David Against Goliath: Predicting The Survival Of Formal Small Businesses In Soweto

Strydom, J.W.

doi:10.19030/iber.v14i3.9210

Cited by 8 publications

(9 citation statements)

References 14 publications

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“…The two elements crucial in forming the clusters were the growth pattern and the age of the business. The decision to focus on these elements are in line with Strydom's (2015:473) research on Soweto businesses, where surviving businesses were characterised by income growth and years in operation. It can be safely assumed that business size and age are related variables.…”

Section: Cluster Analysismentioning

confidence: 95%

High inventory levels: The raison d’être of township retailers

Cilliers

2018

SAJEMS

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Background: This study investigates the cardinal role of optimal inventory decision-making in the performance of small formal retailers in Soweto, constituting a projected, lucrative retail environment. Aim: The research question was how Soweto small retailers make inventory decisions to promote their income growth and age of the business. For this study, a descriptive research design was followed. Setting: The universe of the study comprised all the formal small, medium and microenterprises located in Soweto township. Methods: Using probability sampling, the sample size was set at 650 businesses. Of the 650 completed questionnaires, the responses of 297 respondents operating in the retail grocery and retail general stores sectors were analysed quantitatively using exploratory factor analyses, cluster analysis and cross-tabulation. Results: This study showed that being more inclined to proactively maintain a high level of inventory could result in positive business performance in terms of both growth in income and age. Younger businesses (less than 5 years) could grow if they decide to stock up on sale items, purchase more items for sale, provide for customers’ fluctuating demands and buy more stock to save on transport costs. Purchasing less or the exact amount of stock as what can be sold within a month could be detrimental to the performance of general and grocery retailers in Soweto. Conclusions: The results also show that if retailers want to grow and exist for 5 years and more, they should consider both proactively maintaining a high level of inventory and doing so with ease. In this study, the older (5 years and older) business groups were mostly owned by older people, who showed a tendency to establish themselves in stand-alone shops or smaller shopping centres. Older businesses also tend to buy stock daily or weekly, or when stock is low. These older businesses without income growth were mostly family businesses who displayed contentment with the status quo of business performance and seemed to lack entrepreneurial skills.

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Section: Cluster Analysismentioning

confidence: 95%

High inventory levels: The raison d’être of township retailers

Cilliers

2018

SAJEMS

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“…Firms that have been in business longer are likely to produce better-known products, providing a brand loyalty that newer entrants are hard-pressed to match even with equal advertising budgets (Scherer, 1980: 260). It was found that the longer the business had been in operation, the better its chances for success and survival (Strydom, 2015). The longer the duration of existence, the more chance to become successful (Blackburn, Hart andWainwright, 2013 andLigthelm, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Old businesses usually have advantages over new entrants or the new businesses. Strydom (2015) said that the longer the business had been in operation, the better its chances for success and survival, while Blackburn, Hart, & Wainwright (2013) and Ligthelm (2012) revealed that the longer the duration of existence, the more chance to become successful. On the other way around, the longer the duration of existence may lead also to its demise since the people who are working there may feel so confident that they knew all about.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Audit Firm Age and Audit Tenure on Audit Quality (An Empirical Study on Trusted Company Awardees Listed in Indonesia Stock Exchange 2011-2016)

