Department of Business Management

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    An Investigation Into The Impact of Debt Financing on the Value of Small Manufacturing Firms (SMFs) in Bulawayo, Zimbabwe
    (University of Fort Hare, 2007-11) Matarirano, Obert
    The study focused on the impact of debt on the value of small manufacturing firms. The study based its arguments on Modigliani and Miller's theory of capital structure, postulated in 1958 and corrected in 1963. The primary aim of the study was to determine if there was any benefit gained by small manufacturing firms (SMFs) as a result of using debt as a source of funding. It also aimed at determining if size of the firm and the products it manufactured had a negative effect on the accessibility of debt to small firms. The study hypothesised that there was a negative relationship between debt and profitability. A negative relationship was also hypothesised between firm size, product manufactured and accessibility of debt.
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    The impact of managerial competencies on the performance of SMEs in the Buffalo City municipality
    (University of Fort Hare, 2015) Tarwirei, Madya Bryan
    This research study was undertaken to examine the impact of managerial competencies on performance OF SMEs in the Buffalo City Municipality in the Eastern Cape Province of South Africa. The objectives of the study were, to investigate the relationship between managerial competencies and performance of SMEs in the Eastern Cape; to explore the extent to which human skill impact on SME performance; to establish whether business skills posed by owner-managers promote high performance in SMEs ;and finally, to establish whether technical skills inherent in owner-mangers have an impact on SME performance. To achieve these objectives, the study hypothesised the set objectives. A total sample of 184 SMEs was used to obtain the relevant information .Stratified sampling was used to gather data using a self-administered questionnaire as the research instrument. Data obtained from this study was elicited from SME owner sand owner-managers only as there were the target elements. The t-test and chi-square were used for statistical analysis in order to derive research findings and conclusions .After the analysis of the empirical findings, the researcher discovered that, eighty percent of the SMEs are five years or shorter in existence of which forty-one per cent exist for less than two years. High performance of SMEs was found to be heavily linked to managers technical and business skill. The ability to outperform industry rivals and increase productivity was found dependant on human skill which supported the Human Capital and Resource Dependence theory. The majority of SMEs are hampered by resource shortfalls with the technical skill (networking and innovativeness) resource shortfall being the most critical. SMEs generally conduct financial statement and inventory analysis, but ratio analysis, however is largely neglected. Only forty-two percent of SMEs practice financial planning and appraisal.
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    An investigation into the relationship between strategic planning and business performance in small, micro and medium scale enterprises (SMMEs)
    (University of Fort Hare, 2016) Gomera, Shingirai Walter
    Orientation: The manner in which SMMES use the strategic planning process and practise strategy formalisation might affect their business performance and realisation of set goals and objectives. Research purpose: The objectives of this investigation were to determine whether the strategic planning process (formulation, implementation and control and evaluation) influence business performance in SMMEs. Secondly, to determine whether there is a significant relationship between strategy formalisation and business performance in SMMEs. Also, to investigate literature on SMME performance measures. Lastly, to investigate literature on the hindrances on strategic planning. Motivation for the study: Conflicting views still exist on the concept of strategic planning and it contribution or link to business performance. Hence, an investigation that looks into the relationship between the strategic planning process and business performance of SMMEs in South Africa can provide a better understanding and conclusion on the link between the two variables. Thus, evidence from the research could help in better preparing, guiding and advising SMME managers and owner on whether and how to use the strategic planning process. Research design, approach and method: A cross-sectional survey design was used and a questionnaire was self-administered to a sample of convenience consisting of 275 SMMEs in the Buffalo City Municipality drawn from a population 950 SMMEs available in the Eastern Cape Development Corporation (ECDC) data base. Main findings: The results of this study showed a similarity with others obtained in prior studies. The reliability coefficients of all the other sub-scales were above 0.7 except for strategy implementation which was 0.662. The result drawn from the statistical analysis of this study showed that the strategic planning process had a positive effect on the performance of SMMEs. Furthermore, each section of the strategic planning process (formulation, implementation and evaluation and control) possessed a positive correlation with business performance of SMMEs. Lastly, strategy formalisations was found to have a significant relationship with business performance of SMMEs in the Buffalo City Municipality. Practical implications: The impact of strategic the strategic planning process is positive, it is a good predictor of organisational performance. Hence, organisations ought to put the strategic planning process to use. Furthermore, there is need to practise formal strategic planning since the results of the study showed that strategy formalisation had a significant relationship with business performance. Contribution: This study provided evidence on whether the strategic planning process influence business performance in SMMEs and further evidence on the significance of the relationship between strategy formalisation and the performance of SMMEs.