Magocha, Medicine (Ed.); Ma ashu, Ma ha (Ed.)
Book
Co po a e go e nance p ac ices p omo ing he
sus ainabili y o small, medium and mic oen e p ises in
Sou h A ica
P o ided in Coope a ion wi h:
A ican Online Scien i ic In o ma ion Sys ems (AOSIS)
Sugges ed Ci a ion: Magocha, Medicine (Ed.); Ma ashu, Ma ha (Ed.) (2024) : Co po a e go e nance
p ac ices p omo ing he sus ainabili y o small, medium and mic oen e p ises in Sou h A ica, ISBN
978-1-991271-15-0, AVARSITY Books, Cape Town,
h ps://doi.o g/10.4102/aosis.2024.BK404
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/321931
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by-nc-nd/4.0/
EDITED BY
Medicine Magocha & Ma ha Ma ashu
Co po a e go e nance
p ac ices p omo ing he
sus ainabili y o
small, medium and
mic oen e p ises
in Sou h A ica
Co po a e go e nance
p ac ices p omo ing he
sus ainabili y o
small, medium and
mic oen e p ises
in Sou h A ica
Published by AVARSITY Books, an imp in o AOSIS.
AOSIS Publishing
15 Ox o d S ee , Du ban ille, 7550, Cape Town, Sou h A ica
Pos ne Sui e 110, P i a e Bag X19, Du ban ille, 7551, Cape Town, Sou h A ica
Tel: +27 21 975 2602
Websi e: h ps://www.aosis.co.za
Copy igh 2024 © Medicine Magocha & Ma ha Ma ashu (eds.)
Licensee: AOSIS (P y) L d.
The mo al igh o he edi o s and au ho s has been asse ed.
Co e image: This co e design was c ea ed by Na ascha Oli ie /Coco Design wi h he use o wo images
om Vec eezy {38809862; 30534534} ob ained om Vec eezy.com, i led ‘AI gene a ed businessman
can be seen holding icons ela ed o echnology, se e s’, a ailable om h ps://www. ec eezy.com/
pho o/38809862-ai-gene a ed-businessman-can-be-seen-holding-icons- ela ed- o- echnology-se e s,
and ‘Wooden block wi h online shopping and e-comme ce icons se ’, a ailable om h ps://www. ec eezy.
com/pho o/30534534-wooden-block-wi h-online-shopping-and-e-comme ce-icons-se , which a e bo h
copy igh - ee o use unde he Vec eezy.com ee licence.
Published in 2024
Imp ession: 1
ISBN: 978-1-991269-15-7 (pape back)
ISBN: 978-1-991271-19-8 (casebound)
ISBN: 978-1-991270-15-3 (epub)
ISBN: 978-1-991271-15-0 (pd )
DOI: h ps://doi.o g/10.4102/aosis.2024.BK404
How o ci e his wo k: Magocha, M & Ma ashu, M (eds.) 2024, Co po a e go e nance p ac icesp omo ing
he sus ainabili y o small, medium and mic oen e p ises in Sou h A ica, AVARSITYBooks, Cape Town.
P in ed and bound in Sou h A ica.
Lis ed in OAPEN (h p://www.oapen.o g), DOAB (h p://www.doabooks.o g/) and indexed by Google
Schola . Some igh s ese ed.
This is an open-access publica ion. Excep whe e o he wise no ed, his wo k is dis ibu ed unde he e ms o
a C ea i e Commons A ibu ion-NonComme cial-NoDe i a i es 4.0 In e na ional License (CC BY-NC-ND 4.0).
A copy o his is a ailable a h ps://c ea i ecommons.o g/licenses/by-nc-nd/4.0/. Enqui ies ou side he e ms
o he C ea i e Commons license should be sen o he AOSIS Righ s Depa men a he abo e add ess o o
[email p o ec ed]o.za.
The publishe accep s no esponsibili y o any s a emen made o opinion exp essed in his publica ion.
Consequen ly, he publishe s and copy igh holde s will no be liable o any loss o damage sus ained
by any eade as a esul o hei ac ion upon any s a emen o opinion in his wo k. Links by hi d-pa y
websi es a e p o ided by AOSIS in good ai h and o in o ma ion only. AOSIS disclaims any esponsibili y
o he ma e ials con ained in any hi d-pa y websi e e e enced in his wo k.
E e y e o has been made o p o ec he in e es o copy igh holde s. Should any in ingemen ha e
occu ed inad e en ly, he publishe apologises and unde akes o amend he omission in case o a ep in .
Co po a e go e nance
p ac ices p omo ing he
sus ainabili y o
small, medium and
mic oen e p ises
in Sou h A ica
EDITORS
Medicine Magocha & Ma ha Ma ashu
Social Sciences, Humani ies, Educa ion and Business
Managemen domain edi o ial boa d a AOSIS
Chie Commissioning Edi o : Schola ly Books
And ies G an Aa de, MA, DD, PhD, D Li , Sou h A ica
Boa d membe s
An hony Tu on, P o esso in he Cen e o En i onmen al Managemen and Di ec o TouchS one
Resou ces (P y) L d, Uni e si y o he F ee S a e, Sou h A ica
Cha les O’Neill, Associa e P o esso in he Depa men o Business Adminis a ion, The B i ish Uni e si y
in Egyp , El She ouk, Cai o Go e no a e, Egyp
Che yl A Po gie e , P o esso and Head o he Resea ch and Doc o al Leade ship Academy (RADLA)
and Head o he Gende Jus ice, Heal h and Human De elopmen esea ch niche, Du ban Uni e si y o
Technology, Sou h A ica
Ch is i an de Wes huizen, Associa e P o esso and Head o he Cen e o he Ad ancemen o Non-
Racialism and Democ acy (CANRAD) esea ch p og amme, Nelson Mandela Uni e si y, Sou h A ica
Emmanuel O Adu, P o esso o Teache Educa ion and Cu iculum S udies, Facul y o Educa ion, Uni e si y
o Fo Ha e, Sou h A ica
Elphinah N Cishe, P o esso o Nedbank Resea ch Chai , Depa men o Con inuing P o essional Teache
De elopmen , Facul y o Educa ional Sciences, Wal e Sisulu Uni e si y, Sou h A ica
Jayaluxmi Naidoo, Associa e P o esso o Ma hema ics and Compu e Science Educa ion, College o
Humani ies, Uni e si y o KwaZulu-Na al, Sou h A ica
Johann Tempelho , P o esso and Lead o he Cul u al Dynamics o Wa e (CuDyWa ) esea ch niche
and Head o he Sou h A ican Wa e His o y A chi al Reposi o y, School o Basic Sciences, No h-Wes
Uni e si y, Sou h A ica
Llewellyn Leona d, P o esso o En i onmen al Managemen and Chai o he Cen e o Excellence (CoE)
(Adap a ion and Resilience), School o Ecological and Human Sus ainabili y, Uni e si y o Sou h A ica,
Sou h A ica
Pie Naudé, P o esso o E hics ela ed o Poli ics, Lead o he MBA p og amme in Business in Socie y and
Leade ship De elopmen and Di ec o o he Uni e si y o S ellenbosch Business School, Uni e si y o
S ellenbosch Business School, Sou h A ica
Reina-Ma ie Loade , P og amme Lead o he MA p og amme in P oducing Film and Tele ision and Lec u e
in Film P oduc ion, Facul y o Media and Communica ion, Bou nemou h Uni e si y, Uni ed Kingdom
Siphamandla Zondi, P o esso o Poli ics and In e na ional Rela ions, Facul y o Humani ies, Uni e si y o
Johannesbu g, Sou h A ica
S anley Mu ai wa, P o esso and Head o he Depa men o Business Sciences, College o Business, Peace,
Leade ship and Go e nance, A ica Uni e si y, Zimbabwe
Tembi Tichaawa, Associa e P o esso and Head o he Depa men o Tou ism, School o Tou ism and
Hospi ali y, Uni e si y o Johannesbu g, Sou h A ica
Vusiwana C Babane, Depa men o Educa ional Psychology, Facul y o Educa ion, Uni e si y o he
Wes e n Cape, Sou h A ica
Zilungile Sosibo, P o esso o Educa ion, Facul y o Educa ion, Cape Peninsula Uni e si y o Technology,
Sou h A ica
Pee - e iew decla a ion
The publishe (AOSIS) endo ses he Sou h A ican ‘Na ional Schola ly Book Publishe s Fo um
Bes P ac ice o Pee -Re iew o Schola ly Books’. The book p oposal o m was e alua ed
by ou Social Sciences, Humani ies, Educa ion and Business Managemen edi o ial boa d.
The manusc ip unde wen an e alua ion o compa e he le el o o iginali y wi h o he
published wo ks and was subjec ed o igo ous wo-s ep pee - e iew be o e publica ion by
wo echnical expe e iewe s who did no include he olume edi o s o au ho s and we e
independen o he olume edi o s o au ho s, wi h he iden i ies o he e iewe s no e ealed
o he olume edi o s o au ho s. The e iewe s we e independen o he publishe , olume
edi o s and au ho s. The publishe sha ed eedback on he simila i y epo and he e iewe s’
inpu s wi h he manusc ip ’s olume edi o s and au ho s o imp o e he manusc ip . Whe e
he e iewe s ecommended e ision and imp o emen s, he olume edi o s and au ho s
esponded adequa ely o such ecommenda ions. The e iewe s commen ed posi i ely on
he schola ly me i s o he manusc ip and ecommended ha he book be published.
Resea ch jus i ica ion
This book is conce ned wi h he pa played by co po a e go e nance p ac ices in he
sus ainabili y o small, medium and mic oen e p ises (SMMEs) in he Sou h A ican con ex .
Wi h he eme gence o he new global economy, SMMEs and co po a e go e nance a e
ecognised as s a egic d i e s o economic de elopmen in any economy. Al hough a ple ho a
o s udies ha e been conduc ed on co po a e go e nance and SMMEs, such s udies ha e
applied a agmen ed app oach, and his has no only widened he epis emological, on ological
and philosophical gaps bu also inc eased ou misunde s anding o he in e ela ionship
be ween go e nance and small en e p ises in heo y and p ac ice. Cu en ly, heo e ical and
empi ical s udies on co po a e go e nance ha e ocused on la ge co po a e companies,
shaping ou unde s anding o how he capi al sou ces used o inance he i m wa an a
sepa a ion o owne ship and con ol, and p omp ing he need o pu ing go e nance
s uc u es, p inciples and p ac ices in place ha sa egua d he maximisa ion o weal h o
s akeholde s. A he mac o-le el, co po a e go e nance is belie ed o con ibu e o economic
g ow h and de elopmen h ough imp o ed co po a e pe o mance and sus ainabili y.
Al hough s udies on co po a e go e nance b oaden ou unde s anding o he way in which
la ge co po a e en e p ises a e go e ned, co po a e go e nance in en ep eneu ial
i ms, speci ically SMMEs has been li le esea ched. S udies on SMMEs ha e ocused on
unde s anding se e al issues such as unding, job c ea ion and he challenges small business
ace. Howe e , he e is limi ed esea ch ha ocuses on explo ing whe he he adop ion o
co po a e go e nance in SMMEs may lead o he p omo ion o small business sus ainabili y.
Wi hin his con ex , his book hus add esses he gap in he co po a e go e nance and
small en e p ises li e a u e by explo ing whe he he in eg a ion o co po a e go e nance in
SMMEs enhances he sus ainabili y o hese en i ies. This book is cen ed on explo ing whe he
embedding sound co po a e go e nance in en ep eneu ial p ac ices may con ibu e o he
imp o ed pe o mance and sus ainabili y o SMMEs. Gi en he impo ance o SMMEs o
economic de elopmen , i is impe a i e o in es iga e whe he co po a e go e nance can
enhance he pe o mance and sus ainabili y o such small businesses. This is he e o e he
cen al in es iga ion o his manusc ip , wi h each chap e uniquely con ibu ing o knowledge
gene a ion and deba e in his ega d. Chap e s ely on a a ie y o me hodological app oaches
o answe hei main esea ch ques ions and aims. Chap e 6, ‘Add essing sus ainabili y
challenges acing small and medium-sized ou ism en e p ises in Ama hole dis ic h ough
embedding co po a e go e nance’, by Bulelwa Nguza-Mduba is based on a mo e han 50%
ewo king o he PhD hesis and an app op ia e acknowledgemen is p o ided in his ega d.
We con i m ha no pa o he wo k has been plagia ised and ha his manusc ip ep esen s
o iginal schola ly wo k and con ibu ion.
The a ge audience o he book is schola s in he ield o co po a e go e nance, SMME
s udies and economic de elopmen .
Medicine Magocha, Business Managemen and Economics Depa men , Facul y o
Economic and Financial Sciences, Wal e Sisulu Uni e si y, M ha ha, Sou h A ica.
Ma ha Ma ashu, School o Comme ce and Social S udies Educa ion, Facul y o Educa ion,
No h-Wes Uni e si y, Mahikeng, Sou h A ica.
ii
Con en s
Abb e ia ions and ac onyms, igu es and ables appea ing
in he ex and no es x ii
Lis o abb e ia ions and ac onyms x ii
Lis o igu es xxi
Lis o ables xxi
No es on con ibu o s xxiii
Acknowledgemen xxx
Fo ewo d xxx ii
In oduc ion xli
Pa 1: Theo ies and philosophies o en ep eneu ship
go e nance and sus ainabili y
Chap e 1: Co po a e go e nance p ac ices o p omo ing
sus ainabili y o small and medium en e p ises 3
Ma ha Ma ashu
Abs ac 3
In oduc ion 4
De ini ion o a small business and owne sel -go e nance dilemma 7
Landscape o sus ainabili y o small andmedium en e p ises in
Sou h A ica pos -1994 8
Resea ch design 10
Theo y syn hesis o ou s ages 10
S age 1: Re isi ing exis ing heo e ical and concep ual pa adigms o
heunde s anding o small and medium en e p ises 11
Small and medium en e p ises as s a egic d i e s o
de elopmen policy goals 11
Ins i u ional policy and suppo ini ia i es o sus ainable
de elopmen o small and medium en e p ises 12
F agmen ed small and medium en e p ises, co po a e
go e nance and sus ainabili y knowledge disciplines 13
Epis emic dissonances and absence o co po a e go e nance in
smalland medium en e p ises 14
Epis emic, heo e ical and concep ual gaps in he exis ing
unde s anding o small and medium en e p ises and hei
sus ainabili y 15
Con en s
xi
Co po a e go e nance p omo ing en i onmen al isk
managemen 157
Conclusion 158
Recommenda ions 158
Chap e 7: Go e nmen policies o p omo ing small, medium
and mic oen e p ises de elopmen in Sou h A ica 161
Thobeka Ncanywa, Nolun u Dyan yi & Zukiswa Roboji
Abs ac 161
In oduc ion 162
P oblem s a emen and s udy objec i es 164
Li e a u e e iew 166
Go e nmen policies p omo ing small, medium and
mic oen e p ises de elopmen h ough co po a e go e nance 169
Go e nmen policies on he egula o y en i onmen o
small, medium and mic oen e p ises 169
Go e nmen policies on supply chain managemen 170
Go e nmen policies on aining and skills ans e in small,
medium and mic oen e p ises 172
Go e nmen policies on inance and managemen skills 175
Access o inance 175
Lack o alignmen be ween co po a e social esponsibili y
and inancial managemen skills 176
Policies guiding good co po a e go e nance o small, medium
and mic oen e p ises 177
Conclusion 177
Recommenda ions 178
Chap e 8: Pi alls weighing down he de elopmen o sus ainable
en ep eneu ial go e nance cul u e among he Sou hA ican
you hs: Eclec ic con ex s 181
Medicine Magocha & Simon M Kang’e he
Abs ac 181
In oduc ion 182
Pi alls weighing down he de elopmen o en ep eneu ial
cul u e among Sou hA ican you hs 184
Role o pa ia chy in unde mining en ep eneu ial cul u e 185
Sou h A ican cu iculum su e s om colonial hango e s 187
Con en s
x
Poo sa ing cul u e among he young en ep eneu s 187
Fiscal challenges 191
Enhancing you h en ep eneu ial cul u e h ough a Jingois ic
app oach 193
Sus aining you h en ep eneu ship cul u e in Sou h A ica
h ough good co po a e go e nance 194
Conclusion 197
Recommenda ions 198
Chap e 9: Financial go e nance p ac ices and sus ainable
de elopmen o small, medium and mic oen e p ises 199
Do ah Dubihlela & Jobo Dubihlela
Abs ac 199
In oduc ion 200
Small, medium and mic oen e p ises de elopmen in Sou h A ica 201
The concep o inancial go e nance 203
Resul s o good inancial go e nance 205
The need o a heo y o inancial in o ma ion and sus ainabili y 206
Theo ies on bene icia ies o inancialin o ma ion 206
Vulne able g oup heo y o inancial in o ma ion 206
Financial li e acy heo y o inancial in o ma ion 207
Public money heo y o inancial in o ma ion 207
In e en ion und heo y o inancial in o ma ion 208
Financial go e nance and small, medium and mic oen e p ises 209
Financial go e nance challenges o small, medium and
mic oen e p ises 211
Financial go e nance sys ems a e no su icien 211
The s uc u e o inancial epo s is inconsis en and i egula 211
The cos sys em is no pe ec 211
Poo planning o inancing op ions 212
Minimal o no use o accoun ing in o ma ionso wa e 212
Small, medium and mic oen e p ises access o inance and
in o ma ion 212
Success s o ies and e o s a policy le el 213
Financial go e nance and good co po a e go e nance p ac ices 214
Conclusion 215
Recommenda ions 216
Con en s
x i
Chap e 10: Sus ainable en ep eneu ship pe o mance
h ough adop ion o sound co po a e go e nance p ac ices 219
Kin Sibanda & P og ess Ho e-Sibanda
Abs ac 219
In oduc ion 220
Co po a e go e nance and small and medium en e p ise
sus ainable en ep eneu ship pe o mance 222
Fac o s ha a ec small and medium en e p ise sus ainable
en ep eneu ship pe o mance 224
Size o he i m 225
A ailabili y o go e nmen suppo 226
Access o adequa e esou ces 226
O ganisa ional cul u e 227
Small and medium en e p ise leade ship’s sus ainabili y
o ien a ion, commi men and suppo 228
Small and medium en e p ise sus ainable en ep eneu ship
pe o mance e alua ion me ics and app oaches 230
Ways in which co po a e go e nance can enhance he
sus ainable pe o mance o small and medium en e p ises 233
Sus ainable en ep eneu ship: T endsandp ac ices 234
The u u e o en ep eneu ship 236
Cha ac e ised by digi alisa ion: Emphasising agili y,
esilience and speed 237
New age o di e se en ep eneu ship 239
Loca ion-independen solu ions 240
G een businesses 240
Conclusion 241
Recommenda ions 241
Re e ences 243
Index 295
x ii
Abb e ia ions and ac onyms,
igu es and ables appea ing
in he ex and no es
Lis o abb e ia ions and ac onyms
4IR Fou h Indus ial Re olu ion
AFCFTA A ican Con inen al F ee T ade A ea
AGRA Alliance o a G een Re olu ion in A ica
AIS Accoun ing in o ma ion sys ems
AISCR A ican Ins i u e o Supply Chain Resea ch
ALTX Al e na i e Exchange
APP A ican Pa hways P og amme
B&B Bed and b eak as s
BBBEE B oad-based black economic empowe men
BEM Be nelli En ep eneu ial Model
BIC Business Inno a ion Cen es
BRICS B azil, Russia, India, China, Sou h A ica
BW Bo swana
BWA Bo swana
CAEPR Cen e o Abo iginal Economic Policy Resea ch
CANRAD Cen e o he Ad ancemen o Non-Racialism and
Democ acy
CDC Coega De elopmen Co po a ion
CDE Cen e o De elopmen and En e p ise
CEO Chie Execu i e O ice
CFO Chie inancial o ice
CG co po a e go e nance
CGP co po a e go e nance p ac ices
CIPC Companies and In ellec ual P ope y Commission
CIS Cha e ed Ins i u e o Sec e a ies
CO2 ca bon dioxide
CoE Cen e o Excellence
COGTA Coope a i e Go e nance and T adi ional A ai s
COVID-19 co ona i us disease 2019
Abb e ia ions and ac onyms, igu es and ables appea ing in he ex and no es
x iii
CPI Co po a e P i a e Incuba o s
CSIR Council o Scien i ic and Indus ial Resea ch
CSR Co po a e social esponsibili y
DBSA De elopmen Bank o Sou he n A ica
DFI De elopmen Financial Ins i u ions
DHET Depa men o Highe Educa ion and T aining
DMaaS Da a Managemen as a Se ice
DSBD Depa men o Small Business De elopmen
DTI Depa men o T ade and Indus y
DTIC Depa men o T ade, Indus y and Compe i ion
EBO Es ablished Business Owne ship
ECP Eas e n Cape p o ince
EDC En e p ise De elopmen Co po a ion
ELPF Eas London Po Fes i al
EO En ep eneu ial o ien a ion
EP En e p ise p opelle s
ESG En i onmen al and Social Go e nance
EU Eu opean Union
FSB Financial Se ices Boa d
GDP G oss domes ic p oduc
GEM Global En ep eneu ship Moni o
GHA Ghanaian
GNP G oss Na ional P oduc
HCJWF Hogsback Ch is mas in July Win e Fes i al
HEI Highe Educa ion Ins i u ions
ICLS In e na ional Classi ica ion o S a us in Employmen
ICSB In e na ional Council o Small Business
ICT In o ma ion and communica ion echnology
IDC Indus ial De elopmen Co po a ion
IJAR In e na ional Jou nal o Accoun ing Resea ch
IJEBA In e na ional Jou nal o Economics & Business
Adminis a ion
IJERT In e na ional Jou nal o Enginee ing Resea ch &
Technology
ILO In e na ional Labou O ganisa ion
IMF In e na ional Mone a y Fund
IoT In e ne o Things
IPADA In e na ional Con e ence on Public Adminis a ion and
De elopmen Al e na i es
Abb e ia ions and ac onyms, igu es and ables appea ing in he ex and no es
xix
IPI Independen P i a e Incuba o s
IT In o ma ion echnology
JA Junio Achie emen
JBRMR Jou nal o Business and Re ail Managemen Resea ch
JRBEM Jou nal o Resea ch in Business, Economics and
Managemen
JSE Johannesbu g S ock Exchange
LCM Li e Cycle Model
LDC Leas De eloped Coun ies
LED Local Economic De elopmen
LFS Labou o ce su ey
LSO Leso ho
MBALI Managemen , Business, Adminis a ion and Legal
Ini ia i es
MDG Millennium De elopmen Goals
MOI Memo andum o Inco po a ion
NARYSEC Na ional Ru al You h Se ice Co ps
NDP Na ional De elopmen Plan
NEF Na ional Empowe men Fund
NICVA No he n I eland Council o Volun a y Ac ion
NIHSS Na ional Ins i u e o he Humani ies and Social Sciences
NISED Na ional In eg a ed Small En e p ise De elopmen
NPO Non-p o i o ganisa ion
NRF Na ional Resea ch Founda ion
NSBAC Na ional Small Business Council
NSBDS Na ional Small Business De elopmen S a egy
NTSS Na ional Tou ism Sec o S a egy
NWU No h-Wes Uni e si y
NYDA Na ional You h De elopmen Agency
OAPEN Open Access Publishing in Eu opean Ne wo ks
OECD O ganisa ion o Economic Co-ope a ion and De elopmen
PFMA Public Financial Managemen Ac
PGDHET Pos g adua e Diploma in Highe Educa ion and T aining
PPPFA P e e en ial P ocu emen Policy F amewo k Ac
QES Qua e ly Employmen S a is ics
QLFS Qua e ly Labou Fo ce Su ey
R&D Resea ch and de elopmen
RADLA Resea ch and Doc o al Leade ship Academy
Abb e ia ions and ac onyms, igu es and ables appea ing in he ex and no es
xx
SA Sou h A ica
SAACE Sou h A ican Associa ion o Comme ce Educa ion
SABEF Sou h A ican Black En ep eneu s Fo um
SACC Sou h A ican Compe i ion Commission
SACCO Sa ings and c edi coope a i es
SADC Sou he n A ican De elopmen Communi y
SARS Sou h A ican Re enue Se ices
SDGs Sus ainable De elopmen Goals
SEDA Small En e p ise De elopmen Agency
SEFA Small En e p ise Finance Agency
SEP Su iciency Economy Philosophy
SEP Sus ainable En ep eneu ship Pe o mance
SETA Sec o Educa ion and T aining Au ho i y
SLA Sus ainabili y Li elihood App oach
SME Small, medium and mic o-en e p ise
SMME Small, medium and mic o en e p ise
SMTEs small and medium-sized ou ism en e p ises
S a sSA S a is ics Sou h A ica
STP SEDA Technology P og amme
SWOT S eng hs, weaknesses, oppo uni ies and h ea s
TDCA T ade De elopmen and Coope a ion Ag eemen
TEA To al Ea ly-S age En ep eneu ial Ac i i y
TVET Technical and Voca ional Educa ion and T aining
UBIs Uni e si y Business Incuba o s
UIF Unemploymen Insu ance Fund
UK Uni ed Kingdom
UKZN Uni e si y o KwaZulu-Na al
UN Uni ed Na ions
US Uni ed S a es
VFR Visi ing F iends and Rela i es
WCED Wo ld Commission on En i onmen and De elopmen
WEF Wo ld Economic Fo um
WTO Wo ld T ade O ganiza ion
YBSA You h Business Sou h A ica
ZAF Sou h A ica
Abb e ia ions and ac onyms, igu es and ables appea ing in he ex and no es
xxi
Lis o igu es
Figu e 1.1: Ou line o hemes and chap e s o he book. 6
Figu e 1.2: Theo y syn hesis o ou s ages. 10
Figu e 1.3: Gaps be ween heo y, policy and p ac ice. 19
Figu e 1.4: P oposed concep ual amewo k o co po a e
go e nance p ac ices o p omo ing sus ainabili y o
small and medium en e p ises. 24
Figu e 2.1: Co po a e go e nance – sus ainabili y amewo k. 53
Figu e 3.1: Coope a i e Ubun up eneu ship cen ic go e nance
and sus ainabili y model. 76
Figu e 3.2: Ubun u social jus ice co po a e go e nance amewo k. 78
Figu e 5.1: Su i alis pe cep ions. 122
Figu e 8.1: Selec ed sub-Saha an A ican sa ing % o g oss
domes ic p oduc . 189
Figu e 8.2: Eme ging unding me hods o you h en e p ises
om households. 192
Figu e 10.1: Chap e map. 221
Figu e 10.2: Co po a e go e nance p ac ices and sus ainable
en ep eneu ship pe o mance e alua ion me ics o
small and medium en e p ises. 232
Lis o ables
Table 2.1: Upg aded de ini ion o small, medium and
mic oen e p ises in Sou h A ica. 34
Table 5.1: T ajec o y om su i alis o small-scale en ep eneu s
and con ibu ion o he in o malsec o . 115
Table 9.1: Bene i s o inancial go e nance. 205
xxiii
No es on con ibu o s
An hony K Masha
Depa men o Managemen S udies,
Facul y o Economics and In o ma ion Sys ems,
Wal e Sisulu Uni e si y,
Queens own, Sou h A ica
Email: [email p o ec ed]
ORCID: h ps://o cid.o g/0000-0001-9306-0042
An hony Kambi Masha is a dis inguished igu e in academia and esea ch
wi hin he Facul y o Managemen and Public Adminis a ion a Wal e
Sisulu Uni e si y in Sou h A ica. His academic jou ney culmina ed in a
PhD in Public Adminis a ion om he Uni e si y o Fo Ha e. As a
dedica ed acul y membe , Masha passiona ely impa s his weal h o
knowledge, cu en ly ins uc ing a module a Wal e Sisulu Uni e si y. His
a eas o specialisa ion encompass a wide spec um, including
o ganisa ional lea ning, human capi al managemen , en ep eneu ship,
public managemen and policy e alua ion. His signi ican con ibu ions o
he academic landscape a e e lec ed in his published esea ch pape s,
which appea in es eemed jou nals. Addi ionally, he ac i ely engages in
e alua ing MA disse a ions and PhD heses om a ious Sou h A ican
uni e si ies, u he solidi ying his s a us as a espec ed au ho i y in his
ield. His unwa e ing commi men o his p o ession is exempli ied by his
a ilia ion wi h mul iple p o essional bodies, a i ming his dedica ion o
ad ancing schola ship and os e ing excellence wi hin he academic
communi y.