Sinaga

2019

isc

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INTRODUCTION: Indonesia’s go public companies are the backbones of its economy. As of January 2019, there are 620 listed companies in Indonesia Stock Exchange. The Indonesian Institute for Corporate Directorship yearly acknowledges listed companies and gives award categorized as the most trusted, trusted and fairly trusted companies every year. This study aimed to explain the effect of audit firm age and audit tenure on audit quality for the trusted company awardees from 2011-2016. METHOD: An explantory method is used in this study since it depicts the cause and effect relationship. Data gathered will be processed,analyzed, presented, interpreted and concluded in a way that it will clarifies the matters about audit firm age and audit tenure on audit quality. There were 36 firm year observation as sample which was derived the companies that were awarded for six consecutive years. A multivariate analysis was used in processing and analyzing the secondary data. RESULTS: The findings partially showed that audit firm age has no significant effect on audit quality while audit tenure showed that there is a significant effect on audit quality. In addition to the findings mentioned, it simultaneously showed that audit firm age and audit tenure on audit quality. DISCUSSION AND RECOMMENDATION: When the two variables are combined it affects the audit quality. This means that the two variables, audit firm age and audit tenure should go hand in hand together in achieving audit quality. Audit firm age, although not significant, must be taken into consideration. The longer the firm, it is expected to increase audit quality. Audit tenure has to do with objectivity in which it will lead to audit quality. Long tenure is avoided by following the government regulations. As much as possible, in every audit engagement, audit work must appear to be very objective, unbiased, and impartial thus resulting to high audit quality. As for recommendation, researcher must add more samples in order to be more representative. Also, other variables may be taken into consideration as a proxy for audit quality. Keywords: Indonesian Institute for Corporate Directorship, most trusted, audit firm age, audit tenure

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“…In this article, business age and annual growth in income were selected as predictors of small retailers' survival. Strydom 2013Strydom , 2015. According to Ligthelm (2013:73), informal small businesses operating within townships are not regarded as the foundation of successful and productive township small businesses.…”

Section: Predictors For the Survival Of Small Retailersmentioning

confidence: 99%

“…Over the past two decades, several studies have been conducted on the previously disadvantaged townships of South Africa and particularly on their development. These studies focused on key issues such as challenges faced by township entrepreneurs and the support of the government (Olawale & Garwe 2010); the status of township businesses and entrepreneurs within Gauteng (Strydom 2015); the survival of formal small businesses in Soweto ; the unique market offering by formal independent retail and wholesale small businesses in Soweto (Badenhorst-Weiss, Cilliers & Eicker 2014); and the skills required for the management of black-owned small enterprises in Soweto (Nkosi et al 2013). The continuation of such studies can be ascribed to the drastic changes in the township business environment -from unplanned business infrastructures to state-of-the-art shopping malls -influencing the way in which these businesses are operated and managed (Nkosi et al 2013:4).…”

Section: Introductionmentioning

confidence: 99%

Managing logistical supply chain drivers: A predictor of small township retailers’ odds of survival

Eicker

Cilliers

2019

Acta Commercii

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Formal independent small Sowetan retail businesses operate under challenging economic conditions that impede their ability to survive. However, the management of the logistical supply chain drivers can increase these small retailers' odds of survival.Research purpose: To investigate whether the management of the logistical supply chain drivers can serve as a predictor of formal independent small Sowetan retail businesses' odds of survival.Motivation for the study: Assisting formal independent small Sowetan retail businesses to integrate with local and formal supply chains, as well as increasing their odds of survival amidst the difficult economic conditions under which they operate.Research design, approach and method: A quantitative survey was conducted among 650 formal independent small Sowetan businesses, of which the responses of 556 retailers were analysed. Two binary logistic regression models were developed to determine whether the management of the logistical supply chain drivers could predict the small retailers' odds of survival. Main findings:The results of two binary logistic regression models showed that the management of the three logistical supply chain drivers influences the odds of formal independent small Sowetan retail businesses surviving for 5 years or longer, as well as their odds of growing their annual income.Practical/managerial implications: Assisting policymakers when designing developmental initiatives for townships. Contribution/value-add:This study strives to assist formal independent small Sowetan retail businesses operating within a developing country to manage their logistical supply chain drivers to increase their odds of survival and contribute to the economic development of their country.

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David Against Goliath: Predicting The Survival Of Formal Small Businesses In Soweto

Cited by 8 publications

References 14 publications

High inventory levels: The raison d’être of township retailers

High inventory levels: The raison d’être of township retailers

The Effect of Audit Firm Age and Audit Tenure on Audit Quality (An Empirical Study on Trusted Company Awardees Listed in Indonesia Stock Exchange 2011-2016)

Managing logistical supply chain drivers: A predictor of small township retailers’ odds of survival

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