Vol. 9 No. 2(J) (2017)

As part of poverty alleviation and reduction of food insecurity in Malawi, the Malawi Government launched the Farm Input Subsidy Programme (FISP) in 2005/06. The programme is a continuation and expansion of previous subsidy programmes which were designed for the same purpose as the current subsidy programme. Although evaluation studies show that FISP registered success in its first five years, there has been limited research analysing the effectiveness of the programme. This study purposed to investigate how the programme has contributed to food poverty transition during the period 2010 and 2013. The study adopts a Multinomial Logit Model and uses Integrated Household Panel Survey Data of 2010 and 2013 from national statistical office to measure food poverty dynamics between the two periods. Other variables which are expected to influence food poverty dynamics are also explored. Results show that FISP does not increase chances of moving out of food poverty. Rather, education greatly provides higher chances of moving out of food poverty. Between gender that have the same qualification, men have a greater probability of moving a household out of poverty. It was also found that household size has a negatively relationship with the probability of moving out of food poverty. The study recommends that government should strengthen the monitoring, evaluation and audit systems in order to make the FISP programme effective again.

There exists a growing body of empirical studies that explore both the sources of small, micro and medium enterprises (SMME) funding, and the quality of their human resource practices. However, there is paucity of literature that interrogates the impact of private funding of local and foreign SMMEs on the quality of human resources. Nevertheless, the wide recognition of the economic significance of SMMEs in emerging economies and the pivotal role that funding plays in the growth of such firms suggest that the nexus between SMME private funding and human resourcing is integral to this condition and growth. As a result, the current study examined the influence of private financing of local and foreign-owned hair salon SMMEs on the quality of their human resources, in an attempt to bridge the aforementioned research gap. The study, which drew on a quantitative approach, is based on a survey conducted on 150 South African and foreign immigrant-owned hair salon businesses. The findings suggest that the private financing structure was dominated by a combination of debt and equity financing, followed by debt financing, with equity financing as the least employed funding model. The study established the significant impact that access to private equity financing has on recruitment, selection and compensation. However, the level of private debt financing, attractiveness of interest rates for private debt financing and financial value of funding from private institutions (banks) do not have any impact on human resources management practices. A major observation from the results is that, some aspects of private financing impact negatively on human resources management albeit a small effect size, which somehow raises critical questions about the popular claims that financing, contributes positively to the quality of human resources of firms.

The purpose of this study was to examine factors influencing firm competitiveness among the Small and Medium Enterprises in Nairobi, Kenya. Specifically the study set out to examine the influence of strategic leadership, technology, resources and organization culture on competitiveness of Small and Medium Enterprises in Nairobi. The study adopted a descriptive research design. The study population comprised of SMEs in Nairobi which fall within the top 100 SMEs in Kenya. There are 79 SMEs from Nairobi County in the Top 100 SMEs in Kenya. A sample size of 25 SMEs which represented 30% of the target population was selected through stratified random sampling. The stratification was based on five business sector categories (real estate, supplies, services, distribution and manufacturing). The study utilized primary data which was collected from top management employees through the use of questionnaire. Data was analyzed using both descriptive and inferential statistics. Correlation analysis was employed to aid in establishing the nature and strength of the relationships between variables of interest. Correlation analysis results indicate that strategic leadership, adoption of relevant technology, resources availability and organization culture has a positive and significant relationship with firm competitiveness. The study concludes that sustainable competitive advantage of the firm stems from effective strategic leadership, adoption of technology, resources availability and effective organization culture. The study recommends that SMEs should embrace various competitive strategies to remain relevant in the market and achieve the required competitiveness. The SMEs managers should embrace strategic leadership practices, benchmark on best practices to ensure constant touch with their customers, embrace adoption of appropriate technology towards realizing higher levels of efficiency and effectiveness, ensure optimal utilization of resources, and cultivate a good balance between the organization culture and the organization processes so as to enhance competitive advantage. This study was confined to factors influencing organizational competitiveness of small and medium enterprises within Nairobi County. Other studies could be pursued in terms of expanding the geographical setting and taking recognition of other variables that could intervene and or moderate the investigated relationship.