Bulelwa Nguza-Mduba
Depa men o Managemen ,
Facul y o Managemen and Public Adminis a ion Sciences,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Email: [email p o ec ed]
ORCID: h ps://o cid.o g/0000-0002-7298-6345
Bulelwa Nguza-Mduba is an Associa e P o esso in he Depa men o
Managemen a Wal e Sisulu Uni e si y, Sou h A ica. Nguza-Mduba holds
an STD, BCom (Ed), BEd, BCom (Hons), MEd, MBL and a Doc o o Business
Adminis a ion ob ained om Uni e si y o KwaZulu-Na al (UKZN) in
Du ban. He esea ch in e es s include small and medium-sized en e p ises,
en ep eneu ship, ou ism, public adminis a ion, s a egic leade ship and
managemen . Cu en ly, she is he ac ing ec o o he Bu e wo h Campus
a Wal e Sisulu Uni e si y and se es as a council membe . Nguza-Mduba
has ad anced h ough a ious oles, s a ing as Head o he Depa men ,
hen Di ec o o he School and la e Dean o he Facul y. She is ac i ely
in ol ed in en ep eneu ship de elopmen wi hin he highe educa ion
sec o and is a o me membe o he Hospi al Boa d. Addi ionally, she
No es on con ibu o s
xxx
Nolun u Dyan yi
Resea ch and Inno a ion Di ec o a e,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Email: nody[email p o ec ed]
ORCID: h ps://o cid.o g/0000-0001-6380-1997
Nolun u Dyan yi is he Manage o Resea ch and Pos g adua e Suppo in
he Di ec o a e o Resea ch and Inno a ion a Wal e Sisulu Uni e si y.
Dyan yi holds a PhD in Chemis y om he Uni e si y o he Wes e n
Cape, specialising in hyd ogen uel cell echnology. Wi h indus y
expe ience as a Resea ch Scien is ocused on d inking wa e quali y and
hyd ogen uel cell componen s, including ca alys s and memb anes, she
has now edi ec ed he esea ch ocus o g een hyd ogen p oduc ion and
he comme cialisa ion o esea ch since en e ing he ield o esea ch
adminis a ion. Dyan yi is passiona e abou men o ing you h in
en ep eneu ship and is a membe o he uni e si y ini ia i e known as
T aining Fu u e En ep eneu s. She has published en jou nal a icles in
high-impac local and in e na ional enginee ing jou nals and se ed as
he leading au ho o a book chap e published by Else ie . He Google
Schola h-index is 5 and he i10-index is 4.
Simon M Kang’e he
Depa men o Social Wo k,
Facul y o Law, Humani ies & Social Science,
Wal e Sisulu Uni e si y,
M ha ha, Sou h A ica
Email: skange [email protected]; smkange [email protected]
ORCID: h ps://o cid.o g/0000-0001-9150-0235
Simon Mu o e Kang’e he is a ull p o esso o Social Wo k in he Depa men
o Social Wo k a he Facul y o Law, Humani ies and Social Science,
M ha ha Campus, Sou h A ica. Kang’e he is an accomplished C2- a ed
NRF esea che (2023–2027) who has au ho ed mo e han 200 jou nal
a icles in local and in e na ional jou nals, se e al books and close o a
dozen book chap e s. He has supe ised nea ly 50 pos g adua e
disse a ions and heses o comple ion. His mul idisciplina y esea ch
ocuses on cul u e, heal h, gende , social en e p ises, child en, old age and
xenophobia. Kang’e he se es on he Na ional Execu i e Commi ee o
bo h he Depa men o Social Wo k and he Depa men o Psychology,
and he is he chai o he Facul y o Law, Humani ies and Social Science’s
men o ship p og amme. He suppo s his depa men al leade ship by
s epping in as Head o Depa men whene e needed. Addi ionally, he
men o s eme ging schola s in bo h his depa men and he b oade acul y
in a eas such as publica ion and communi y engagemen . While wo king a
he Uni e si y o Fo Ha e, he ecei ed he Vice Chancello ’s Excellen
Eme ging Resea che awa d in 2012 and he Facul y o Humani ies and
Social Science Excellen Awa d in Communi y Engagemen in 2019. His
ci a ions o al 1,350, wi h an H-index o 18 and an i10-index o 46.
No es on con ibu o s
xxxi
Siphena hi Fihla
Depa men o Managemen S udies,
Facul y o Managemen and Public Adminis a ion Sciences,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Email: [email p o ec ed]
ORCID: h ps://o cid.o g/0000-0001-9632-2650
Siphena hi Fihla is a dis inguished academic and p o essional wi h a PhD
in Business Managemen om he Uni e si y o Fo Ha e. As he
chai pe son o Communi y Engagemen in he Depa men o Managemen
a Wal e Sisulu Uni e si y, Fihla channels his weal h o knowledge and
expe ience in o his ole as a dedica ed lec u e wi hin he Facul y o
Managemen and Public Adminis a ion Sciences in Sou h A ica. He also
holds an MA deg ee in business managemen om he p es igious
Uni e si y o Fo Ha e. O e an imp essi e ca ee spanning eigh yea s in
local go e nmen , he has cul i a ed a p o ound unde s anding o he
complexi ies o public managemen . Beyond his eaching esponsibili ies,
Fihla is deeply in ol ed in igo ous esea ch endea ou s, ocussing on he
dynamic ields o human esou ces managemen , en ep eneu ship and
public managemen . His commi men o expanding he on ie s o
knowledge is e iden no only in he class oom bu also h ough his
schola ly con ibu ions o he academic communi y. A es amen o his
dedica ion is he publica ion o his esea ch pape in a epu able jou nal,
showcasing his in ellec ual p owess and schola ly igou . Fihla’s unwa e ing
dedica ion o bo h academic excellence and p ac ical applica ion is
e lec ed in his mul i ace ed con ibu ions o business managemen . His
holis ic app oach o educa ion and esea ch posi ions him as a aluable
asse , en iching he academic landscape and making a las ing impac on
he nex gene a ion o business leade s and adminis a o s.
S en o d Ma enda
Depa men o Ma ke ing,
Public Rela ions and Communica ion,
Facul y o Public Managemen and Adminis a ion Sciences,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Email: sma [email protected]
ORCID: h ps://o cid.o g/0000-0003-2753-5585
S en o d Ma enda wo ks in he Ma ke ing, Public Rela ions and
Communica ion Depa men a Wal e Sisulu Uni e si y’s Bu e wo h
Campus, whe e he se es as a lec u e and head o he depa men .
Ma enda holds a PhD in Communica ion Science and has addi ional
quali ica ions in highe educa ion s udies. He has ex ensi e expe ience in
jou nalism, ha ing wo ked in bo h p in and elec onic media in Zimbabwe.
He has o e 20 yea s o expe ience in jou nalism educa ion in Zimbabwe
and Sou h A ica. F om 2016 o 2023, Ma enda also se ed as an academic
No es on con ibu o s
xxxii
de elope , specialising in w i ing cen e p ac ice and academic li e acy
de elopmen . La e , he wo ked as he eaching and lea ning manage o
he M ha ha Campus a Wal e Sisulu Uni e si y. Du ing his ime, he
o e saw p og ammes on pee - o-pee suppo , academic ad ising, lea ning
and eaching wi h echnology and academic s a de elopmen . His
esea ch in e es s include s udying how small en e p ises use public
ela ions echniques o enhance hei b ands and epu a ion, as well as he
use o social media ools o bo h business and ci ic engagemen pu poses.
He has published widely in hese a eas, in addi ion o academic de elopmen
in highe educa ion.
Thobeka Ncanywa
Depa men o Economic Managemen Sciences,
Facul y o Educa ion,
Wal e Sisulu Uni e si y,
Komani, Sou h A ica
Email: [email protected]
ORCID: h ps://o cid.o g/0000-0001-9656-8538
Thobeka Ncanywa is a P o esso o Economics in he Depa men o
Economic Managemen Sciences a he Facul y o Educa ion a Wal e
Sisulu Uni e si y. Ncanywa specialises in Applied Economics, Public
Sec o Economics, Mone a y Economics, De elopmen Economics,
Econome ics, Mic oeconomics, Educa ion Economics, Mac oeconomics
and En ep eneu ship s udies. He wo k encompasses eaching and
lea ning, communi y engagemen ac i i ies and supe ising pos g adua e
s uden s. She has published a icles in local and in e na ional jou nals, as
well as in con e ence p oceedings and book chap e s. Addi ionally,
Ncanywa has chai ed sessions a bo h academic and non-academic
con e ences. She se es as a boa d membe o Economic Resea ch o
Sou he n A ica, In e na ional Public Adminis a ion and De elopmen
Al e na i es. He p ojec s include s uden en ep eneu ship de elopmen
in highe educa ion and a mul idisciplina y ini ia i e ocused on esilien
u u es in ans o ming he mining sec o .
Zukiswa Roboji
Depa men o Public Managemen and Go e nance,
Facul y o Managemen and Public Adminis a ion,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Email: z [email p o ec ed]
ORCID: h ps://o cid.o g/0000-0001-7124-8183
Zukiswa Roboji is a lec u e in Public Managemen in he Depa men o
Managemen and Go e nance a Bu alo Ci y Campus. Roboji holds an MA
Deg ee om Nelson Mandela Uni e si y and a PhD in Public Managemen
and De elopmen om No h-Wes Uni e si y. She is esponsible o lec u ing
No es on con ibu o s
xxxiii
unde g adua e and pos g adua e s uden s and has se ed as an in e nal
acul y e iewe a Wal e Sisulu Uni e si y. Ex e nally, she has had he
oppo uni y o e iew con e ence pape s and p eside o e na ional
con e ences. Roboji’s esea ch in e es s include Policy De elopmen ,
Moni o ing and E alua ion, and Gende -Based Violence. As a no ice schola ,
she emb aces ne wo king and collabo a ion. She is a membe o heSou h
A ican Associa ion o Public Adminis a ion and Managemen and he
Humani ies and Social Sciences Alumni Associa ion. Cu en ly, Roboji is in
he p ocess o explo ing new ideas ac oss a ious di e se spec ums o
exchanging eaching, esea ch, eedback dissemina ion and c ea ing
eposi o ies o knowledge h ough he digi al A ican Pa hways P og amme
(APP) o B azil, Russia, India, China, Sou h A ica (BRICS) eaching and
esea ch mobili y g an suppo ed by NIHSS unding.
xxx
Acknowledgemen
The Resea ch and Inno a ion Di ec o a e a Wal e Sisulu Uni e si y is
acknowledged o i s commi men o academic ci izenship as demons a ed
by p o iding unding o publish his book.
xxx ii
How o ci e: Balka an, S 2024, ‘Fo ewo d’, in M Magocha & M Ma ashu (eds.), Co po a e go e nance
p ac ices p omo ing he sus ainabili y o small, medium and mic oen e p ises in Sou h A ica, AVARSITY
Books, Cape Town, pp. xxx ii–xxxix. h ps://doi.o g/10.4102/aosis.2024.BK404.0
In he e e -e ol ing landscape o global economics, he ole o
en ep eneu ial en u es canno be o e s a ed. These inno a i e en e p ises,
o en small and medium-sized, o m he backbone o economies, os e ing
c ea i i y, gene a ing employmen and d i ing economic g ow h. In he
con ex o Sou h A ica, a na ion ich in en ep eneu ial his o y, he
signi icance o hese en e p ises is pa icula ly p onounced. Howe e , hei
po en ial has ye o be ully ealised, and unde s anding he in ica e
in e play be ween co po a e go e nance and he sus ainabili y o hese
en u es is pi o al. In oday’s apidly changing global economy,
en ep eneu ial i ms a e inc easingly ecognised as c ucial d i e s o
economic de elopmen . Despi e he weal h o esea ch on co po a e
go e nance and en ep eneu ial i ms, he e has been a no able gap in ou
unde s anding o co po a e go e nance p inciples applied o small and
medium en e p ises (SMEs), he backbone o many economies, especially
in Sou h A ica.
Co po a e go e nance p ac ices p omo ing he sus ainabili y o small,
medium and mic oen e p ises in Sou h A ica del e in o he hea o his
c i ical ela ionship. This g ound-b eaking olume no only iden i ies he
gaps in ou cu en unde s anding bu also p o ides in aluable insigh s
in o how sound co po a e go e nance can enhance he pe o mance and
Fo ewo d
Sanjay Balka an
Coo dina ing Dean,
Facul y o Managemen and Public Adminis a ion Science,
Wal e Sisulu Uni e si y,
Um ha ha, Sou h A ica
Fo ewo d
Fo ewo d
xxx iii
sus ainabili y o SMEs. Th ough me iculous esea ch and hough ul
analysis, he au ho s na iga e he complex e ain o en ep eneu ship,
shedding ligh on he challenges aced by hese en u es and p oposing
inno a i e solu ions g ounded in co po a e go e nance p inciples.
The s eng h o his book lies in i s comp ehensi e app oach. I ackles
he subjec ma e om a ious angles, explo ing heo ies and philosophies
o en ep eneu ship go e nance and sus ainabili y, dissec ing owne ship
and go e nance p ac ices, and un a elling he nuanced dynamics o
pe o mance and sus ainabili y in he en ep eneu ial ealm. By doing so,
he au ho s pain a comp ehensi e pic u e o he challenges and
oppo uni ies ha small, medium and mic oen e p ises (SMMEs) encoun e ,
o e ing eade s a deep unde s anding o he in ica e web o ac o s ha
in luence hei success. The book begins by unde sco ing he agmen ed
app oach ha p e ious s udies ha e aken when examining he
in e ela ionship be ween co po a e go e nance and en ep eneu ial i ms.
Mos p io esea ch has been hea ily skewed owa ds la ge co po a e
companies, o e looking he speci ic needs and challenges aced by smalle
businesses. This book seeks o ec i y his imbalance by del ing in o he
c i ical opic o co po a e go e nance in SMMEs, shedding ligh on how
hese p ac ices can enhance hei pe o mance and sus ainabili y.
One o he book’s mos commendable aspec s is i s ocus on he unique
A ican con ex . By d awing on Sou h A ica’s ich en ep eneu ial he i age
and his o ical ade ela ionships, he au ho s con ex ualise hei esea ch,
p o iding a lens h ough which eade s can app ecia e he complexi ies o
en ep eneu ship in his egion. In doing so, hey highligh he impo ance
o p ese ing and nu u ing indigenous en ep eneu ial philosophies, such
as he Ubun u philosophy and in eg a ing hem wi h mode n co po a e
go e nance p ac ices o o ge a pa h owa ds sus ainable economic
de elopmen .
As I pe used he chap e s o his book, I was s uck by he dep h o
analysis and he ele ance o he opics explo ed. F om he challenges
aced by amily-owned businesses o he explo a ion o sus ainable
en ep eneu ship pe o mance h ough he adop ion o sound co po a e
go e nance p ac ices, each chap e o e s aluable insigh s ha
policymake s, academics and en ep eneu s can le e age o os e a
conduci e en i onmen o SMMEs o h i e.
In conclusion, he book Co po a e go e nance p ac ices p omo ing he
sus ainabili y o small, medium and mic oen e p ises in Sou h A ica is a
imely and essen ial con ibu ion o he ield o en ep eneu ship s udies.
I s hough ul examina ion o co po a e go e nance p ac ices no only ills
c i ical gaps in he exis ing li e a u e bu also p o ides a oadmap o
policymake s and p ac i ione s alike. I commend he au ho s o hei
Fo ewo d
xxxix
diligen esea ch and commi men o add essing his impo an gap in he
li e a u e. Thei e o s in explo ing co po a e go e nance p ac ices o
p omo ing he sus ainabili y o SMMEs ha e he po en ial o os e economic
g ow h, educe inequali y and imp o e he li es o coun less indi iduals. I
hope his book will inspi e u he esea ch and policy ini ia i es o suppo
he i al ole o en ep eneu ship in Sou h A ica and beyond. This book is
a mus - ead o anyone passiona e abou os e ing sus ainable economic
de elopmen and empowe ing en ep eneu ial en u es in Sou h A ica
and beyond.
3
How o ci e: Ma ashu, M 2024, ‘Co po a e go e nance p ac ices o p omo ing sus ainabili y o small
and medium en e p ises’, inMMagocha & M Ma ashu (eds.), Co po a e go e nance p ac ices p omo ing
hesus ainabili y o small, medium and mic oen e p ises in Sou h A ica, AVARSITY Books, Cape Town,
pp.3–29. h ps://doi.o g/10.4102/aosis.2024.BK404.01
Abs ac
Theo y syn hesising has ecei ed li le a en ion in de eloping a co po a e
go e nance-d i en unde s anding o small and medium en e p ises (SMEs)
sus ainabili y. Small and medium en e p ises a e ecognised as s a egic
d i e s o economic de elopmen ; hence, i is impe a i e o unde s and he
heo e ical and concep ual p inciples unde lying he sus ainabili y o small
business en e p ises. I has eme ged in he li e a u e ha SMEs con inue
oexpe ience a high a e o ailu e despi e he a ailabili y o my iads o
suppo aimed a p omo ing he sus ainabili y o small business en e p ises.
