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Entrepreneurship

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Browsing Entrepreneurship by Subject "Business development services."

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    Effectiveness of institutional mechanisms on small businesses in Mokhotlong and Qacha’s Nek, Lesotho.
    (2021) Molebatsi, Mokete Bernard.; Khoase, Refiloe Gladys.; Derera, Evelyn.
    The Lesotho Government, like other governments, enacted the Medium, Small and Micro Enterprises (MSMEs) Policy to address the issue of MSME development. It is perceived worldwide that small and medium enterprises (SMEs) constitute a large sphere of economic activity that accounts for the major share of employment and is a powerful force for poverty reduction. However, SMEs are exposed to today’s risky business environment, which compels economies to intervene by effectively implementing MSMEs policies. The main objective of this study was to evaluate the effectiveness of the implementation of the institutional mechanism to assist MSMEs in the Mokhotlong and Qacha’s Nek districts in Lesotho. While economies have adopted mechanisms to develop Small, Medium and Micro Enterprises (SMMEs), several studies have shown that most businesses still face challenges despite the efforts of their governments. Therefore, since the Lesotho Government had implemented the MSME Policy in 2016 to develop the sector, it is essential to assess the effectiveness of the implementation of the Policy in Lesotho. Primary data was collected through the use of questionnaires that were distributed to MSME owners in both districts. The questionnaires were hand-delivered to a sample size of 331, however, only 202 responses were received by the researcher. The list of MSMEs registered with the Ministry of Trade and Industry (MTI) in both districts was used by the researcher to select the respondents using probability sampling also known as the random sampling method. For the respondents who did not indicate their physical addresses on the list a nonprobability sampling method, namely, convenience sampling, was used. The Statistical Package for Social Sciences (SPSS) Windows Version 26 was used to analyse the collected data. The Government of Lesotho has put in place several initiatives to boost MSMEs by establishing the Ministry of Small Business, Cooperatives and Marketing and the MSME Policy among others. While some MSMEs benefited from the Policy, others faced some challenges. Due to perceived barriers such as access to finance, access to training and poor infrastructure, among others, some MSMEs decided to operate informally. The evaluation of the effectiveness of the implementation of the MSME Policy is vital as it might guide policymakers in amending the Policy by devising adequate strategies to create and enhance a conducive environment in which MSME owners can operate. Findings suggest that institutional mechanisms to assist MSMEs in Mokhotlong and Qacha’s Nek are ineffective in the development of MSMEs. The majority of respondents agreed that they are aware of the supporting institutions that are meant to assist MSMEs, and have received such assistance. However, a gap exists in the quality of services provided. Thus, the objective of the Policy will not be met if the various mechanisms put in place to assist MSMEs are not of the quality needed. In terms of the findings, the following recommendations can be made: • The institutional mechanism needs to be improved to achieve the set goals. • The supporting institutions should offer training based on the results of the assessment of the relevant needs of MSMEs. • The quality of service offered by the supporting institutions should be improved. • The market be opened to businesses that want to invest in financial institutions. • The use of new research findings be utilised by managers and policymakers to enable them to easily redesign policies based on scientific information.
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    The impact of interventions from supporting institutions on managerial competencies: a case of small, medium and micro-sized enterprises in Pietermaritzburg, South Africa.
    (2019) Moise, Lusambya Lukendo.; Khoase, Refiloe Gladys.; Derera, Evelyn.
    The contribution of Small, Medium and Micro Enterprise (SMME) sector in the economic and social development of a country has been recognised worldwide. Governments around the world have designed interventions to promote the growth of the SMME sector in an attempt to stimulate national economic growth. The South African government, through public and private supporting institutions, devised interventions to provide financial and non-financial support to SMMEs. However, despite these interventions, the failure rate of small businesses in South Africa is still high. Numerous scholars identified lack of managerial competencies as one of the main causes to the failure of SMMEs. Therefore, this study investigated the impact of interventions from supporting institutions on managerial competencies of Small, Medium and Micro-Sized Enterprises (SMMEs) within the context of Pietermaritzburg city in South Africa. The nature of this study is descriptive. A quantitative survey was conducted on a sample of 148 SMMEs’ owners and managers, identified through convenient and snowball sampling. Data were collected by means of personally administered questionnaires. Frequency analysis, crosstabulation analysis with chi-square, Spearman correlation analysis and linear regression analysis were statistical methods employed to analyse the data. The study found that government and private supporting institutions are not the primary sources of developing the managerial competencies of SMMEs’ owners and managers. SMME’s owners and managers rely more on job experience, formal education/training, and In-house training. Most SMMEs’ owners and managers are not utilising different interventions designed by supporting institutions, due to some challenges such as lack of awareness, lack of finance, and too much bureaucracy and red tape. Despite the non-utilisation of services offered by supporting institutions, the study found that receiving interventions from supporting institutions has a significant impact on developing some managerial competencies of SMME’s owners and managers such as conceptual skills and technical skills. Based on the research findings, practical recommendations were provided on how to promote SMMEs through interventions that enhance the managerial competencies of SMMEs’ owners and managers.