Small Businesses

Internacionalização das redes de franquias brasileiras: um estudo comparativo Internacionalización de las redes de franquicias brasileñas: un estudio comparativo The primary goal of this paper is to comprehend the fundamental organizational differences between Brazilian franchise chains that only operate in the home market and Brazilian franchise chains that operate internationally. The sample chosen for this study comprehends 96 Brazilian franchises ope-rating in the home market and 67 franchises with international operations; logistic regression was used to analyze data obtained from these sources. Our findings suggest that the development of a brand in international operations can be strategic for certain Brazilian franchise chains; this seems to be, however, a scarce resource for many franchises and it could be developed through international operations. With regard to the fees charged, the outcomes demonstrate that Brazilian franchises with international operations tend to char...

The relationship between the business-formation process and the use of government or
outside counselling is examined, by differentiating, among a total group of 78 small-firm
owners, between those who created their ventures and those who bought them. The group of venture initiators was found as having requested government help in one-third of the
start-ups, while none of the business buyers had resorted to such support. At the same time, the first group displayed a more internal locus of control disposition than the other,
thus reinforcing earlier findings about entrepreneurs. Both groups, however, were strongly internal-oriented compared to general populations.

Salie, M., Strauss, N. Davids, M., Smit, Y., Boshoff, S. & Bruwer, J-P. 2014. The effects of sin tax on the profitability of SMME convenience stores in the Cape Metropole. Topclass Journal of Business Management, 1(2): pp. 25-36, 26 June 2014.

Small Micro Medium Enterprises (SMMEs) contribute significantly to the South African Gross Domestic Product (GDP) and play a critical role in job creation and poverty alleviation. Prior research shows that objectives relating to job creation and poverty alleviation are not successfully being met as approximately 75% of newly created South African SMMEs fail after operating for an average of 3 years – one of the worst failure rates in the world. This high failure rate is perceived to be attributed to a magnitude of economic factors e.g. shortage of skills, economic uncertainty, crime, legislation and taxation among others. Encapsulated within legislation and taxation is the burden of tax compliance and governmental regulation which diverts SMME leaders’ attention away from core business operations. In South Africa, sin tax (a mandatory form of excise taxation), is levied on products considered to be socially undesirable such as tobacco related products and plastic bags. At present time, the taxation levied on tobacco products is 45% per unit sold, while the taxation levied on plastic bags is 6 cents per plastic bag sold. The main objective of this study was to determine the effects of sin tax on SMME profitability. This research was exploratory in nature, and took the form of quantitative research. A total of 47 responses were obtained from SMME leaders of convenience SMME stores from where all data were analysed through means of descriptive statistics. Findings indicated that sin tax has a direct adverse effect on the profitability of convenience SMMEs stores within the Cape Metropole.

Resources and capabilities remain one of the most important factors that influence firms, more especially entrepreneurial ventures, to improve their competitiveness and achieve competitive advantage. In this context, present paper explores how entrepreneurial ventures and small businesses can better identify and distinguish the cause-and-effect relationship amongst resource and capability factors. Resource and capability factors among entrepreneurial ventures were classified into three dimensions and fourteen criteria after a review of the literature. The study applied the Decision-Making Trial and Evaluation Laboratory (DEMATEL) model to identify and describe the cause-and-effect relationship amongst resource and capability factors. The findings reveal that in prioritizing the importance of criteria and cause-and-effect relationship among criteria under the three core dimensions, firm climate, managerial competence, market knowledge and technological capabilities and equipment were the most critical criteria. Furthermore, the result has shown that firm climate is the most significant criterion in the adjustment of resource and capability factors of entrepreneurial ventures. Therefore, promoting a supportive and conducive firm climate among entrepreneurial ventures can enhance other resources and capabilities factors which, in turn, will improve the overall performance of entrepreneurial ventures and small businesses. Developed and developing nations have long recognized that entrepreneurial ventures and small businesses play a pivotal role in accelerating socioeconomic development. However, the strategic tasks facing entrepreneurial ventures of all shapes and sizes have been how they can survive, gain and sustain competitive advantage with their limited set of distinctive resources and capabilities. According to Barney (1991), the strategic source of sustainable competitive advantage can only be derived from the resources and capabilities that an organisation or an entrepreneurial venture control. More importantly, sustainable competition, through resources and capabilities, largely begin with

The enterprises that result in the creation of companies are in need of implementing strategies that translate into an adequate positioning of their sector against competition. It also allows them to survive in global markets and to undergo continuous changes. For this reason, innovation as a part of the project is an important differentiating factor. In this context, this paper focuses on contrasting the actions focused on innovation by entrepreneurs of micro and small Mexican companies in the service sector of Mexicali, Baja California, and Villahermosa, Tabasco, with the aim of identifying the significant role played by innovation in the course of time. The above was achieved through a quantitative study that has a descriptive, exploratory, and correlational scope. As part of the results, it is through these strategies that it helps to promote an innovative enterprise, facilitating the generation of new ideas, and improving its ability to innovate. This would, however, results to products and services that are scalable and of greater value, taking the company to competitive levels and promoting its development in a sustainable manner. In conclusion, this effort must be permanent because there is a positive and significant relationship between innovation and actions in the development of it. This is not only for the company, but for the entity where they are located.

