ABSA Enterprise Development (ABSA ED), a division within Barclays Africa Group Limited (bank and finance sector), was established with the mandate to create an enabling environment that supports, advances funding and grants access to markets directed at small and micro enterprise (SME) growth and sustainability. The primary research objective was to determine the impact of the ABSA ED service on the development and growth of the SMEs that bank with ABSA and make use of ABSA ED. The secondary research objective was to identify and assess SMEs that are using the ABSA ED service and to determine their growth position by assessing business growth, competition, business strategy and business development. A quantitative research approach was adopted and included a survey in which 106 SMEs participated. Findings reveal that SMEs are positively impacted by ABSA ED interventions in business growth, strategy and development, but they lacked awareness of competition. SME strategy was significantly related to firm growth, and use of ABSA ED showed a strong positive relation of .8034, although a small effect correlation (.0149) on improving business sales/turnover. Business development indicated no significant correlation between the number of training opportunities the entrepreneur attended and the growth levels of the firm. The age of 55.2% of the businesses surveyed ranged between 1 and 5 years, indicating the relative start-up phase of the SMEs. SMEs confirmed the use of business skills acquired through ABSA ED training seminars. Although findings reflect positive impact on the growth of the SME, the Procurement Portal product reflects low growth impact. A link was found between business strategy and SME growth, where the use of ABSA ED had medium correlation, while business development correlated negatively to business growth.
| Published in | Science Journal of Business and Management (Volume 4, Issue 2) |
| DOI | 10.11648/j.sjbm.20160402.14 |
| Page(s) | 42-50 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2016. Published by Science Publishing Group |
Growth, Enterprise Development, Small and Micro Enterprise
| [1] | ABSA. Annual Report. Available from http://www.absa.co.za, 2013. |
| [2] | ABSA. Enterprise Development. Available from http://intranet.intra.absa.co.za/retailbanking/ed/Pages/default.aspx, 2014a. |
| [3] | ABSA. Funding for Enterprise Development – ABSA Enterprise Development. Proceedings of conference held in Klerksdorp, SME Business Summit, 2 October 2014. Conducted by ABSA, SEDA, South African Chamber of Commerce, Vodacom, 2014b. |
| [4] | Adjasi, C. & Rantseli, P. The role of procurement in promoting historically disadvantaged SMME’s: Evidence from Ekurhuleni Municipality. Master’s dissertation. Stellenbosch: Stellenbosch University, 2011. |
| [5] | Albright, S. C., Winston, W. L. & Zappe, C. Data Analysis & Decision Making. 3rd Edition. Ohio: Thomson South-Western, 2006. |
| [6] | Armstrong, C. E. Competence or flexibility? Survival and growth implications of competitive strategy preference among small US business. Journal of Strategy and Management, 6 (4): 377–398, 2013. |
| [7] | Blumberg, B. F., Cooper, D. R. & Schindler, P. S. Business Research Methods. 4th Edition. London: McGraw Hill, 2014. |
| [8] | Chen, L., Danbolt, J. & Holland, J. Rethinking bank business models: The role of intangibles. Accounting, Auditing and Accountability Journal, 27 (3): 563–589, 2014. |
| [9] | Cohen, J. Statistical Power Analysis for the Behavioural Sciences. 2nd Edition. New York: Academic Press, 1988. |
| [10] | Dai, L., Maksimov, V., Gilbert, B. A. & Fernhaber, S. A. Entrepreneurial orientation and international scope: The different roles of innovativeness, proactiveness, and risk-taking. Journal of Business Venturing, 29: 511–524, 2014. |
| [11] | De Urbina-Criado, M., Guerras-Martin, L. A. & Montoro-Sanchez, A. The choice of growth method: Strategies and resources. Academia Revista Latinoamericana de Administration, 27 (1): 30–45, 2014. |
| [12] | Department of Trade and Industry (DTI). White Paper on National Strategy for the Development and Promotion of Small Business in South Africa. Notice No. 213 of 1995. Pretoria: Government Printer, 1995. |
| [13] | Dobbs, M. & Hamilton, R. T. Small business growth: Recent evidence and new directions. International Journal of Entrepreneurial Behavior and Research, 13 (5): 296–322, 2007. |
| [14] | Edelman, L. F., Brush, C. G. & Manolova, T. Co-alignment in the resource-performance relationship: Strategy as mediator. Journal of Business Venturing, 20 (3): 359–583, 2005. |
| [15] | Eggers, F., Kraus, S., Hughes, M., Laraway, S. & Snycerski, S. Implications of customer and entrepreneurial orientations for SME growth. Journal of Management Decision, 51 (3): 524–546, 2013. |