This con ex aises ques ions abou he adequacy o he concep ualisa ion
and heo isa ion o co po a e go e nance p ac ices o SMEs and hei
sus ainabili y. Th ough a heo y syn hesis esea ch design, his concep ual
Co po a e go e nance
p ac ices o p omo ing
sus ainabili y o small and
medium en e p ises
Ma ha Ma ashu
School o Comme ce and Social S udies Educa ion,
Facul y o Educa ion, No h-Wes Uni e si y,
Mahikeng, Sou h A ica
Chap e 1
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
4
s udy examined co po a e go e nance p ac ices o p omo ing he
sus ainabili y o SMEs. Findings e ealed he exis ence o a concep ual and
heo e ical gap in knowledge abou he ela ionship be ween co po a e
go e nance and he sus ainabili y o SMEs. The iden i ied p oblem jus i ied
he in oduc ion o co po a e go e nance as an al e na i e heo y o
de eloping he sus ainabili y o SMEs. Findings om he heo y syn hesis
sugges ed he exis ence o inadequacies in he heo isa ion and
concep ualisa ion o SMEs’ sus ainabili y. Theo y syn hesis assis ed in
explaining he heo e ical and concep ual ela ionship be ween SMEs’
co po a e go e nance p ac ices and sus ainabili y. E idence ound in his
s udy leads o he conclusion ha co po a e go e nance p omo es he
sus ainabili y o SMEs h ough he adop ion o s uc u es, p ocesses and
sys ems ha p omo e accoun abili y, ai ness, esponsibili y and
anspa ency in he social, economic and en i onmen al ope a ions o he
small business en i y. The s udy hus de eloped and ecommended a
amewo k o adop ing co po a e go e nance p ac ices o p omo ing he
sus ainabili y o SMEs. The amewo k delinea es and ou lines co po a e
go e nance as an in eg al p ac ice o p omo ing he sus ainabili y o SMEs.
The amewo k is ecommended o use by policymake s and schola s
in e es ed in adop ing co po a e go e nance p ac ices o p omo e he
sus ainabili y o SMEs.
In oduc ion
This s udy inaugu a es a dialogue abou he heo isa ion and
concep ualisa ion o co po a e go e nance p ac ices o p omo ing he
sus ainabili y o small, medium and mic oen e p ises (SMMEs). Small and
medium en e p ises (SMEs) a e ecognised as an in eg al pa o economic
and social de elopmen policy in any economy (O ganisa ion o Economic
Co-ope a ion and De elopmen [OECD] 2022; Wo ld Bank 2022). As a
esul , he Wo ld Bank (2022), Eu opean Union (EU) (2023), OECD (2022)
and Sou he n A ican De elopmen Communi y (SADC) (2023), among
many o he bodies, con inue o p o ide suppo o p omo e he sus ainable
de elopmen o SMEs. No wi hs anding he ubiqui ousness aids, empi ical
e idence globally e eals ha SMEs con inue o expe ience o high ailu e
a e and discon inui y (Global En ep eneu ship Moni o [GEM] Repo
2022; Na ional In eg a ed Small En e p ise De elopmen [NISED] 2022).
The majo p oblem eme ging om empi ical ends indica es ha he e is
pe sis en ailu e o SMEs despi e he a ailabili y o my iads o global and
na ional ins i u ional suppo p o ided o many yea s o p omo e hei
sus ainabili y. A guably, hese dicho omies wa an an explo a ion in o
co po a e go e nance p ac ices o p omo ing he sus ainabili y o SMEs
Chap e 1
5
(Depa men o Small Business De elopmen Republic o Sou h A ica
2022; Sou h A ica 1996).
Co po a e go e nance e e s o he way an o ganisa ion is di ec ed and
con olled (Cadbu y Repo 1992). King Repo (2009, 2016) elucida es ha
co po a e go e nance ein o ces co po a e sus ainabili y h ough
embedding p inciples ha p omo e e ec i e con ol, e hical leade ship and
sus ainable economic, social and en i onmen al pe o mance o he i m.
Finance heo is s Be le and Mean (1932) and F iedman (1954) concep ualised
co po a e go e nance as an in e nal con ol mechanism ha maximises
alue c ea ion o he in es ed capi al h ough managing and minimising
con lic s ha a ise om he sepa a ion o owne ship and con ol. Schola s
a es ed ha co po a e go e nance in luences he sus ainabili y o he i m
h ough i s impac on he ope a ional pe o mance and p o i abili y o he
en i y (Be le & Mean 1932; F iedman 1954; Keasey, Thompson & W igh 1997;
La Po a e al. 2002; Shlei e & Vishny 1997). This sugges s ha he
sus ainabili y o any en e p ise is dependen on co po a e go e nance.
P esumably, i co po a e go e nance is necessa y o he sus ainabili y o
la ge companies, hen i ollows ha i may also be c ucial o sus aining he
g ow h and de elopmen o SMEs (Republic o Sou h A ica 1995). Al hough
co po a e go e nance is p edominan ly applied in la ge co po a ions, i s
adop ion is no only a a nascen s age in SMEs, bu he o ms o owne ship,
go e nance and managemen o hese en i ies also di e signi ican ly om
hose o la ge companies. A b oad unde s anding is equi ed o unde s and
he p omo ion o he sus ainabili y o SMEs (Enai oghe & Vezi-Magigaba
2023; Pe e s & Naicke 2013; Zide & Jokonya 2022).
Abo and Adjasi (2007) a e ha co po a e go e nance embeds
s uc u es, p ocesses, p ac ices and p inciples ha ha ness and os e
imp o ed pe o mance and sus ainabili y o he en i y. Co po a e
sus ainabili y assis s a company in de eloping i s sus ainabili y oo p in ,
enhancing i s alue c ea ion and o e all pe o mance (Ajeigbe & Ganda
2023). Kocmano á e al. (2011) ecommended ha co po a e go e nance
s eng hen he de elopmen and implemen a ion o business s a egies
ha conside he in e es o mul iple s akeholde s, in eg a ing
en i onmen al, social and economic ac o s. In his ega d, he cen al
esea ch ques ion ha a ises is could co po a e go e nance p ac ices
p omo e he sus ainabili y o SMEs? The majo esea ch objec i e o his
s udy is hus o explo e whe he co po a e go e nance can p omo e he
sus ainabili y o SMEs. Findings om s udies in he a ious chap e s o his
book po en ially ha e ele ance o go e nmen policymake s, esea che s
and p ac i ione s in e es ed in p omo ing he sus ainabili y o SMEs. I is
hus impe a i e o conduc his s udy.
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
6
The pu pose o his book is o explo e co po a e go e nance p ac ices o
p omo ing he sus ainabili y o SMEs. I is necessa y o w i e his book
because knowledge abou co po a e go e nance and he sus ainabili y o
SMEs exis s in silos because o he mul i- agmen ed na u e o disciplina y
knowledge. A book hus c ea es an oppo uni y o building a be e
comp ehensi e unde s anding o a gi en phenomenon han o he esea ch
o ms such as a icles and jou nals. The book is di ided in o h ee hemes,
each wi h speci ic chap e s, as shown in Figu e 1.1.
Figu e 1.1 shows he h ee key hemes and chap e s, making his book
en i led: Co po a e go e nance p ac ices p omo ing he sus ainabili y o
small, medium and mic oen e p ises in Sou h A ica. The h ee hemes o
he book a e namely, heo ies and philosophies o co po a e go e nance
Sou ce: Au ho ’s own wo k.
Key: SMMEs, small, medium and mic oen e p ises, SMEs, small and medium en e p ises.
FIGURE 1.1: Ou line o hemes and chap e s o he book.
• Co po a e go e nance p ac ices o
p omo ing he sus ainabili y o SMEs
• The con ibu ion o good co po a e go e nance o
en ep eneu ship owa ds Sou h A ican economic
de elopmen and sus ainabili y
• Towa ds an u u, unhu-ubun u en ep eneu ship model
• Add essing sus ainabili y challenges acing small and
medium sized ou ism en e p ises in Ama hole dis ic
h ough embedding co po a e go e nance
• Go e nmen policies o p omo ing SMMEs de elopmen
in Sou h A ica
• Pi alls weighing down he de elopmen o sus ainable
en ep eneu ial go e nance and cul u e among he
Sou h A ican you hs. Eclec ic con ex s
• Financial go e nance p ac ices and sus ainable
de elopmen o SMMEs
• Sus ainable en ep eneu ship pe o mance h ough
he adop ion o sound co po a e go e nance p ac ices
• An insigh in o amily owned
businesses, g ow h, and
sus ainabili y
• Su i alis mic oen e p ises
and in o mal businesses
Owne ship, go e nance p ac ices
and implica ions on sus ainabili y
o he SMEs
Pe o mances and
sus ainabili y o SMEs
Co po a e go e nance
p ac ices o p omo ing
he sus ainabili y o SMEs
Theo ies and philosophies o co po a e
go e nance and sus ainabili y o SMEs
Chap e 1
7
and sus ainabili y o SMMEs; owne ship, go e nance p ac ices and
implica ions on sus ainabili y o he SMMEs as well as pe o mance and
sus ainabili y o SMEs. O e all, he book is based on he assump ion ha
he heo ies and philosophies o co po a e go e nance and sus ainabili y
adop ed shape he owne ship, go e nance p ac ices and sus ainabili y o
SMMEs, which in u n a ec hei pe o mance and long- e m iabili y
(Zah a e al. 2007). As a esul , his book p o ides a b oade explo a ion o
co po a e go e nance p ac ices aimed a p omo ing he sus ainabili y o
SMMEs ac oss en chap e s. While subsequen chap e s shall explo e o he
aspec s o he esea ch p oblem unde in es iga ion in his book, he
p ima y objec i e o Chap e 1 is o explo e he co po a e go e nance
p ac ices o p omo ing SMEs’ sus ainabili y. Chap e 2 examines he ole o
co po a e go e nance in en ep eneu ship and i s impac on Sou h A ican
economic de elopmen and sus ainabili y. I will discuss he po en ial o
adop ing an Ubun u en ep eneu ship-d i en co po a e go e nance model.
Co po a e amily-owned businesses, su i alis mic oeconomic and in o mal
businesses, and small and medium-sized ou ism en e p ises (SMTEs) will
be explo ed as hese a e common o ms o owne ship o SMMEs in Sou h
A ica (Naldi e al. 2007). Subsequen chap e s will examine and p o ide
insigh s in o go e nmen policies suppo ing SMMEs, dynamics dis up ing
he en ep eneu ship cul u e, sus aining en ep eneu ial pe o mance and
he inancial pe o mance o SMEs h ough he adop ion o co po a e
go e nance (Ma anga 2014). A de ailed discussion o he concep s and
ma e s co e ed in he o he chap e s is beyond he scope o his s udy. The
emaining sec ion del es in o co po a e go e nance p ac ices ha p omo e
he sus ainabili y o SMEs.
De ini ion o a small business and owne
sel -go e nance dilemma
Small businesses ha e a dis inc ana omy ha inhe en ly imposes in o mal
managemen and go e nance sys ems. The Bol on Commi ee Repo
(1982) s a es ha :
We de ine a small i m, gene ically, in e ms o h ee main cha ac e is ics: i s ly, in
economic e ms, a small i m has a ela i ely small sha e o i s ma ke . Secondly,
an essen ial cha ac e is ic is ha i is managed by i s owne s o pa -owne s in
a pe sonalized way and no h ough he medium o a o malized managemen
s uc u e. Thi dly, i is also independen in he sense ha i does no o m pa
o a la ge en e p ise and ha he owne -manage s should be ee om ou side
con ol in aking hei p incipal decisions. (p. 3)
Hakimah e al. (2019) asse ha SMEs and small businesses a e go e ned
and managed by hei owne s by i ue o being sel - unded by hei
owne s. In o mal owne ship SMEs lead o sel -owne managemen and
go e nance p ac ices wi hin small business en i ies. This sugges s ha i is
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
8
he owne ’s knowledge, compe ency and alen s ha de e mine he con ol,
go e nance and managemen p ac ices employed in SMEs a he han
co po a e go e nance as in co po a e companies. Taken oge he , his
means ha he sus ainable pe o mance o an en e p ise is dependen on
he go e nance and managemen capabili ies o i s owne s ins ead o
co po a e go e nance p inciples. Wen e al. (2023) elucida e ha co po a e
go e nance p omo es i m sus ainabili y h ough embedding inbuil
sus ainable in e nal p ac ices and p ocesses. I is e iden ha on ologically,
he no ion o co po a e go e nance holds no p ac ical epis emic ele ance
o he o m o owne ship, go e nance and managemen app oaches o
small business en i ies. Conside ing he epis emic gaps and on ological
con lic s discussed in his sec ion, i is ques ionable whe he he
sus ainabili y o SMEs will be achie ed h ough owne s’ sel -go e nance
and managemen p ac ices wi hou he implemen a ion o e ec i e
co po a e go e nance.
Landscape o sus ainabili y o small
andmedium en e p ises in Sou h A ica
pos -1994
His o ically, he Sou h A ican go e nmen ’s ins i u ional suppo o SMEs
s a ed wi h, among many o he ini ia i es, he in oduc ion o he Na ional
Small Business De elopmen S a egy (NSBDS) in 1995, which ou lined
go e nmen suppo p o isions o SMEs in Sou h A ica. The NSBDS was
u he suppo ed by he p omulga ion o he Na ional Small En e p ise Ac
o 1996 aimed a c ea ing an enabling legisla i e and egula o y en i onmen
o he sus ainable de elopmen o SMEs. The in eg a ed S a egy o he
P omo ion o En ep eneu ship was es ablished o p o ide policy guidelines
and s a egic suppo o he ope a ions o SMEs. The Whi e Pape (1995)
was ano he policy documen ou lining he go e nmen ’s amewo k o
suppo ing SMEs, which included enac ing he Na ional Small Business Ac
o es ablish an enabling legal en i onmen o SMEs. I is e iden ha
mul iple go e nmen suppo was p o ided o suppo SMEs in Sou h
A ica pos -1994. I , howe e , appea s ha he go e nmen ’s policy goal
o suppo ing SMEs’ sus ainabili y has yielded less han he desi ed e ec .
An impac e alua ion s udy o go e nmen suppo om 1994 o 2003
conduc ed by Roge son (2004) concluded ha SMEs ailed despi e he
suppo p o ided o hose ini ial 10 yea s. Na ional In eg a ed Small
En e p ise De elopmen (2022) asse s ha he go e nmen ’s a emp o
p omo e SMEs om 1994 o 2022 has achie ed minimal desi ed ou comes
because many small i ms con inue o ail and lack sus ainabili y. Global
En ep eneu ship Moni o (2022) also con i med he con inued
disp opo iona e ailu e o SMEs in Sou h A ica.
Chap e 1
9
The obse ed lack o sus ainabili y o SMEs has b oad implica ions owa ds
he a ainmen o he de elopmen s a egy and he wellbeing o he
economy. In Sou h A ica, he Na ional De elopmen Policy (2012) and
NISED (2022) en isaged SMEs as a de elopmen s a egy o add essing
he na ional socio-economic challenges o job c ea ion, po e y alle ia ion
and ans o ming esou ce dis ibu ion. A epo om S a is ics Sou h
A ica (S a sSA) (2023) shows ha unemploymen , ex eme po e y and
deepening inequali ies a e on he ise in Sou h A ica. These ills adduce
e idence ha SMEs ha e no been sus ainable o each a s age whe e hey
could e ec i ely con ibu e owa ds add essing social and economic
de elopmen in Sou h A ica.
To s eng hen i s suppo o SMEs in pu sui o i s de elopmen policy
goal, he Sou h A ican go e nmen e o mula ed an in eg a ed amewo k
o suppo ing he sus ainable de elopmen o SMEs. The NISED Mas e plan
as a s a egic amewo k aims o ‘suppo sec o plans o SMEs g ow h
and wo ks in associa ion wi h all o he go e nmen planning and
p og amming ele an o building an enabling en i onmen o SMEs and
economic g ow h’ (NISED 2022, p. 21). Na ional In eg a ed Small En e p ise
De elopmen (2022) cons i u es a pa adigm shi in he ocus o i s s a egy
on expanding he p io go e nmen policy h ough an in eg a ed app oach
ha accele a es small en e p ise g ow h and expansion. Al hough he
NISED Mas e plan ocuses on p o iding in eg a ed ins i u ional suppo , i
o e looks he adop ion o co po a e go e nance in SMEs as a s a egy o
p omo ing sus ainabili y (OECD 2023).
The pe sis en ailu e o SMEs despi e he a ailabili y o a mul i ude o
ins i u ional suppo aises ques ions abou he adequacy o ins i u ional
policy suppo alone o p omo e he sus ainabili y o SMEs in he absence
o co po a e go e nance in hei ope a ions (Ropega 2011). Tune (1998)
cau ions ha he ailu e o syn hesise in o ma ion has ad e se impac s on
policymaking and ou comes. Tune (1998) u he ecommends heo e ical
syn hesis as he ounda ion o s eng hening p ac ical ele ance. Simila ly,
Geo ge (1993, p. xix, xxi ), ci ed in Nye (2008), a ows ha while ‘schola s
may no be in a good posi ion o ad ise policymake s how bes o deal
wi h a speci ic ins ance o a gene al p oblem ha equi es u gen and
imely ac ion’, ‘ hey can o en p o ide a use ul, b oade discussion o how
o hink abou and unde s and ha gene al p oblem’. Bo h Tune (1998)
and Geo ge (1993) unde sco e he impo ance o unde s anding he
heo isa ion o a gi en phenomenon o in o med policy, heo y and
p ac ices. Re lec ing on such counsels, albei wi h p ecau ion, his
concep ual s udy unde ook he obliga ion o in es iga e co po a e
go e nance p ac ices o p omo ing he sus ainabili y o SMEs using a
heo y syn hesis.
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
10
Resea ch design
This s udy deemed a heo y syn hesis as he mos app op ia e esea ch
design o guide his s udy because o i s concep ual p owess. Jaakkola
(2020) iden i ied he heo y syn hesis app oach as ha ing he capabili y o
p o ide g ounds o concep ual in eg a ion ac oss agmen ed disciplina y
knowledge, he eby c ea ing a mo e pa simonious explana ion ha pulls
dispa a e elemen s in o a mo e cohe en whole. Figu e 1.2 p esen s he
heo y syn hesis s ages ha guided his s udy.
Theo y syn hesis o ou s ages
Figu e 1.2 shows he ou s ages o he heo y syn hesis app oach. To
achie e he s udy’s p ima y objec i e, his esea ch ollowed he ou s ages
o he heo y syn hesis esea ch design guidelines ecommended by
Jaakkola (2020). As shown in Figu e 1.2, S age 1 begins wi h e isi ing he
exis ing heo e ical and concep ual unde s anding o SMEs. S age 1
p o ides an oppo uni y o concep ual gaps o be iden i ied. Subsequen ly,
S age 2, ocused on p oblema ising he exis ing heo y o concep o
iden i y dilemmas ha jus i y he in oduc ion o a new heo e ical lens o
esol ing he deemed gaps. S age 3 expanded he applica ion domain o
exis ing heo ies o concep s by ad ancing he new heo e ical lens. Las ly,
S age 4 iden i ied new dimensions o an es ablished cons uc by
concep ualising a new heo e ical lens o ex end he exis ing unde s anding.
In his s udy, a new co po a e go e nance concep ual amewo k o
p omo ing he sus ainabili y o SMEs was de eloped and ecommended.
Sou ce: Resea che ’s concep ualisa ion based on heo y syn hesis esea ch design adap ed om Jaakkola 2020, p. 22.
FIGURE 1.2: Theo y syn hesis o ou s ages.
• Re ising cu en
unde s anding
• P oblema ising
an exis ing
heo y o
concep and
esol ing
iden i ied
dilemmas by
in oducing a
new heo e ical
lens
S age 2
S age 3S age 1
S age 4
• Expanding he
applica ion
domain o an
exis ing heo y
o concep by
in oducing a
new heo e ical
lens
• Iden i ying new
dimensions o
an es ablished
cons uc by
in oducing a
new heo e ical
lens
Chap e 1
11
S age 1: Re isi ing exis ing heo e ical
and concep ual pa adigms o he
unde s anding o small and medium
en e p ises
This sec ion aims o cla i y he heo e ical and concep ual ela ionship
be ween co po a e go e nance and he sus ainabili y o SMEs.
Unde s anding his ela ionship is essen ial o iden i ying any gaps
be ween policy suppo , heo y and p ac ice. This concep ual analysis
se es as a ounda ion o un a elling any exis ing misunde s andings o
he phenomenon.
Small and medium en e p ises as s a egic
d i e s o de elopmen policy goals
Small and medium and en e p ises a e ecognised as s a egic d i e s
o economic and social de elopmen policy goals in any economy. The
Wo ld Bank (2022) epo e eals ha SMEs comp ise 90% o all
businesses, accoun o abou 50% o all jobs globally and con ibu e
app oxima ely 40% o he g oss domes ic p oduc (GDP) in eme ging
economies. The Wo ld Bank’s indings a i m he assump ions o he
Bol on Repo (1971) ha SMEs a e d i e s o economic de elopmen in
any economy. As a esul , he Wo ld Bank (2022) emphasises he
sus ainable de elopmen o SMEs as ounda ional pilla s o economic
de elopmen , pa icula ly in eme ging na ions. Likewise, he OECD
(2022) highligh ed he s a egic ole o SMEs in economic de elopmen .
The OECD (2022) epo e eals ha SMEs cons i u e 95% o businesses
and 60% o 70% o jobs in OECD na ions. Simila ly, he EU (2022)
acknowledged ha SMEs employ mo e han 100 million indi iduals in
he egion, and hose businesses also con ibu e o mo e han hal o
Eu ope’s g oss GDP. This demons a es he ex en o SMEs’ impac on
social and economic de elopmen in he EU coun ies. The Sou h A ican
go e nmen also ecognises SMEs as a na ional de elopmen s a egy
o os e ing inclusi e social and economic g ow h and ans o ma ion
(Na ional De elopmen Plan 2012; NISED 2022; Whi e Pape 1995). Small
and medium en e p ises play a key ole in he economic de elopmen o
an economy (Ajeigbe & Gand 2023; Dhondge 2023; Singh & Ras ogi
2023; Wen e al. 2023). The highligh ed s a egic con ibu ion o small
businesses o economic de elopmen in bo h de eloped and de eloping
coun ies unde sco es he impo ance o s eng hening he sus ainabili y
o SMEs in any coun y.
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
18
c ea ion in SMEs. This demons a es he complexi y and mul idimensional
na u e o undamen al obs acles encoun e ed by SMEs.
Despi e he well-documen ed in e nal challenges a ec ing
sus ainabili y, ew s udies ha e ocused on examining he concep ual
ela ionship be ween co po a e go e nance and he sus ainabili y o
SMEs. B unninge, No dq is and Wiklund (2007) ad oca ed adop ing he
boa d composi ion, boa d sizes and op managemen o imp o e he
pe o mance o SMEs. Sa ah (2017) a i ms ha co po a e go e nance
enhances he sus ainabili y o SMEs. Small en e p ises a e undoub edly
dis inc om businesses in o m, na u e and capi al s uc u e, among
many o he ace s; hence, embedding co po a e go e nance equi es
scien i ically in o med insigh s abou he subjec ma e . A i a and
Tau ingana (2015) examined he connec ions be ween boa d size, chie
execu i e o ice ’s age and enu e, di ec o s’ emune a ion and p opo ion
o non-execu i e di ec o s, and he pe o mance o SMEs. Findings om
s udies ha o e look he implica ions o he delimi a ions ha SMEs a e
usually small in size and go e ned by owne ship isk a e no use ul o he
sus ainabili y o small businesses. Günay and Apak (2014) and Sa ah
(2017) ound empi ical e idence ha co po a e go e nance enables
con inued i m pe o mance. Kocmano á, Dočekalo á and Němeček
(2011) concluded ha co po a e go e nance is necessa y o spea heading
he de elopmen and implemen a ion o business s a egies ha conside
he in e es o mul iple s akeholde s, in eg a ing en i onmen al, social
and economic ac o s.