Este estudio tiene como principal objetivo analizar el impacto de la ineficiencia judicial sobre la pequeña empresa en Perú. Se funda sobre la hipótesis de que los problemas crónicos de los sistemas de justicia de la región tienen consecuencias negativas para el desarrollo de las micro, pequeñas y medianas empresas. Nuestro análisis se concentra, en primer lugar, en la forma en que las pymes se relacionan con el sistema de justicia. En segundo lugar, indaga acerca de las decisiones tomadas por los pequeños empresarios a fin de mitigar los efectos del mal desempeño de los tribunales. Por último, identifica las diversas maneras en que la ineficiencia judicial se traslada al sector productivo y se intenta cuantificar su impacto económico.

This study analyzes the impact of judicial inefficiency on small businesses in Peru. It is based on the hypothesis that chronic problems in the region’s judicial systems have negative consequences on the development of micro, small and medium-sized businesses. The analysis focuses, first, on the relationship between small businesses and the legal system. Secondly, it looks at decisions made by small businesses to mitigate the effects of poor performance by the courts. Lastly, it identifies several ways in which judicial inefficiency is transferred to the business sector. The analysis also attempts to quantify the economic impact of judicial inefficiency.

Leadership is one of the most widely practised and researched phenomena in modern times. While the relationship between the demographic variables of leaders and their leadership style has been investigated, leadership research has neglected employees’ demographics and how these relate to their perception of adopted leadership styles. Thus, the primary objective of this study was to investigate the relationship between selected employee demographic variables and the perceived existence of four contemporary leadership styles, namely Servant leadership, Authentic leadership, Ethical leadership, and Participative leadership, among SME owners. A survey was conducted among 236 employees working in SMEs operating in the Eastern Cape Province of South Africa. An analysis of variance (ANOVA) was undertaken to determine the influence of several demographic variables on the leadership styles investigated in this study. The findings of this study show that female employees and those with a post-matric qualification perceived SME owners as displaying a Participative leadership style more than their counterparts thought they did. This study contributes to the body of knowledge by providing insights into the perceptions of employees working in SMEs about contemporary leadership styles displayed by SME owners.

Social media are now a crucial part of today’s way of life. Economic factor is another chapter, one
that determines the  wealth and prosperity of a nation. At a micro level,  small businesses are the  economics’
driven  force.  There  is  always  although  a  quivering  thread  in  the  likes  of  economy  and  bu sinesses,  a  danger
known as economic crisis. The purpose of this paper is to analyze the social media and small businesses factors,
based on previous researches in order to give a strategic approach under the economic crisis, based on those
previous researches. The reason this paper was created, is to provide this optimal approach to all businesses
seeking a strategy, a pathway to surpass the economic crisis. Thorough research through previous papers on
the  field,  revealed  that  social  media,  used  vastly  by  millions  of  users  can  be  successfully  used  by  small
businesses as a helping hand to surpass the economic crisis and with great  success.

The feedlot industry is the main beef producer in South Africa and falls in the category of ‘Small Businesses’. For these small business enterprises to be successful in an industry subjected to fierce competition, it is necessary to be innovative in a market where high quality beef serves as just another commodity. Previous research has shown that demographic factors can influence brand preferences. The objective of this study was to investigate the relationships between language and gender with brand attribute preference. Another objective was to identify opportunities that will differentiate and position branded meat products that will create consumer equity and build strong brand names. The case study approach was used, and included quantitative and qualitative research. The population consisted of consumers buying meat products at the different retailers in Middelburg, Mpumalanga, under the brand names; Kanhym Fresh Meat, Farm Inn Meat and Frank’s Meat. A sample of 612 was conveniently selected for the study.  A total of 588 questionnaires were completed. This study confirmed the interrelationship of the demographic variables gender and language that may affect consumers’ preferences. This means consumers will try different products with specific attributes.  The results of this study identify opportunities of implementing strategies to maintain and enhance the competitiveness of branded meat retailers. It is finally recommended that brand retailers determine the demographic and psychographic profile of their target market for a specific product when producing or marketing products.

Businesses using cyberspace are expanding every day, with Internet users performing different activities affecting cyber hygiene. The user's actions may be good or badultimately determining the state of cyber hygiene. Good cybersecurity hygiene requires a thorough implementation of the best practices to improve safety and protect information or resources, while bad practices lead to data corruption, loss and breaches. Compromised cyber hygiene is the result of exposure to various cyberattacks. Our paper reports the best practices used by different business sectors to maintain cyber hygiene. The study used a qualitative survey mounted on google with 20 business owners and Information Technology managers. We explored the use of best practices to understand business experiences in reducing and avoiding cyber-attacks and improve cyber health. We analyzed the collected data and presented the findings. Cyber essentials have been recommended as the guideline to mitigate cyber risks.

