The effectiveness of small enterprise cost-sharing and cooperative grant incentive schemes in South Africa

Journal Title
Journal ISSN
Volume Title
Stellenbosch : Stellenbosch University
ENGLISH SUMMARY : Over the years, policymakers and governments in both developed and developing countries have initiated a variety of enterprise support and incentive funding programmes with the view of assisting small and co-operative enterprises that face many constraints, particularly lack of access to capital. However, some of the funding programmes have effectively attracted no scrutiny since they started operation. This study sought to address this omission by measuring the effectiveness of the Black Business Supplier Development Programme (BBSDP) and the Co-operative Incentive Scheme (CIS) in South Africa during the 2011/12 to the 2016/17 financial years. A variety of literature theoretically and empirically supports programme performance; however, the literature is silent on the methods of measuring the effectiveness of grant funding programmes, with most of the research focus placed on firms and non-profit organisations. The main aim of the study was to utilise quantitative methods to measure the performance and effectiveness of two grant funding programmes, namely the CIS and the BBSDP. The study adopted a descriptive analysis approach. The approach focused on five perspectives that were related to each other and to the overall objectives of the BBSDP and the CIS. The five perspectives were human capital acquisition and development, effective internal controls, financial sustainability, operational efficiency and competitiveness, and development impact. All five interrelated perspectives were analysed with the aim of establishing evaluation criteria for their level of effectiveness. The theoretical concepts enunciated for each perspective of effectiveness measurement were translated into key performance indicators (elements), and each of them was grouped by topic. For each perspective, the programme effectiveness was ranked using five predetermined criteria: 5) very effective; 4) effective; 3) fairly effective; 2) partially effective; and 1) ineffective. All five criteria carried equal weight with the percentages related to each criterion being normalised, standardised and added up to produce a single score. The BBSDP and the CIS were evaluated over the financial period 2011/12 to 2016/17. The empirical evidence from the results shows strong support for the five effectiveness perspective evaluated and applied to the study. The evidence suggests that the operational efficiency and competitiveness perspective of the two programmes encourages programme management to become more proactive in its strategic operational mandate. The results also indicate that operational efficiency and competitiveness has the most significant effectiveness strategy of all five perspectives included in the measurement model.
AFRIKAANSE OPSOMMING : Geen opsomming beskikbaar.
Thesis (PhD)--Stellenbosch University, 2018.
Black Business Supplier Development Programme (South Africa) -- Cost effectiveness, South Africa. Department of Small Business Development. Co-operative Incentive Scheme -- Cost effectiveness, Subsidies -- South Africa -- Cost effectiveness, Small business -- South Africa, Cooperative enterprises -- South Africa, UCTD