Co po a e go e nance p omo es SMEs’ sus ainabili y (A i a & Tau ingana
2015; B unninge e al. 2007; Sa ah 2017; Singh & Ras ogi 2023). Abo and
Adjasi (2007) concluded ha poo co po a e go e nance could lead o
business ailu e. Weak in e nal sys ems and p ocesses, along wi h a lack o
ma ke ing, managemen and inancial managemen skills, as well as limi ed
access o esou ces, a e majo con ibu ing ac o s o he ailu e o Sou h
A ican SMEs (Leboea 2017; Olawale & Ga we 2010; Van Schee s 2011). The
es ablished majo obs acles challenging he sus ainabili y and con inui y
o SMEs a e in e nal go e nance and managemen sugges ing ha hese
en i ies mus adop co po a e go e nance. A olabi e al. (2023) a gue ha
SMEs a e hinde ed by se e al ac o s in adop ing p ac ices ha p omo e
hei sus ainabili y. Fu he mo e, A olabi e al. (2023) iden i ied a ‘lack o
esou ces and expe ise, lack o cla i y, knowledge gap, lack o pe cei ed
bene i s, and olun a y app oach o sus ainabili y epo ing p ac ice’ as
majo ac o s impeding he adop ion o he sus ainabili y app oaches
(Sony e al. 2022). This means ha co po a e go e nance migh no be
adop ed o p omo e he sus ainabili y o small business en i ies because o
he pe cei ed lack o bene i s.
Chap e 1
19
Ano he s and o li e a u e pe cei es co po a e go e nance as ha ing
mul iple bene i s o SMEs. Th ough a li e a u e e iew o 115 a icles om
1990 o 2020, Singh and Pillai (2022) ad oca e ha designing cos -e ec i e
co po a e go e nance in SMEs can lead o imp o ed pe o mance. This
sugges s ha adop ing co po a e go e nance wi hou he app op ia e
unde s anding can impose a bu den on SMEs. Zhang e al. (2022) elucida e
ha SMEs’ in en ions o adop sus ainable p ac ices a e hinde ed by a lack
o inancial esou ces, echnology and manage ial compe encies.
Exis ing gaps be ween go e nance o small
and medium en e p ises’ sus ainabili y and
suppo ing policies
A his s age, his s udy concluded ha he e a e gaps in knowledge
be ween he policy suppo aimed a p omo ing he sus ainabili y o SMEs,
heo y, p ac ice and ou comes. This gap is summa ised in Figu e 1.3.
Figu e 1.3 shows he gaps be ween heo y, policy, p ac ice and ou comes.
The iden i ied gaps assume ha policies g ounded on ideologies ha
dis ega d he ole o co po a e go e nance in os e ing sus ainabili y
p inciples and p ac ices in small businesses isk ailing o achie e he
desi ed ou comes. The igu e shows ha gaps in knowledge be ween
Sou ce: Au ho ’s own wo k.
Key: SMEs, small and medium en e p ises.
FIGURE 1.3: Gaps be ween heo y, policy and p ac ice.
Theo y
Suppo
policies
P ac ice
Ou come
Impac gap
The di e ence be ween
planned policy ou comes
and ac ual ou pu yielded
Alignmen gap
The di e ence be ween
ac ion aken and wha he
ac ual policy ac ion ha
should ha e been unde aken
in p ac ice o p omo e he
sus ainabili y o SMEs
Concep ual, heo e ical
and suppo policy gap
Con lic s be ween heo y
and suppo policy
p inciples
Knowledge gap
The di e ence be ween
policy and heo y
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
20
heo y and policy ex en o in luence he concep ual, heo e ical and policy
gaps subsequen ly lead o misalignmen be ween suppo policy and
p ac ice gaps, ul ima ely leading o disc epancies be ween planned
ou comes and ac ual ou pu . Suppo o he assump ion o his s udy
depic ed in Figu e 1.2 is d awn om A olabi e al. (2023) who obse ed he
exis ence o some misalignmen be ween go e nmen policy and he
expec ed sus ainabili y ha he i m is d i en o achie e. These
inconsis encies jus i y an explo a ion o he possibili y o whe he adop ing
co po a e go e nance p ac ices could s eng hen exis ing policy
in e en ion measu es o inc ease he sus ainabili y o SMEs.
S age 3: Expanding he applica ion
domain o an exis ing heo y o concep
byin oducing a new heo e ical lens
Th ough heo y syn hesis, s age 3 p o ides an oppo uni y o in eg a e
henew dimensions o he es ablished cons uc o sus ainabili y o SMEs.
The iden i ied gap jus i ies he need o ex end he exis ing limi ed
unde s anding o SME sus ainabili y by in oducing a co po a e go e nance
heo e ical lens in o he subjec ma e .
Deon ological and u ili a ian philosophy o small
and medium en e p ises’ sus ainabili y
Adop ing co po a e go e nance as he channel o enhancing sus ainabili y
in he social and economic dimensions migh be conside ed bu densome
o SMEs, gi en he limi ed esou ces and sel -managemen na u e o hese
en i ies, unlike co po a e companies. In his ega d, he assump ion ha
co po a e go e nance embeds sus ainabili y in SMEs submi ed in his
s udy is unde pinned by ene s o he deon ological and u ili a ian
philosophical pa adigms. Acco ding o Mandal, Ponnamba h and Pa ija
(2016), in he u ili a ian app oach, decisions a e de i ed om he assumed
g ea es common goods o be de i ed om he ac ion o be unde aken.
Mandal e al. (2023) explain ha u ili a ian e hics hold ha he desi ed
ou come jus i ies how i is achie ed. In con as , deon ological e hics
places g ea e emphasis on du ies and obliga ions (i.e. he end may no
always jus i y he means). Con ex ualising he concep ualisa ion o SMEs
om he deon ological and u ili a ian ideologies en ails ha hese
en e p ises ha e a mo al and e hical obliga ion o adop co po a e
go e nance o p omo e hei sus ainabili y o he social and economic
bene i s o hei owne s and b oade socie y. In o he wo ds, in SMEs,
sus ainabili y h ough he adop ion o co po a e go e nance is o he
common good o i s owne s and na ion.
Chap e 1
21
The idea o he common good is encapsula ed in he quali a i e de ini ion
o SMEs expounded by he Bol on Repo (1971), Wo ld Bank (2022) and
NISED (2022), among many o he s, whose de ini ions encompass he
ca ego isa ion o hei size based on he numbe o employees and annual
u no e hey gene a e. The exis ence o SMEs has mu ual symbio ic
bene i s o he owne h ough p o iding a sou ce o income, ye c ea ing
employmen and con ibu ing o na ional economic de elopmen
demons a e inhe en deon ological du ies placed on hese en i ies. I
unde s ood om he u ili a ian pe spec i e, adop ing co po a e go e nance
o embedding sus ainabili y p ac ices can be conside ed he means o
achie ing a g ea e common good. In o he wo ds, he means jus i y he
ends. Embedding co po a e go e nance in SMEs should be g ounded on
unde s anding and conside ing he na u e and pu pose o hese en i ies
om bo h u ili a ian and deon ological philosophies. B and (2006) and
Wagne (2007) asse ha , al hough he de ini ions o en ep eneu ial
i ms di e , he e is o en a common emphasis on cha ac e is ics such as
owne ship, being owne - unded, owne -managed, go e ned, isk- aking
and small size. The cha ac e is ic o SMEs mani es s he ulne abili y and
possibly ma ks he poin o depa u e o adop ing co po a e go e nance
echniques. Howe e , Lakehal, Da ies and Di S e ano (2023) a gue ha
co po a e go e nance can ensu e he dual esponsibili y o s a egic
decisions and esponsibili y owa ds sus ainable pe o mance, which is
o en challenging gi en he limi ed esou ces na u e o small businesses.
This sugges s in eg a ing co po a e go e nance in SME p ac ices is likely
o p omo e sus ainable s a egy o mula ion, implemen a ion and
ope a ions managemen .
S age 4: Iden i ying new dimensions o an
es ablished cons uc by in oducing a new
heo e ical lens
The inal s age o he heo y syn hesis p esen ed in his sec ion o he s udy
in oduces co po a e go e nance as a new heo e ical pe spec i e o
p omo ing he sus ainabili y o SMEs.
Theo isa ion and concep ualisa ion o he
in eg a ion o co po a e go e nance p ac ices o
p omo e he sus ainabili y o small and medium
en e p ises
S age 4 o he heo y syn hesis in oduces co po a e go e nance as a new
heo e ical dimension o embedding sus ainabili y in SME p ac ices. In his
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
22
s udy, he agency and s akeholde heo y p o ide he heo e ical amewo k
o co po a e go e nance p ac ices o p omo ing he sus ainabili y o
SMEs.
Agency heo y
Agency heo is s concep ualise co po a e go e nance as a de e minan o
i m sus ainabili y h ough i s impac on he pe o mance o he co po a ion
(Be le & Mean 1978; Cadbu y Repo 1992; F iedman 1974; Keasey e al.
1997; La Po a e al. 1997; Shlei e & Vishny 1997). P oponen s o he agency
heo y, like Jensen and Meckling (1976) and Fama and Jensen (1983),
concei ed co po a e go e nance as a se o in e nal go e nance mechanisms
ha con ol and egula e how he company is di ec ed o ensu e he
sus ained su i al o he co po a ion. Be le and Means (1978) posi ed he
agency challenges ha eme ge om con lic s o in e es ha a ise om
he sepa a ion o owne ship om con ol. I no moni o ed and con olled,
he agency challenge may de e he su i al o he o ganisa ion. Casco
Paguay and Díaz (2023) adduce ha co po a e go e nance enhances he
compe i i eness and sus ainabili y o small business en i ies in he global
en i onmen .
Lessons om he agency heo y highligh he need o SMEs o conside
sepa a ing he in e es s o he en e p ises om hose o he owne s despi e
hem being small. This means ha h ough he adop ion o co po a e
go e nance p ac ices, SMEs could build sus ainable in e nal sys ems and
p ac ices ha s eng hen he long- e m iabili y and success o he en i ies.
Wen (2023) obse ed ha co po a e go e nance en o ces be e
ope a ional s a egies and in e nal con ol, he eby imp o ing he g ow h
and pe o mance o SMEs and subsequen ly enhancing hei in e nalisa ions.
Abo and Adjasi (2007) elucida e he a ious ad an ages o co po a e
go e nance in ensu ing sus ainable in e nal ope a ions in SMEs h ough
imp o ed managemen p ac ices, in e nal audi ing and a new s a egic
business ou look b ough in by he boa d o di ec o s. Wang e al. (2023)
asse ha co po a e go e nance mi iga es ope a ional isks and
s eng hens sha eholde and s akeholde ela ionships. This indica es ha
co po a e go e nance is essen ial o ensu ing he en i y is go e ned
sus ainably.
S akeholde heo y
F eeman (1984) con es ed he agency heo y ideas ha only ocused on
maximising p o i s o hei owne s p oposing i s ex ension o include bo h
he bene i s and impac s on he b oade ange o s akeholde s a ec ed by
he business ope a ions. F eeman (1984) cau ioned agains a na ow and
Chap e 1
23
sho - e m-o ien ed app oach ocusing only on p o i maximisa ion o he
owne s a guing ha i would de e he long- e m su i al o he business
en i y. The s akeholde app oach unde sco es he sus ainabili y o he i m
as g ounded on balancing he in e es s o he owne s o he business en i y
and hose o i s s akeholde s. Thema ic lessons ha can be lea n om he
s akeholde heo y is ha SMEs should gua d agains he pu sui o p o i
maximisa ion o hei owne s wi h a limi ed ocus on he sus ainable
su i al and g ow h o small business en i ies. Bo h agency and s akeholde
heo ies adduce he idea ha uns able business p ac ices will lead o
business ailu e. Solomon (2011) expounded ha he na ow pe spec i e o
ocusing only on p o i maximisa ion o business owne s was as being
disca ded. This s akeholde heo y pe spec i e sugges s ha SMEs should
conside ex ending beyond he agency heo y o ien ed owa ds emb acing
hei mul iple s akeholde s o become sus ainable en i ies.
Wang e al. (2023, p.1) desc ibe sus ainable pe o mance as he
company’s abili y o achie e long- e m success while minimising nega i e
en i onmen al and social impac s. Mul i-s akeholde engagemen is
conside ed by Cas ellani, Rossa o and Gia e a (2023), who explain ha
sus ainable de elopmen o SMEs could be achie ed h ough pa ne ship
wi h s akeholde s o add ess con ex -based socio-economic challenges.
Cas ellani e al. (2023) ecommended sus ainable alue c ea ion h ough
SMEs using p oduc s and p ocesses as mul i unc ional ools designed by
mul iple s akeholde s. Small and medium en e p ises’ alue c ea ion om
he s akeholde app oach assumes ha balancing he b oade in e es o
he s akeholde is necessa y o he long- e m sus ainabili y o he i m
(Zhang e al. 2022). Al hough no explici ly explained in hei s udy, i
encapsula es he cen al idea espoused in sus ainable alue c ea ion
h ough a plu alis s akeholde app oach. I enligh ens us ha managing
mul iple s akeholde s’ di e ging in e es s embeds he undamen als o
sus ainabili y and co po a e ci izenship, which a e key co po a e go e nance
p inciples. The s akeholde heo y emphasises he need o businesses o
conside he impac s o hei ope a ions on mul iple s akeholde s. This
indica es ha ocusing on only c ea ing p o i s o economic bene i s o
he business owne s is an unsus ainable business app oach (Kocmano a
e al. 2011).
Because SMEs we e concep ualised on a adi ional business idea ha
seeks only o maximise he p o i s o he en ep eneu , ha pe spec i e
mus be e isi ed o p omo e he sus ainabili y o hese en i ies. Zhang e
al. (2022) ound ha adop ing s akeholde s h ough co po a e social
esponsibili y as co po a e go e nance o e bu dened SMEs and nega i ely
a ec ed hei inancial pe o mance. Conside a ion o he agency and
s akeholde heo ies p o ides he basis o SMEs o econside a pa adigm
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
24
o hei owne go e nance owa ds co po a e go e nance o en e p ise
sus ainabili y. Dhondge (2023) ecommends ha co po a e go e nance is
necessa y o building us wi h unde s and u he adds ha small en i ies
emain wi h many un apped, and i is c ucial o hem o adop sound
go e nance. I can be asce ained ha a ans o ma ion om a adi ional
p edominan in o mal go e nance and managemen mindse owa ds a
co po a e go e nance-d i en s uc u e, p ocesses and p ocedu es ha
p omo e sus ainabili y h ough co po a e ci izenship is equi ed by SMEs
(Kye eboah-Coleman & Amidu 2008).
P oposed concep ual amewo k o co po a e
go e nance p ac ices o p omo ing sus ainabili y o
small and medium en e p ises
Cognisance should be aken o he on ological dilemma ha SMEs a e
small, owne -managed and sel -owned; hence, hey a e di e en om he
co po a ion upon which he concep o co po a e go e nance was ounded.
This implies ha , unlike inco po a ed companies, which a e expec ed o
comply wi h co po a e go e nance p ac ices, SMEs a e no bound o do so.
This s udy p oposed ha depending on he size o SMEs in e ms o he
numbe o employees and e enue, hey should adop and implemen
co po a e go e nance p ac ices o build hei sus ainabili y on a lexible
basis. Figu e 1.4 shows a diag amma ic depic ion o he p oposed amewo k
o in eg a ing co po a e go e nance p ac ices o p omo e he sus ainabili y
o SMEs.
The p oposed amewo k highligh s he sequen ial concep ual ela ionship
and he subsequen low o co po a e go e nance p ocesses o p ocedu es
Sou ce: Au ho ’s own wo k.
Key: SMEs, small and medium en e p ises.
FIGURE 1.4: P oposed concep ual amewo k o co po a e go e nance p ac ices o p omo ing
sus ainabili y o small and medium en e p ises.
Sus ainable
endogenous
SMEs in e nal
p ac ices,
managemen ,
adminis a ion,
ma ke ing,
digi alisa ion,
p o i abili y,
s a egies and
ope a ions in
hei en i e y
Co po a e
go e nance
s uc u es and
p ac ices
boa d s uc u e,
in eg a ed epo ,
isk managemen ,
s akeholde
engagemen ,
co po a e
sus ainabili y
Co po a e
go e nance
p inciples
anspa ency,
accoun abili y,
ai ness,
esponsibili y
SMEs
sus ainable
pe o mance
dimensions
economic,
en i onmen al
and social
sus ainabili y
Chap e 1
25
ha should be ollowed o build sus ainable de elopmen o SMEs. The
concep ual amewo k p oposes emb acing co po a e go e nance alues o
anspa ency, accoun abili y, ai ness and esponsibili y in SME p ac ices as
he p ima y s ep owa ds c ea ing sus ainabili y. This s ep mus be ollowed
by adop ing go e nance s uc u es and p ac ices such as isk managemen ,
audi ing and boa d o di ec o s, which may os e sus ainabili y and co po a e
ci izenship. Collec i ely, co po a e go e nance may s eng hen he
endogenous ope a ion and p ac ices o SMEs. Ul ima ely, co po a e
go e nance ha nesses and os e s he SMEs’ economic, social and
en i onmen al sus ainabili y. Co po a e go e nance elemen s such as
accoun abili y and anspa ency enable he managemen , go e nance and
inancial pe o mance o a i m o be measu ed (Wen e al. 2023). Risks can
be mi iga ed imeously because o he p esence o audi ing and assu ance
sys ems (Nas allah & El Khou y 2022). S udies ha e concluded ha high
pe o mance, such as p o i abili y, g ow h and compe i i eness o he i m
a e os e ed h ough he adop ion o co po a e go e nance alues such as
boa d s uc u e, accoun abili y and anspa ency, among many o he s
(Dhondge 2023).
Co po a e go e nance p inciples, p ac ices
and sus ainabili y
Since he 1990s, se e al codes o good co po a e go e nance p ac ices
and p inciples ha e been se apidly (Cadbu y Repo 1992; King Repo
2009, 2016; OECD 2015). Adop ing co po a e go e nance p inciples and
p ac ices is belie ed o p o ec he in e es s o he s akeholde s and ensu e
he sus ainabili y o he i m. Wang e al. (2023) explain ha he need o
anspa ency and accoun abili y enhances he soundness o s a egic
decisions u he ing he sus ainabili y o he i m. Ajeigbe and Ganda
(2023) concu ha sus ainabili y encompasses sus ainable de elopmen
h ough he in eg a ion o independence and in e connec i i y be ween
he economic, social, na u al en i onmen and human elemen s’ in e ac ion
in he same en i onmen . This sugges s ha SMEs’ sus ainabili y demands
he o mula ion o sus ainable economic, en i onmen al and social
sus ainabili y s a egies in con as o he pu sui o sel -owne -de e mined
in e es s.
King Repo (2016) ei e a es ha co po a e go e nance is mani es ed
h ough e ec i e and e hical leade ship ha is esponsible o di ec ing
he business s a egy o achie e sus ainable economic, en i onmen al and
social pe o mance. The economic sus ainabili y o he i m measu es he
long- e m capabili ies, among o he aspec s, such as p o i abili y,
main aining ma ke sha e and inancial pe o mance. En i onmen al
sus ainabili y encompasses business ope a ions ha p o ec he
Co po a e go e nance p ac ices o p omo ing sus ainabili y o small and medium en e p ises
26
en i onmen while os e ing long- e m compe i i e ad an age (Ajeigbe &
Ganda 2023). The social dimension ela es o all aspec s ha in ol e he
wellbeing o socie y (Ajeigbe & Ganda 2023). I unde s ood om ene s o
he s akeholde heo y pe spec i e o co po a e go e nance as heo ised
by F eeman (1984), sus ainabili y embodies conside a ion o he b oad
impac s he business has on mul iple s akeholde s.
Co po a e ci izenship and sus ainabili y
Fos e ing he sus ainabili y o small businesses h ough inco po a ing
sound co po a e go e nance ensu es he sus ainabili y o he business.
Wang e al. (2023) ound ha co po a e go e nance media es social
esponsibili y, which enhances a i m’s sus ainabili y. Schola s sugges ha
sound co po a e go e nance o SMEs can de elop sus ainabili y amewo ks
o unde s and sus ainable business p ac ices ha enhance he long- e m
iabili y o hese en u es (Ajeigbe & Ganda 2023; Cas ellani e al. 2023).
The King Repo (2016) ecognises co po a e ci izenship as a ool o
ans o ming business ope a ions owa ds sus ainable ope a ions in he
iple-bo om-line app oach.
The co po a e go e nance heo e ical lens o sus ainabili y embodies
mo al and e hical obliga ions o businesses o in eg a e social and
en i onmen al dimensions inclusi ely wi h hei economic objec i es. Bu e-
Sea on (2023) ecommended ha SMEs can es ablish sus ainabili y
h ough he in e ac ions o business p ac ices, sys ems and policies. Singh
and Pillai (2022) cau ioned ha designing cos -e ec i e co po a e
go e nance in SMEs can lead o imp o ed pe o mance. Small and medium
en e p ises should adop co po a e go e nance o s eng hen hei
p ocesses and in e nal sys ems.
Empi ical e idence sugges s ha he main obs acles o he g ow h,
de elopmen and long- e m sus ainabili y o small business en i ies
include a lack o unding (Wo ld Bank 2022), a lack o gene ic managemen
skills (Naci i e al. 2021), inadequa e adop ion o in o ma ion and
communica ions echnology (Casco 2023), poo compe i i eness (Van
Schee s 2011) and a lack o digi al s a egies (Haohan & Beinan 2023).
I also includes a lack o quali y assu ance (Ngwakwe & Ngoepe 2017) and
a lack o inno a ions (Almeida & Wasim 2023). Ramak ishna, Alzoubi and
Indi an (2023) iden i y he lack o sus ainabili y s a egies as a hind ance
o he con inui y o small en i ies. The obs acles highligh ed p e iously
sugges ha he ailu e o SMEs is la gely a ibu ed o weak in e nal
sys ems. Dzomonda (2022) obse ed ha co po a e go e nance media es
he connec ion be ween en i onmen al sus ainabili y o imp o e access
o inances and subsequen ly enhance he inancial pe o mance o SMEs
(Ismail & W igh 2022).
Chap e 1
27
Go e nance and managemen s uc u e
G and heo is s like Jensen and Meckling (1976) and F iedman (1954) long
pos ula ed he need o en i ies o ha e co po a e go e nance p inciples,
s uc u es and p ocesses ha shape he way he company is con olled and
di ec ed o p omo e he long- e m su i al o he en i y. Lakehal e al.