| [16] | Field, A. Discovering Statistics using IBM SPSS Statistics. 4th edition. London: Sage, 2013. |
| [17] | Furlan, A., Grandinetti, R. & Paggiaro, A. Unveiling the growth process: Entrepreneurial growth and the use of external resources. International Journal of Entrepreneurial Behaviour & Research, 20 (1): 20–41, 2014. |
| [18] | Hatten, T. S. Principles of Small Business Management. 5th Edition. Boston: South-Western Cengage Learning, 2012. |
| [19] | Laukkanen, T., Nagy, G., Hirvonen, S., Reijonen, H. & Pasanen, M. The effect of strategic orientations on business performance in SMEs. International Marketing Review, 30 (6): 510–535, 2013. |
| [20] | Levin, R. I., Rubin, D. S., Stinson, J. P. & Gardner, Jr E. S. Quantitative Approaches to Management. 8th Edition. New York: McGraw-Hill, 1992. |
| [21] | Mazzarol, T. A proposed framework for the strategic management of small entrepreneurial firms. Small Enterprise Research: The Journal of SEAANZ, 13 (1): 37-53, 2005. |
| [22] | Mazzarol, T. W. & Rebound, S. The Strategy of Small Firms: Strategic Management and Innovation in the Small Firm. Boston: Edward Elgar, 2009. |
| [23] | Mazzarol, T. W. & Rebound, S. Strategic Innovation in Small Firms. Boston: Edward Elgar, 2011. |
| [24] | Millan, J. M., Congregado, E., Roman, C., Van Praag, M. & Van Stel, A. The value of an educated population for an individual’s entrepreneurship success. Journal of Business Venturing, 29: 612–632, 2014. |
| [25] | National Credit Regulator (NCR). Literature Review on Small and Micro Enterprises’ Access to Credit and Support in South Africa. Available from http://www.seda.org.za, 2011. |
| [26] | Nieman, G. Small Business Management: A South African Approach. Pretoria: Van Schaik, 2006. |
| [27] | Omri, A. & Ayadi-Frikha, M. Constructing a meditational model of small business growth. International Entrepreneurial Management Journal, 10: 319–324, 2014. |
| [28] | Saunders, M., Lewis, P. & Thornhill, A. Research Methods for Business Students. 6th edition. London: Prentice Hall, 2012. |
| [29] | Sekaran, U. & Bougie, R. Research Methods for Business. 6th edition. London: Wiley, 2013. |
| [30] | Scarborough, N. M. Effective Small Business Management: An Entrepreneurial Approach. 10th Edition. New York: Pearson, 2012. |
| [31] | Small Business Project (SBP). Growth and Competitiveness for Small Business in South Africa. Available from www.sbp.org.za, 2014. |
| [32] | Small Enterprise Development Agency (SEDA). Analysis of the Needs, State and Performance of Small and Medium Businesses in the Agriculture, Manufacturing, ICT and Tourism Sectors in South Africa. Mthente Research and Consulting Services. Available from http//:www.seda.org.za, 2012. |
| [33] | Soppe, B., Lechner, C. & Dowling, M. Vertical competition in entrepreneurial firms: Theory and practice. Journal of Small Business and Enterprise Development, 21 (4): 1–31, 2014. |
| [34] | Suklev, B. & Rexhepi, G. Growth Strategies of Entrepreneurial Businesses: Evidence From Macedonia. Entrepreneurship in the Balkans, 1: 77-87, 2013. |
| [35] | Tashakkori, A. & Teddlie, C. Mixed Methodology. London: Sage. Tinnila, M. (2013). Efficient service production: Service production in banking. Business Process Management Journal, 19 (4): 648–661, 2009. |
| [36] | Thompson Jr. AA, Strickland III AJ, & Gamble JE. Crafting and executing strategy: Text and reading. (18th Ed). New York: McGraw-Hill Irwin, 2010. |
| [37] | Tinnila, M. (2013). Efficient service production: Service production in banking. Business Process Management Journal, 19 (4): 648–661. |
| [38] | Veselinova, E. & Samonikov, M. G. SMEs innovation and growth in EU. Management Journal for Theory and Practice Management, 64: 87–94, 2012. |
| [39] | Tvedten, K., Wendelboe, M. & Jeppesen, H. S. (2014). Understanding the rise of African Business. African Journal of Economic and Management Studies, 5 (3): 249–268. |
| [40] | Orser, B. J., Hogarth-Scott, S. & Riding, A. L. (2000). Performance, firm size, and management problem solving. Journal of Small Business Management, 38 (4): 42-58. |
| [41] | Mitra, R. & Pingali, V. (2009). Analysis of growth stages in small firms: A case study of automobile ancillaries in India. Journal of Small Business Management, 1: 69-75. |
APA Style
T. A. Makhubele, C. Nieuwenhuizen. (2016). The Impact of Absa Enterprise Development on Small and Micro Enterprise Growth. Science Journal of Business and Management, 4(2), 42-50. https://doi.org/10.11648/j.sjbm.20160402.14
ACS Style
T. A. Makhubele; C. Nieuwenhuizen. The Impact of Absa Enterprise Development on Small and Micro Enterprise Growth. Sci. J. Bus. Manag. 2016, 4(2), 42-50. doi: 10.11648/j.sjbm.20160402.14
AMA Style
T. A. Makhubele, C. Nieuwenhuizen. The Impact of Absa Enterprise Development on Small and Micro Enterprise Growth. Sci J Bus Manag. 2016;4(2):42-50. doi: 10.11648/j.sjbm.20160402.14