In light of business leaders’ failings, including corporate corruption, the financial crisis and various ecological system crises there is a growing expectation that management education institutions should be leading thought and action on issues related to corporate responsibility and sustainability. Therefore, there is a need to ascertain management education institutions’ ability to ensure responsible and sustainable management education. This paper seeks to assess academics’ perceptions of how the University of KwaZuluNatal has adopted the United Nation (UN) supported initiative, Principles for Responsible Management Education (PRME), to ensure responsible and sustainable management education in South Africa. The sample was drawn using the probability sampling technique called cluster sampling. Permanent academic staff from the Graduate School of Business and Leadership and the School of Management, Information Technology and Governance who responded to the structured, self-administered questionnaire formed the sample. Questions asked related to fostering a sustainable culture, strategically adapting curriculum, creating learning environments, aligning research, fostering sustainable partnerships and encouraging constant dialogue with regards to PRME. In order to assess the implementation of the PRME for sustainable development, a quantitative research design was adopted. This is the first study, to the researcher’s knowledge, to examine the University of KwaZulu-Natal’s Graduate School of Business and Leadership and the School of Management, Information Technology and Governance’s motives, effects and challenges of engaging in PRME. The study has also explored key aspects such as the adaptation of teaching practices by the academic staff, the role of academics and diversification that influences the decision of the Graduate School of Business and Leadership and School of Management, Information Technology and Governance to participate in PRME. The results indicate that academic staff in both schools is engaging in activities that pursue the cause of sustainable development. There is evidence of addressing modern societal and environmental challenges by fostering change in design in curricula, fostering a sustainable culture and creating a learning environment. However, evidently more careful and deliberate attention needs to be given to fostering constant dialogue and aligning PRME and research to enhance economic, environmental and social development. This study provides a model/framework to present current practices and obstacles/setbacks experienced in adopting PRME and will present recommendations to facilitate the adoption of PRME by UKZN.

Electronic communication (e-communication) refers to communicating by electronic means, especially over computer networks. Organisations use the internet to distribute valuable content in a variety of ways including e-newsletters, articles, videos, webinars, chats, live online events, social networks and forums. Customer satisfaction measures how well the expectations of a customer concerning a product or service provided by an organisation have been met. Customers can be satisfied with more than just the organisation’s product offerings. Customers use the Internet to search for general information, instruction guides or tips that they consider interesting or valuable. They often base their buying decisions on what they find. Valuable content can result in positive advertising as customers share positive content-related experiences with others. It can also increase loyalty as customers start to view or perceive an organisation as an expert about industry-related topics. This paper examines the relationship between e-communication and customer satisfaction within the mobile telecommunications industry in South Africa. This research was quantitative, descriptive and cross sectional in nature. The study found that e-communication was being used by the majority of the service providers in the mobile telecommunications industry and that it led to increased customer satisfaction.

Remittances have become an increasingly important factor in developing economies. Among others, compliance with onerous regulation requirements discourages the use of formal methods of remittances. The paper discusses results from a survey of the influence of regulation on the choice of migrants’ remittance channels in South Africa. It aims to highlight how regulation affects the choice between formal and informal channels of remitting funds. A questionnaire was administered to collect primary data from migrants seeking documentations from the Department of Home Affairs, those remitting funds at taxi ranks or bus terminals, and those remitting through commercial banks and money transfer operators. 275 responses were analysed using a Likert rating scale format of 1 (highest) to 5 (lowest). Regulatory requirements of documentary evidence are an important factor influencing the choice of the remittance channel used. Documentation requirement in the formal market causes migrants to be ineligible for the formal channels of remittances and is a factor that influences the choice of remittance channel. Restrictive visa requirements could easily push migrants to become illegal aliens which further deny them access to formal remittance channels. The paper adds to the academic literature on the determinants of remittance channels in Africa. Understanding the relevant issues could assist regulatory authorities to restructure the remittance market with a view to encouraging migrant workers to enter the formal financial system.