(2023) ecommended he adop ion o co po a e go e nance ha consis s
o independen di ec o s and di e si ied body composi ion as necessa y o
s eng hening s a egic decision-making in SMEs. Wen e al. (2023) ound ‘a
posi i e and signi ican associa ion be ween he boa d o di ec o s,
disclosu e, ex e nal audi ing, and i m pe o mance’. Wen e al. (2023)
u he ound ha concen a ed owne ship domina ed by sel -managemen
nega i ely a ec ed he pe o mance o he i m and u he ecommended
he need o adop p ac ices ha enhance he pe o mance and comple eness
o small businesses. Acco ding o Islam e al. (2023), h ough e ec i e
in e nal p ocesses, co po a e go e nance sa egua ds he alue c ea ion o
he business, bols e ing in es o s’ and inancial ins i u ions’ con idence in
he i m o injec o loan unds o he business. Wen e al. (2023) concu ha
co po a e go e nance p o ides an e ec i e way o achie e he co po a e
s a egy o he i m h ough es ablished s a egy-making s uc u es and
in e nal con ol mechanisms. Access o inance is necessa y o boos ing
hei de elopmen and imp o ing p oduc i i y, gi en ha mos o hem
ha e limi ed sou ces o unds o s abilise and expand hei business
ope a ions. Rachagan and Sa kunasingam (2009) ound he p esence o
co po a e go e nance in ensu ing he a ailabili y assu ance and moni o ing
p ocess ha minimises aud and sel -dealing. E iden ly, adop ing co po a e
go e nance may add ess he go e nance and managemen weaknesses
inhe en in SMEs. Co po a e go e nance will enable SMEs o es ablish o mal
go e nance and managemen s uc u es, p ocesses and p ocedu es ha
p omo e sus ainabili y h ough co po a e ci izenship.
The co po a ion has a boa d o di ec o s who p o ide o e sigh o he
o ganisa ion. Small and medium en e p ises a e mos ly owne -go e ned,
which, om he pe spec i e o co po a e go e nance, inhe en ly embeds
he un egula ed pu sui o sel -in e es and isk o dominance in decision-
making. Adop ing a go e nance s uc u e wi h independen indi iduals as
non-execu i e di ec o s en iches decision-making and he con ibu ion o
a ious knowledge, expe iences and skills ha may enhance he su i al o
he en i y. Sel -in e es ha a ises om sole owne ship esul s in
maladminis a ion o he esou ces, esul ing in he ailu e o he en i y.
In eg a ed sus ainabili y epo
A inancial epo is an elemen o he in eg a ed sus ainabili y epo .
Small and medium en e p ises should adop anspa ency and accu a e
The con ibu ion o good co po a e go e nance o en ep eneu ship
34
p ospe i y, job c ea ion, economic g ow h and inno a ion ( hese a e
indica o s o he economic de elopmen o a na ion).
Acco ding o Na ula (2020), suppo ed by Ohnso ge and Yu (2022), a
signi ican po ion o wo ke s and businesses ope a e in he in o mal
economy in eme ging ma ke s and de eloping economies. In coun ies like
Sou h A ica, Pe u and Indonesia, his in o mal economy can accoun o as
much as 80% o he popula ion. As e lec ed by he obse a ions om he
indings o Na ula (2020), Ohnso ge and Yu (2022) de ined small en e p ises
as ha ing 50 wo ke s o less and a p o i o R3m (ag icul u e) o R32m
(wholesale ade, comme cial agen s and allied se ices) as ad oca ed by
Na ional Small Business Amendmen Ac (NSBAA 2004). This ype o
business o en ope a es om comme cial o manu ac u ing bases, is
egis e ed and mee s o he o mal e enue c i e ia (Whi e Pape 1995).
These businesses a e ypically sca e ed and clus e ed in u ban a eas and
ownships. In mos cases, small businesses ha e a managemen s uc u e in
place and some le el o manage ial coo dina ion (Roux 2002). Na ula (2020)
and Ohnso ge and Yu (2022) a gue, in con as o Roux (2002), ha small
businesses o en lack a managemen s uc u e and manage ial coo dina ion.
The au ho s sugges ha his chao ic app oach o business does no
con ibu e o economic g ow h and can lead o diso de in policy
implemen a ion (And e sch e al. 2007). This si ua ion highligh s he need
o e ec i e co po a e go e nance o SMMEs in Sou h A ica o es o e o de
and ensu e he p ope low o esou ces o he s a e o e enue gene a ion.
Medium-sized businesses employ up o 200 people and ha e annual
e enue o R64m. Medium-sized businesses ha e a g oss asse wo h
anging om R3m (ca e ing, accommoda ion and o he ade) o R210m
(mining and qua ying) (NSBAA 2004). The e is also inc easing decision-
making decen alisa ion, a mo e complica ed managemen s uc u e and a
highe di ision o labou (Roux 2002). Following a quick discussion o he
many ypes o small businesses, i may be in e es ing o unde s and he
numbe o such en e p ises and hei employees in Sou h A ican businesses.
Table 2.1 shows he numbe o i ms and wo ke s in each ca ego y.
In his case, he Na ional Small En e p ise Ac and i s e isions e e o
SMMEs as ‘small en e p ises’ in gene al. Con ex ually, a ‘small en e p ise’ is
de ined as a dis inc business en i y, including i s di isions o a ilia es, as
TABLE 2.1: Upg aded de ini ion o small, medium and mic oen e p ises in Sou h A ica.
En e p ise size Numbe o employees Annual u no e uppe band
Medium < 250 R35–R220m*
Small < 50 R15–R80m*
Mic o < 10 R5–R20m*
Sou ce: Na ional In eg a ed Small En e p ise De elopmen Mas e plan (NISED) 2022.
* Indus y dependen
Chap e 2
35
well as coope a i e en e p ises. I is managed by one o mo e owne s and
ope a es p ima ily in any sec o o subsec o o he economy, as speci ied
in Schedule 1 o he Ac . One can jus i iably say ha he de ini ion o SMME
is based on he numbe o employees and annual u no e (Republic o
Sou h A ica 1996). The uppe limi indica es ha , depending on annual
u no e , an en e p ise can be ola ile, luc ua ing be ween mic o and small
ca ego ies o yea s i good co po a e go e nance and sus ainabili y
measu es a e no implemen ed (Enai oghe & Vezi-Magigaba 2023).
Compa a i ely, he gi en de ini ions p oposed by he Na ional In eg a ed
Small En e p ise De elopmen (NISED) Mas e plan (2022) e lec di e en
igu es pe aining o numbe o employees in each ca ego y o SMMEs.
This con adic s Table 2.1 and o he de ini ions, leading one o jus i iably
a gue ha he upg ading o he gi en in o ma ion demons a es some
g ow h in e ms o u no e and employmen capabili ies o SMMEs o e
ime. Small en i ies wi h 20, >10 and 200 employees a e classi ied as small,
mic o and medium en e p ises, espec i ely, while NISED (2022) upg aded
hese classi ica ions o 50, >10 and 250 employees o small, mic o and
medium en e p ises, espec i ely. In e ms o u no e , he classi ica ions
a e R3–R32m, >R5K–R1m and R3–R210m o SMMEs, compa ed o R15–
R80m, R5–R20m and R35–R220m o SMMEs, espec i ely. Analy ically,
he g ow h pa e n depic ed in he di e en phases o g ow h o SMMEs
om 2004 o 2022 may suppo he a gumen ha SMMEs ha e been
con ibu ing o Sou h A ican economic g ow h o e ime (Enai oghe &
Vezi-Magiga 2023, p. 100). The ole o SMMEs in economic de elopmen
includes being he g ow h engine necessa y o a compe i i e and e ec i e
ma ke , a key o educing po e y h ough job c ea ion and pa icula ly
signi ican in de eloping na ions.
His o ical backg ound o en ep eneu ship
in A ica
Acco ding o Ba en (2016, p. 318), be o e he a i al o Eu opean se le s in
he 14 h cen u y, people in Sou h A ica engaged in en e p ising subsis ence
ag icul u e and hun ing. Echoing H bek and Muhammad (1988), Schlebusch
e al. (2017) indica e ha p e-colonial Sou h A ican his o y, and by
ex ension he la ge Sou he n A ican egion, spans om he Middle S one
Age o he 17 h cen u y. McB ea y and T yon (2006) sugges ha Homo
sapiens o iginally a i ed in Sou he n A ica ei he 130,000 o possibly
260,000 yea s ago. Sou he n A ican hun e -ga he e s, known as he San,
we e e e ed o as Bushmen by pas o al neighbou s, he Khoikhoi. The
e m Khoisan e e s o Sou h A ica’s P e-Ban u inhabi an s (Daniels e al.
2023; Smi h 1990). This e m gained popula i y in he ea ly o mid-20 h
cen u y and was coined a ound 1930 by Isaac Schape a. Thale (2000)
The con ibu ion o good co po a e go e nance o en ep eneu ship
36
asse s ha hese Homo sapiens we e su i ing and in e ac ing wi hin
economic, social, eligious and poli ical con ex s. En ep eneu ship exis ed
du ing ha ime (Aue bach 2023). A he social in e ac ion le el, hey
ep esen he cul u al e olu ion o coope a i e no ms ega ding how
business is conduc ed and an en e p ise accoun able o an inclusi e g oup
iden i y (Cla k e al. 1966).
En ep eneu ship and economic
de elopmen in Sou h A ica
En ep eneu ship
Acco ding o Toma, G igo e and Ma inescu (2014, p. 438), en ep eneu ship
is he p ocess ha in ol es he disco e y, e alua ion and exploi a ion o
oppo uni ies ha lead o he in oduc ion o new p oduc s, se ices,
p ocesses, ways o o ganising o ma ke s. While, on he o he hand (ed.
Ven e 2022, p. 29), en ep eneu ship is conside ed ‘an indi idual’s c ea i e
capaci y, independen ly o wi hin an o ganisa ion, o iden i y an oppo uni y
and o pu sue i in o de o p oduce new alue o economic success’. This
leads o he abili y o connec all ac i i ies o gene a e p o i and p ospe i y
om labou , land, capi al and, mo e ecen ly, knowledge and echnology
(Al a ez & Ba ney 2020; Be ge e al. 2021; Gedeon 2010). Addi ionally, i
is he mos na u al solu ion o he p oblems o unemploymen , po e y and
inequali y. Acco ding o Enai oghe and Ramsu aj (2023, p. 4), he Sou h
A ican go e nmen ac i ely p omo es en ep eneu ship o encou age
economic de elopmen o inc ease job c ea ion, compe i i eness and
income dis ibu ion. As a esul , i has become easie o en ep eneu s o
eme ge and ul il hei essen ial ole in Sou h A ican economic de elopmen .
F ancke and Alexande (2029, p. 2) a gue ha en ep eneu ship is
suppo ed by go e nmen policies ha p o ide bo h inancial and non-
inancial backing. En ep eneu ship is cha ac e ised as he abili y o SMMEs
o se e as he backbone o many success ul economies wo ldwide.
Resea ch indica es ha many es ablished ma ke s a e buil on small and
medium-sized businesses, and de eloping coun ies a e also encou aging
en ep eneu ial ac i i ies (Kaplan & Wa en 2010). En iced by he ple ho ic
na u e o en ep eneu ship bene i s including job c ea ion, economic
g ow h and social e ils, egional, na ional and local go e nmen policies
a e ocusing a en ion, esou ces and policymaking on en ep eneu ial
de elopmen (B uma & Ma newick 2020). The e o e, en ep eneu ship is
c ucial in de eloping he economy h ough employmen c ea ion and
business ini ia i es (ed. Ven e 2022, p. 133). Toma e al. (2014, p. 438)
sugges ha ce ain condi ions a e conduci e o en ep eneu ship o
h i e. These condi ions include new p oduc s, new p o ision p ocesses,
new ma ke s, new supplie s and new o ganisa ions.
Chap e 2
37
Economic de elopmen
Economic de elopmen is a discipline wi hin economics ha specialises in
he s udy o mac oeconomic ac o s in luencing long- e m economic
g ow h, as well as mic oeconomic issues a ec ing indi iduals and businesses,
pa icula ly in eme ging na ions (Kuma i & Bhanoo, 2022, p.76). Fu he mo e,
some schola s a gue ha economic de elopmen is a concep p ima ily
ela ed o de eloping coun ies, while economic g ow h is associa ed wi h
de eloped coun ies. Toma e al. (2014, p. 438) sugges ha he goals o
economic de elopmen can be summa ised as ollows: he c ea ion o jobs,
he enhancemen o li ing s anda ds and he p ocess o in luencing g ow h
o imp o e he inancial heal h o a communi y, socie y o economy.
Kuma i and Bhanoo (2022, p. 76) sugges ha he e a e ou impo an
ways o measu e economic de elopmen :
• G oss Na ional P oduc (GNP): This is used o measu e he inc ease in
eal na ional incomes o e a long pe iod o ime.
• GNP pe Capi a: This measu es he inc ease in pe capi a- ela ed income
o e a long pe iod.
• Social Indica o s: This akes he basic needs o indi iduals in o
conside a ion.
• Wel a e: This measu es he in low o goods and se ices o indi iduals.
Sou h A ica’s 21s -cen u y en ep eneu ial
economic le els o sus ainabili y
Enhancing he SMME sec o and p omo ing i s economic g ow h,
de elopmen and sus ainabili y is a challenge ha Sou h A ica aces, like
many o he na ions. Small, medium and mic oen e p ises in Sou h A ica
a e o en no iable o sus ainable. The Sus ainabili y Li elihood App oach
(SLA) is used o o mula e s a egies aimed a alle ia ing po e y in he
Sou h A ican economy (B uma & Ma newick 2020).
Speci ically, in e ms o sus ainabili y and inno a ion, Sou h A ica’s
economic landscape has p esen ed bo h oppo uni ies and challenges o
en ep eneu s, as obse ed and upda ed in 2021 (A gade, Salignac &
Ba kemeye 2021). Sou h A ica’s signi ican economic challenges o he
sus ainabili y o en ep eneu ship in he 21 cen u y a e well ecognised.
These challenges include a lack o access o esou ces combined wi h an
unequal dis ibu ion o esou ces; a es ic i e egula o y amewo k; high
unemploymen ; poo in as uc u e and connec i i y; limi ed access
o unding; and ins abili y in poli ics and he economy (Kah e al. 2022).
Since 2015, eal g oss domes ic p oduc (GDP) pe capi a has declined
(SARB 2018), p oduc i i y g ow h has s agna ed (A e ido e al. 2019;
K euse & Newman 2018; Wi enbe g 2017), unemploymen has isen om
The con ibu ion o good co po a e go e nance o en ep eneu ship
38
29.22% o 33.56% (S a is ics Sou h A ica 2017), and inequali y emains high
(Espoi & Ngepah 2021). Low economic de elopmen exace ba es po e y
and inequali y. High-income dispa i ies agg a a e social ins abili y and
jeopa dise economic g ow h (Pu nam 2007). Inequali y gene a es di e gen
pe spec i es, making ag eemen di icul ; he esul ing s alema e and policy
unce ain y can deepen weaknesses in he en ep eneu ial economy. Small,
medium and mic oen e p ises a e ecognised as s a egically impo an in
ad ancing inclusi e economic g ow h, job c ea ion and ans o ma ion goals
o Sou h A ica (Visagie & Tu ok 2021).
Economic es uc u ing ini ia i es ha suppo SMMEs mus achie e
bo h en ep eneu ial sus ainabili y and in e gene a ional li elihood equi y
objec i es. In o he wo ds, economic change should be os e ed by SMMEs
in a manne ha does no jeopa dise he long- e m abili y o he Sou h
A ican economy o compe e in global p oduc and labou ma ke s. In ligh
o compe i ion, SMMEs need o inco po a e co po a e go e nance in o
hei p ac ices o ensu e ha ai ness h i es (Thesing & Vel e 2021). This
sugges s ha ou economic s a egy should simul aneously p io i ise
economic eno a ion, d i en by e ec i e co po a e go e nance policies
and p ac ices (Kamal 2021).
Rungani (2022), in a con ibu ion owa ds a comp ehensi e SMME
suppo amewo k in Sou h A ica, a gued ha one o he p og ammes
ocusing on economic change, inclusi e g ow h and compe i i eness in
en ep eneu ial encou agemen should aim o he economic independence
o he na ion. The go e nmen o Sou h A ica has iden i ied SMMEs and
coope a i es as po en ial ca alys s o inclusi e g ow h and local economic
de elopmen (Rangwe si & Van de Wald 2021, p. 1). This clea ly
demons a es ha SMMEs d i e economic ans o ma ion, which in ol es a
apid and signi ican shi in he owne ship and con ol mechanisms
go e ning SMMEs wi hin he economy. The economic ans o ma ion o
SMMEs is signi ican ly p opo ional o hei s uc u al ans o ma ion.
S uc u al ans o ma ion o SMMEs e e s o he edis ibu ion o
en ep eneu ial ac i i ies ac oss a ious SMMEs. In o he wo ds, i en ails
he shi om low-p oducing, labou -in ensi e business ac i i ies o highe -
p oducing, skill- and echnology-in ensi e ones h ough he implemen a ion
o co po a e go e nance s a egies (Soogun & Mhlongo 2021).
While he p ima y pu pose o his wo k is o desc ibe measu es ha
may aid in en ep eneu ial change, he concep o s uc u al change is
occasionally discussed, pa icula ly in he con ex o indus ial s a egy, as
no ed by he Cen e o Compe i ion, Regula ion and Economic
De elopmen (CCRED 2016). Small businesses encompass a wide ange o
en ep eneu ial ac i i ies, om sel -employed indi iduals sc aping by on
he oadside o high-le el p o essionals p o iding well-paid se ices o
la ge co po a ions. This esea ch on small, mic o and medium en e p ises
Chap e 2
39
conside s he signi ican di e ences be ween o mal and in o mal
en e p ises. Fo mal small and mic oen e p ises o en ha e mo e inancial
esou ces, mo e ad anced echnology, mo e employees and highe
e enues han hei in o mal coun e pa s (Al a ez & Ba ney 2020).
Gene ally, SMMEs ep esen he majo i y o businesses in Sou h A ica,
as e idenced by hei signi ican con ibu ion o ensu ing consis ency and
con inuous economic de elopmen ac oss he economy (Ogujiuba e al.
2020, p. 10). Consequen ly, ac i e SMMEs in Sou h A ica gene a e o e
56% o he coun y’s GDP, comp ise o e 91% o all o mal o ganisa ions
and accoun o almos 60% o all jobs (Ogujiuba e al. 2020, p. 13). The
di e ences in inancial and esou ce capaci ies among SMMEs need o be
egula ed o ensu e compe i i eness and ai ness h ough good co po a e
go e nance. O he wise, many o hem may be ba ed om en e ing and
pa icipa ing in he ma ke .
Hocke and Gunn-W igh (2019) a gued ha he e is always a connec ion
be ween e ec i e go e nance and legal compliance. Good go e nance
canno exis apa om en ep eneu ship legisla ion, and i is en i ely
w ong o sepa a e go e nance om he law, o ice e sa. The same
schola s con ended ha good co po a e go e nance in en ep eneu ship
comp ehensi ely e i alises he na ion’s economy, suppo s he g ow h o
he lowe and middle classes and expedi es he sus ainabili y o en e p ises.
Small, medium and mic oen e p ises can be go e ned by s a u e, by a code
o p inciples, o by a combina ion o bo h h ough e ec i e co po a e
go e nance p ac ices. The Wo ld T ade O ganiza ion (WTO) suppo ed
good co po a e go e nance by encou aging coun ies o lowe ade
ba ie s and modi y ade ules ha a ou ed indus ialised economies
o e weake ones, including many A ican economies. Addi ionally, he
ad ocacy o he WTO a he na ional le el aimed o p o ec SMMEs om
being o e shadowed by la ge , es ablished businesses.
Wha e e he case, hese leas de eloped coun ies (LDCs) ecognise
he impo ance o global comme ce and co po a e go e nance in enhancing
he con ibu ion o SMMEs o economic de elopmen (Singh & Pillai 2022).
This s udy e eals ha when SMMEs a e exposed o good co po a e
go e nance, hey can achie e sus ainabili y and g ow h, leading o
inc eased pa icipa ion in expo ing hei p oduc s and se ices. Acco ding
o Da ies (2021), A ica’s expo s o he Uni ed S a es o Ame ica accoun
o jus 1% o o al US impo s, wi h mine al p oduc s ep esen ing mo e
han 60% o ha sha e, p ima ily because o oil. This indica es ha i SMMEs
in Sou h A ica syne gis ically collabo a e wi h majo co po a ions, he e is
a signi ican po en ial o inc ease p oduc ion, wi h any su plus being
expo ed, he eby boos ing he economy’s GDP. In e na ional comme ce is
e alua ed based on p oduc and se ice expo s and impo s, which
accoun o o e 50% o GDP in some egions o sub-Saha an A ica
The con ibu ion o good co po a e go e nance o en ep eneu ship
40
(Fox&Gandhi 2021). This sugges s ha he hea y eliance on impo s by
SMMEs is no su icien ly balanced by hei expo s. S a is ics indica e ha
he sha e o GDP a ibu ed o SMMEs in in e na ional comme ce is mo e
han double ha o expo s, highligh ing Sou he n A ica’s dependence on
impo s. Fo ins ance, in Mozambique, ade cons i u es 96% o GDP, while
expo s make up only 26% (Pa kin, 2013).
Acco ding o s akeholde heo y, o ganisa ions should implemen
co po a e go e nance. O ganisa ions should ha e panels o di ec o s and
manage s who exceed he commi men s manda ed by law and conside
s akeholde weal h and in es men in hei go e nance p ocesses (Janang e
al. 2020). The unc ion o co po a e go e nance is i al o main aining an
o ganisa ion’s sus ainabili y and adap abili y in he cu en challenging
en i onmen . Cu en ly, SMMEs a e no manda ed by law; howe e , i is he
esponsibili y o hei boa ds o di ec o s and manage s o ul il commi men s
o s akeholde s in he in e es o business sus ainabili y. Acco ding o he
s udy, Sou h A ica’s economic p og ess is limi ed by a lack o comme cial
openness and co po a e go e nance in SMMEs and inno a ion. In a ew sub-
Saha an A ican coun ies, non-pa ame ic es s on businesses e eal ha
s a es wi h mo e open ade egimes ha e less di e se expo s uc u es.
This chap e akes a b oad pe spec i e on en ep eneu ship, sus ainabili y
and economic g ow h by examining heo ies and li e a u e pe inen o
heinclusion o good co po a e go e nance in SMMEs. I ocuses on he
inco po a ion o co po a e go e nance in SMME ope a ions as a means o
enewing Sou h A ica’s SMMEs and enhancing hei sus ainabili y and
con ibu ion o economic g ow h.
The con ibu ions o en ep eneu ship o
economic de elopmen in Sou h A ica
P ope co po a e go e nance o en e p ises is essen ial o signi ican
economic g ow h, job c ea ion and po e y educ ion in he Sou h A ican
economy (Enai oghe & Ramsu aj 2023, p. 5). Since he es ablishmen o a
democ a ic Sou h A ica, he undamen al objec i e has been o ein o ce
compe i i eness by p omo ing job c ea ion and na ional economic g ow h.