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.sjbm.20160402.14,
author = {T. A. Makhubele and C. Nieuwenhuizen},
title = {The Impact of Absa Enterprise Development on Small and Micro Enterprise Growth},
journal = {Science Journal of Business and Management},
volume = {4},
number = {2},
pages = {42-50},
doi = {10.11648/j.sjbm.20160402.14},
url = {https://doi.org/10.11648/j.sjbm.20160402.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20160402.14},
abstract = {ABSA Enterprise Development (ABSA ED), a division within Barclays Africa Group Limited (bank and finance sector), was established with the mandate to create an enabling environment that supports, advances funding and grants access to markets directed at small and micro enterprise (SME) growth and sustainability. The primary research objective was to determine the impact of the ABSA ED service on the development and growth of the SMEs that bank with ABSA and make use of ABSA ED. The secondary research objective was to identify and assess SMEs that are using the ABSA ED service and to determine their growth position by assessing business growth, competition, business strategy and business development. A quantitative research approach was adopted and included a survey in which 106 SMEs participated. Findings reveal that SMEs are positively impacted by ABSA ED interventions in business growth, strategy and development, but they lacked awareness of competition. SME strategy was significantly related to firm growth, and use of ABSA ED showed a strong positive relation of .8034, although a small effect correlation (.0149) on improving business sales/turnover. Business development indicated no significant correlation between the number of training opportunities the entrepreneur attended and the growth levels of the firm. The age of 55.2% of the businesses surveyed ranged between 1 and 5 years, indicating the relative start-up phase of the SMEs. SMEs confirmed the use of business skills acquired through ABSA ED training seminars. Although findings reflect positive impact on the growth of the SME, the Procurement Portal product reflects low growth impact. A link was found between business strategy and SME growth, where the use of ABSA ED had medium correlation, while business development correlated negatively to business growth.},
year = {2016}
}
TY - JOUR T1 - The Impact of Absa Enterprise Development on Small and Micro Enterprise Growth AU - T. A. Makhubele AU - C. Nieuwenhuizen Y1 - 2016/04/07 PY - 2016 N1 - https://doi.org/10.11648/j.sjbm.20160402.14 DO - 10.11648/j.sjbm.20160402.14 T2 - Science Journal of Business and Management JF - Science Journal of Business and Management JO - Science Journal of Business and Management SP - 42 EP - 50 PB - Science Publishing Group SN - 2331-0634 UR - https://doi.org/10.11648/j.sjbm.20160402.14 AB - ABSA Enterprise Development (ABSA ED), a division within Barclays Africa Group Limited (bank and finance sector), was established with the mandate to create an enabling environment that supports, advances funding and grants access to markets directed at small and micro enterprise (SME) growth and sustainability. The primary research objective was to determine the impact of the ABSA ED service on the development and growth of the SMEs that bank with ABSA and make use of ABSA ED. The secondary research objective was to identify and assess SMEs that are using the ABSA ED service and to determine their growth position by assessing business growth, competition, business strategy and business development. A quantitative research approach was adopted and included a survey in which 106 SMEs participated. Findings reveal that SMEs are positively impacted by ABSA ED interventions in business growth, strategy and development, but they lacked awareness of competition. SME strategy was significantly related to firm growth, and use of ABSA ED showed a strong positive relation of .8034, although a small effect correlation (.0149) on improving business sales/turnover. Business development indicated no significant correlation between the number of training opportunities the entrepreneur attended and the growth levels of the firm. The age of 55.2% of the businesses surveyed ranged between 1 and 5 years, indicating the relative start-up phase of the SMEs. SMEs confirmed the use of business skills acquired through ABSA ED training seminars. Although findings reflect positive impact on the growth of the SME, the Procurement Portal product reflects low growth impact. A link was found between business strategy and SME growth, where the use of ABSA ED had medium correlation, while business development correlated negatively to business growth. VL - 4 IS - 2 ER -
Email: