Development of a critical success factor assessment for small organisations

Maritz, Anna-marie (2001-03)

Thesis (MBA)--Stellenbosch University, 2001

Thesis

ENGLISH ABSTRACT: Small businesses are the traditional source of local and national economic growth. Small businesses in South Africa absorb almost half the people formally employed in the private sector and contribute nearly thirty seven percent to the country's gross domestic product. Unfortunately small businesses also have the reputation of a high failure rate some literature quote figures as high as sixty six percent of all small businesses within the first six years of their existence. An Australian survey indicated that nearly sixty five percent of all business failures were caused by controllable factors, which implicates that the use of consultants, or simply better management of the small business, could have prevented the failure. This study explains why small business owners are so reluctant to make use of outside consultants and looks into the most common causes of small organisation failure. This research project is designed as an incremental development study, where an existing model is adjusted to focus on a smaller nische market. A consulting model, developed to use in large organisations, was evaluated by identifying the problem areas that most often cause small organisations to fail and then comparing them to the areas addressed in the existing model. The conclusion reached was that although this model will definitely help small business owners to improve their businesses, it doesn't address the mest common causes of small business failure and adjustments is needed to customise this product for the small organisation. Based on the available data on the most common causes of small organisational failure, a new model is developed, which addresses the specific causes of small organisation failure. The new model gives examples of what would be in place in an organisation where the relevant critical success factor is successfully implemented as well as examples of what the situation will be if the relvant factor is absent. The small business owners evaluate themselves on a scale of one to ten. The model has a dual purpose, firstly to create an awareness with the owner of the full spectrum of factors that need to receive attention in a small organisation, and secondly to give a benchmark against which progress on each of the critical success factors can be measured.

AFRIKAANSE OPSOMMING: Klein besighede vorm die ruggraat van die Suid Afrikaanse ekonomie, met byna sewe-en-dertig persent van die Bruto Nasionale Produk (BNP), wat aan klein besighede toegeskryf kan word en as werkverskaffer aan bykans die helfte van alle werknemers wat formeel in diens is van die private sektor. Ongelukkig het klein besighede ook die reputasie van 'n groot mislukkingskoers met mislukkings so hoog as ses-en-sestig persent van alle klein besighede in die eerste ses jaar van die ondernemings se bestaan. 'n Australiese studie het getoon dat ongeveer vyf-en-sestig persent van die oorsake van klein besigheid mislukkings aan beheerbare faktore toegeskryf kan word. Met ander woorde hulp van konsultante, of bloot beter bestuur van die klein besigheid, kon die mislukking verhoed het. Hierdie werkstuk kyk na redes hoekom konsultante so min deur klein besighede gebruik word en na die mees algemene oorsake van klein besigheid mislukkings. Die werkstuk neem die vorm aan van 'n inkrementele ontwikkeling studie waar 'n reeds bestaande evaluasie model, aangepas word om te fokus op 'n kleiner nismark. 'n Konsultasie model, wat ontwikkel is vir gebruik in die diagnostiese fase van die konsultasieproses vir groot besighede, is ondersoek en daar is gekyk watter van die mees algemene faktore vir klein besigheid mislukking in hierdie model aangespreek is. Die gevolgtrekking was dat alhoewel die model definitief klein besigheids eienaars sal help om hul organisasies te verbeter, dit meeste van die oorsake vir mislukking in klein besighede nie direk aanspreek nie, en dat aanpassings van die model nodig is. Gebasseer op reeds bestaande navorsing oor die oorsake van klein besigheid mislukkings, is 'n nuwe model ontwikkel, wat spesifiek gerig is daarop om die mees algemene oorsake van mislukking aan te spreek. Die hersiene model gee voorbeelde van wat in plek sal wees in 'n organisasie waar die kritieke suksesfaktor suksesvol geimplementeer is asook voorbeelde van hoe die situasie daar sal uitsien indien die relevante faktor afwesig is. Klein besigheidseienaars evalueer hulself op 'n skaal van een tot tien. Die doel van die model is tweeledig, eerstens om die eienaar attent te maak op die volle omvang van faktore waaraan aandag gegee moet word, en tweedens om 'n riglyn te bied waarteen vordering op elkeen van die kritieke sukses faktore gemeet kan word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49694
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