In his con ex , i is e iden ha en ep eneu ship con ibu es o sus ainable
de elopmen (job gene a ion) o he g ow h o he Sou h A ican economy.
Ayankoya (2016, p. 10) pos ula es ha en ep eneu ial engagemen s by
mig an s in Sou h A ica inc ease c oss-coun y ade when o eigne s sell
Sou h A ican-manu ac u ed p oduc s o hei home coun ies. This c ea es
ma ke s o Sou h A ican p oduc s globally, inc eases he global
compe i i eness o Sou h A ica, c ea es employmen and p o ides much-
needed en ep eneu ial ole models. Sudha (2015) no es ha he
con ibu ions o en ep eneu ship o economic de elopmen in Sou h
Chap e 2
41
A ica s imula e employmen c ea ion, inc ease economic g ow h and
de elopmen , p omo e weal h c ea ion and dis ibu ion, imp o e he
s anda d o li ing and con ibu e o GNP. Fu he mo e, en ep eneu ship
in oduces inno a ions, induces economic g ow h, inc eases compe i ion
and p omo es balanced egional de elopmen , among o he bene i s.
C ea es employmen oppo uni ies
En ep eneu ship educes he unemploymen si ua ion in he Sou h A ican
economy. I c ea es employmen oppo uni ies o people o di e en ages,
skills and expe ise, bo h di ec ly and indi ec ly (Halizah 2022; Padi &
Musah 2022). The es ablishmen o mo e en e p ises, bo h small and la ge-
scale, gene a es nume ous oppo uni ies in he Sou h A ican economy.
Inc eases economic g ow h and de elopmen
En ep eneu ship p omo es equi y gene a ion by mobilising idle sa ings
om he public. En ep eneu s u ilise hei own con ibu ions, as well as
unds om iends and amily, along wi h bo owed esou ces, o se up hei
en e p ises. Such en ep eneu ial ac i i ies lead o alue addi ion and weal h
c ea ion (Pulka & Gawuna 2022). Fu he mo e, en ep eneu ship acili a es
he u ilisa ion o hese sa ings, s imula ing capi al o ma ion, which is
essen ial o he capi alisa ion o en e p ises and se es as he engine o
economic g ow h and de elopmen in Sou h A ica (Padi & Musah2022).
P omo es weal h c ea ion and dis ibu ion
In Sou h A ica, en ep eneu ship enables ci izens o ully engage hei
po en ial and ene gies o c ea e weal h h ough he p o ision o goods and
se ices. Mabasa e al. (2023) ad oca e ha en ep eneu ship accele a es
he equi able edis ibu ion o esou ces h oughou he coun y, bene i ing
di e se geog aphic a eas and la ge sec ions o socie y (Halizah, 2022).
Imp o es he s anda d o li ing
Success ul inno a ions in en ep eneu ship imp o e he s anda d o li ing
by c ea ing jobs and os e ing condi ions conduci e o a p ospe ous socie y
(Seoe & Swa 2023). En ep eneu ship plays a pi o al ole in enhancing
he s anda d o li ing by adop ing he la es inno a ions in he p o ision o
goods and se ices in Sou h A ica (Ma ima 2022).
Con ibu es o g oss na ional p oduc
En ep eneu ship encou ages e icien and cos -e ec i e esou ce
mobilisa ion o capi al, skills, p oduc s and se ices, which de elops
The con ibu ion o good co po a e go e nance o en ep eneu ship
42
ma ke s o economic g ow h. This, in u n, helps inc ease he GNP and pe
capi a income o he people in a coun y (Pulka & Gawuna 2022).
Addi ionally, en ep eneu ship con ibu es o he GNP and pe capi a
income, se ing as a signal o economic p ospe i y (Sudha 2015).
Inc eases compe i ion
K i ikos (2014) asse s ha ‘by s a ing new businesses, en ep eneu s
[in ensi y] compe i ion wi hin he exis ing businesses’. As a esul o hese
compe ing o ces, ‘consume s bene i om he esul ing lowe p ices and
g ea e p oduc a ie y’ (Kademe eme & B uma 2023).
In oduces inno a ions and induces economic g ow h
En ep eneu s o en d i e economic g ow h by c ea ing new inno a ions
h ough echnologies o p ocesses, de eloping new p oduc s and opening
new ma ke s (Kademe eme & B uma, 2023).
P omo es balanced egional de elopmen
Sel an and Vi ek (2020) s a e ha en ep eneu s acili a e he educ ion o
egional dispa i ies by se ing up indus ies in less de eloped and backwa d
a eas. The inc ease in indus ies and businesses leads o public bene i s
such as imp o emen s in heal h, educa ion, oad anspo and
en e ainmen , among o he s (Magocha 2014).
Good co po a e go e nance o
en ep eneu ship in Sou h A ica
Good co po a e go e nance is essen ial o con olling in e nal ope a ions
and engaging s akeholde s. The go e nance o an en i y is shaped and
o en o ganised by c ucial ex e nal in e ac ions, which signi ican ly impac
he expanding ole o i ms in he public sec o (Ku uppu & Lodhia 2019).
The elease o he King Repo on Co po a e Go e nance (King Repo
1994) in No embe 1994 ins i u ionalised co po a e go e nance in Sou h
A ica. The King Repo o 1994 was in ended o p omo e he highes
s anda ds o good co po a e go e nance in Sou h A ica and beyond. The
King IV Repo (2016) emphasises ha he bene icial e ec s o good
co po a e go e nance on o ganisa ions a e impe a i e. Posi i e ou comes
o good co po a e go e nance include an e hical cul u e, high pe o mance,
e ec i e con ol and legi imacy.
Co po a e go e nance is pi o al in p o ec ing mino i y sha eholde s
and enhancing he e ec i eness o co po a e go e nance i sel
(An wi-Adjei e al. 2020). Acco ding o An wi-Adjei e al. (2020), a good
Chap e 2
43
co po a e go e nance s uc u e encou ages us in he economic sys em,
as i is an accep able condi ion o he de elopmen o he en i e socie y and
he en i onmen . Jaimes-Valdez and Jacobo-He nandez (2016) a gue ha
co po a e go e nance a ac s capi al and suppo s capi al e en ion, which,
in u n, enhances ma ke capi alisa ion o co po a ions. Fu he mo e, i
encou ages en ep eneu ship o add ess issues o anspa ency, ai ness,
e hics, esponsibili y and hones y in all dealings be ween in es o s and o he
s akeholde s. Howe e , co po a e go e nance in SMMEs is o en nega i ely
a ec ed by inancial mismanagemen scandals and he abuse o company
bene ac o s, which e ode public con idence and ha m en e p ise legi imacy
(Ku uppu & Lodhia 2019). In he non-p o i o ganisa ion (NPO) sec o ,
accoun abili y is iewed as a s akeholde equi emen o gaining access o
and secu ing esou ces, demons a ed h ough app op ia e go e nance
p ocesses and e ec i e esou ce usage. This is equen ly ega ded as a
measu e o con ol and jus i ica ion, bu i may also p o ide an oppo uni y
o o ganisa ions o p oac i ely demons a e hei legi imacy, su i e
allega ions and ob ain u he legi imacy (Egholm, Heyse & Mou ey 2020).
The inclusi e me hod equi es clea ly s a ing he business’s goal as
de e mining and communica ing he alues by which he en e p ise will
conduc i s daily ope a ions o all s akeholde s. I is also essen ial o iden i y
he s akeholde s who a e c i ical o he en e p ise’s ope a ions. These h ee
ac o s – s a ing he business goal, de e mining he goal and communica ing
he goal – mus be add essed while de eloping app oaches o achie e he
company’s ision, mission and goals. The ela ionship be ween he i m and
i s s akeholde s is expec ed o be mu ually bene icial. Nume ous s udies
ha e demons a ed ha his comp ehensi e s a egy is key o long- e m
i m pe o mance and sus ained g ow h in sha eholde alue o Sou h
A ican small, mic o and medium en e p ises (Gup a 2022; Ku uppu &
Lodhia 2019). Howe e , i is impo an o emembe ha en ep eneu ship
and inno a i e ideas a e c ucial a ibu es ha d i e a business. Eme ging
economies a e powe ed by en ep eneu s who ake business isks and
ini ia i es. Success ul en e p ises con ibu e o h i ing economies and
ha e he po en ial o educe economic inequali ies. Wi hou adequa e
le els o p o i abili y, no only will in es o s seek al e na i e in es men s
because o insu icien e u ns, bu o he s akeholde s a e also unlikely o
main ain a long- e m in e es in he company (King IV 2016).
Cha ac e is ics o good co po a e go e nance
equi ed by Sou h A ican en ep eneu s
Good co po a e go e nance and en ep eneu ial o ien a ions consis o
se en ai s: discipline, anspa ency, independence, accoun abili y,
esponsibili y, ai ness, and social esponsibili y.
The con ibu ion o good co po a e go e nance o en ep eneu ship
50
adjus men s o boos po en ial g ow h. Unde hese ci cums ances, SMMEs
a e c i ical o any coun y’s economic g ow h and de elopmen ; howe e ,
main aining hei pe o mance o e ime emains a signi ican challenge
(Bho a e al., 2018). The e e -changing na u e o he in e na ional economy
has g own inc easingly complex, making i essen ial o c ea e knowledge-
based i ms ha can suppo con inued g ow h and de elopmen while
also achie ing socioeconomic goals. Inno a ion in he comme cial o
indus ial use o new p oduc s, echniques, o me hods o p oduc ion
should be encou aged (Saunila, 2016). Despi e i s impo ance, he
inno a ion o SMMEs emains a challenge globally, including in Sou h A ica.
The Fou h Indus ial Re olu ion (4IR) and he COVID-19 pandemic ha e
accele a ed he need o small, mic o and medium en e p ises o inno a e
and digi ise. As a esul , pe o mance managemen models a e expanding
hei ocus beyond adi ional ac i i ies, such as inance and manu ac u ing,
o include in angibles like in o ma ion and expe ise in a eas such as
inno a ion, digi isa ion, and esea ch and de elopmen (R&D) (Da ila,
Eps ein & Shel on 2012). I is he e o e c i ical o be e unde s and he
pe o mance o SMMEs and how i ela es o inno a ion and digi alisa ion
wi hin hese en e p ises (Cu aj 2018). As he mos p omising sec o o
Sou h A ica’s economy, SMMEs eme ge no jus om a p oduc ion
s andpoin bu also om an in e es in income dis ibu ion, whe e money
and o he cash equi alen s a e exchanged among a b oad spec um o
people. Sou h A ica has imp o ed i s a e age labou p oduc i i y by
alloca ing a signi ican p opo ion o capi al o la ge en e p ises ha
achie e economies o scale and/o i ms ha u ilise cu en echnology. In
his con ex , only a ew highly expe ienced and well-paid indi iduals a e
needed o manage his capi al. Howe e , he la ge labou o ce gene a es
li le capi al because o low p oduc i i y and pay. This si ua ion a ises when
labou , as he abundan ac o o p oduc ion, is wo king ine icien ly,
leading o a de e io a ion in he dis ibu ion o p oceeds, pa icula ly o
unskilled wo ke s and new labou en an s.
Small, mic o and medium en e p ises should be suppo ed h ough
public p ocu emen . The go e nmen ’s o e due paymen s o small i ms
should be ec i ied, possibly by allowing au oma ic in e es accumula ion
on unpaid amoun s a e an ag eed-upon pe iod. Go e nmen s and s a e-
owned en e p ises mus de elop bids whene e easible o expand
oppo uni ies o small businesses. Addi ionally, a dispu e esolu ion
p ocess wi hin he Chie P ocu emen O ice o a sepa a e ombudsman is
needed o enhance o e sigh and moni o ing o subcon ac ing ela ionships
(Ga cia e al. 2022). Small businesses need o se e as subcon ac o s o
la ge i ms o en e global alue chains and es ablish longe - e m,
sus ainable con ac ual ela ionships ha imp o e hei c edi wo hiness
(Aken oye e al. 2022).
Chap e 2
51
A dedica ion o educing ed ape can open doo s o small en e p ises.
The Red Tape Impac Assessmen Bill, which Pa liamen excluded on
bu eauc a ic g ounds, should be econside ed (K uge 2017). This
p oposed measu e compels all depa men s and sel - egula o y
o ganisa ions o cu bu eauc a ic ed ape by 25% o e a 5-yea pe iod.
Small en e p ises (and o he new ma ke en an s) could bene i om
whole o pa ial exemp ions om ce ain ypes o egula ion (e.g., he
expansion o nego ia ing council ag eemen s). Special economic zones in
a ious p o inces o Sou h A ica can be u ilised as p ospec i e si es
whe e economic in e en ions can be implemen ed (Se e e al. 2020).
Red ape is desc ibed as laws and egula ions, as well as adminis a i e
and managemen p ocesses, ha a e ine ec i e in a aining hei in ended
goals, hus causing subop imal and undesi able social e ec s (Wegmann
& Cunningham 2010). An examina ion o he li e a u e e eals ha ed
ape does no ha e a s aigh o wa d de ini ion (Pandey & Sco 2002)
and mus be analysed in a b oade con ex ha includes concep s such as
imp o ed egula ion, good go e nance and e-go e nmen . The DSBD
asse s ha he e is po en ial o long- e m imp o emen o SMMEs in
Sou h A ica. The Depa men ’s 5-yea s a egic plan o 2020–2025
includes he ollowing pe o mance ou comes:
• Enhanced pa icipa ion o SMMEs and coope a i es in domes ic and
in e na ional ma ke s
• In ensi ied con ibu ion o SMMEs and coope a i es in p io i y sec o s
• Scaled up and coo dina ed suppo o SMMEs, coope a i es, illage
and ownship economies
• Inc eased access o inancial and non- inancial suppo and implemen ed
esponsi e p og ammes o new and exis ing SMMEs and coope a i es
• Diminished egula o y bu dens o small en e p ises
• Ad anced go e nance and compliance
• Imp o ed, in eg a ed and s eamlined business p ocesses and sys ems
(DSBD 2020–2025).
The need o in oduce good go e nance o imp o e he sus ainabili y o
SMMEs in Sou h A ica is impe a i e, and educing ed ape is essen ial
(Ko ač & Jukic 2017). Using a no ma i e-analy ical app oach, his s udy
iden i ies se en s a egic o ganisa ional go e nance a eas ele an o
SMMEs when engaging wi h he s a e (i.e., public adminis a ion) and
whe e hey may encoun e manage ial ba ie s ela ed o egula ion. These
key a eas include (1) sec o al egula ion, (2) employmen ma ke unc ioning,
(3) ease o ul illing public esponsibili ies, (4) epo ing o he s a e,
(5) inspec ion e iciency, (6) ob aining building licences and (7) ( e)
es ablishing an en e p ise. These indings align wi h hose o he s udy by
Obadic e al. (2020), which iden i ied adminis a i e ba ie s in he a ea o
employmen wi hin businesses.
The con ibu ion o good co po a e go e nance o en ep eneu ship
52
Co po a e go e nance and sus ainabili y
Acco ding o Jamies-Valdez and Jacobo-He nandez (2016), sus ainabili y
is ‘ he abili y o mee p esen demands wi hou comp omising he abili y
o u u e gene a ions o mee hei own equi emen s’. An wi-Adjei e al.
(2020, p. 80) explain ha co po a e sus ainabili y means ha i ms conside
he u u e, as well as he p esen , in hei managemen and planning, using
a ailable esou ces o c ea e long- e m alue. Fu he mo e, he inc easing
emphasis on sus ainabili y has p omp ed he adop ion o no el ac ics o
engaging ele an s akeholde s, highligh ing s akeholde ela ionship
managemen as a sou ce o compe i i e ad an age. Sus ainable co po a e
go e nance s a egies o igina e om he boa d o di ec o s and a e
in o med by he o ganisa ion’s mission and objec i es. Co po a e
sus ainabili y is essen ial o oday’s businesses, c i ical o a p olonged
co po a e success s o y and i al o ensu ing ha ma ke s p o ide alue
ac oss socie y (An wi-Adjei e al. 2020). En ep eneu ial i ms and co po a e
go e nance mus be ecognised as key d i e s o economic de elopmen
in Sou h A ica unde he new global o de . Acco ding o epo s, he
eme gence o SMMEs could posi ion he coun y o ul il bo h he 2030
Na ional De elopmen Goals and he Uni ed Na ions (UN) Sus ainable
De elopmen Goals (SDGs).
The high ailu e a e o small and mic o i ms may be a ibu ed o
inadequa e co po a e go e nance. The publica ion o he King Repo
(1994) es ablished co po a e go e nance p inciples in Sou h A ica. King
(2000) posi s ha co po a e go e nance is p ima ily conce ned wi h
leade ship. I is a guiding amewo k ha ames he ope a ion and con ol
o a i m o achie e e ec i e business managemen , conce n o employees
and good ela ionships wi h ading pa ne s (Smi 2011). The undamen al
p inciples o good co po a e go e nance uphold alues such as hones y,
ai ness, esponsibili y, social esponsibili y, accoun abili y and discipline
wi hin he business. Small and mic o i ms in Sou h A ica, especially in
u al municipali ies, cu en ly ace se e al sus ainabili y challenges.
Acco ding o B uwe and Wa kins (2010), he p ima y elemen s in luencing
sus ainabili y a e classi ied as mac oeconomic issues, mic oeconomic
ac o s and psychological aspec s.
Howe e , SMME owne s and manage s a e o en un amilia wi h
co po a e go e nance. As a esul , many small and mic o companies do no
adhe e o co po a e go e nance philosophies, which a e conside ed ‘good
business p ac ices’ (Flowe s e al. 2013). As iden i ied in his chap e ,
owne s and manage s employ a limi ed deg ee o in ui i e go e nance,
ecognising he impo ance o ce ain aspec s o good go e nance, namely
ules and p ocesses. The amewo k was de eloped om c i ical discou se
analysis o in o ma ion om a ious sou ces.
Chap e 2
53
Figu e 2.1 demons a es ha he indi iduals who own SMMEs, hose who
in end o be en ep eneu ial, and cus ome s should be guided by co po a e
go e nance ha o e sees go e nmen appa a us and SMME ope a ions
in a ai and comp ehensi e manne . Go e nmen and SMMEs a e
in e dependen conce ning go e nance issues, and egula o y boa ds e e
o he ules and egula ions ha go e n he indus y. S ic adhe ence o
hese ules is essen ial o he sus ainabili y and u u e exis ence o SMMEs
and humani y. The people o Sou h A ica need o add ess gende dispa i ies
in en ep eneu ship.
Small, mic o and medium en e p ises a e no gende -sensi i e,
pa icula ly in ag ip eneu ship. Acco ding o Du Toi e al. (2011), ag icul u e
can help alle ia e po e y by lowe ing ood p ices, c ea ing jobs and
inc easing a m incomes. Women en ep eneu s a e emale en ep eneu s
who c ea e some hing om no hing; in de eloping coun ies, women o en
se e as ini ia o s, owne s and business manage s (Wo ld Bank 2019). The
p ima y eason women a e in e es ed in pu suing ca ee s in ag icul u e,
especially du ing he COVID-19 pandemic, is ha he sec o main ained
i al se ices du ing he shu down, highligh ing he impo ance o a ming
in supplying nu i ious ood (Alliance o a G een Re olu ion in A ica
[AGRA] 2021). This sec o has some o he bes p ospec s o job c ea ion,
and emale en ep eneu ial pa icipa ion in ag icul u e is belie ed o ha e a
posi i e impac . The signi icance and ele ance o women’s empowe men
ha e been widely deba ed, aiming o imp o e u al women’s li ing
condi ions and inc ease household income. The p ima y ocus o emale
Sou ce: Au ho ’s own wo k.
FIGURE 2.1: Co po a e go e nance – sus ainabili y amewo k.
People
Co po a e go e nance
Regula o y boa ds
Sus ainabili y
Small, medium and
mic oen e p ises
Go e nmen
The con ibu ion o good co po a e go e nance o en ep eneu ship
54
a ming businesses will be on sus ainable a ming, decision-making and
household a ming labou , wi h land owne ship being a seconda y conce n
(Za idis e al. 2015). The au ho s asse ha ag icul u e is a c ucial sec o
o emale en ep eneu ship and is one o he wo ld’s la ges employe s o
women (Kloppe s & Kloppe s 2006). Women play nume ous oles in
mode n u al cul u e, con ibu ing o amilies, communi ies and economic
g ow h. Women en ep eneu s make signi ican con ibu ions, and hei
di e se p oduc i e asks, such as a ming and managing a home and amily,
can bene i socie y (Za idis e al. 2015).
Ha dik, Poli ical & Adminis a i e T anspa ency and En ep eneu ship
(2022) posi ha he go e nmen should enhance i s ins umen s and
machine y in collabo a ion wi h egula o y boa ds and SMMEs o main ain
he sus ainable li elihoods o he Sou h A ican people. The go e nmen
ope a es in andem wi h se e al s a egies and uni s, including he Na ional
De elopmen o Ag icul u e, Land Redis ibu ion o Ag icul u al
De elopmen , Comp ehensi e Ag icul u al Suppo P og amme, Na ional
Skills De elopmen S a egy, Na ional Skills De elopmen Plan, Na ional
De elopmen Plan, Na ional Planning Commission, Depa men o Economic
De elopmen , DTI, Sec o Educa ion and T aining Au ho i y, DSBD, Sou h
A ican Women En ep eneu s’ Ne wo k, Na ional You h De elopmen
Agency, Global En ep eneu ship Moni o and many o he s. The go e nmen
moni o s in e nal con ols ela ed o access o inance, employee
sa is ac ion, employee educa ion, aining p o isions o employees,
o ganisa ional policies and p ocedu es, sound in o ma ion echnology
sys ems and compe i o egula ion as pa o good co po a e go e nance.
On he o he hand, SMMEs emain ulne able o labou laws, ax laws and
compliance- ela ed bu eauc acy, wi h he expec a ion ha he go e nmen
will es o e con idence h ough he ini ia ion o new incen i es. This includes
he DTI ini ia ing a ious unding schemes anging om g an s o business
incen i es (Couch 2023; Lim 2022).
Sus ainabili y is c i ical o he de elopmen o SMMEs in e ms o
e iciency and he ounda ion o sound business p inciples, which a e
embedded in co po a e go e nance p inciples (Fe nandez-A mes o 2006).
The weakening o he Sou h A ican Rand, ma ke ola ili y and he global
ecession nega i ely impac he sus ainabili y o small and mic o businesses.
Acco ding o Mulle (2009), good co po a e go e nance is essen ial o he
de elopmen o a heal hy and modes business sec o . One o he key alues
o co po a e go e nance o small businesses is he es ablishmen o a be e
and mo e obus sys em o in e nal con ols, accoun abili y, anspa ency
and an imp o ed s a egic ision. By in ol ing ou side business expe s,
en ep eneu s can ocus mo e on s a egic di ec ion and business expansion
a he han daily ope a ions, he eby c ea ing he abili y o a ac be e
manage s and in es o s.
