A targeted approach to informal business development: the entrepreneurial route

The present paper maintains that initiatives to promote and support small businesses need to focus on those with growth potential rather than on the small business sector as a whole, and that the human factor, especially entrepreneurial intentions and behaviour, is the overwhelming force in small business success. Empirical evidence shows that many entrepreneurs setting up businesses in the informal economy of South Africa have little business acumen. The majority of informal businesses operate as survivalist entities with limited development and growth potential. The paper suggests that only between 10 and 15 per cent of informal entrepreneurs have sufficient business skills to expand and develop their businesses. These should be the focus of policy initiatives. Separate collective support measures should be designed to make the business environment more hospitable to low-potential informal businesses.     

Skills in South Africa: The journey towards credible planning

ABSTRACT

Since 1994 the state has instituted active labour market policies to redress the apartheid skills legacy. The skills planning challenge continues to be how to coordinate efforts for the provision of the right skills to support inclusive economic growth, ensuring an alignment is achieved between what is required in the labour market and the supply from the education and training system. This article traces the South African journey of skills planning from late apartheid until the current time period in 2014 through a historical analysis of the political economy. The analysis reflects on the relationship between state formation in South Africa and the role of the state in directing skills development, and in the more recent period how skills planning responds to both the demands of the economy and ameliorating the historical legacies of education and skills exclusion.     

FACTORS THAT AFFECT THE LONG‐TERM SURVIVAL OF MICRO,SMALL AND MEDIUM ENTERPRISES IN ETHIOPIA

There is an increasing recognition of the potential importance of micro, small and medium enterprises (MSMEs) for employment, income and poverty reduction in Ethiopia. Although the MSME sector contributes significantly to the national economy, the high failure rate among well established small businesses and enterprises is a matter of major concern. A random sample of 500 small businesses and enterprises selected from five major cities in Ethiopia were followed up for 6 years in order to assess the impact of influential factors that affect the long‐term survival and viability of small enterprises. Hazard ratios estimated from the Cox Proportional Hazards Model were used to quantify the impact of key predictors of survival. Businesses that ceased operation were characterised by inadequate finance (61%), low level of education (55%), poor managerial skills (54%), shortage of technical skills (49%), and inability to convert part of their profit to investment (46%). The study shows that participation in social capital and networking (iqqub schemes) was critically helpful for long‐term survival. Businesses that did not participate in iqqub schemes regularly were found to be 3.25 times more likely to fail in comparison with businesses that did. Results of the study have implications that could be used for developing policy initiatives that are aimed at fostering long‐term growth in small businesses and enterprises.     

Are people in the SADC region willing to pay more tax to fund public healthcare?

ABSTRACT

For Africa to develop and achieve sustainable development, African governments have to prioritise spending on public health. However, the current spending data shows that health spending is a continuing struggle for African countries. Many researchers have the view that African governments have to collect more tax to spend enough on public healthcare. The question here is what extent people are willing to pay more tax to increase spending on public healthcare? Employing a multilevel regression model on Afrobarometer survey data, this paper examined to what extent individual and country level factors influence people’s willingness to pay more tax to increase spending on public healthcare in 12 Southern African Development Community (SADC) member states. This study found that peoples’ trust in their government is an important determinant of willingness to pay more tax, while factors such as the country’s quality of democracy, economic condition, and current per capita health expenditure have no influence.     

Bioenergy in Southern Africa: An opportunity for regional integration?

ABSTRACT

This introductory paper sets out the rationale for revisiting questions surrounding biofuel futures in Southern Africa and exploring the case for the establishment of a regional market. This contrasts with most research that has focused upon benefits and risks of production and consumption for individual countries. The analysis in this issue suggests that while benefits exist, the key challenges that have stifled production and consumption to date would need to be overcome. Unlocking trade requires relaxing requirements for South African manufacturers to source all their feedstock domestically. Key among factors to encourage production is resolving agricultural investment processes, particularly designing inclusive business models and clarifying land acquisition processes.     

