- A-Z Publications
- South African Journal of Economic and Management Sciences
- Previous Issues
- Volume 7, Issue 2, 2004
South African Journal of Economic and Management Sciences - Volume 7, Issue 2, 2004
Volumes & issues
Volume 7, Issue 2, 2004
Perceptions of entrepreneurship as a career option in South Africa : an exploratory study among Grade 12 learnersSource: South African Journal of Economic and Management Sciences 7, pp 187 –205 (2004)More Less
Job creation and poverty alleviation are two pressing challenges facing South Africa today. South Africa's capacity to address the high unemployment and poverty levels are partly hampered by a poorly developed entrepreneurial culture. An entrepreneurial culture that enhances the supply of effective entrepreneurs at all age and population groups could contribute to economic growth and address both unemployment and poverty. This article investigates the perceptions of entrepreneurship as career option by Grade 12 learners in a specific region in South Africa, as the youth could be viewed as the logical group from which new entrepreneurs should emerge in future. The majority of the surveyed learners seem to have a positive disposition towards small business entrepreneurship as an eventual career, although considerable differences exist in terms of self-image, locality and ethnic backgrounds.
Source: South African Journal of Economic and Management Sciences 7, pp 206 –220 (2004)More Less
Although the vision and mission are important to the strategic planning of a business and much time and effort are spent on their formulation, they aren't used as planning instruments. The purpose of this paper was to determine whether management understands the vision and mission as complementary concepts and whether they use them effectively in the planning process. This study was conducted by sending questionnaires to businesses in the Gauteng Province where most SMEs in South Africa are situated. Findings confirmed that the majority of businesses, especially small businesses, can distinguish between and have visions and missions, but do not apply them optimally in strategy implementation. Recommendations include that businesses should have a written vision and mission statement, which should be communicated effectively and applied in planning and strategy implementation.
Source: South African Journal of Economic and Management Sciences 7, pp 221 –241 (2004)More Less
This article focuses on the position that South African commercial banks adopt when evaluating an application for finance of new business ventures. The role and importance of the business plan in the decision-making process is highlighted and investigated. This article begins to qualitatively describe the decision-making processes, criteria and processes instituted by the four major South African commercial banks that between them serve 96 per cent of the banking services for small business. It then questions the barriers placed on applicants applying for finance and recommends how these barriers can be removed. The article concludes that banks finance business ventures with poor potential for success if the applicant is creditworthy or has the necessary security rather than assist applicants with good plans and ventures with potential, but lacking sufficient security.
Author Gregory John LeeSource: South African Journal of Economic and Management Sciences 7, pp 242 –257 (2004)More Less
Skills development levies are increasingly being utilised to increase enterprise provided training in developing economies. South Africa is one such example. The impact of such incentive systems on the bottom-line of firms is a vital consideration in such programs. Particularly important are the economic conditions under which the incentive will stimulate participation by organisations. The transaction costs of participation must be taken into account: while a levy-grant system clearly creates a <I>prima-facie</I> incentive, it may be prohibitively expensive for some firms to enter the grant disbursement systems. Accordingly, through a simple model of the incentives for firms, the participation level of the firm under various types of levy systems is assessed. Non-monetary considerations are also considered. The implications for participation by firms, along with managerial and policy implications, are discussed.
Author P. Msweli-MbangaSource: South African Journal of Economic and Management Sciences 7, pp 258 –279 (2004)More Less
The direct selling industry suffers a high turnover rate of salespeople, resulting in high costs of training new salespeople. Further costs are incurred when broken relationships with customers cause them to switch from one product supplier to another. This study identifies twelve factors that drive the switching behaviour of direct sales customers and examines the extent to which these factors influence switching. Exploratory factor analysis was used to assess the validity of these factors. The factors were represented in a model that posits that an interpersonal relationship between a direct sales person and a customer moderates the relationship between switching behaviour and loyalty. Structural equation modeling was used to test the proposed model. The author then discusses the empirical findings and their managerial implications, providing further avenues for research.