Chap e 2
55
The bene i s o co po a e sus ainabili y on
en ep eneu ship in Sou h A ica
The bene i s o sus ainabili y on en ep eneu ship include:
• Assessmen and pa ne ships wi h supplie s ha e a posi i e e ec on
en i onmen al pe o mance.
• The e is a signi ican co ela ion linking co po a e go e nance and
sus ainabili y.
• The e is a signi ican posi i e ela ionship amid go e nance and
sus ainabili y disclosu e.
• Sus ainabili y o e s g ea e alue o he SMMEs.
• Alliance be ween in e nal go e nance and s akeholde s cons i u es
sus ainable go e nance (Jaimes-Valdez & Jacobo-He nandez 2016,
p.49).
The challenges o en ep eneu ship o
economic de elopmen in Sou h A ica
The challenges acing en ep eneu ship and economic de elopmen in Sou h
A ica include, bu a e no limi ed o, a lack o access o unding andc edi ,
un a ou able legisla i e en i onmen s, a sho age o skills, in o ma ion
de iciencies and inaccessibili y o ma ke s and p ocu emen (Enai oghe &
Vezi-Magigaba 2023, p. 100). Ine icien and ine ec i e suppo o cu en
and po en ial en ep eneu s is ano he se ious challenge in Sou h A ica,
making planning c i ically essen ial. Acco ding o Ayandibu and Hough on
(2017, p. 136), ex e nal and in e nal ac o s a ec SMMEs. Ex e nal ac o s
include inancial cons ain s, while in e nal managemen ac o s encompass
ma ke condi ions, economic ac o s and in as uc u e. Addi ionally,
Ayandibu and Hough on (2017, p. 136) iden i y majo challenges aced by
SMEs in bo h he in e nal and ex e nal en i onmen s, which may include high
in e es a es, insu icien owne equi y con ibu ions, business loca ion,
absence o in o ma ion echnology, high anspo a ion cos s, excessi e
axes and a i s, a lack o in e ne access, high p oduc ion cos s, business
skills sho ages, skilled labou de iciencies, egis a ion and licensing cos s, a
lack o aining and high o eign compe i ion, among o he s.
Conclusion
As he economy is eg e ably showing signs o decline, mani es ed in a ious
de iciencies such as powe sho ages, unemploymen , gende -based iolence,
ising c ime a es, mass p o es s and p ice hikes o basic commodi ies, people
a e inc easingly h ea ened by highe le els o po e y and social injus ices.
The sus ainabili y o li e is becoming inc easingly una ainable. This si ua ion
The con ibu ion o good co po a e go e nance o en ep eneu ship
56
se es as a wake-up call o he na ion ha ac ion is needed. Acco ding o his
s udy, en ep eneu ial inno a ions a e a p omising solu ion. Fu he mo e, he
Sou h A ican go e nmen and business communi y a e wo king o educe
ed ape. The Di ec o -Gene al o he Na ional T easu y, along wi h a p i a e
sec o ep esen a i e, co-chai s a p ocess ha has al eady p oduced esul s in
add essing bo lenecks in he issuance o wa e licences and en i onmen al
egula ions ela ed o mining, as well as in business egis a ions. Addi ionally,
e-solu ions should be in oduced and suppo ed wi h a ‘knowledge backup’
o public o icials and s akeholde s, including app op ia e upda es and
imp o emen s, o p o ide s uc u al suppo o sanc ioned and con ibu o y
p oblems. The go e nmen should in es in mode n echnologies o enable
e ec i e essen ial se ices and keep pace wi h he p i a e sec o . Like o he
coun ies such as Slo enia, which has success ully comple ed se e al
e-go e nmen p ojec s (such as one-s op shops, he ax bo ‘Vida,’ and e-land
egis a ion), he e is s ill much oom o imp o emen in Sou h A ica.
In exe cising good co po a e go e nance o ensu e he sus ainabili y o
en e p ises, he p inciple o p opo ionali y should guide es ablishmen s
when egula ing and en o cing business s a u es. Fu he mo e, b oadening
he scope o disc e iona y con ols can be a bene icial ool o inc easing
lexibili y. Howe e , such changes ca y isks and equi e quali ied public
en ep eneu s who adhe e o he highes s anda ds o honou and e hics.
O he wise, he ‘neolibe al shi ’ om supe ision o managemen may lead
o chaos, b ibe y, a bi a iness and illegali y.
Recommenda ions
The ollowing ecommenda ions a ise om a c i ical discou se analysis o
he exis ing poli ics and philosophies o he economy. Lowe ing en y
ba ie s can be acili a ed by e alua ing bu eauc a ic ed ape su ounding
licensing and municipal egula ions as pa o good co po a e go e nance.
Addi ionally, in oducing a ‘silence is consen ’ ule o licensing p ocedu es
wi h low associa ed isks would p omo e he sus ainabili y o SMMEs. Small
businesses should be suppo ed h ough public p ocu emen , po en ially
by accep ing he au oma ed addi ion o in e es on emaining balances
owed by he go e nmen a e a ce ain pe iod. Small, medium and
mic oen e p ises should se e as subcon ac o s o la ge i ms. Wo king as
a subcon ac o o a la ge co po a ion can help small businesses en e
in e na ional alue chains and es ablish longe - e m con ac ual
ela ionships, which can enhance hei c edi wo hiness. The people o
Sou h A ica should implemen you h employmen ini ia i es, such as
sus ained go e nmen suppo o business c ea ion p og ammes.
57
How o ci e: Magocha, M & Ma ashu, M 2024, ‘Towa ds an U u, Unhu-Ubun u en ep eneu ship amewo k’,
in M Magocha & M Ma ashu (eds.), Co po a e go e nance p ac ices p omo ing he sus ainabili y o small,
medium and mic oen e p ises in Sou h A ica, AVARSITY Books, Cape Town, pp. 57–79. h ps://doi.
o g/10.4102/aosis.2024.BK404.03
Whose aul is i i no one knows abou he philosophy o you g and a he and
mine? Is i no you aul and mine? We a e he in ellec uals o (A ica). I is ou
business o dis il his philosophy and se i ou o he wo ld o see. (Samkange
& Samunge 1980)
Abs ac
This chap e explo es he possibili ies o de eloping en ep eneu ship
go e nance based on Ubun u philosophy. Fo some, he idealis ic and
mo alis ic unde ones inhe en in he e m ‘U u, Unhu-Ubun u’ may be
con o e sial. The esea che s belie e ha in eg a ing Ubun u in o
en ep eneu ial go e nance can enhance he en ep eneu ial cul u e
Towa ds an U u, Unhu-Ubun u
en ep eneu ship amewo k
Medicine Magocha
Business Managemen and Economics Depa men ,
Facul y o Economic and Financial Sciences,
Wal e Sisulu Uni e si y,
M ha ha, Sou h A ica
Ma ha Ma ashu
School o Comme ce and Social S udies Educa ion,
Facul y o Educa ion,
No h-Wes Uni e si y,
Mahikeng, Sou h A ica
Chap e 3
Towa ds an U u, Unhu-Ubun u en ep eneu ship amewo k
58
and mindse o coun ies. While Ubun u is an A ican ideology cen ed
on collabo a ion and mu ual suppo h ough sha ing and ecip oci y, i
can also be desc ibed as a philosophy emphasising ‘being sel h ough
o he s.’ I embodies a o m o humanism exp essed in he ph ase ‘I am
because o who we all a e,’ de i ed om a Nguni language (isiZulu)
apho ism: umun u ngumun u ngaban u. U u, Unhu-Ubun u is g ounded
in mo ali y and digni ied human alues in ended o main ain social
cohesion and p omo e social jus ice. This chap e aims o de elop a
use - iendly amewo k o en ep eneu ship based on U u, Unhu-
Ubun u and co po a e go e nance. Whe e hese wo undamen al
ideologies in eg a e, he esea che s belie e he e is po en ial o
c ea ing en e p ises ha a ionally se e undamen al human digni y,
he eby p omo ing sus ainabili y. The esea che s asse ha ubun u-
embedded co po a e go e nance will be inclusi e and encou age all
indi iduals o pa icipa e in de elopmen . This app oach can p omo e
an indigenous me hod o u ilising he coun y’s esou ces, which may
ha e p e iously emained un apped.
In oduc ion
I appea s ha small and medium en e p ises (SMEs) a e concep ualised
based on his o ical ideologies ha p omo e he hegemony o capi alism
and he neolibe al economics o weal h accumula ion by indi iduals.
Akyol (2022) desc ibes SMEs as being ounded on capi alism models
ha jus i y he p incipal owne ’s con ibu ed capi al, sel -managemen
and lexible p oduc ion sys ems, in con as o la ge en e p ises. This
sugges s ha SMEs se e as ins i u ional agen s o ansplan ing he
hegemony o capi alism. Ba eman (2000) has long a gued ha SME
de elopmen policies and in e en ion measu es a e d i en by neolibe al
ideologies. Von Feigenbla , Pa do and Coope (2021) a gued ha
neolibe al sys ems o en ein oduce hemsel es h ough SMEs as
al e na i e en e p ise s uc u es o c ea ing economic g ow h and
de elopmen a e he same ideology has c ea ed an economic c isis a
he mac o le el. Von Feigenbla (2021) a gues o he need o ind an
al e na i e philosophical ideology o he dominan neolibe al ideology,
desc ibing i s weakness as being incompa ible wi h local communi ies
and ways o li e. Ba e man (2013) iews he de elopmen o SMEs as an
ex ension o he neolibe al app oach, which disman les la ge en e p ises
h ough policies aimed a de eloping and sus aining hese small
en e p ises. I can be in e ed ha exis ing ins i u ional e o s o suppo
SMEs could u he en ench capi alism i he Ubun u en ep eneu ship
amewo k is no de eloped as an al e na i e philosophical g ounding.
Chap e 3
59
Resea ch on he Ubun u philosophical app oach, which is based on
communalism a he han capi alism, is s ill unde de eloped and should
be conside ed as an al e na i e philosophical amewo k o in o m SME
models in he Sou h A ican con ex .
Conside a ion o ubun u as an al e na i e en ep eneu ship model has
majo implica ions o SME c ea ion, capi al, owne ship, p o i abili y and
sus ainabili y. The concep o Ubun u is deeply oo ed in A ican socie ies,
ye i is o en absen om he co po a e go e nance p ac ices o SMEs.
Ubun u is a li ed philosophy ha emb aces communi a ianism, whe e an
indi idual’s iden i y is de ined in he con ex o socie y a he han om
an indi idualis ic s andpoin (Bohwasi 2020; Mabo ula 2011; Ramose
2000; Wel e e al., 2018,). This philosophy epi omises humani y, asse ing
ha indi iduals exis no solely o hei own sake bu o he common
good o socie y. Mabo ula (2011) desc ibes Ubun u as cen ed on human
beings as a collec i e, whe e he social con ac o indi idual choices is
de ined and cons ained by socie al no ms. In con as , he p inciples
unde lying he go e nance o SMEs a e no based on Ubun u, which
unde gi ds he A ican socie ies in which hese en ep eneu ial en i ies
ope a e. Because Ubun u is he ab ic o socie y, i is unclea how SMEs
ounded on neolibe al p inciples o sel -in e es can coexis wi h
communi ies whose way o li e is based on communalism. Gi en ha
Ubun u shapes he way o li e in A ican socie y, his s udy g apples wi h
he ques ion o how Ubun u can be in oduced as an al e na i e amewo k
o SMEs.
Su ice i o say ha Sou h A ica has expe ienced i s ai sha e o
signi ican ailu es among SMEs, despi e many yea s o a ailable policy and
ins i u ional suppo (see Na ional In eg a ed Small En e p ise De elopmen
Mas e plan [NISED], 2022). Va ious schola s ha e explo ed he ac o s
impeding he su i al o SMEs. Changwesha and Mu ezo (2023) iden i ied
a lack o inancial li e acy and limi ed access o inance. Ogujiuba e al.
(2023) a ibu e he lack o access o s a up capi al as a subsequen cause
o SME ailu e. Flepis e al. (2023) p oposed a model ha iden i ies se e al
ac o s de e mining he success o ailu e o SMEs, namely: capi al; inancial
and eco d-keeping skills; con ol; managemen and indus y expe ise;
planning; p o essional ad ise s; educa ion; pe sonnel; p oduc ; imeliness
o se ices; economic condi ions; age o he owne ; pa ne s; pa en s who
ope a ed a i m; ma ke ing abili ies; and mino i y s a us. While nume ous
s udies ha e b oadened he unde s anding o and p oposed di e en
app oaches o add essing he ampan ailu e o small businesses, he e is
s ill a sca ci y o s udies ha con ex ualise ubun u as a po en ial model o
building sus ainable SMEs.
Towa ds an U u, Unhu-Ubun u en ep eneu ship amewo k
66
co po a e go e nance p inciples ha should guide sus ainable co po a e
beha iou , emphasising he in eg a ion o social, en i onmen al and
economic dimensions. While social aspec s a e included in capi alis -d i en
en e p ise go e nance models, hei ocus is limi ed o add essing socio-
economic issues and does no ex end o ans o ming en ep eneu ship
models o emb ace he Ubun u philosophy. This implies ha he business
pe spec i es and p ac ices o SMEs con inue o be concep ually in o med
by co po a e go e nance amewo ks whose p inciples o en dis ega d he
Ubun u philosophy. Hence, he e is a need o dis up he exis ing neolibe al
e hnocen ic pa adigms and mo e owa ds emb acing he Ubun u
philosophy.
The pe o mance and sus ainabili y o SMEs, like hose o any business,
in luence ou daily li es. The e o e, he go e nance o hese en u e
en e p ises has bo h heo e ical and p ac ical implica ions o socie y.
Small en e p ises p o ide goods and se ices, con ibu e o ax collec ion
o public use and c ea e employmen oppo uni ies. Sou h A ican SMEs
a e majo con ibu o s o he g oss domes ic p oduc , employmen and
o e all economic de elopmen (NISED Mas e plan 2022). Gi en ha
co po a e go e nance p ac ices a ec SME pe o mance, we can assume
ha hese p ac ices play a c ucial ole in d i ing economic de elopmen .
I is, he e o e, impo an o u he explo e he go e nance o SMEs a
all le els.
Theo e ical amewo ks unde lying
co po a e go e nance p ac ices adop ed
by small and medium en e p ises
The globally ecommended co po a e go e nance p inciples and p ac ices
we e concep ualised on capi alism and ee ma ke ideologies o
maximisa ion o p o i s o he i m owne s (see Cadbu y Repo 1992;
Fama 1980; Jensen & Meckling 1976). The agency heo y conside ed
co po a e go e nance as a mechanism o p o ec he in es men in e es
o he sha eholde agains app op ia ion by managemen and in e nal
s akeholde s (La Po a e al. 1997). Fama and Jensen (1983) heo ised in
he agency heo y which pos ula es he maximisa ion o p o i s, in e nal
con ol and moni o ing o he ac ion o managemen decisions and
ope a ions can imp o e co po a e go e nance o SMMEs. I appea s ha
al hough he codes o co po a e go e nance p inciples and p ac ices a e
di e en he p incipals’ du ies o he boa d, openness and disclosu e, igh s
o sha eholde s and equi able ea men o sha eholde s a e commonly
held as mechanisms o i m go e nance ha enhance sus ainabili y (see
King 2009, 2016). The heo e ical implica ion o he agency-p incipal
Chap e 3
67
heo y is p o i maximisa ion h ough co po a e go e nance. In o he
wo ds, co po a e go e nance p omo es he sus ainable gene a ion o
p o i s by se ing up s uc u es, p ocesses, p ocedu es and p inciples ha
con ol and minimise he pu sui o sel -in e es by managemen .
These co po a e go e nance p inciples ha e been adop ed ac oss
a ious sec o s, including SMEs. Co po a e go e nance was
concep ualised based on adi ional heo ies such as sha eholde heo y,
ansac ional heo y, s ewa dship heo y and agency heo y, all o which
emphasised p o i maximisa ion while neglec ing he b oade socie ies
in which businesses ope a e. Ideologically, agency heo y is oo ed in a
dominan ly capi alis and ma ke -d i en app oach, which excludes
s akeholde s (Ma ashu 2016; Pandya 2011; Solomon (2011). F eeman
(1984) p oposed s akeholde heo y o inco po a e indi iduals whose
ac ions may impac how businesses ope a e in achie ing hei co po a e
goals, o con e sely, indi iduals who a e in luenced by he ac ions o he
business. Al hough enligh ened s akeholde heo y acknowledges ha
business ope a ions a e embedded in socie y wi h di e se, compe ing
in e es s, i does no explici ly p omo e he ans o ma ion owa ds
Ubun u en ep eneu ship models. O en o e looked is he ac ha
en ep eneu ial ac i i ies should no be seen as sepa a e om he
philosophical p ecep s o he socie y in which he en i y ope a es.
Mo eo e , dis inc ions be ween SMEs and la ge co po a ions should be
based on hei na u e and o m.
Cha ac e is ics o small and medium
en e p ises
As a poin o depa u e, mos SMEs, unlike co po a e o ms o owne ship,
do no begin wi h he p i ilege o ecei ing la ge capi al injec ions om
mul iple in es o s. A mos , hese en i ies a e sel - unded and owne -
managed. The unding and owne ship cha ac e is ics o SMEs se hem
apa om la ge co po a ions in e ms o limi ed liabili y, legal pe sona
and co po a e go e nance p ac ices (Abo & Adjasi 2007). Co po a e
go e nance amewo ks a e based on he legal p inciples o sepa a ion
be ween owne ship and con ol (Fama & Jensen, 1980). I is o en
o e looked ha he con ol sys ems inhe en in co po a e owne ship ha e
e y limi ed applicabili y o owne - unded and con olled SMEs.
En ep eneu ship en i ies a e p ima ily owned, unded and ope a ed by
he owne s, esul ing in no sepa a ion o owne ship om con ol as seen
in co po a ions. Gi en he undamen al di e ences be ween hese wo
o ms o owne ship in o ganising economic ac i i ies, i is ques ionable
whe he he me e adop ion o co po a e go e nance p inciples in SMEs
Towa ds an U u, Unhu-Ubun u en ep eneu ship amewo k
68
cons i u es an one ous bu den on hese small businesses. The conce n
ha a ises is whe he implemen ing exis ing co po a e go e nance
amewo ks in SMEs, wi hou conside ing he di e ences in owne ship
and he na u e o hese en i ies, con lic s wi h he p inciples o agency
heo y.
Concep ion o Ubun u philosophy
The concep ualisa ion o co po a e go e nance in SMEs has no only
neglec ed he heo e ical and epis emic gaps be ween he go e nance
needs o la ge co po a ions and SMEs bu also su e s om philosophical
incompa ibili ies. The Ubun u philosophy is pe cei ed o be non-exis en
o insigni ican , despi e being a cen al philosophy in A ican socie ies.
Ramose (2000) lamen ed ha w i ings on Ubun u A ican philosophy
began only ecen ly, as i had ne e ully de eloped because o
colonisa ion and he e we e ew sou ces a ailable. Ramose (2000)
u he explains ha Eu ocen ic pe spec i es ega d A ican philosophy
as en i ely non-exis en . These assump ions s em om he belie ha
Ubun u A ican philosophy lacks a w i en adi ion and ha i s o igins
a e oo ed in communal and mys ic hinking. I he assump ion ha
A ican philosophy does no exis is alid, does i imply ha no people
e e exis ed in A ican socie ies? O , i hey did exis , did hey li e wi hou
belie s, alues, o a logical way o hinking? I his p emise is in alid,
could he non- ecogni ion o A ican philosophy be conside ed a o m
o epis emic iolence agains i ? Kaphangawani (2004) a gues ha
Wes e n philosophy was once unw i en and a ose om communal
hough .
The con inued exis ence o A ican socie ies demons a es he p esence
o concep s and ideas. O uka (1996) con ends ha A ican philosophy
does no need o con o m o he Wes e n adi ion o being documen ed
o be conside ed alid. O uka (1996) u he a gues ha A ican philosophy
has aluable insigh s ega ding iden i ies and he di e si y o di e en
eali ies. These iews sugges ha Ubun u philosophy should con ibu e o
he concep ualisa ion o en ep eneu ship go e nance in A ican socie ies.
Unlike Wes e n capi alis ideologies, Ubun u philosophy espouses
communi a ian ideals, emphasising ha socie y is g ea e han he
indi idual. Applying Ubun u ideology o en ep eneu ship seeks o es ablish
mu ual bene i s be ween indi idual in e es s and socie al well-being.
Concep ualising an en e p ise om an Ubun u pe spec i e en ails iewing
i as an asse ha exis s o he common bene i o socie y.
Sou h A ica, like se e al o he Ban u-speaking socie ies, asc ibes o
he Ubun u philosophy. As a social science, Ubun u does no ha e a
Chap e 3
69
uni e sally accep ed de ini ion, al hough i ep esen s a anscenden al,
binding way o li e and hinking in A ican communi ies. Bohwasi (2020)
s a ed ha Ubun u e e s o a se o p inciples and beha iou s ha Black
A icans o hose o A ican descen belie e de ine who hey a e as ue
human beings. Despi e he sub le di e ences in belie s and p ac ices
among a ious e hnic g oups, hey all con ey he same message: a ue
indi idual human being is pa o a la ge , in e connec ed eali y ha is
social, ecological, spi i ual and communal. Radebe and Phoko (2017)
cha ac e ise Ubun u as an A ican way o li e based on se e al ene s ha
cons i u e meaning ul subs ance, ex ending beyond all ace s o daily li e
and in e ac ions wi h o he s and he wide wo ld. This wo ld iew o
a i ude se es as a se o guiding p inciples ela ed o philosophy.
Philosophy is he s udy o na u e and he ounda ion o knowledge, eali y,
e hics, logic and exis ence. I also aims o explain human hough and
pe cep ion o he wo ld a ound us. One o he mos accep ed desc ip ions
o Ubun u is ound in he dic um o Jus ice Mokgo o in he Makwanyane
case, pa a [307], whe e i was s a ed ha :
Ubun u is o en ansla ed as ‘humaneness’. I ansla es as pe sonhood and
mo ali y in he mos basic sense. Umun u ngumun u ngaban u, which ansla es
o ‘a pe son is a pe son h ough/because o (o he ) people’, is a me apho ha
desc ibes he impo ance o g oup uni y on su i al conce ns ha a e c ucial
o communi ies’ su i al. I e e s o humani y and mo ali y in i s mos basic
sense, e en hough i encompasses he impo an ideals o espec , human
digni y, compassion, g oup solida i y, and collec i e uni y. I s e hos highligh s
human digni y and signals a change om con lic esolu ion o coope a ion.
The Wes e n cul u al legacy places a high p io i y on espec o li e, which is
e lec ed in he all-encompassing no ions o humani y and... [human digni y].
Ubun u, as highligh ed in he abo e dic um, epi omises he epis emological
belie abou he essence o li e o human beings in A ican socie ies. I s
alues ecognise he nuances o he in e wined coexis ence ha pe mea es
an indi idual’s being, as de ined by he la ge collec i e socie y. The
wellness o socie y is cen al o he de ini ion o indi idual well-being.
