Agro-processing Industries in the South AfricaN Economy

2021 ◽  
pp. 216-239
Author(s):  
Horman Chitonge
Keyword(s):  
South African ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Value Chains ◽  
Inclusive Growth ◽  
The South ◽  
Employment Creation ◽  
Business Opportunities ◽  
Medium Enterprises

This chapter provides an overview of the agro-processing sector in the South African economy, focusing on the sector’s potential to contribute to inclusive growth through high value-added activities. The chapter shows that agro-processing industries have been the largest subsector of the manufacturing sector in the country since the 1970s, accounting for the largest share of both manufacturing output and employment. Apart from being the largest segment of the manufacturing sector, agro-processing industries have the potential to contribute to the broader national objective of transforming the structure of the economy through the creation of jobs and business opportunities for new small and medium enterprises on both sides of the agro-processing value chains. Employment creation potential lies in the fact that most agro-processing industries are labour intensive. Agro-processing industries, on average, use 40 per cent more labour per unit of capital relative to the manufacturing sector as a whole. However, the challenge is that several of the most labour-intensive agro-processing industries are experiencing declining or stagnating value-added, investment, and, most importantly, employment levels. Consistent and coordinated implementation of strategies which revive dynamism in labour-intensive industries is required to overcome this challenge.

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals Anti-competitive behaviour in the agri-food and steel value chains in the South African manufacturing sector

2014 ◽  
Vol 7 (2) ◽  
pp. 315-340
Author(s):  
Julia Kupka ◽  
Adele Thomas
Keyword(s):  
South African ◽  
Manufacturing Sector ◽  
Value Chains ◽  
The South ◽  
Big Business ◽  
Competitive Behaviour ◽  
Leniency Policy

Despite the fact that it has existed for over ten years, the Competition Act has had little impact in diluting the dominance of big business in the South African manufacturing sector. This study sought to ascertain the extent of anti-competitive behaviour in two sub-sectors of the South African manufacturing sector and to determine whether the competition authorities should focus on supporting SMEs as competitors to big business. The findings indicated that SMEs in these two sub-sectors face unique difficulties in fighting anti-competitive behaviour, and that there is scope for the competition authorities to facilitate the participation of SMEs in the economy through the use of tools such as market inquiries, the Corporate Leniency Policy and structural remedies.

scholarly journals A generic balanced scorecard for small and medium manufacturing enterprises in South Africa

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Arthur Reynolds ◽  
Houdini Fourie ◽  
Lourens Erasmus
Keyword(s):  
South Africa ◽  
South African ◽  
Balanced Scorecard ◽  
Delphi Study ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Local Economy ◽  
The Balanced Scorecard ◽  
Manufacturing Enterprises ◽  
Medium Enterprises

Background: Prior research confirmed that the balanced scorecard (BSC) can be used successfully at manufacturing small and medium enterprises (SMEs), to assist with sustainability. South African SMEs have a low survival rate despite being a significant contributor to the local economy with the manufacturing sector in particular hampered by negative growth.Aim: The objective of this study was to develop a BSC for manufacturing SMEs in South Africa with measurable key performance indicators (KPIs).Setting: We conducted a Delphi study with cost accounting specialists in different industries.Methods: The development of the generic BSC was facilitated with a Delphi survey and analytical hierarchy process (AHP).Results: The research presents a generic yet flexible BSC for manufacturing SMEs. A total number of 12 generic and 104 specific KPIs were identified. The results revealed a greater emphasis on the financial and customer perspectives that may be conducive to SME sustainability and success.Conclusion: A generic BSC that can be adapted to specific organisational and industry requirements has the potential to enhance SME sustainability and success.

scholarly journals Evolution of the MSMEs in India

2011 ◽  
Vol 1 (2) ◽  
pp. 79-90
Author(s):  
Madhavi A Lokhande
Keyword(s):  
Development Process ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Entrepreneurial Skills ◽  
Product Manufacturing ◽  
Catalytic Role ◽  
Technical Innovations ◽  
Definition Of ◽  
Medium Enterprises

There is a growing and worldwide appreciation that the Micro, Small and Medium Enterprises play a catalytic role in the development process of most economies. This position gets reflected in the form of their increasing number and rising proportion in the overall product manufacturing, exports, manpower employment, technical innovations and promotion of entrepreneurial skills. This paper attempts to look at the changing definition of the Micro, Small and Medium Enterprises and the role these enterprises are playing in the growth story of our economy. In India, the MSME sector is the second largest manpower employer, after agriculture and the output from this sector alone constitutes 40 percent share of the value added in the manufacturing sector and one third of national exports. The importance of Micro, Small and Medium enterprises (MSME) for its contribution in the Indian economy growth is a matter of record and needs no further elaboration. However, with the changing focus from economic growth to inclusive growth, MSME sector’s role in the socio economic development of India needs to be understood, explored and facilitated. The opportunity in MSMEs exists, however, the fact remains that most of the funding goes to the larger and more solvent MSMEs and to those who have business linkages with large corporate. The banks compete with each other to grant loans to the top rung MSMEs.

scholarly journals COVID-19 and Indian Economy: Impact on Growth, Manufacturing, Trade and MSME Sector

2020 ◽  
Vol 21 (5) ◽  
pp. 1159-1183 ◽  
Author(s):  
Pravakar Sahoo ◽  
Ashwani
Keyword(s):  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Capacity Utilization ◽  
Value Added ◽  
Case Scenario ◽  
Worst Case ◽  
Indian Economy ◽  
Manufacturing Trade ◽  
Medium Enterprises ◽  
The Impact

