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For years, the common logic that underpinned entrepreneurship was to find a niche within in a market/sector and then solidify business practice to achieve success in the market segment. The dawn of technologically-based disruptive enterprises, such as Uber and Air B&B, coupled with the nearing Fourth Industrial revolution seriously call into question the conventional business logic. In this article, the projected impact of these forces on African entrepreneurs is explored. We look at the role of government, business and education systems to prepare for the impact of the Fourth Industrial revolution. Specific focus is placed on the need for entrepreneurial skills and training to prepare for the impact of the Fourth Industrial revolution. We also explore the importance of innovation, both in terms of products and processes to mitigate against the impact of these forces.
Small, Medium and Micro Enterprises (SMMEs) are widely recognised as playing a pivotal role in economic development and job creation. This is particularly so in Africa, where SMMEs are responsible for 80% of all formal jobs. While this is recognised by various African continental and national developments plans, the nefarious practice of late payment, by especially governments, not only stunt the growth of SMMEs, but often-time leads to business failure. This article investigates the impact of late payment, with a specific focus on South Africa and touches on international good practice that may be employed to address this phenomenon.
This study sought to examine the relationship between the components of SMEs social capital and firm performance. Using the social capital theory and the resource-based view as the theoretical foundations and census, 1,532 SMEs were selected in the Accra Metropolis for the study. Empirical results from 717 SMEs, utilising the hierarchical linear regression model, revealed that owner/manger’s network relationships are beneficial to the firm depending on when the relationships are closed or opened. Moreover, the study found that social capital has a significant impact on the sales and market performance of small and medium-sized enterprises. The results also brought to the fore the fact that most social networks of SME entrepreneurs are family, friends and relatives, which most times can only be used for expressive purposes and not for instrumental gain. The practical implications of the results are also discussed.