Do you need training and development?..87 Table 5.32: Symmetric measures: Are you aware of training and development? Crosstab……….103 Table 5.63: Possible additional suggestions on what is needed for a small business to be successful.
Introduction
Background of the Study
This move is a result of the increasing number of bankruptcies of small and medium enterprises and Lesotho's inflation rate, which is reported to remain under control at 5.5%, and is mainly driven by the intense inflationary pressures in South Africa as the country of Lesotho supplies 70% of consumer goods. Lesotho Country Monitor, 2013). This results in tax losses by the government, which then affects the economic growth of the city.
Research Problem
According to the Ministry of Trade and Industry, Cooperatives and Marketing (2012), failed SMEs that have been driven out of the market by harsh environmental factors have negatively impacted the economy as they are one of the largest employers in Maseru, which is a contribute 9.1%. to GDP and represent up to 20% of employment in the labor force. According to the Ministry of Trade and Industry, Cooperatives and Marketing (2012), the government of Lesotho has limited strategic direction in the trade and industrial sector, not because of the lack of strategic plans, but rather because of the challenges they face in implementation of goals.
Research Questions
The result of such an example is that more entrepreneurial companies become a stepping stone by providing employment and generating income, thus strengthening the economy of the country. Little attention is paid to the promotion and development of small and medium enterprises in Maseru, which add value to the economy and reduce unemployment, employing about 200,000 people in formal and informal enterprises, with about 2,000 emerging small businesses employing six or more people (Embassy Kingdom of Lesotho , 2012).
Research Objectives
Structure of the Dissertation
Each objective is considered, and data are presented in the form of tables and descriptions of the analyses. Chapter Six- this chapter presents the discussion of the findings, beginning with a consideration of the demographic information pertaining to the respondents, and then discusses the data collected in relation to each of the research objectives that guided the study.
Conclusion
Next, a detailed discussion of the population, the sample selected from this population, and the specific research instrument used for data collection, namely a structured questionnaire, is provided. Then, Section B provides a detailed analysis of the data collected regarding strategies, environmental factors and challenges faced by SMEs in Maseru.
REVIEW- SMMES IN DEVELOPING
Introduction
Definition of SMMEs
- Survivalist enterprise
- Micro enterprises
- Small enterprises
- Medium enterprises
According to (Bowen et al., 2009) micro enterprises are associated with characteristics such as small scale of operation and market share, low income generation, non-productivity and high informality. Micro enterprises already have technological knowledge, they possess managerial skills and can easily gain access to capital compared to micro and small enterprises (Gunasekaran et al., 2011).
Importance of the SMME Sector
He further explains that the poor people who benefit from small and medium enterprises are classified into five categories: Poor people who buy from these small enterprises because of the convenience and low cost.
The General Systems Theory
However, Dubrovsky (2004) had a different view to previous research and proposed an argument based on the importance of systems theory in business organizations. Further research by Adams et al. 2014) found that systems theory has an overall influence on the internal organization and decision-making processes of individual companies.
SMMEs and the Environment they Operate in
- Internal environment
- Resources
- Leadership
- Employees
- Task environment
- Competition
- Customers
- Suppliers
- External environment
- Political and Legal factors
- Economic factors
- Social factors
- Technological factors
According to Nartisa (2012), SMEs must learn to depend on the training and recruitment of human capital, as this determines the success or failure of the company in the market. According to Tshabalala and Rankhumisa (2011), the short-term performance and long-term survival of a company is determined by the actions it takes in relation to the external environment.
SMMEs’ Strategies to Succeed
- Business Plan
- Mission Statement
- Objectives and goals
- Porter’s generic strategies
- Cost leadership
- Differentiation
- Focus
- Advertising
- Newspaper
- Radio
- Magazine
- Internet
- Television
- Word of mouth
- Customer service
- Partnerships
The purpose of a business plan is to outline the purpose of the business and to explain in detail how the business will function in the market. Terblanche (1998) further adds that the main objective of the focus strategy is to generate a monopoly for the firm in the specific market or niche.