The study aims to make an assessment of COVID-19 on Indian economy by analysing its impact on growth, manufacturing, trade and micro, small and medium enterprises (MSME) sector, and highlights key policy measures to control the possible fallout in the economy. The impact of the pandemic across sectors and in different scenarios of complete, extended and partial lockdown, and at different levels of capacity utilization is massive on the Indian economy. India’s economy may barely manage to have a positive growth of 0.5 per cent in an optimistic scenario but also faces the possibility of a 3–7 per cent negative growth in worst case scenarios for the calendar year 2020. The impact is severe on trade, manufacturing and MSME sectors. The likely impact (deceleration) of COVID-19 from best case scenario to worst scenario are as follows: manufacturing sector may shrink from 5.5 to 20 per cent, exports from 13.7 to 20.8 per cent, imports from 17.3 to 25 per cent and MSME net value added (NVA) from 2.1 to 5.7 per cent in 2020 over previous year. The economy is heading towards a recession and the situation demands systematic, well targeted and aggressive fiscal-monetary stimulus measures.

scholarly journals The importance of branding for South African SMEs: an exploratory study

2013 ◽  
Vol 11 (1) ◽  
pp. 735-744 ◽  
Author(s):  
Michael Colin Cant ◽  
Johannes Arnoldus Wiid ◽  
Yu-Ting Hung
Keyword(s):  
South African ◽  
Exploratory Study ◽  
Environmental Variables ◽  
Research Study ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Business Success ◽  
The South ◽  
Medium Enterprises

One of the most challenging micro-environmental variables that small and medium enterprises SMEs are faced with is marketing, and more particularly branding. The research study investigates the importance of branding to South African SMEs and determines whether SMEs comprehend the significance of branding in the business’ success. The objective of this paper is to determine how brand orientated SMEs are, their perceived brand distinctiveness and the barriers they are faced with. A questionnaire was conducted and judgement sampling was used to gather the responses of 43 SMEs. The research identified that SMEs are aware of the importance of branding; however some SMEs do not have to necessary resources available for it. The challenge now is to improve the skills and capabilities of SMEs to ensure effective branding, which ultimately influences their success, as they play a vital role in the South African economy

scholarly journals Internet-Based ICT Usage By South African SMEs: The Barriers Faced By SMEs

2016 ◽  
Vol 32 (6) ◽  
pp. 1877-1888 ◽  
Author(s):  
Michael C. Cant ◽  
Johannes A. Wiid
Keyword(s):  
South African ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Success Factor ◽  
The South ◽  
Information Gap ◽  
Ict Adoption ◽  
African Context ◽  
World Information ◽  
Medium Enterprises

Previous research estimates that 8 out of 10 small and medium enterprises (SMEs) do not operate for more three years (Mason 2015). According to OECD ([sa]), the major problems encountered by SMEs relate to financing and regulatory burdens. However, with information technology, SMEs are able to narrow the information gap, which leads to improved strategies and decision making (OECD [sa]). In today’s competitive world, information communication technology (ICT) is recognized as a crucial success factor for SMEs. ICT refers to the accessing and communication of information using various technologies such as the internet, wireless networks and cellphones (TechTerms 2010). This research study investigates SMEs’ perception of the barriers in adopting ICT in the South African context. The objective of this paper is to determine ICT adoption and the perceived barriers associated with it among South African SMEs. A review of ICT within an SME context is examined. Through judgement sampling, a questionnaire was distributed to gather the responses of 90 SMEs. The most important barriers that were highlighted by the results of the study are the high cost of ICT systems as well as the lack of knowledge to maintain and use ICT. The challenge is to ensure that South African SMEs continue to increase the adoption of ICT. It is envisaged that by determining the barriers they face and providing recommendations as to how they can overcome these barriers, this research will assist SMEs to become more successful, as they play a vital role in the South African economy.

scholarly journals Factors affecting financial stability of small and medium enterprises: A case study of emerging markets

2017 ◽  
Vol 7 (1) ◽  
pp. 7-17
Author(s):  
Nonhlanhla Mbatha ◽  
Musawenkosi Ngibe
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Small Businesses ◽  
Financial Stability ◽  
Negative Impact ◽  
Small And Medium Enterprises ◽  
Practical Experience ◽  
The South ◽  
Factors Affecting ◽  
Medium Enterprises

Small and Medium Enterprises (SMEs) play a significant role in the South African economy as they provide job opportunities to communities and contribute to the South African gross domestic product. However, the majority of small businesses lack financial skills, which results in the falsification of financial information and analysis and inaccurate financial reports leading to decline of confidence by investors and negative impact on stakeholders. Therefore, this study examines the critical factors that affect SME’s financial stability which in the long run result in the liquidation of SMEs. The study was descriptive and quantitative in nature, using questionnaires to collect data from a sample of one hundred and twenty (120) SMEs across the Durban area. The findings show that lack of understanding of financial reporting has a negative impact on the financial stability of the business. Also the lack of insufficient financial experience proved to have a negative impact on the financial stability of SMEs. The study recommends that a short accounting programme should be developed by government incubators to assist and provide owners and accounts staff of SMEs with practical experience in financial reporting in order to increase their level of understanding financial reporting processes.

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