Browsing by Author "Nkonde, Sipho David"

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    Information asymmetry and obstacles on SMMEs growth in the rural Areas of uThungulu district municipality of KwaZulu-Natal
    (University of Zululand, 2012) Nkonde, Sipho David; Contogiannis, E.; Vezi, M.F.; Kaaseram, I.
    Information asymmetry is regarded as factors that affect SMMEs and issues hindering SMMEs growth which include management skills, market access and lack of training. This is supported by Rogerson (2008) that several challenges facing SMMEs development in South Africa have been unapproachable. Number of factors have been identified which relate to markets access and marketing, business management skills, training, finance and inadequate institutional support. The SMME sector is regarded as a potential employment creator and contributes significantly to the economic growth of South Africa. SMMEs have the major share of the development and almost half of the total employment in the economy. While argument still exists about the comparative contribution of SMMEs to the economy, this sector contributes a massive share of employment which contributes significantly in the economy. However, SMMEs are facing challenges that prevent them from growing, and causing a large percentage of SMMEs to shut down in their first two years of operation. This study aims to discover the information asymmetry and obstacles on SMMEs growth in uThungulu district municipality. An investigation was conducted among owners in all local SMMEs in the district to identify obstacles perceived as central to SMMEs growth. Structured questionnaires were used to collect data. The research findings indicate that lack of training and management skills are one of the challenges faced by SMMEs since the majority of entrepreneurs have only matric qualifications. The use of technology was also identified as an obstacle on SMMEs growth.
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    The development of a support framework for informal entrepreneurship in uMhlathuze Local Municipality, KwaZulu-Natal Province, South Africa
    (University of Zululand, 2022) Nkonde, Sipho David
    The significance of informal entrepreneurship and the value of informal entrepreneurs have been widely acknowledged considering South Africa’s socio-economic challenges and the country’s economy’s incapacity to generate formal employment opportunities. These challenges emanates from several factors, which includes the legacy of apartheid, poor education system, Covid-19 regulations, and corruption on economic system. South Africa's extreme poverty and high unemployment rates have made it more necessary than ever for unemployed people to engage in informal entrepreneurship to support themselves and provide for their households. The South African government recognises the significance of small businesses in the economy and has set up both financial and non-financial support measures to support them become self-sustaining. However, research seems to indicate that there is still room for improvement, particularly regarding informal enterprises. This study argues that they is little scholarly attention that has been given to support mechanism for rural informal entrepreneurship. This constitutes a research gap, which this study seeks to address. It is against this background that the aim of the study is to develop a support framework for informal entrepreneurship in KwaZulu-Natal focusing on uMhlathuze Local Municipality. To achieve this purpose, a sequential explanatory mixed methods approach was adopted. The study administered 256 questionnaires to informal entrepreneurs at uMhlathuze local municipality and 4 officials from financial development institutions (FDIs) were sampled and interviewed using in-depth format. The findings indicate that most informal enterprises in uMhlathuze local municipality are owned by black females who are motivated by the high unemployment rate to engage in informal entrepreneurship. The study further discovered that lack of government support is the main challenge facing informal entrepreneurs in uMhlathuze local municipality. The study recommends a support framework for informal entrepreneurship in uMhlathuze local municipality whose goal is to help informal enterprises become sustainable and generate employment opportunities.