Issue #3 (Volume 7 2016)

The aim of the article is to illustrate that export experience of small and medium enterprises (SMEs) has a statistically significant effect on financial performance. This may seem obvious, but similar studies done elsewhere have shown conflicting results. The study’s findings also show conflicting results in the three single-item performance measures used, namely, sales, profits and savings. Data from a sample of 144 exporting SMEs were collected using a structured questionnaire. Export experience is measured by years exporting, and financial performance covers a period of three years. A Chi-square test was used to measure the effect of experience on performance. Results show that export experience had a statistically significant effect on sales and profitability, but not on savings. They also show that performance in sales and profitability increased with export experience. It is, therefore, recommended that appropriate interventions to improve exports, should take export experience into account.

Keywords: export experience, performance, SMEs, sales, profitability, savings, Southern African Development Community.
JEL Classification: L25

The purpose of this paper is to conduct an analysis of the chartered accountancy profession sector charter with other sector charters. This is to ascertain if the chartered accountancy profession charter is a workable strategy to address economic transformation within the accountancy profession in South Africa. Desktop research method was used for this paper. Content analysis was used to analyze the chartered accountancy profession’s charters with the aim to ascertain if it is a workable strategy when compared with other sector charters to address the limitation of growth of black people in the chartered accountancy profession.
The analysis of the selected sector charters shows that the chartered accountancy sector is committed to economic empowerment in South Africa. This sector has, however, set aggressive targets on employment equity and skills development when compared with the financial and construction sectors. This analysis and comparison is useful in guiding the stakeholders within the accountancy profession in their vision to accelerate the transformation process within the profession. Furthermore, it is hoped that this paper will stimulate substantive discussions around economic transformation strategy designed by government and business to redress economic inequality in South Africa.

Keywords: broad-based black economic empowerment, charters, chartered accountancy, sectors, South Africa.
JEL Classification: J24, J71

This study examines the factors that cause failures of many South African rural small and medium enterprises (SMEs) in poultry business. The research method was qualitative phenomenology using in-depth, semi-structured interviews to explore the factors considered by rural chicken SMEs owners to be causes of their business difficulties. The study revealed that these entrepreneurships knew chicken business only from the home-grown chickens, and the local poultry was usually providing only meat. Compared to the local chickens that were cheap to acquire and nurture, the commercial ones had to be purchased, nourished with purchased foods, supported with electricity light at night, and still, some died. It was much cheaper to raise indigenous chickens. The results indicate that rural poultry SMEs owners did not know that buying a commercial chick carries benefits that range from eggs, feathers, meat, and other chicken products. Also, after purchasing each chick, there are more additional investments needed to maintain the market standard. The study enlightens chicken entrepreneurs that they should, first, learn the insight of business, the poultry industry, and the context of the business they wish to pursue.

Keywords: competition, formal market, informal business, SMEs, poultry, rural, tax.
JEL Classification: Q13, O17

Around the globe, more emphasis is being placed on environmental sustainability and, as such, many organizations have started to embrace the idea of a paperless working environment, although it is still largely regarded as an idealistic dream. For this research study, the influence of a paperless working environment on the Master of the High Court (Master’s Office), in Cape Town, was investigated through the introduction of its Paperless Estate Administration System (PEAS) and its Paperless Estate Administration System for Trusts (PEAST). The main objective of this research study is to determine the influence of the PEAS and the PEAST on the holistic sustainability of the Master’s Office. A mixed methods approach was followed whereby both quantitative data and qualitative data were collected through means of disseminating questionnaires to employees based at the Master’s Office in Cape Town. Based on the findings made, the PEAS and the PEAST had a positive influence on the sustainability of the Master’s Office in Cape Town, as the time spent on and the expenditure incurred on administrative tasks decreased significantly. Notwithstanding the latter, it was found that the PEAS and the PEAST can still be further enhanced to optimize the sustainability of the Master’s Office in Cape Town.

Keywords: paperless, work environment, high court, administration, office and management technology, Paperless Estate Administration System (PEAS), Paperless Estate Administration System for Trusts (PEAST).
JEL Classification: M10

A survey was conducted in local municipalities in the Tshwane region of Gauteng Province in South Africa in order to assess and evaluate the efficiency with which municipal waste is collected, disposed of, processed and recycled by local municipalities in Tshwane based on data gathered from 1,035 businesses. Efficiency in waste management was assessed by using a structural time-based model designed for evaluating efficiency as a function of the length of time required to manage and process municipal waste. Adherence to municipal bylaws and procedures recommended for solid waste management by businesses by the City of Tshwane was graded based on ISO 14000 and ISO 14031 standards and guidelines. The study found that efficiency in waste management was adversely influenced by lack of adherence to municipal bylaws and regulations, wrong perception on the benefits of proper waste management, and failure to provide customers with waste disposal bins, in a decreasing order of importance.

