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Small businesses and job creation in South Africa

There is a paradigm shift from traditionally relying on big businesses for stimulating economic growth and job creation to small businesses in both developed and developing economies. Developing countries in the last 3 decades have accelerated their support for small businesses in a bid to alleviate...

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Main Author: Dhanah, Darlington
Other Authors: Biekpe, Nicholas
Format: Thesis
Language:English
Published: Research of GSB 2018
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access_status_str Open Access
author Dhanah, Darlington
author2 Biekpe, Nicholas
author_browse Biekpe, Nicholas
Dhanah, Darlington
author_facet Biekpe, Nicholas
Dhanah, Darlington
author_sort Dhanah, Darlington
collection Thesis
description There is a paradigm shift from traditionally relying on big businesses for stimulating economic growth and job creation to small businesses in both developed and developing economies. Developing countries in the last 3 decades have accelerated their support for small businesses in a bid to alleviate dire poverty levels they are faced with. Theoretically small businesses are believed to be more labour intensive compared to larger businesses and thus the shift. (Thorsten Beck, Asli Demirguc-Kunt, and Ross Levine, 2003: 2; Beck et al. 2003: 1). Empirically there are ample success stories emanating from China, Pakistan, Brazil just to mention a few, showing a fairly similar trajectory of increased economic participation by small businesses resulting in their significant contribution to GDP and employment creation. However, South Africa has not necessarily followed a similar trajectory to its BRICS counterparts and thus this paper looked at small businesses and job creation in South Africa. It narrowed down to impediments that have stood on the way of small businesses' ability to create jobs. The study was exploratory, descriptive and quantitative in nature. The results to this study are in alignment with previous studies on the subject matter and this study singled out access to finance, HIV Aids, operational costs and government taxes and regulations as statistically significant in explaining variation in the proportion of small businesses that create jobs. This study ultimately recommended that over and above dealing with the above listed impediments directly, government should especially focus on consumer vulnerability and financial conditions on a macro-economic level as these have a direct impact on small businesses.
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language eng
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license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2018
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spelling oai:open.uct.ac.za:11427/27441 Small businesses and job creation in South Africa Dhanah, Darlington Biekpe, Nicholas Banya, Roland Development Finance There is a paradigm shift from traditionally relying on big businesses for stimulating economic growth and job creation to small businesses in both developed and developing economies. Developing countries in the last 3 decades have accelerated their support for small businesses in a bid to alleviate dire poverty levels they are faced with. Theoretically small businesses are believed to be more labour intensive compared to larger businesses and thus the shift. (Thorsten Beck, Asli Demirguc-Kunt, and Ross Levine, 2003: 2; Beck et al. 2003: 1). Empirically there are ample success stories emanating from China, Pakistan, Brazil just to mention a few, showing a fairly similar trajectory of increased economic participation by small businesses resulting in their significant contribution to GDP and employment creation. However, South Africa has not necessarily followed a similar trajectory to its BRICS counterparts and thus this paper looked at small businesses and job creation in South Africa. It narrowed down to impediments that have stood on the way of small businesses' ability to create jobs. The study was exploratory, descriptive and quantitative in nature. The results to this study are in alignment with previous studies on the subject matter and this study singled out access to finance, HIV Aids, operational costs and government taxes and regulations as statistically significant in explaining variation in the proportion of small businesses that create jobs. This study ultimately recommended that over and above dealing with the above listed impediments directly, government should especially focus on consumer vulnerability and financial conditions on a macro-economic level as these have a direct impact on small businesses. 2018-02-09T10:49:16Z 2018-02-09T10:49:16Z 2017 Master Thesis Masters MCom http://hdl.handle.net/11427/27441 eng application/pdf Research of GSB Faculty of Commerce University of Cape Town
spellingShingle Development Finance
Dhanah, Darlington
Small businesses and job creation in South Africa
thesis_degree_str Master's
title Small businesses and job creation in South Africa
title_full Small businesses and job creation in South Africa
title_fullStr Small businesses and job creation in South Africa
title_full_unstemmed Small businesses and job creation in South Africa
title_short Small businesses and job creation in South Africa
title_sort small businesses and job creation in south africa
topic Development Finance
url http://hdl.handle.net/11427/27441
work_keys_str_mv AT dhanahdarlington smallbusinessesandjobcreationinsouthafrica