Characteristics of Successful SMMEs
- Good human relations
- Commitment
- Leadership
- Motivating and rewarding employees
- Competitive position
- Creativity and Innovation
They further add that each partner in the management of an enterprise is responsible for the mistakes of the other, but that they may have limited control over those mistakes. Ligthelm (2008) states that "the educational level of a business owner is one of the decisive factors resulting in the survival of a business".
Assistance from Institutions
Conclusion
Introduction
Profile of SMMEs in Maseru
For the purpose of this study, the above definitions have been adopted as they are applicable in the context of Maseru. The MTICM (2008) adds that a large proportion of the city's SMEs are survival and micro-enterprises with minimal potential for growth and development, as a third of the city's SMEs are operated by owners without employees and over a third operate with one employee in addition to the owner.
Significance of the SMME Sector to Maseru’s Economy
SMMEs are defined in relation to the number of employees and not to the turnover or assets of an enterprise, because this allows ease of access to information and the definition is not affected by changes in the value of money related to future studies (MTICM, 2008). UNDP research (2013) shows that in Lesotho as a whole, there is a high youth unemployment rate of 34% between the ages of 15 and 35. This has resulted in the Government of Lesotho through the Ministry of Gender , Youth, Sports and Recreation, joining UNDP and UN agencies to help promote youth employment for poverty alleviation.
Marketing Strategies
The country aims to maintain a robust economy by 2020, having recognized that due to the increasing emergence of MSMEs in its capital, initiatives for the development of these enterprises are the best strategy to achieve economic development, poverty reduction and a achieve low level. of unemployment (Government of Lesotho, 2008). Lesotho, like most developing countries, has been hit hardest by increasing levels of poverty and unemployment, so much so that most citizens turn to establishing small businesses for survival ((Ntlaloe, 2011).
Government Support
A closer look at these enterprises becomes crucial as much concentration is placed on the formal SMEs, which are the small and medium-sized SMEs, rather than on the informal sector, which are the micro sole proprietorships. This therefore undermines their potential for growth and development, which must be strongly recognized by policy makers regarding the value of entrepreneurship, economic growth and job creation resulting from the establishment and existence of these small enterprises.
Factors that Constrain the Success of SMMEs in Maseru
- Micro environment
- Task environment
- Macro environment
The lack of demand for the products and services offered by SMEs in Maseru was identified as one of the biggest challenges faced by these small businesses (GOL, 2008). According to Ratanova et al. 2013), a country's political attitude towards corporations depends on the goals and objectives of the government.
Gender Equity
This is as a result of research that has shown that improved electricity supply, roads and water are of critical importance to SMEs in terms of intensifying capacity and opportunities for local and international trade, as well as encouraging the development of Lesotho's tourism industry. A survey undertaken by Langwenya et al. 2011) shows that, a large number of SMEs in Maseru are owned by men, a clear indication of Lesotho's poor performance in terms of the entrepreneurial role women play in the economy.
Location (Rural versus Urban)
Nevertheless, the government of Lesotho has made far-reaching efforts to be aware of such limitations, guaranteeing easy access for women to these financial services. Currently, processes to change the current legal framework are underway and the establishment of more microcredit schemes is being encouraged (IRIN Lesotho News, 2014).
Existence of Foreign-owned Enterprises
Conclusion
Introduction
Research Questions
Research Objectives
Given the insufficient finances available to SME owner-managers to practice success strategies, this objective helps determine the perceived vitality of training and development needs. Further, it aims to provide a clear understanding of whether essential training and development activities are affordable and available to SME owner-managers and their employees.
Geographic Area
Research Design
Exploratory research design depends more on qualitative techniques than on quantitative approaches (Hair et al., 2003). Bougie and Sekaran (2010) explain that descriptive research design enables the researcher to obtain an in-depth profile that describes the characteristics of areas of interest in employees, businesses and industries.
Research Approach
Study Site and Target Population
The SME owner-managers were randomly approached at their workplaces and given questionnaires to fill in, in the presence of the researcher.