The primary motivation behind this study was to explore the consequential effects of budget deficit on South Africas economic growth. Six variables were used, namely: real GDP, budget deficit, real interest rate, labour, gross fixed capital formation and unemployment. The Vector Error Correction Model (VECM) was used to estimate the long-run equation and also measure the correction from disequilibrium of preceding periods. Using annual time series data spanning the period 1985 to 2015, empirical evidence from the study revealed that budget deficits and economic growth are inversely related. It was therefore concluded that high levels of budget deficit in South Africa have detrimental effects on the growth of the economy. The estimate of the speed of adjustment coefficient found in this study revealed that about 29 per cent of the variation in GDP from its equilibrium level is corrected within one year. The results obtained in this study are favourably similar to those in the literature and are also sustained by previous studies.

The current study has been designed to analyse the interactions between real government spending and job creation in South Africa focusing on five major economic sectors, namely construction, financial, manufacturing, mining, and retail sectors. The main objective of the study was to determine how job creation in different economic sectors responds to changes in real government spending. To achieve this objective, the study used five different autoregressive distributed lag (ARDL) models to analyse the long-run and shot-run relationships between government spending and employment rate in each of the aforementioned five economic sectors. The sample period consisted of quarterly observations starting from the first quarter of 1994 to last quarter of 2015. The study found a long-run relationship between government spending and job creation in the mining sector but there was no evidence of long-run relationships between government spending and jobs creation in construction, financial, manufacturing, and retail sectors. The short-run analysis showed that government spending could create jobs in all five sectors. This paper concluded that increasing government spending can only create short-term jobs but does not create lasting jobs in most sectors, except the mining sector. To increase the number of durable jobs, the South African government should therefore increase spending on mining sector.

Chapter 6 of the National Development Plan (NDP) accentuates on the impact of an integrated and inclusive rural economy by proposing for the creation 643 000 direct jobs and 326 000 indirect jobs in the farming and non-farming sector by 2030. Discussion within the study reveals that, the NDP was also designed to stimulate rural economic development among other important dynamic economic factors of the country. However, five years into the implementation of the NDP, remnants of inequality, unemployment and poverty are still apparent amongst the rural population. This paper indicates that the success of NDP as an entrepreneurial mechanism is being underpinned by contestations which are emanating from underfinancing, lack of entrepreneurial education and research culture, negative attitudes of the people, corruption and red tape. Through a qualitative research approach, the paper observes that, for NDP to be continuously coordinated as an economic initiative, financing of rural projects such as small businesses, cooperatives and other rural development projects should be the government’s key priority. The study concludes that entrepreneurship has to be considered as a prime mover in rural economic development in South Africa since an entrepreneurial economy significantly differs from a non-entrepreneurial one, as evidenced by the economic vigour and sustainable development of its inhabitants.

Consumption has been and remains the main contributor to gross domestic product (GDP) growth in South Africa. Household debt on the other side has remained high over the years. These two economic indicators are a reflection of the well-being of an economy. This study thus examined the relationship between household debt and consumption spending, for the period between 1994 and 2013. The Johansen cointegration technique and the Vector error correction model (VECM) were utilised to test the long run and short run relationships between the variables. The Granger causality test was also employed to test the direction of causality between the variables. Results from this study have revealed that a relationship exists between household debt and consumption spending in South Africa and they have also showed that this relationship flows from household debt to consumption spending. The implications of these results are that consumption spending may be increased through other measures rather than through increasing debt. The study therefore recommends that policy makers avail more investment opportunities for households and to also create employment in a bid to increase the income of households which can then be used to increase household consumption rather than the use of debt.