Keywords: Tshwane municipalities, waste management, efficiency, logit analysis.
JEL Classification: Q53, C25

South Africa’s past policy of apartheid has contributed to some of the socio-economic challenges the country faces today. Some of the challenges include grinding poverty levels, increasing inequality and unemployment among large sections of the population. The constitution of the country makes provision for property and land rights as strategies for addressing some of the past injustices, ensuring food insecurity and sustainable livelihoods. A number of polices have been drafted in this regard, but it is acknowledged that some of the policies that have been adopted by the government have not yielded the desired result leading to the fear that if the situation is not radically addressed may lead to unintended consequences. This paper assesses a number of polices, programs, approaches and strategies regarding land reform policies have that been put into place, most of which have not worked as expected including the fact that the youth have not been factored into most of these programs and policies. This article advocates for the youth to be factored into all land reform and food security policies and programs as a way of capacitating them and getting the youth to see agriculture as a career choice to ensure future food security for the nation, while at the same time addressing youth unemployment and rural poverty.

Keywords: land reform, youth, food security, livelihoods, development, policy.
JEL Classification: Q15, Q18, O2

Microfinance has been viewed as a pathway for smallholder farming. This paper aims to investigate the impact of microfinance on smallholder farming. It examines the role of microfinance in the development of smallholder farming. This paper employs the integrated view of microfinance study as opposed to the ‘credit only’(minimalist) view. Using qualitative research methodology, the paper relies on literature review and primary data. Household level data (primary) were collected from a rural district (Masvingo Rural District) of Masvingo province in Zimbabwe. Data were collected from 250 microfinance participants (household heads) using questionnaires and face-to-face interviews. The findings show that microfinance had positive effects on accumulation of agricultural assets, income from agriculture, agricultural education, agricultural productivity, agri-business, consumption and health. However, the impact is limited due to lack of finance. Basic financial services are essential for the management of their smallholder farming activities. The practical implications are that the study results could be used by the government and development agencies for policy making. The paper recommends that microfinance should be harnessed as a useful intervention that can be employed to economically empower the smallholder rural agricultural sector.

Keywords: microfinance, smallholder farming, integrated view, minimalist view.
JEL Classification: G21, O13

Technopreneurship / entreprenology is a relatively new term and is receiving increasing recognition from the scholars of various streams of business and science and technology disciplines, as well as from the industry players and business men practically. Technopreneurship is, indeed, becoming vital in the current globalization and liberalization economy, as it provides greater opportunities and enables effective optimization of resources to attain high profit margins. This article presents a summary of research on entrepreneurs and discusses the trends in the development of entrepreneurship to present day technopreneurship. It begins by introducing the pioneers of the domain, Cantillon, Say and Schumpeter. The contribution of economists such as Knight, Hayek, Penrose, Kirzner and Casson are mentioned. A second section presents the contributions of the behavioral scientists and the characteristics most commonly ascribed to entrepreneurs. From the 1980s onwards, the field of entrepreneurship detonated and was absorbed into almost every soft science discipline. Two separate trends - one applied, the other theory-based - began to emerge. Thus, the article necessitates that the field is in the process of dividing into two separate entities: entrepreneurship, the applied aspect, and technopreneurship, the theoretical aspect.

Keywords: technopreneurship, entreprenology, enterpreneurship, SMEs.
JEL Classification: L26

In this study, 157 smallholder farmers from the OR Tambo and Chris Hani district municipality in South Africa were purposively sampled to participate in a survey. The objective was to identify the factors that influence smallholder farmers’ awareness of biofuel crops. Using a binary logistic model, it was found that the variables: gender, household income, membership in association, land utilization and qualification were statistically significant in influencing farmers’ awareness of biofuel crops. Therefore, it is recommended that the South African government should identify the smallholder farmers targeted for the biofuel program by their social status, as pointed in this study.

Keywords: awareness, binary model, biofuel industrial policy, energy, shared growth initiative, smallholder farmers.
JEL Classification: Q1, Q2, Q4, Q5

This study on environmental economics has noticed that a growing concern for healthy food and environmentally friendly production has resulted in increased attention towards organic food. In South Africa, the market for organic food is still in the infancy stage. Food marketers continue to grapple in designing marketing campaigns to attract organic food consumers. Using a survey method, self-completed questionnaires were collected from customers aged 18 and above, by means of convenience sampling technique from a sample of 120 customers at the Hazel food market (HFM) in Pretoria. A total of 118 questionnaires were received back. STATA software was used to analyze the data. This is a quantitative study in which data analysis consisted of descriptive statistics, the Chi-square test and reliability analysis. The results suggested that customers at HFM have the intention to purchase organic food. The major findings of the study indicated that factors such as consumer values, attitude, subjective norm and perceived behavioral control significantly influence consumer’s intention to purchase organic food. This study intends to provide valuable insights into current studies of consumer behavior towards organic food in South Africa. Potential beneficiaries of this research study include consumers, vendors and government agencies.

Keywords: environmental economics, consumer purchase intention, theory of planned behavior, organic food.
JEL Classification: Q5, M31