A Survey Of Personal Hurdles Contributing To Failures Of Rural Entrepreneurship: Economic Implications For Owner-Managers

This study seeks to explore with keen understanding of personal hurdles as revealed by owner-managers from two rural settings of the Northern Cape Province (NCP). The study focuses on personal hurdles that according to literature contributes to the growing failure of entrepreneurial activities. Personal hurdles were assessed using “Statistical Package for the Social Science” (SPSS). A survey method is utilized in gathering primary dataset, descriptive analysis and frequency tables were used to assess all the basic variables including the personal hurdles of owner-managers. Factor analysis was utilized as a determinant of personal hurdles. Formulated hypotheses for the study were tested by the inferential statistic of Analysis of Variance (ANOVA). Relationships between dependent (rural entrepreneurial failures) and independent variables (resources, information and infrastructure gaps) were ascertained through the Pearson Correlation techniques. The study revealed that the resource gaps affect rural entrepreneurial failure (REF)On the other hand, information and infrastructure do not have significant effect on REF.A moderate positive linear correlation between resource gap and REF was detected. Furthermore, there is a low positive linear correlation between REF and the two independent variables (information and infrastructure gaps) were detected.

Film Tourism In Norway: The Effect Fictional Characters Have On Tourism

The impact Walt Disney’s animated film Frozen is having on Disney’s bottom line and on tourism within Norway is highlighted. Although Frozen takes place in fictional Arendelle, movie producers incorporated Norwegian inspired scenery, imagery, and culture. Using a bi-lingual survey (English and Norwegian), we analyzed how the movie has increased travel in Norway, who appears to be most influenced to consider Norway as a travel destination, compared attitudes of film audiences in the U.S., Norway, and other countries on a variety of related factors, and provide suggestions concerning marketing connections to the movie Frozen in an attempt to further boost tourism within Norway.

Developments In Exchange Of Information In Tax Matters Within SADC: A Move Towards Tackling Tax Fraud In Southern Africa

In recent years around the world, it is apparent that the need for mutual assistance between states is increasing and gaining support. The Organisation for Economic Cooperation and Development (OECD) has been in the lead of this effort. This approach has also been prevalent in Africa, particularly in the Southern African Development Community (SADC) which is viewed in the context of strengthening economic integration and cooperation in the region. Recently, there has been extensive commitment by many jurisdictions around the world to eradicate problems to the exchange of information in tax matters by approving and supporting the international standard on transparency and exchange of information. The regional organisations in Sub-Saharan Africa have engaged in new trends in tax policy and administration. This has seen the adoption of agreements to regulate exchange of information in tax matters which is the subject of the present enquiry.

A Practical Approach To Estimating The Cost Of Equity For South African Firms Undertaking Cross-Border Investments

Corporate finance literature has developed a number of models for use in estimating the cost equity in for cross-border investments. Most of the models, if not all, are specifically developed for use by US firms investing in emerging markets. The widely used models are the home country CAPM, the local CAPM, the country-risk adjusted CAPM or the Lessard model, the Godfrey-Espinosa model, the Goldman Sachs model, the Gamma model and the SalomonSmithBarney model. Using a hypothetical case study of FirstRand Limited’s proposed investments in Ireland and Turkey, this study tests for the suitability of the reverse-engineered versions of these models in estimating the cost of equity for a South African firm planning to invest in both Ireland (developed country) and Turkey (emerging country). The results of the study indicate that the Godfrey-Espinosa the Goldman-Sachs models are equivalent. The Lassard model is equivalent to the Gamma or Damodaran mode, and both models yielded estimates closer to the SalomonSmithBarney model. All the models’ estimates for the Turkish investment are consistent with the credit ratings of both Turkey and South Africa. The cost equity estimates show that FirstRand Limited investors will demand an additional risk premium for investments in Turkey. The cost of equity estimates for the Irish investment are mixed, inconsistent with the Ireland’s credit rating and had a higher standard deviation than the estimates for the Turkish investment. The Irish estimates seem to be largely affected by the country’s high country and banking industry betas. The reverse-engineered versions of these models are suitable for use by firms in emerging countries.

A Look At The Merchant Marine Act Of 1920: Is It Time For The U.S. To Change Course?

Due to recent changes in global shipping, we investigate the Merchant Marine Act of 1920 – also known as the Jones Act. When constructed, our governing body decided that the Act was necessary for the country’s naval defenses and for proper growth of foreign and domestic commerce. The plan was for the fleet to be owned and operated privately by citizens of the United States. However, in today’s economic conditions some are wondering if the Jones Act is a liability to foreign commerce. In our work, we explore the advantages of naval defense and shipbuilding as well as the disadvantages on commerce and U.S. transportation infrastructure. To conclude, we offer opinions for policy changes to create a more level playing field for the U.S. to compete in global logistics.