A recreational valuation of the freshwater inflows into the Keurbooms Estuary by means of a contingent valuation studySource: South African Journal of Economic and Management Sciences 7, pp 280 –298 (2004)More Less
This paper reports on a contingent valuation made of the freshwater inflow into the Keurbooms Estuary near Plettenberg Bay, South Africa, in April 2001. The value of this water was estimated in terms of the services yielded to recreation users of the estuary, to be between R0, 012/m<sup>3</sup> and R0, 046/m<sup>3</sup>. This value is currently lower than what farmers are willing to pay for the water in this area, as measured by the income <I>capitalisation</I> method, namely R0, 125/m<sup>3</sup>, but may increase in the future as more and more South African estuaries are undermined through upstream river water abstraction, and recreational substitutes are diminished. A willingness-to-pay function was also estimated and show annual levies paid and investment in goods to access the estuary services to be important determinants of willingness-to-pay.
Author Saibu Muibi OlufemiSource: South African Journal of Economic and Management Sciences 7, pp 299 –315 (2004)More Less
The study specifically investigated the causality between the openness variable and economic growth, using data from the Nigerian economy. Previous studies in Nigeria have interpreted the regression results of output variables on the export trade variable as providing support for trade liberalization as engine for growth with less emphasis on other measures like import. Such an interpretation is questionable, since these regressions provided no means for determining the direction of causality. This paper performed causality tests with various forms of openness measures and economic growth. The results indicated a uni-directional relationship between openness and growth. This shows that an increasing level of openness will be beneficial, depending on the level of economic development in Nigeria. The result is robust across different measures of openness and analytical techniques.
Financial liberalization, currency substitution and savings in Nigeria : evidence from cointegration and error correction modelingSource: South African Journal of Economic and Management Sciences 7, pp 316 –340 (2004)More Less
The study set out to test the McKinnon-Shaw proposition that financial liberalization will significantly increase savings mobilization. The results partly supported the financial liberalization proposition. Variables that capture the effects of currency substitution such as the interest rate differential, a proxy for underground economy, the inflation differential (as a measure of macroeconomic instability) and a dummy for political instability were significant in their adverse impacts on the saving mobilization process in Nigeria. We, therefore, advocate for an active monetary policy that will help manage the delicate balance between domestic and foreign interest rates. This should be combined with macroeconomic policies that create a stable economic environment along with appropriate financial and exchange rate policies, in order to discourage economic agents from preferring foreign denominated assets to those held in the domestic currency.
Appraisal of the Fischer-DiPasquale-Wheaton (FDW) Real Estate Model and development of an Integrated Property and Asset Market ModelSource: South African Journal of Economic and Management Sciences 7, pp 341 –367 (2004)More Less
This paper provides a concise overview of the development of an integrated property and asset market model (IPAMM) for South African property markets, utilising the Pretoria office market as case study. The IPAMM simulates the interrelationships between property and asset markets in a diagrammatic quadrant model configuration. The Fischer-DiPasquale-Wheaton (FDW) real estate model, arguably the most advanced diagrammatic quadrant real estate model available at present, served as basis for the development of IPAMM. IPAMM is essentially a regression model based on a system of stochastic equations that captures the interrelationships between property and asset markets. The model advances beyond mere conceptualisation of these relationships to a quantified interpretation and application of the theoretical premises that represent the micro-foundations of economic behaviour in property and asset markets.
Author Steven F. KochSource: South African Journal of Economic and Management Sciences 7, pp 368 –386 (2004)More Less
This paper provides an examination of an oligopoly market for addictive commodities, specifically cigarettes. The model is characterized by overlapping generations of consumers and differentiated products. A price equilibrium, which is both stationary and symmetric, is characterized. The model accounts for many of the features within the South African tobacco market. Although excise taxes rose in South Africa, and the actual price in the market rose by more than the increase in the excise tax, the model shows that the increase in the price beyond the excise tax was caused by factors other than the change in the tax rate. The model also points to potential empirical problems associated with estimating cigarette market outcomes, due to the fact that the combination of market structure and addiction may greatly impact the assumed exogeneity of the prices used in the analysis.
Author Z. RobinsonSource: South African Journal of Economic and Management Sciences 7, pp 387 –426 (2004)More Less
Various studies have emphasised the trade and / or revenue implications of free trade. The purpose of this study is to investigate future tax implications of further economic integration. Additional considerations are whether tax competition can become an issue and whether it can be used to the benefit of all SADC members. An integrated approach was done of what is needed in terms of commodity taxation to reach a workable long-term solution. This article analyses experiences in the developing world with reference to lessons learned from developed regions. The first section provides a theoretical background, analysing the meaning of commodity tax. The second section emphasises the importance of fiscal decentralisation in federations and the SADC and the third investigates the character of and changes in commodity taxation that could occur in the future.