the generic strategies that small, medium and micro enterprises (SMME’s) are required to implement in order to achieve competitive advantage in the highly competitive global automotive market. Markets have merged into one huge global marketplace, increasing the competitive forces on all the participants in the automotive markets. Strategies to achieve competitive advantage has changed from the traditional domestic strategies to that of strategies required for global competitive advantage. This has created challenges for SMME’s to attain competitive advantage essential in the fast-changing global markets. The East Cape Motor Industry Cluster (ECMIC) is the heart of the SA automotive industry with three of the major automobile manufacturers having their assembly plants located in the Buffalo and Nelson Mandela Metropoles. A significant number of component manufacturers and their suppliers serve these manufacturers, as well as the other automobile manufacturers located elsewhere in South Africa. Many of these component manufacturers and suppliers are SMME’s. The need to become globally competitive is thus critical for SMME’s in the region. This study investigates the generic strategies that SMME organisations are required to implement in order to achieve competitive advantage in the ECMIC, and based on this and the empirical study that seeks opinion from management of SMME firms in the ECMIC, a model of generic strategies to create competitive advantage is developed.
- Full Text:
- Date Issued: 2003
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