scholarly journals Small Business Attitudes Towards Ethical Issues: Survival Or Ethically Correct?

2012 ◽  
Vol 11 (12) ◽  
pp. 1347 ◽  
Author(s):  
Michael Colin Cant

Small businesses play a vital role in most economies worldwide. These businesses are in many instances the creators of jobs and in many instances barely surviving. In Africa, in general, and South Africa in particular, there are huge pressures on small business development and to assist in alleviating poverty and help with social mobility. Many small business entrepreneurs are forced into business in order to survive which in turn may lead to them being less ethically inclined and more focussed on survival. This in itself can lead to a moral dilemma for them. It is therefore important to consider the attitude employees have towards ethical issues in the business sector, and to what extent they would compromise on these issues in order to survive. The main purpose of the study is therefore to determine the attitude employees of small businesses in South Africa have towards the ethical environment in which they operate. The research followed a quantitative approach where a survey questionnaire was used as the data collection method. The results indicate that employees of small businesses have a negative attitude towards the ethical responsibilities of the organisation in which they operate. Alternatively, respondents do understand what is meant by ethics and what it entails. Their attitude regarding their perception of what an organisation should commit to in order to be ethical shows that respondents understands what constitutes ethical behaviour.

2013 ◽  
Vol 12 (9) ◽  
pp. 1087
Author(s):  
Johannes A. Wiid ◽  
Michael C. Cant ◽  
Claudette Van Niekerk

The small business sector plays a vital role in the economic development, upliftment and job creation of any third world country, and even more so in Africa. Small and Medium Enterprises (SMEs) have underperformed over the past years and therefore have not contributed their expected roles in the growth and development of the Nigerian economy. This can and may lead to unethical behaviour and questionable practices which speak of moral decay something that Africa, in general, and Nigeria, specifically, has been accused of. The performance and ethical behaviour of Nigerian SMEs have been of great concern to numerous individuals, parties and organisations (Onugu, 2005:8). Since managers decisions impact organisational goals and behaviours, this research aims to determine whether a sense of moral behaviour will have an influence on the concern for ethical misconduct in the Nigerian business environment by examining the relationship between Moral Behaviour and the Concern for Ethical Dilemmas/Misconduct. The research followed a quantitative approach. Results indicated that there is a fine line between what is perceived as being morally wrong or unethical and that, in many instances, the focus is rather on future existence of the business and not really on the ethical issues involved. The study confirms that there is a medium to strong relationship correlation between sense of ethical concerns and immoral behaviour in the Nigerian small business environment. The hypothesis (H0: Entrepreneurs who have an acute sense of moral behaviour are concerned about ethical misconduct/dilemmas in the business environment) is therefore accepted.


2013 ◽  
Vol 10 (2) ◽  
pp. 217-225 ◽  
Author(s):  
Michael Colin Cant ◽  
Jan Wiid ◽  
Claudette van Niekerk

With the world wide focus on large corporations and the ethical conduct of specifically the top managers it has become clear that ethics are part and parcel of all businesses. This however does not mean that only large corporations will be screened – it also applies to smaller businesses. The small business sector plays a vital role in the economic development and job creation in the Republic of South Africa. It is important to consider the perception employees have towards their ethical responsibilities in the business sector in order to ensure the successful development of the small business sector of South Africa. The main purpose of the study is therefore to determine the perception employees have towards their ethical responsibilities as well as the types of ethical misconduct employees of small businesses have experienced in the business environment. The research followed a quantitative approach where a survey questionnaire was used as the data collection method. The results indicated that employees of small businesses have a positive view regarding their responsibilities as an employee to acting ethically. Respondents also indicated the most encountered misconduct is observing unethical behaviour and wanting to tell someone regarding unethical misconduct observed. The study also found that employees mostly turn to family members for advice on ethical misdemeanours. The study also found that employees mostly turn to family members for advice on ethical misdemeanours


2013 ◽  
Vol 10 (4) ◽  
pp. 237-247 ◽  
Author(s):  
Michael Colin Cant ◽  
Johannes Arnoldus Wiid ◽  
Yu-ting Hung

Cant and Ligthelm (2003:1) estimate that 70-80% of SMEs fail. One of the challenges that have been identified as contributing to the high failure rate of SMEs in South Africa is employee theft, which constitutes as a ‘crime’. The research study investigates small business owners’ perception of business ethics and employee theft in the small business sector of South Africa. The objective of this paper is to determine the ethical behaviour of business owners, explore the ethical dilemmas that small businesses are facing, establish the concern and impact of theft in the workplace, and the influence of loyalty on the matter. A questionnaire was constructed and random sampling was used to gather the responses of 38 small business owners. The research identified a strong positive linear relationship between the concern for ethical dilemmas/misconduct and employee theft in the workplace. The challenge now is to further the decrease of employee theft in small businesses in South Africa to ensure their success, as they play a vital role in the South African economy


2014 ◽  
Vol 11 (4) ◽  
pp. 475-488
Author(s):  
Catherine Mpolokeng Sephapo ◽  
Johannes Arnoldus Wiid ◽  
Michael Colin Cant

