A poverty-reduction oriented perspective to small business development in South Africa: A human capabilities approach

Rambe, Patient; Mosweunyane, Lentswe

doi:10.1080/20421338.2017.1322749

Cited by 17 publications

(20 citation statements)

References 35 publications

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“…But, since the publication of a paper writen by Dennis Anderson in 1982 that became famous in the literature on MSMEs in developing countries, the question arises: whether the large number of MSMEs, particularly MIEs, in poor countries reflects the high entrepreneurial spirit or more as a sign of poverty (e.g. Tambunan, 1994Tambunan, , 2008Oyelana & Adu, 2015;Thapa, 2016;Rambe & Mosweunyane, 2017).Even, evidence in a number of low-income countries suggests that MIEs function more as the 'last resort' rather than as profitable businesses opportunities for the poor: because they are poor or unemployed, they are forced to conduct any kind of activities that can generate some incomes for them to survive (e.g. Orlando & Pollack, 2000;Midgley, 2008;Oyelana & Adu, 2015;Lateh, Hussain & Halim (2017).…”

Section: Research Frameworkmentioning

confidence: 99%

Recent evidence of the development of micro, small and medium enterprises in Indonesia

2019

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This paper examines the development of micro, small and medium enterprises (MSMEs) in Indonesia. It has three research issues, namely the role of MSMEs, their constraints, and the importance of MSMEs for the creation of business opportunities for women. More specifically, the study aims to answer the following research questions. First, how important are MSMEs in Indonesia? Second, what are their main constraints? Third, how important are they, especially micro and small enterprises (MSEs), for the creation of business opportunities for women? Fourth, is the growth of MSEs a sign of increased entrepreneurial spirit or a reflection of poverty? This study adopted descriptive analysis using secondary data. It shows that MSMEs in Indonesia are dominated by MSEs, and accounted for almost 100% of all existing firms but only contributed between 58 to 61% of gross domestic product (GDP). About 42.84% of MSEs are owned by women, although the ratio of female to male entrepreneurs in MSEs varies by province. Poverty seems to be the main force behind the growth of MSEs. This study ends with some policy recommendations that the government should: (i) conduct trainings that focus on online marketing, entrepreneurship, management, and improving the quality of product and business efficiency; (ii) provide alternative funding facilities with low interest rates and non-burdensome requirements; and (iii) provide assistance directly in the production site for new entrepreneurs in their first years of running businesses. In addition, all gender discrimination treatments that have been burdensome for women to run own businesses must be eliminated. This study has, however, several limitations, especially with respect to the third and fourth research questions. Secondary data used does not have information about the main/initial motivation of MSME owners to run their own business and their socioeconomic profiles.

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Section: Research Frameworkmentioning

confidence: 99%

Recent evidence of the development of micro, small and medium enterprises in Indonesia

2019

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“…Understanding entrepreneurship and entrepreneurial orientation are the fundamental characteristics of business creation and wider economic growth (Lumpkin & Dess, 1996;Rodriguez-Gutierrez, Fuentes-Fuentes, & Rodriguez-Ariza, 2013), their contribution towards unemployment (Birch, 1979;Birley, 1989;Cámara, 2018;Rambe & Mosweunyane, 2017), and a catalyst for technological innovation creation (Acs & Audretsch, 2005;Fellnhofer, 2018;Hisrich, 1988). Campos, la Parra, and Parellada (2012) work indicate that entrepreneurial environments have been seen as one of the unique fields in which entrepreneurial study has accrued expertise.…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurial orientation dimension affects firm performance: A perspective from the Malaysian furniture industry

Akbar¹,

Khan²,

Wadood³

et al. 2020

EBER

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“…Samawi et al (2016) show that the inability to access financing was a significant constraint to the growth of small firms in Libya. This was also attested in Rambe and Mosweunyane (2017) in South Africa that shows that the inabilities to secure sustainable financing affected the financial performance of SMEs. It can be inferred by these findings that access to financing has significant influences on the performance of SMEs.…”

Section: Introductionmentioning

confidence: 74%

Financial Inclusion and Poverty Alleviation in Kenya: Effects of Mobile Loan Interest Rates on the Financial Performance of SMEs in Urban Informal Settlements

Murage¹

2021

SCIMUNDI

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The aim of this study is to assess the effect of interest rates on the financial performance of SMEs in urban informal settlements in Kenya. This study adopts the descriptive survey design. Data were collected from 120 SMEs in the 6 wards of Mathare Sub-County. Data was collected using semi-structured questionnaires. It was analysed using descriptive and inferential statistics. The findings show that low-interest rates could influence the propensity of SMEs to apply for these loans. The ability to pay mobile loans without problems due to low interest rates enhanced the performance of the respondents’ businesses. This goes on to contribute to poverty alleviation in urban informal settlements through enhanced access to capital; one of the goals of the world bank. This has further ripple effects since it can contribute to income diversification for the inhabitants of poor urban areas. The following recommendations were made. The government should also reduce interest rates to lower the cost of mobile phone interests as well as the interest rates of other loan products. Mobile loan lenders should also ensure that their loan products are affordable for the urban poor.

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A poverty-reduction oriented perspective to small business development in South Africa: A human capabilities approach

Cited by 17 publications

References 35 publications

Recent evidence of the development of micro, small and medium enterprises in Indonesia

Recent evidence of the development of micro, small and medium enterprises in Indonesia

Entrepreneurial orientation dimension affects firm performance: A perspective from the Malaysian furniture industry

Financial Inclusion and Poverty Alleviation in Kenya: Effects of Mobile Loan Interest Rates on the Financial Performance of SMEs in Urban Informal Settlements

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