Problem‐solving techniques of growing very small businesses

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The paper aims to investigate the problems experienced and problem-solving techniques of very small businesses during growth. Evidence shows that if managers can understand the potential for growth and the barriers in their own business path, they will be able to address the problems and achieve success. The purpose of the paper is therefore to provide guidelines to assist very small Black business entrepreneurs with overcoming growth problems, so to become sustainable. Design/methodology/approach -A qualitative research approach with a combination of content analysis and grounded theory was used in the paper. The sample was restricted to very small Black business entrepreneurs in the formal sector, in Port Elizabeth, South Africa. Snowball sampling was used where the first participant identified supplied the names of other possible participants and so forth till the sample size of ten very small Black business entrepreneurs was obtained. One of the very small businesses had two owners, and another had three owners (total of 13 participants). The researcher collected the data through five rounds of mostly unstructured, non-directive and in-depth individual interviews on the Black entrepreneurs' premises (65 personal interviews in total). Observations and on-site experiences were also noted. Utilising the constant comparative method, the problems could be divided into four main themes: solvable, partially solved, solved and ongoing problems and then further divided into seven management functions. The synchronic reliability method was used and the triangulation method was used to ensure validity. Coding of data also ensured both reliability and validity. Findings -Problems are mostly solved through experimental learning with human resource and financial problems as top priority training areas to assist growth. Many problems are computer related and some are personal such as stress management. Workshops or mentorship are indicated as possible ways of solving problems. Practical implications -General guidelines in five functional areas and in general were provided as to how problems could be solved to assist with growing these very small businesses. These guidelines are b...

Artistic orientation, financial literacy and entrepreneurial performance

“…Finally, this finding also provides implications for policymakers. To provide a supportive entrepreneurial ecosystem, governments and educational institutions should prioritise training and education programme on financial literacy and artistic orientation for entrepreneurs who involve in the creative and cultural industries, because human capital and financial skills have obviously become the main area of small and medium businesses’ growth (Maroufkhani et al , 2018; Perks, 2010). And since access to financial facilities has been proven to improve the literacy of entrepreneurs to financial matters (Reeves and Sabharwal, 2013), the government and financial service institutions might facilitate more flexible access to financial products and services for artist entrepreneurs.…”

Focused training programmes for solving growth problems of very small businesses

“…The detailed results of the life-story grid of these participants can be seen in an article of Perks (2007). A brief summary follows that outlines the most important issues in the life-story grid.…”

“…The database of a previous study done by Perks (2007) in the Nelson Mandela Metropolitan was used to conduct the empirical research as it was important to make sure as only very small businesses that have experienced growth would have be able to give meaningful responses to whether they could benefit from training programmes and what the content of these training programmes should be. The profile of the very small business entrepreneurs is as follows: Pipe fabrication (close corporation); Engineering of car parts (private company); Catering and café (sole proprietor); Interior decorator (sole proprietor); Manufacturing fans and stair cases (close corporation); Electrical, building construction and maintenance (close corporation); Marketing, advertising and design consultancy (close corporation); Traditional Xhosa…”

“…The sampling criteria as determined by the previous study done by Perks (2007) were: started as a micro entrepreneur and progressed to a very small business entrepreneur; being from the previously disadvantaged groups; that growth must have taken place, and having at least five permanent employees.…”

“…The interview schedule was divided into the following six sections: financial; computer-related; management; operations; marketing; human resources and locational. These sections were based on the types of problems experienced by very small business entrepreneurs as identified in a qualitative study done by Perks (2007). Each of these sections was covered in a separate interview so to focus the participants' thoughts and to reduce the analysis time.…”