Sponsorship is a powerful marketing tool that organisations in South Africa are embracing. From the evaluation of the sponsorship growth over the years, the industry in South Africa has developed from a R63 million industry in 1985 to the value of just under R7 billion in 2011 (City Press, 2012). Small businesses in South Africa are faced with the challenge of effectively reaching target segments. These small businesses are restricted in terms of limited marketing budgets and therefore need alternative ways of improving their brands in the eyes of the consumer. Theoretically, sponsorship is considered to improve the brand image of an organisation and ultimately improve sales. However, the question that this study aims to answer is whether small business owners perceive sponsorship to be a useful tool that even they can utilise. The study made use of a quantitative approach whereby a web-based questionnaire was distributed to small business owners. The findings indicated that the general attitude towards sponsorship as a marketing tool is positive. The correlation between sponsor sincerity and sponsorship usefulness was found positive; however, average in strength. Although sponsorship is seen as a useful tool, 15.4% of the respondents indicated that they would not consider using this marketing tool. This response may provide an opportunity for further research to be conducted which may shed some light on the strategies small business owners perceive to be most effective for their unique circumstances


Author(s):  
Ye-Sho Cehn ◽  
Robert Justis ◽  
P. Pete Chong

According to Justis and Judd (1998), franchising is defined as “a business opportunity by which the owner (producer or distributor) of a service or a trademarked product grants exclusive rights to an individual for the local distribution and/or sale of the service or product, and in return receives a payment or royalty and conformance to quality standards. The individual or business granting the business rights is called the franchisor, and the individual or business granted the right to operate in accordance with the chosen method to produce or sell the product or service is called the franchisee.” Although the business of the franchisor is usually larger than the “satellite small businesses” of the franchisees, most franchisors manage mostly small and medium-size enterprises (Stanworth, Price, and Purdy, 2001). The U.S. Small Business Administration (SBA) recognizes this fact and sponsors various seminars in franchising, for example, business plan and raising capital, through regional Small Business Development Centers (Thomas and Seid, 2000). In addition, SBA sets up programs specifically designed for franchises (for example, Franchise Registry Web site: www.franchiseregistry.com) to streamline the review process for SBA loan applications (Sherman, 1999) and provide special incentives for franchisees to open locations in economically depressed areas (Thomas and Seid, 2000).


1993 ◽  
Vol 22 (2) ◽  
pp. 141-150
Author(s):  
Bruce Phillips

The active development of the small firm sector is thought to present a vehicle highly appropriate to the task of equalizing opportunity in a very unequal society—the developing country of South Africa. This article seeks to evaluate the merits of the above assumption. It calls for a closer understanding of the unique difficulties encountered by a minority business group that has experienced a long history of prejudice and discrimination, namely the black, essentially small business sector of South Africa. The author calls for careful appraisal of available development initiatives in order to effectively serve the interests of this group.


Author(s):  
Anthea Patricia Amadi-Echendu ◽  
Magaret Phillips ◽  
Kudakwashe Chodokufa ◽  
Thea Visser

<p class="2">South Africa is characterised by high unemployment levels, a low Total Early Stage Entrepreneurial Activity rate, and a high small business failure rate. Entrepreneurship and small business development is seen as a solution to end unemployment in South Africa. A study to understand how to improve small business support was conducted at the University of South Africa and has shown that alumni are unable to apply theoretical knowledge acquired from their studies. The purpose of this article is to explore the potential of the University of South Africa in becoming more entrepreneurial to address the aforementioned challenges. A desk study that reviewed literature was conducted to identify different constructs associated with an entrepreneurial university, namely entrepreneurial education, research and development, innovation, commercialisation and incubation, and stakeholders. In addition to traditional teaching methods, various alternative approaches can be used to stimulate entrepreneurial education to develop the skills of learners/students. To address these challenges a closer relationship between academia, government, and industry is paramount.  It is recommended that universities incorporate entrepreneurial education in all their qualifications, expose students to on-the-job training, assist with the incubation of business ideas that students have, and provide a platform for cross-pollination of knowledge between industry, academia, and government.</p>


2021 ◽  
Vol 244 ◽  
pp. 10043
Author(s):  
Nina Kuznetsova ◽  
Antonina Ilyina ◽  
Maxim Mironov ◽  
Antonina Korolkova ◽  
Tatiana Marinchenko

The article presents an analysis of the small business environment and development in Russia, discusses state programs for the development of small and medium-sized businesses, a system of measures to support small businesses in the agricultural sector of the economy, and the role of franchising as one of the areas of small business development. The main problems of the development of small agribusiness, the introduction of innovations and the digital transformation of agricultural production in small export-oriented entrepreneurship are identified. The measures to improve the efficiency of small businesses, including these during the COVID-19 pandemic, are described.


2013 ◽  
Vol 6 (2) ◽  
pp. 263-284
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.


2013 ◽  
Vol 6 (1) ◽  
pp. 33-54 ◽  
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.


Sign in / Sign up

Export Citation Format

Share Document