Do Social Grants Displace Remittances? Evidence From South Africa

This paper employs a newly-available and representative National Income Dynamics Study (NIDS) data of South African households to investigate whether social grants crowd-out or displace remittances. The estimated results based on full sample reveal that while the social grants have a negative impact on the amount of remittances received, the effect is statistically insignificant – social grants do not crowd out or displace remittances. The coefficient on the social grant is also insignificant in both sub-samples (rural and urban), consistent with the results on the full sample

The Capital Asset Pricing Model And Fama-French Three Factor Model In An Emerging Market Environment

This paper tests the validity and accuracy of the Capital Asset Pricing Model and the Fama-French Three-Factor Model, by predicting the variation in excess portfolio returns on the Johannesburg Stock Exchange. Portfolios of stocks were constructed based on an adapted Fama-French (1993) approach, using a annual sorting procedure, based on Size and Book-to-Market metrics respectively. The sample period spans six years, 2010 to 2015, and includes 46 companies listed on the JSE. The results indicate that both models perform relatively poorly because of inadequate market proxy measures, market liquidity restrictions, unpriced risk factors and volatility inherent in an emerging market environment. The Value Premium is found to explain a larger proportion of variation in excess returns than the Size Premium, and is more pronounced in portfolios with relatively higher book-to-market portfolios.

A Critical Review Of The Basel Margin Of Conservatism Requirement In A Retail Credit Context

The Basel II accord (2006) includes guidelines to financial institutions for the estimation of regulatory capital (RC) for retail credit risk. Under the advanced Internal Ratings Based (IRB) approach, the formula suggested for calculating RC is based on the Asymptotic Risk Factor (ASRF) model, which assumes that a borrower will default if the value of its assets were to fall below the value of its debts. The primary inputs needed in this formula are estimates of probability of default (PD), loss given default (LGD) and exposure at default (EAD). Banks for whom usage of the advanced IRB approach have been approved usually obtain these estimates from complex models developed in-house. Basel II recognises that estimates of PDs, LGDs, and EADs are likely to involve unpredictable errors, and then states that, in order to avoid over-optimism, a bank must add to its estimates a margin of conservatism (MoC) that is related to the likely range of errors. Basel II also requires several other measures of conservatism that have to be incorporated. These conservatism requirements lead to confusion among banks and regulators as to what exactly is required as far as a margin of conservatism is concerned. In this paper, we discuss the ASRF model and its shortcomings, as well as Basel II conservatism requirements. We study the MoC concept and review possible approaches for its implementation. Our overall objective is to highlight certain issues regarding shortcomings inherent to a pervasively used model to bank practitioners and regulators and to potentially offer a less confusing interpretation of the MoC concept.

The Impact Of Metacognitive, Cognitive And Motivational Cultural Intelligence On Behavioral Cultural Intelligence

This study investigates the impact of Metacognitive, Cognitive, and Motivational Cultural Intelligence (CQ) on Behavioral Cultural Intelligence (CQ). In particular, we examine whether cognitive capabilities influence actions and behavior. The results show that 28.4% of the variability in behavioral CQ is explained by metacognitive CQ, cognitive CQ and motivational CQ. Further analysis was done to determine how each of these three dimensions impacts on behavioral CQ. Results show that only metacognitive and motivational CQ influence behavioral CQ.

Lessons From Transitional Reforms: What Are The Fundamentals For Successful Transformation?

After more than two decades of enduring global reforms, the current paper makes an attempt to investigate the fundamental prerequisites of a successful reform program. The study is particularly complicated by the ambiguity surrounding the very subject matter. While most scholars are united in the view that in order to facilitate a successful transitional process, transitional economies must execute fundamental grassroots reforms, there is no formally accepted universal blueprint of what is considered to be an acceptable transitional program. In an effort to broaden the scope of the investigation, the author probes into neoclassical economic thinking and examines ‘conventional reform indicators’ commonly associated with successful reforms. But the quest brings the author to the realization that mainstream neoclassical economic thinking by itself is not sufficient; it leaves behind unanswered fundamental questions which—for the sake of methodological and pragmatic necessity—demands resolution. Consequently, the author excavates beneath superficial philosophical thinking, and probes ‘mainstream theories’ for answers to valid problems confronting transitioning economies. The inquiry is not only beneficial for knowledge, but has implications for policy-making. The paper is sectioned into four parts: introduction is an appraisal of conventional thinking; section II examines reform pre-requisites and pragmatic questions; section III is an attempt to suggest answers to questions prompted in section II and rationalize unequal reform outcomes in reforming societies that execute identical reform program; the concluding section synchronously weaves together the different pieces and ideas by drawing attention on the uniqueness of contemporary reforms and lessons learned from past reforms.