Small-Scale Enterprise Development In South Africa Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Small-Scale Enterprise Development In South Africa Case Solution

Unable to Access the Marketplaces

Instability in SMEs' access to marketplaces has been noted as a major factor threatening their permanency. Access to capitals in the early stages and basic needs of teachers (through credit providers) Access to markets is a basic need.

However, small businesses in country areas are at a difficulty related to their inner-city counterparts. The authors know that their small size and isolated position hinder them from forming meetings to increase their bargaining power. As a result, they find it difficult to lobby management agencies to improved help their needs. The practice of forming local clusters is encouraged by Node et al (2008). However, the formation of clusters is encouraged for most SMEs who have passed their initial stage. Clustering can put fragile small businesses in highly competitive positions.

The Institutions for Youth Enterprises Development in South Africa

The characteristic of the South African economy is not appealing. Great joblessness rate, especially between the youth, and fresh labor force candidates can’t contribute in the slow rising economy because of a mismatch amongst supply and demand of labor. Majority of South African labor force are inexpert and the economy favors knowledgeable/skilled workers.

Youth Enterprise Development Program is a complete learning experience that provides to enthusiastic businesspersons between the youth and teaches them how to build a good business.

In the starting first six months long incubator style program, applicants started and learned sustainable business, where they learn by providing convenience and support that guides them in putting this idea into practice. Applicants are introduced to a range of business ideas that inspire them and build confidence in their business. Training contains site visits, situation studies and visitor lecturers.

Over the next six months, upon completion of the course work, contributors receive ongoing support and mentorship and are also familiarized to microfinance bodies to provide financial support to grow their business. Graduates receive a Certificate of Approval from JA South Africa. (Africa, n.d.)

To Succeed For The Youth Enterprise Growth Program, Students Must:

Between 18 and 35 years old;
Easy to speak, write and understand English.
Be free from job promises and not a permanent student.
Capable to show strong interest in opening a business as it will give them import entry.
Beginners who are enthusiastic and passionate and ready to invest their time and effort to participate in the program. And
Ready to make a full commitment over a short term course.
The Youth Enterprise Development Program will guide participants on the path to personal achievement by coaching members:

A Synthesis of Youth Enterprise Development Policies and Strategies in the Last Ten Years

The guidelines and procedure commendations in the following sections are designed to support policy makers in their efforts to indiscreetly stages entrepreneurship. It must be well-known that most of the commendations for act-involved in the tables are particular to youth, with the exception of procedures related to the controlling structure. They are honest in nature and should be applied to all traders to consequential playing field. It should also be noted that the recommendations provided in the field of private enterprise education and skills development fully mimic the EPF, as these initiatives already target the needs and characteristics of young people.

Combination of Early stages Enterprise Development Policies and Strategies over the previous ten years are as follows

Develop A National Business Strategy
Optimizing the Regulatory Environment
Increasing Entrepreneurship Training and Skills Improvement
Helping Technology Interchange and Innovation
Improving Access to Finance
Supporting Awareness and Networking

The Weaknesses and Gaps in Existing Policies and Strategies

Undoubtedly, business people all over the world face some common obstacles / challenges.

In addition, there is strong evidence that both adult businesses and young people run Businesses face many of the same problems as lack of access, Lack of capital, profitable market access, lack of management skills, inadequate planning. New product development etc. With the current breadth of youth Unemployment in South Africa, as well as many traditional industries are reluctant to employ a better strategy could be to promote the motivation of young graduates.

The problem of unemployment in the country report of the Central Bureau of Statistics argued that youth unemployment in this country cannot be solved by loneliness alone. Youth policy, but also the development of youth in the nation is everybody'sconcern, e.g. Government, Ministry of Youth, private division, domestic society, NGOs and other stakeholders Related. Therefore, common factors that are likely to discourage young people from doing business.

The long process for registering their business
Lack of management skills
High cost of rent.
If unregistered, they fail to compete as SMEs in many ways
Access to appropriate technology
To contribute to the Compensation Fund
To pay taxes
Government Access to funds from the government, NGOs and banks
Communications are off - eventually they can't be trained
Business registered government measures are received via text messages
Or electronic mail.

There is an emerging trend in the South African business sector where there are many new businesses the operation is carried out by foreign nationals. Many existing businesses fail to survive, and close. This allows foreign nationals to enter all existing business structures and family garages doing viable and sustainable business. The main reason is the lack of support the people of South Africa who are in business, while it is a well-known fact that for the development of this economy for this, everyone needs to be economically active and SMEs need to flourish.

So we conclude that South African SMEs have a lot of challenges that are very specific to all SME business people. The challenges facing businesses operating SMEs in Turflop Plaza are similar to those described in the 1995 White Paper on the National Policy for the Development and Advancement of Small Business in South Africa. This shows that the country is amazed at its efforts to address the identified challenges. It is possible that the situation in the cosmopolitan areas is better than in the rural areas, but for the development of rural SMEs, the Rural Development Initiative should be looked at, which is dominated by women. Newcomers to the business scene can't make it because the competition is fierce, and this has led to gate-keeping against new entrants to the business market. In addition, new entrants do not have access to information on how they can be assisted. They do not know about governmental and non-governmental organizations that should actively support them. We conclude that competition negatively affects business success and leads to gate-keeping against new market entrants. Based on this conclusion we therefore suggest that:

Government should adopt awareness programs to access support services to rural SMEs available in South Africa

SMEs should be protected from the competition of big businesses
The government should develop various strategies to facilitate the access of newcomers. For example, the partnership between the Department of Transportation and the Taxi Association should be reviewed to facilitate entry for new traders.(Leshilo, 2016)........................
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Small-Scale Enterprise Development In South Africa Harvard Case Solution & Analysis