The changing nature of artisanal work and occupations: Important for understanding labour markets

ABSTRACT

The social and political conditions within which artisans are required to work have shifted globally. The South African policy concern is to train bigger quantities and improve artisanal skills quality, while simultaneously providing more opportunities for young, black and women artisans. A concern for academia is how this shifting milieu will impact on our understanding of artisanal work and occupations and what implications should this have for further research. Using the concept of occupational boundaries, we investigate, at a micro level, real and perceived change to work in three artisanal trades. The study shows that while some elements have changed, the division of labour reinforces the traditional scope of artisanal work in relation to other occupational groups. The findings reconfirm the complex relationship between changes to work and the demand for skills, and importantly highlight the sociology of work as a critical but undervalued dimension in labour market analysis.     

Small business education and training in Transkei

The objectives of this survey, which was conducted among two groups of respondents, namely urban small business persons and providers of small business education and training, were to: - determine the availability and adequacy of small business education and training

- identify the main gaps and deficiencies in such training

- formulate proposals and recommendations to remedy the deficiencies and gaps.

Two different questionnaires were developed and used to collect data from 121 small business persons and 3 institutions concerned with small business education and training in Transkei.

An analysis of the data revealed that although training is being conducted, a great deal needs to be done in order to meet the training needs of the small business community. Education programmes are not being developed to enable small business people to cope with the problems of managing their businesses.     

Economic impacts of developing a biofuel industry in Mozambique

ABSTRACT

Mozambique is one of the most promising African countries for producing biofuels and the national biofuel policy of 2009 identifies measures to incentivize biofuel production. Demand for biofuels in the Southern African Development Community is expected to increase over the next few years as 7 of its 15 member states have implemented or proposed the implementation of blending mandates by 2020. South Africa is one of these countries. Using a dynamic recursive computable general equilibrium (CGE) model, we estimate the impacts of expanding biofuel production in Mozambique under both commercial and smallholder-type farming models, including and excluding bagasse cogeneration.     

Optimal technology for different levels of managerial ability: A case study of maize cultivar selection

The higher the genetic potential, the more reliant a cultivar will be on the creation of a favourable environment by man. The ability to create a favourable environment is partially a function of the farmer's managerial ability. Due to differences in managerial ability between developed and less developed agriculture, high yield varieties often perform more poorly than lower yield varieties in less developed agriculture and are also more risky.

Regression line graphics may be used to illustrate the effect of managerial ability on cultivar selection. Less sensitive cultivars, although often regarded as low yield cultivars, should be recommended in areas or on projects with lower yield potential or where the level of managerial ability is relatively low.

In less developed agriculture, farmers’ thresholds of resistance to setbacks are rather low. This makes risk behaviour a rational mode of behaviour. Thus, the optimal choice will be to select less risky cultivars that will produce, under less than ideal circumstances, higher yields than those cultivars regarded as high producers only under ideal conditions.

This principle also applies to many other facets of technology and should also continually be considered by advisers and planners in less developed regions.     

Connecting capabilities in highly unequal developing countries: The case of the Square Kilometre Array telescope in South Africa

ABSTRACT

Innovation and skills development require interactive capabilities to function effectively. Interactive capabilities mediate between skills supply and skills demand actors in an innovation system, and in the knowledge economy more broadly. This article investigates such interactive capabilities, and the manner in which they facilitate labour market alignment. Within a case-study focus on the Square Kilometre Array (SKA) telescope in South Africa, we investigate how organisational capabilities, structures, and mechanisms facilitate or constrain interaction between the SKA and its network partners, including universities, firms, intermediaries, and a technical college. This illustrates how pockets of excellence within an unequal South African skills and innovation landscape were effectively connected in order to build a critical mass of skills and technologies that were highly competitive on the international stage. This shows how, in highly unequal developing countries, interactive capabilities form a lever for access to the global science and technology frontier.     

Environmental efficiency and its distribution dynamics in Chinese cities

ABSTRACT

This paper investigates environmental efficiency and its distribution dynamics in Chinese cities. The analyses are applied the meta-frontier data envelopment analysis and the continuous dynamic distribution approach together with panel data of 286 Chinese cities at the prefecture and above-prefecture levels. The results show that during the period of 2002–2011, the average environmental efficiency in Chinese cities is well below the production frontier. The coastal cities show better performance than the central and western cities; large and extra-large cities are more efficient than small and medium cities; and the environmental efficiency for the ‘key’ cities is slightly better than that for the ‘non-key’ cities. The spatial dynamic distribution analyses indicate that the environmental efficiency of Chinese cities tends to converge. To improve environmental efficiency in the future, the government should pay more attention to the central cities, medium and large size cities in western China, and the non-key cities.

Abbreviations: CPI- Consumer price index; DEA- Date envelopment analysis; DMU- Decision making unit; GDP- Gross domestic product; GMI -Group- frontier managerial inefficiency; IPCC- Intergovernmental Panel on Climate Change; MTR- Meta- technology gap ratio; NTP- Net transition probability; PAA- Prefecture and above-prefecture levels; PIM Perpetual inventory method; SFA Stochastic frontier analysis; TGI Technology gap inefficiency     

Key issues in regional growth and integration in Southern Africa

ABSTRACT

The decade to 2015 saw rapid growth in trade between Southern African Development Community (SADC) countries. Much of this growth reflected South African exports to its neighbours of diversified manufactured goods to meet growing urban consumption and to supply inputs to mining and infrastructure. While most SADC countries, aside from South Africa, grew quite rapidly over this period, their exports remained oriented to a narrow range of minerals and agricultural commodities destined to go outside the region. Drawing from a series of sectoral studies, we assess key regional issues including the investment and production decisions of firms whose operations stretch across borders, and consider the implications for a bottom-up integration agenda that could build productive capabilities across countries. Our evaluation highlights the importance of the spread of supermarkets, the need to address transport and logistics, and value chains whose competitive advantages are inherently regional, as in the cases of poultry and mining.     

Advancing heritage tourism in the central Karoo: The South African War Battlefields Route

ABSTRACT

Tourism and tourism development have the potential to make a positive impact on a region’s economic development and sustainability. In this sense, the central Karoo has a great deal to offer heritage tourists. As there are numerous battlefield sites associated with the South African War (1899–1902) (previously the Anglo-Boer War) the central Karoo offers a unique development opportunity to demarcate a designated battlefield route dedicated to the war. This study investigated the potential for the development of the proposed route by involving potential stakeholders (specifically product owners and government officials) on the route. The study was qualitative, and 33 interviews were conducted. Thematic content analysis was used to analyse the data. The main findings indicate a need for the development of the route and the establishment of a South African War Battlefields Route Destination Marketing Organisation (DMO).     

Milk in the city: profiles and development paths for urban dairy holders in Ethiopia

ABSTRACT

Demand for dairy products is growing fast in urban areas. Due to poorly developed rural infrastructure, urban dairy farms are pivotal in making milk available and affordable in towns and cities. Yet current supply fails to meet the increasing demand. In order to formulate fit interventions that can expand urban dairy production, a detailed understanding of urban dairy systems is needed. Using a cluster analysis approach, we profile 304 urban dairy farms in Mekelle, Northern Ethiopia, along three dimensions: input efficiency, market integration, and resilience towards demand seasonality. Our results suggest five distinctive farm types: surviving farms, processing female farms, young male entrepreneurs, established output-efficient farms, and established output-input-efficient farms. We observe large discrepancies in terms of dairy enterprise’s productivity, profitability, and suitability in future urban policy planning. For each of the identified dairy systems, we sketch potential intervention approaches that can feed into more tailored dairy development programmes.     

Building resilient infrastructure in the face of climate change in African cities: Scope,potentiality and challenges

ABSTRACT

This article seeks to explain the capacity and limitations of African cities in building resilient infrastructure in the face of climate change. In this article, resilience means the ability of a social or ecological system to absorb disturbances while retaining the same basic structure and ways of functioning, the capacity for self-organisation, and the capacity to adapt to stress and change. To expose the capacity and limitations of African cities in building resilient urban infrastructure, the article presents comparative case studies on contemporary experiences in Harare, Nairobi, Abuja, Cairo and Johannesburg relative to the Latin American and Asian cities where resilient infrastructure practices are in vogue. We conclude that most African cities exhibit critical bottlenecks towards emulating the Asian prototypes. Corruption is among the key explanations for the shortcomings of African cities in the delivery of resilient infrastructure and services. Corruption and non-participatory approaches prevailing in most cities have only courted resistance by citizens in the reimbursement of loans obtained from both international and local financial houses.     

Analysing legal mobilisation’s potential to secure equal access to socioeconomic justice in South Africa

ABSTRACT

From the moment South Africa became a liberal democracy, the Government promised to deliver on social security for the poor. However, South African NGOs have reported that several barriers prevent poor South Africans, and black women in particular, from accessing the country’s social assistance system. Government inaction has compelled NGOs to approach the Courts. As reflected in a series of court judgements, many problems faced by the system relate to the administration of payments by South African and multinational corporations. But is this the complete story?

Applying a critical, analytical lens of legal mobilisation to explain the potential of legal mobilisation to secure progressive structural change, this article will assess the extent to which civic-based, legal advocacy aimed at securing access to social grants, and challenging the manner in which these grants have been administered, has the potential to more strategically advance socioeconomic justice and inequality for South Africa’s poor.     

Criticism of neo-colonialism: clarification of Sino-African cooperation and its implication to the west

ABSTRACT

This paper examines whether the claims regarding the nature of the Sino-African relations can be qualified or categorised as a neo-colonialism approach. Additionally, the paper analyses the Western perception and implication towards the Sino-African geopolitical cooperation and clarifies whether China is taking advantage of the weak African states in the name of South–South cooperation or playing the role of a contemporary proxy of the old colonial system and re-partitioning Africa. The relation between China and Africa simultaneously presents both challenges and opportunities for either of them. This study argues that the criticism that China is invading the continent and practicing neo-colonialism is just a speculation or Sino-phobia. In fact, the Chinese have no gene in their blood to invade Africa and it is crystal clear that unlike China, the Western world has had an influential history in the African continent. The African government and their societies have the ability to address the issues of Sino-African relations. This paper additionally provides a theoretical analysis of China’s enthusiastic involvement and contribution to the international aid operations and its presence and contribution in Africa.     

A study of commercial relations in eighteenth century Finland

Abstract

There has been a noticeable trend in recent research towards the use of private archives in the study of the commercial behaviour of and relations between individual businesses. Previously only public records have tended to be used, and attention has been focused on one aspect of an economy as a whole, or of a region, or a single important town. Even if, for example, the names of importers or exporters have been entered in customs records, official sources cannot provide an answer to anything like all the important questions. Many business histories have been published which have not contributed very much because they have generally not advanced beyond the narrative level, leaving untapped the incomparable material contained in accounts and ledgers. A pre-requisite for the study of private business firms is, of course, that documentary series should have been preserved unbroken for a fairly long period. Farmers did not keep account books, and only through the accounts of the merchants with whom they traded may we examine their businesses. Only a small proportion of merchants’ accounts in North Ostrobothnia from the eighteenth and nineteenth centuries have been preserved; but entries may by even a single merchant in respect of goods bought from or sold to farmers add up over several decades to such an enormous material that some form of sampling is called for limiting him to the classification employed in the official statistics.     

Skill Accumulation in the Search Unemployment Model

ABSTRACT

I analyze general skill accumulation (training) and its financing among labor market entrants in a search unemployment equilibrium. Becker's general skill finance rule is modified for a search economy: although skill accumulation is associated with a hold-up problem, since it benefits future job vacancies which workers expect to be matched with, if vacancies direct their search to workers of different skill levels, workers internalize this externality. An extended model analyzes whether to accumulate skills through training or education. Small differences in the relative cost of acquiring education can lead to large differences in skill levels in the labor market.     

Small businesses in a system of measures aimed at recovering the trajectory of economic growth

The article has substantiated an approach to small businesses as a factor that potentially promotes the recovery of economic growth. Consequences of ineffective government policy towards small business have been analyzed, as well as provisions of the “Strategy for the Development of Small and Medium-Sized Business in the Russian Federation until 2030.” Measures have been proposed that are aimed at stabilizing the operating conditions of small businesses and restoring the entrepreneurs’ confidence in the state.