Browsing by Author "Fourie, Carmen"

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    The development of a small business owner competency model
    (Stellenbosch : Stellenbosch University, 2020-03) Fourie, Carmen; Van der Bank, Francois; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Industrial Psychology.
    ENGLISH ABSTRACT : South Africa is plagued with an extremely high unemployment rate, high levels of crime, poverty and income inequality. It is widely recognised that small businesses play a vital role in the economy of a country in terms of creating employment, alleviating poverty and income inequality and stimulating economic activity in rural areas. However, small businesses can only contribute to the economy if they survive and succeed in the marketplace. Due to the high failure rate of small businesses, there is an urgent need to address the performance of small business owners and small businesses. Owing to the crucial function small businesses play in the South African economy and the high failure rate of these businesses, it is essential that research on small businesses progress, and provide practical and usable information. The objective of this research is to develop a competency model for small business owners in South Africa that explains the performance outcomes of small businesses and owner-managers and the competencies of owner-managers. The literature overview informed the development of eight performance outcomes, and 12 competency clusters. The aim of this study was to ensure that the competencies and outcomes are as comprehensive as possible to avoid adding further to the inconsistencies and fragmented research. To achieve this, the Delphi method was used to evaluate the theorised outcomes and competencies, as well as their descriptions. Chapter 3 covered the Delphi technique and the application thereof to this study. A semi-structured questionnaire was administered to and completed by 20 small business owners. The Delphi was conducted over three rounds, with the participants receiving feedback after each round to refine their responses. The questionnaire was adapted as necessary after each round. Chapter 4 detailed the findings of the study. It was established that the eight proposed outcomes are comprehensive in describing the performance outcomes of a small business and small business owner. The definitions of the outcomes were refined through the feedback of the owner-managers. It was concluded that the proposed outcomes should remain on the list, but that the level of importance and relevance may differ due to various factors. A comparison of the outcomes revealed that survival and continuation, production and productivity, personal outcomes and human resources were rated as the most important. An examination of the 12 competencies resulted in minor alterations to the definitions of time management and socially responsible behaviour and ethics. From the owner-managers’ responses and recent literature on small businesses in South Africa, an additional competency was added. The owner-managers’ responses revealed that all the competencies should remain on the list of competency clusters, but that the importance, frequency and level of expertise required for the competency cluster may vary. Furthermore, the feedback from the Delphi revealed which of the competency clusters can be outsourced, and where owners feel that there can be a lack of competence which is compensated for in other ways. When comparing the competencies, they revealed fewer outliers relative to the outcomes, but personal competencies and strategic management were rated as the most important competency clusters with the highest level of consensus. This study is intended to contribute to the understanding of small businesses and small business owners in South Africa, by providing valuable insights into the complexity of owner-managers. Furthermore, this research lays the foundations for the development of a comprehensive competency model for small business owners in South Africa.