Sampling Techniques and Description of the Sample
Owner-managers of SMMEs were randomly approached at their sites of operation and given questionnaires to complete, in the presence of the researcher. i) Micro, small and medium enterprises in the capital Maseru.
Research Instrument
The first part of the questionnaire, which is the first part, focused on the demographic data of the respondents. The questions included in the second part were as follows:. i) (v) address the issue of state financial support, i.e. determine the role that different ways of using capital sources and appropriate financial support play in the growth and development of these companies. i) (viii) addressing the second objective and seeking information on the need for training and development activities for owner-managers and their employees using the MTICM (2012) white paper definition of SMEs in Lesotho by number of employees.
Data Quality Control
- Test for validity
- Test for reliability
The same sample size will fully represent the SMEs in the urban and rural areas of Maseru. The two types of internal consistency reliability as explained by Hair et al. 2003) is the split-half reliability in which the researcher. randomly dividing the amount of scale items equally and correlating them, as well as the coefficient alpha, which is also referred to as Cronbach's alpha. iv) Cronbach's Alpha was used to find the reliability level of the information presented, based on the average correlation of variables in a test if the variables are standardized.
Data Analysis
Panayides (2013) states that “if the variables are not standardized, the test is based on the average covariance between the variables”. The test was calculated to assess how consistent the results were and whether related results could be generated if the sample size were increased if necessary.
Ethical Considerations
The rules governing the fieldwork were read to the owners-managers of the SMEs, they were made aware of their voluntary participation, confidentiality, the benefits and objectives of the study as well as the minimum time required for their participation in completing the questionnaire.
Limitations of the Study
Conclusion
The chapter concluded with a review of ethical issues related to the study, as well as the limitations that the researcher had to overcome in conducting the study. The following chapter presents the results of the study and provides interpretations related to the analysis of the collected data.
Introduction
Data Analysis
Cronbach's Alpha was used to measure the reliability of the survey to clarify whether the questions in the questionnaire were all reliable in measuring the same underlying variable. What kind of advertising media do you use to inform your customers about your products and services.
SECTION ONE: Demographic Information
From this table, most (42.8%) of the participants who own small businesses are between the ages of 21-34 years. It is clear from Table 5.7 that the majority (54.4%) of SME owners are those equipped with tertiary qualifications.
SECTION TWO: Strategies, Environmental Factors and Challenges
- OBJECTIVE 1: To ascertain the extent to which SMMEs are dependent on assistance
- OBJECTIVE 2: To establish if all SMMEs have adequate training and development
- OBJECTIVE 3: To determine the extent to which SMMEs develop and practice
- OBJECTIVE 4: To ascertain the advertising strategies SMMEs commonly use in order
In Table 5.43, a chi-square test of independence was calculated to assess the relationship between the two variables. In Table 5.46, a chi-square test of independence was calculated to assess the relationship between the two variables.
TESTS
- OBJECTIVE 5: To determine the extent to which competition impacts on the success of
- Conclusion
- Introduction
- Demographic Information
- Gender of respondents
- Age of respondents
- Race of respondents
- Educational level of respondents
- Number of years in business
- Registration with OBFC
- Results in Terms of Objectives
- Objective 1: To ascertain the extent to which SMMEs are dependent on assistance from
- Objective 2: To establish if all SMMEs have adequate training and development
- Objective 3: To determine the extent to which SMMEs develop and practise strategic
- Objective 4:To ascertain the advertising strategies SMMEs commonly use in order to be
- Objective 5:To determine the extent to which competition impacts on the success of
- Conclusion
- Introduction
- Conclusions on the Findings of the Study
- Recommendations
- Start-up capital
- Training and development
- Strategic planning
- Competition
- Benefits of the Study
- Recommendations for Future Research
- Conclusion
Investigation into the strategic utilization of IT resources in the small and medium-sized firms of the Eastern Free State province. Through your participation, I hope to understand all important strategies that are crucial for the success of SMEs, the environmental factors that impact small businesses and effective measures that are crucial for the growth and development of SMEs. The results of the survey are intended to contribute to an awareness of the existence of SMEs in Maseru and the assistance that small businesses need to promote their growth and development.