Entrepreneurship has been recognized globally as the catalyst of economy growth and job creation. Though the term entrepreneurship has been in existence for many years, people hold different views regarding small businesses and entrepreneurship. In view of this, the trend in most developing economies is to use small businesses and entrepreneurship interchangeably which has made it difficult to harvest the gains of entrepreneurship. Thus this study investigates the disparity between small businesses and entrepreneurship in a developing economy. Deriving from previous research, this study draws on Schumpeter’s entrepreneurship theory of innovation to develop the argument that the entrepreneurial innovation is new combinations that distinguishes between small businesses and entrepreneurship. The objective is to present empirical findings and related literature to clarify the activities going on in the developing economy of Nigeria as to whether they are mere small business activities or entrepreneurship. The quantitative approach was employed with the survey method using a questionnaire for data collection. The sample frame is all registered micro and small manufacturing and retail firms in the North Central region of Nigeria. A census-based method was employed for the 450 registered firms in order to obtain a robust result. The data was analyzed using descriptive statistics and Pearson-moment correlation analysis to establish the strength of relationship between the variables. The findings reveal that majority of the respondents’ perceived small businesses and entrepreneurship as synonymous even when the small businesses activities are not entrepreneurial. The study concluded that there is a strong correlation between the small businesses and entrepreneurship. The study recommends an intensive enlightenment campaign by Corporate Affairs Commission (CAC) using media platform and slogans to sensitize the masses on entrepreneurship as different from small businesses. CAC in collaboration with Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) should organize training and workshops for businessmen and practitioners regularly in order to re-orientate them on the principles and practices of entrepreneurship. Finally, education at all levels should be reinforced along the line of entrepreneurship by policy makers.

The governance field is well studied. However, small family firms do not receive their fair amount of coverage, despite their importance. In this work the field of governance in small family firms is qualitatively explored, using a sample of eight Swedish firms with a total of ten interview partners. Using a Constructivist Grounded Theory, informed by previous literature, we find nine key themes characterizing governance in small family firms: (1) Ownership & Board, (2) Holding Company, (3) Advisor & External Help, (4) Responsibility, (5) Formality, (6) Informality, (7) Conflict, (8) Succession and (9) Discussion & Conversation. Our findings suggest that all small family businesses employ some form of governance, however, this is not always recognized as such in previous literature, showing that corporate governance is too narrowly defined. We also investigate why governance structures are (not) implemented and how this is done. In connection to this, we visualize the factors influencing whether or not a small family firm implements formal governance structures. Additionally, we discuss what actually makes a family firm small. We contribute by investigating governance concepts in another context, namely the one of small family businesses, and seeing to what extent they hold up. The work allows us to conclude that some findings confirm existing theory, while others question it or cannot be found therein at all.

Economy is the basis of today’s te
chnological  wonders
[1]
.    Businesses  are  the  mainspring  of  economy,  its  source.
Economy  and  businesses  are  interdependent.  In  order  for  the  businesses  to  increase  their  profit,  specific  marketing
techniques are used
[2]
.  Taking it deeper, small  businesse
s  are  the  ones  directly  linked  to  the  bigger  ones
[3]
.
Imagine blending dominant marketing techniques used in major companies with small businesses creating something
remarkable. The purpose of this paper is to analyze the impact of dominant marke
ting techniques in small businesses
and  use  simulation  models  to  modelize  that  analysis.  The  reason  this  paper  was  created,  is  to  provide  this  optimal
solution to all those seeking how to increase their business’s profit effectively through sovereign marke
ting techniques.
Thorough  research  through  the  paper  revealed  that  specific  marketing  techniques,  can  be  successfully  used  to
tremendously increase a small businesses profit, efficaciously

Bruwer, J-P. 2010. Sustainability of South African FMCG SMME retail businesses in the Cape Peninsula. Dissertation submitted in complete fulfilment of a MTech: Internal Auditing. Cape Peninsula University of Technology.

The concept of Small Medium and Micro Enterprises (SMMEs) was created and implemented by the South African Government in an attempt to improve the economy of South Africa, reducing the unemployment rate and eliminating poverty. As a basic objective, SMMEs strive toward sustainability, however in recent years sustainability is at an all time low as substantial a number of these businesses fail to become viable entities. Popular literature show that Fast Moving Consumer Goods (FMCG) retail SMMEs make ineffective use of their accounting resources, resulting in them making critical business decisions without understanding and interpreting their financial performance or financial positions. These decisions have a ‘toxic’ affect on their business sustainability and as a result, it is perceived that these SMMEs make inefficient use of financial performance measures. The key objective of this research is to establish what financial performance measures sourced from accounting resources are regarded as being critical for the sustainability of FMCG retail SMMEs during the current dispensation of an economic depression in South Africa. To achieve the above dispensation, applied research will be used using ‘action research’ as the primary research paradigm supported by questionnaires for the purpose of data analysis, results of which were analysed using descriptive and inferential statistics. Recommendations culminate from the research to mitigate the research problem.

Go to http://digitalknowledge.cput.ac.za/jspui/bitstream/11189/1026/1/Bruwer_JP_MTech_Sustainability%20of%20South%20African.pdf for a copy of the full text of this research output.