P inciples o building sus ainable socie ies a e ha nessed and engende ed
h ough egali a ian alues (Himonga, Taylo & Pop, 2013, p. 26). T ansla ing
his o he en ep eneu ial con ex , he Ubun u philosophy posi s ha he
sus ainabili y o SMEs is co-de e mined by hei capaci y o mee socie al
needs. This means ha no en ep eneu ial ac i i ies should exis , wholly o
in pa , o hei own sake bu a he o he good o o he s. Thus, Ubun u’s
philosophy may p o ide an al e na i e amewo k o sus ainable
en ep eneu ial go e nance. In e ences om he discussion sugges ha
he concep ualisa ion o en ep eneu ial go e nance should be e isi ed o
os e and ha ness he mu ual coexis ence be ween he exis ence o he
en i y and socie y by adop ing he Ubun u philosophy.
Towa ds an U u, Unhu-Ubun u en ep eneu ship amewo k
70
Acco ding o Onyango (2013), he e m Ubun u e e s o humani y, mo ali y
and compassion. Pie e se (2004) claims ha Ubun u places a s ong
emphasis on social cohesion wi hin he communi y, asse ing ha sel -
ac ualisa ion is a ained h ough pa icipa ion in he collec i e o ali y, wi h
g oup solida i y p io i ised o e he pu sui o indi idual goals. Unlike he
indi idualis ic, ma ke -d i en en i onmen ha in o ms Wes e n
en ep eneu ial philosophy, A ican socie ies a e ounded on he Ubun u
philosophy. A guably, neglec ing he social con ex ende s business
en u es u ile, as i leads en i ies o pe cei e hei exis ence as dis inc
om socie al alues. This s udy is p emised on he a gumen ha in eg a ing
Ubun u philosophy in o en ep eneu ship models may enhance compe i i e
ad an age and inno a i e oppo uni ies o de eloping bo h business and
communi y objec i es. This is because he concep o Ubun u embeds
social cohesion and communal alues ha a e c i ical o he con inued
su i al o bo h socie y and he en ep eneu ial en i y.
The sha ed sense o indi idual esponsibili y and accoun abili y h ough
he p inciple o ecip oci y os e s a sense o socie y’s collec i e obliga ion
owa ds one ano he . The alues o Ubun u align well wi h co po a e
go e nance p inciples espoused by King (2016) o ad ancing he
sus ainabili y o business, socie y and he en i onmen h ough mechanisms
ha p omo e anspa ency, accoun abili y, esponsibili y, ai ness and isk
managemen . The epis emological simila i ies be ween Ubun u and
co po a e go e nance necessi a e u he econcep ualisa ion o in eg a e
Ubun u philosophy in o en ep eneu ial go e nance.
Ubun u as an en ep eneu ship philosophy
T ansla ing he Ubun u philosophy o he en e p ise wo ld en ails ha
en ep eneu ship should p omo e a mu ual symbio ic ela ionship be ween
en ep eneu ial ac i i y and he common good o socie y a la ge. The iew
ha an en e p ise is communal ein o ces he no ion o i s esou ce ulness,
embodying he ideals and spi i o oge he ness, whe e an indi idual is
seen as pa o a la ge communi y. The subs an i e con en o Ubun u
embodies i s alues and p inciples, se ing as he glue o humanness ha
connec s he ab ic o human li es in socie y. This pe spec i e esona es
wi h he idea ha he pu sui o one’s good should enhance he common
good o he communi y. Acco ding o Ncube (2010), business is communal
and p o i s should be sha ed by all pa ies in ol ed a he han going o
any one pe son. Ncube (2010) also s a es ha he Ubun u p inciple
p omo es inclusi e and ci cula decision-making, whe ein he g oup’s aims
ake p ecedence o e indi idual ones. Fo ins ance, communal owne ship
o a business allows i o d aw on sha ed esou ces, such as bo owing
unds when i s uggles o co e sala ies and ope a ional cos s because o
Chap e 3
71
i s eliance on co e ela ionships. When a small business canno pay sala ies
du ing i s ini ial mon hs, he owne s, as membe s o he business, may need
o sac i ice hei compensa ion o a ime un il he business becomes
unc ional, ecei ing emune a ion a a la e s age.
Embedding Ubun u in o en ep eneu ship aises undamen al ques ions
abou he implica ions o en u e owne ship, a ionale and he esul an
go e nance model. Con en ional en ep eneu ship models a e ounded on
indi idualis ic ee-ma ke economy ideologies ha seek o maximise
p o i s o he indi idual and do no ecognise collec i e communalism
(Campbell 2006). In his Wes e n philosophy, en ep eneu ship is based on
an indi idualis ic app oach ha ene a es aking en e p ise isks in pu sui
o maximising pe sonal weal h and sel -in e es , while dis ega ding he
b oade socie y in which he business ope a es. A ibu es o
en ep eneu ship ha e been concep ualised om an indi idualis
pe spec i e a he han om collec i e communalism.
Lopes (2023) iden i ied sus ainabili y-o ien ed en ep eneu ial in en ions as
hose ha ocus on in eg a ing economic, social and en i onmen al dimensions.
Sus ainabili y-d i en, Ubun u-o ien ed app oaches o en ep eneu ship embody
inclusi i y and egali a ian alues o socie y, a he han emphasising he pu sui
o indi idual p o i in e es s. The ene s o he con en ional en ep eneu ship
model hus s and in con adic ion o he Ubun u philosophy and ideals as
li ed in socie ies. Majo bene i s o en ep eneu ship include employmen
c ea ion, he p o ision o goods and se ices and an o e all con ibu ion
o economic g ow h (Ughulu, 2022). These socio-economic bene i s a e
concep ualised as spillo e s o ex e nali ies wi hin neolibe al ma ke
ideology. P inciples o ma ke -d i en en ep eneu ial go e nance ha
pe cei e socie al bene i s as inciden al sugges ha his ideology does
no acknowledge b oade social bene i s as cen al o en ep eneu ial
ac i i ies. Ma ke -cen ed ideologies a e inconsis en wi h he Ubun u
philosophy, which belie es in he pu sui o he common good o g ea e
socie al bene i s. A guably, he Ubun u philosophy p o ides a heo e ical
amewo k o ex ending neolibe al en ep eneu ship models o encompass
he g ea e common good.
Kasu (2017) p oposed an Ubun up eneu ship model ounded on Ubun u
philosophy, epis emology and on ology o humanness, pe sonhood,
solida i y, coope a ion and communalism. Kasu (2017) sugges s ha
en ep eneu ship g ounded in Ubun u ha nesses human digni y, ecip oci y,
solida i y, humanness and he pu sui o he common good collec i ely,
which o eg ounds he sus ainabili y o en e p ises wi hin socie y. The
a ionale and mo i e o en u e c ea ion, om he Ubun u epis emological
pe spec i e, is he op imisa ion o collec i e gain a he han indi idual
bene i , which is dominan in Wes e n knowledge sys ems. A guably, an
Towa ds an U u, Unhu-Ubun u en ep eneu ship amewo k
72
i e u able philosophical con lic exis s be ween Wes e n and A ican
philosophies, he implica ions o which o he concep ualisa ion o
en ep eneu ship ha e no been ully explo ed.
The con adic ions in hese philosophical belie s ha e undamen al
concep ual implica ions o en ep eneu ship, pa icula ly ega ding he
na u e and o m o owne ship and go e nance s uc u es. Add essing he
exis ing pa adigm con lic s equi es a econcep ualisa ion and decons uc ion
o owne ship, goals and go e nance s uc u es in en ep eneu ship o
acili a e a ans o ma ion owa ds Ubun u alues and go e nance models.
Howe e , he Ubun u concep has limi ed conside a ion o he inancial
iabili y o en e p ises; he e o e, ins ead o comple ely disca ding Wes e n
co po a e go e nance models, i is impe a i e o in eg a e hem as
complemen a y and codependen . Cu en ly, go e nance models aimed a
enhancing he sus ainabili y o SMEs a e based on co po a e go e nance
ideologies ha di e om he p ecep s o Ubun u philosophy. Consequen ly,
he Ubun u en ep eneu ship philosophy would equi e a ede ini ion o he
owne ship, goals and go e nance s uc u es o en e p ising en i ies.
Owne ship model based on U u, Unhu-Ubun u
The bina ies con ibu ing o he absence o Ubun u philosophy may
po en ially be uni ed h ough a collabo a i e and inclusi e coope a i e
en ep eneu ship model. In he con ex o Ubun u, en ep eneu ship is
de ined by Bohwasi (2020) as he suppo o he amily business uni
h ough he empowe men o amilies and communi ies o adop a sel -
d i ing mindse ia he ans e o knowledge and skills. This means ha
when a business is es ablished, i mus wo k closely wi h ela i es so ha
a ious bene i s can acc ue o he immedia e amily and he la ge
communi y. Se e al elemen s o communalism a e e iden in s a ing a
business om he amily nucleus, as bene i s acc ue o amily membe s
a he han he indi idual. Acco ding o Ra ena (2020) and Hodge s e al.
(2020), en ep eneu ship oo ed in he Ubun u concep in ol es nego ia ing
li elihoods h ough physical and men al exe ion, endu ing challenges and
aking on odd jobs o supplemen income o imp o e one’s s anda d o
li ing. Ubun u owne ship models should be g ounded in collec i e
unde s anding and sha ed alues ha p omo e sus ainabili y. Sku nik
(2002) asse s ha a coope a i e en ep eneu ship app oach allows
indi iduals o lea n o wo k oge he o manage and con ol he en i y,
se ing as a pla o m o aining and sha ing skills and knowledge. Sku nik
(2002) u he a i ms ha when indi iduals coope a e in managing a ious
asks wi hin he business, hey can sha e and c ea e a eposi o y o
expe iences ha can be passed on wi hin he communi y and used o build
sus ainable businesses.
Chap e 3
73
The Ubun u collec i e alues, such as g oup solida i y, human digni y,
espec , compassion and communi a ianism, a e pa ially emb aced in
he sus ainabili y concep , which in eg a es people, p o i and plane
wi hin he business model. Howe e , while he in eg a ion o people,
p o i and plane is essen ial, he e is no speci ic inclusion o he Ubun u
philosophy. Consequen ly, he main di e ence be ween he sus ainabili y
app oach and he Ubun u philosophy is ha he o me is an eme ging
business model ocused on business conduc and beha iou , while he
la e ep esen s a li ed philosophy wi hin he socie ies whe e businesses
ope a e. Lessem and Schie e (2009, 2010) ecommended a shi owa ds
sus ainable de elopmen app oaches ha bene i bo h businesses and
he communi ies in which hey ope a e. Bohwasi (2020) sugges ed ha
business ac i i ies should align wi h he cul u e o he su ounding
communi y. A guably, en ep eneu ship models ha p io i ise he
maximisa ion o indi idual p o i s lack he concep ual capaci y o embody
he human essence. Collec i ely, hese insigh s suppo he conclusion
ha he axiological and cosmological na u e o Ubun u philosophy o
A ican people unde sco es he need o a ans o ma ion owa ds
Ubun u en ep eneu ship models, which a e cu en ly absen in he
li e a u e.
The pe cei ed sho coming in he concep ualisa ion o en ep eneu ship
necessi a es a ans o ma ion o en ep eneu ial models o inco po a e
Ubun u philosophy. Con en ional co po a e go e nance equi es
en e p ises o adhe e o mechanisms ha egula e he beha iou o agency
in managing in es ed esou ces as a means o ensu ing sus ainabili y. The e
a e s uc u es and p ocesses ha companies mus legally comply wi h o
educe agency con lic s and maximise weal h c ea ion (King 2016).
A guably, in Sou h A ica, he sus ainable de elopmen o en ep eneu ship
should be linked o an Ubun up eneu ship amewo k ha emphasises
inclusi e, egali a ian and communi a ian en e p ise owne ship and
go e nance.
Conside ing all hese ac o s, his s udy p oposes ha he ex ension o
he sus ainabili y-d i en co po a e go e nance model o adop Ubun u
mus ocus on he p inciples o communi a ianism, humani y and mu uali y
as no ma i e:
1. Communi a ianism emphasises he indi idual as embedded in he la ge
socie y, meaning ha all ac ions unde aken by a pe son should be o
he common good o socie y.
2. Humani y summons a mo al and e hical consciousness o human digni y,
espec and he equal alue o human li e as he sou ce o one’s indi idual
exis ence.
3. This app oach p omo es mu ual symbio ic bene i s in he go e nance o
en ep eneu ial ac i i ies o bo h business and socie y.
Towa ds an U u, Unhu-Ubun u en ep eneu ship amewo k
74
Communi a ianism
The coope a i e en ep eneu ship desc ibed by Sku nik (2002) and he
Ubun up eneu ship model by Kasu (2017) p o ide cha ac e is ics o
o ganising economic ac i i y h ough an Ubun u-cen ic app oach ha
includes bo h indi idual and socie al le els. The Ubun u p inciples o
communi a ianism can be emb aced h ough he in e sec ionali y be ween
coope a i e en ep eneu ship and Ubun up eneu ship models o owne ship
and go e nance. Kasu (2017) emphasises ha Ubun up eneu ship is
cen ed on he inclusi e pa icipa ion o communi y membe s o add ess
p oblems o common in e es , ul ima ely gene a ing weal h o he
communi y a he han ocusing on maximizing p o i s o indi iduals.
Acco ding o Kasu (2017), local knowledge sys ems o e en ep eneu ial
solu ions ha a e sus ainable and can add ess cu en issues when
ans e ed om adi ional knowledge sys ems. This sugges s ha Ubun u
ene s may c ea e an al e na i e sus ainable en ep eneu ship model
h ough he in eg a ion o Ubun u knowledge sys ems. Ubun up eneu ship
en ails ha en e p ising should be concei ed as an in eg al pa o he
communi y. In p inciple, communalism in eg a es indi idualism and
communalism by ega ding he indi idual as pa o he g ea e collec i e
(Radebe & Phooko, 2017; Hol & Li lewood 2018)
In he con ex o Ubun up eneu ship, communalism means ha he
communi y sha es i s economic esou ces in pu sui o mu ual bene i o
socie y.
Ubun up eneu ship can be ex ended o inco po a e an owne ship
s uc u e ha p omo es collec i e owne ship and en e p ise o economic
esou ces wi hin socie y, which aligns wi h coope a i e en ep eneu ship.
Sku nik (2002) desc ibes he coope a i e model as based on he guidelines
o au onomous eams ha olun a ily uni e o add ess he common socio-
economic and socio-cul u al needs o socie y h ough en e p ise, a he
han pu suing he maximisa ion o in es ed capi al. Sku nik (2002) de ines
coope a i e alues as encompassing sel -help, democ acy, equali y and
digni y. Implici and explici insigh s om schola s such as Sku nik (2002),
Kasu (2017) as well as Radebe and Phooko (2017) p o ide guidelines o
he undamen al p inciples ha should unde pin he go e nance model o
Ubun u en ep eneu ship. Acco ding o Sku nik (2002), he p inciple
behind coope a i e en ep eneu ship is ha i is open o all membe s o
socie y o p oduce goods and se ices in he in e es o he communi y.
Sku nik (2002) u he explains ha coope a i e en ep eneu ship can be
iewed as a model o o ganising economic esou ces – pas , p esen and
u u e – based on he p inciple o collec i e small businesses ha p oduce
goods and se ices bene i ing socie y a he han gene a ing p o i s om
income. I is impo an o no e ha coope a i e en ep eneu ship di e s
Chap e 3
75
om o he o ms o business in e ms o i s basic aims, owne ship s uc u e
and p inciples. Acco ding o Sku nik (2002), coope a i es a e ounded on
he p inciples o independence, democ acy, equali y and digni y. Thei
membe s also uphold he mo al p inciples o anspa ency, social
esponsibili y, hones y and compassion.
Coope a i e Ubun up eneu ship go e nance and
sus ainabili y amewo k
This s udy p oposes o combine coope a i e en ep eneu ship and
Ubun up eneu ship o design a new concep ual model o coope a i e
Ubun up eneu ship sus ainabili y and go e nance. Because Ubun u is
based on people’s mo al beha iou owa ds one ano he – mo e p ecisely,
how we ea o he s and how we a e ea ed by o he s – Regine (2009,
p. 21) concu s ha Ubun u encou ages he p ese a ion o humani y.
Ubun u applies o he business sec o as i highligh s he alue o
in e pe sonal ela ionships and emphasises alues like ha mony and ca e
(Wes 2014, p. 47). Ubun u is in e ela ed o he sub ield o no ma i e
e hics, which ocuses on de ining wha cons i u es igh and w ong
beha iou and aims o c ea e guidelines o conduc (Nicolaides 2014,
p.18). I , he e o e, equi es he p esen a ion and de ence o a mo al code,
o wha he ideal ci cums ance ough o be. I is widely ecognised as a
communi y-o ien ed philosophy ha p io i ises cha ac e is ics such as
ha mony, compassion and open-mindedness. Acco ding o Gianan (2011,
p.64) and Taylo (2014, p.332), he e has been conside able discussion on
he e hical in e p e a ion o Ubun u. The Ubun u p o e b, ‘A pe son is a
pe son because o o he people’, inspi ed Taylo (2014, p. 332), o o mula e
an ac ion-guiding p inciple: ‘An ac ion is an ac ion because o o he people’.
This led o he de elopmen o a p inciple o e hical ac ion. All ma e s
discussed in his s udy culmina ed in he de elopmen o he coope a i e
Ubun up eneu ship model depic ed in Figu e 3.1.
Figu e 3.1 shows he Ubun up eneu ship model. This p oposed model
inco po a es he concep o Ubun u as an in eg al pa o de e mining he
owne ship, alues, a ionale and pu pose o en ep eneu ship and i s
go e nance o sus ainabili y. The ela ionship be ween Ubun u and he
c ea ion o sus ainabili y should be embedded in communi y owne ship
and coope a i e go e nance o SMEs in pu sui o weal h c ea ion o he
communi y. The concep ualisa ion o Coope a i e Ubun up eneu ship is
based on he in eg a ion o coope a i e alues and p inciples, Ubun u
alues, en ep eneu ship alues and co po a e go e nance p inciples in he
o ma ion and owne ship o small en e p ises, as shown in Figu e 3.1. The
p oposed model indica es ha communi y membe ship owne ship and
unding, ounded on coope a i e alues and p inciples such as democ a ic
83
How o ci e: Sha a, H 2024, ‘An insigh in o amily-owned businesses, g ow h and sus ainabili y’,
inMMagocha & M Ma ashu (eds.), Co po a e go e nance p ac ices p omo ing he sus ainabili y o small,
medium and mic oen e p ises in Sou h A ica, AVARSITY Books, Cape Town, pp. 83–103. h ps://doi.
o g/10.4102/aosis.2024.BK404.04
Abs ac
In Sou h A ica, amily-owned businesses con ibu e immensely o he
economy h ough employmen c ea ion, axa ion and he c ea ion o goods
and se ices. Family-owned businesses ply hei ade ac oss a ious sec o s
o he economy and his has seen some g owing o he ex en o being
egis e ed on he Johannesbu g S ock Exchange o aise unds. Highly
pe o ming amily-owned en i ies ca ego ised as small and medium
en e p ises (SMEs) can egis e on he Al e na i e Exchange o aise unds.
Despi e mechanisms o aise unds, including deb om comme cial banks
and en u e capi al, amily-owned en i ies s uggle o su i e beyond he
hi d gene a ion. The p ima y cause o his p edicamen is poo
implemen a ion o co po a e go e nance p inciples, such as using a amily
business cons i u ion o di ec en i y in e nal and ex e nal a ai s. A amily
business cons i u ion o amily-owned SMEs is compa able o a Memo andum
An insigh in o amily-owned
businesses, g ow h and
sus ainabili y
He ing Sha a
Depa men o Business Managemen and Economics,
Facul y o Economic and Financial Sciences,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Chap e 4
An insigh in o amily-owned businesses, g ow h and sus ainabili y
84
o Inco po a ion, which was o me ly known as he a icles o associa ion in
con en ional companies. I ou lines he au ho i y o he boa d membe s and
desc ibes how in e nal and ex e nal a ai s a e o be managed. This chap e
ou lines how applying co po a e go e nance p inciples enhances he
sus ainabili y o amily-owned en i ies h ough he adop ion o o mal
go e nance s uc u es, which help esol e con lic s and p omo e
collabo a ion. Adop ing a amily business cons i u ion is conside ed a mo e
in he igh di ec ion o go e n e ec i ely a amily-owneden i y.
In oduc ion
Family-owned businesses in Sou h A ica exis in many sec o s o he
economy and hei di e en sizes ange om small o la ge en i ies
egis e ed on he Johannesbu g S ock Exchange (JSE). The high-pe o ming
amily-owned small and medium-en i ies (SMEs) a e egis e ed in he
Al e na i e Exchange (AL X) o aise capi al h ough he selling o sha es
on a egula ed pla o m ha is easily accessible o a global ma ke . Family
en i ies con inue o su e om adi ional challenges such as succession
planning. This poses a huge h ea o he sus ainabili y o amily-owned
en i ies. This p oblem is exace ba ed by he inadequa e applica ion o
co po a e go e nance p inciples o ensu e he con inui y o he en i y om
one gene a ion o he nex . Resea ch indica es ha mos o he amily-
owned en i ies only su i e wo amily gene a ions and ail o li e beyond
he hi d amily gene a ion. Gi en li le esea ch on how he applica ion o
co po a e go e nance can mi iga e he ailu e o amily-owned businesses
and ensu e hei sus ainabili y, his s udy e iews he li e a u e in a bid o
con ibu e o li e a u e o his deba e.
Adop ing a amily business cons i u ion, appoin ing he boa d o
di ec o s, planning on how o in oduce new amily membe s o he
business, appoin ing and announcing an hei , as well as emune a ion a e
some applicable co po a e go e nance p inciples ha can enhance he
sus ainabili y o SMEs. In addi ion, ha ing a amily business cons i u ion in
place is likely o minimise amily con lic s ha may collapse he en i y.
A amily business cons i u ion p o ides a clea pa h o ackling con lic s as
hey eme ge gi ing he en i y a be e chance o a ain sus ainabili y o he
en i y in o he u u e amily gene a ions. This chap e highligh s how SMEs
in Sou h A ica can u ilise he men ioned co po a e go e nance p inciples
o ensu e he longe i y o amily-owned en i ies.
De ini ion o a amily business
The impo ance o amily business o he Sou h A ican economy canno
be o e looked (Ven e & U ban 2015). Resea ch by Ven e , K uge and
Chap e 4
85
U ban (2010) poin s ou ha in Sou h A ica, amily businesses ha e been
con ibu ing signi ican ly o he economy o a leas h ee cen u ies and
app oxima ely 60% o he businesses lis ed on he JSE a e amily businesses.
To unde s and be e he concep o amily businesses, we mus poin ou
ha a amily mus exis be o e he business is o med. The e o e, o be
called a amily business, a signi ican amoun o coope a ion o oge he ness
mus exis wi hin he amily ha sha es a simila goal, ha is, o exploi a
business oppo uni y while an icipa ing passing leade ship o a younge
amily membe a a la e s age. Familiness becomes key o he exploi a ion
o business oppo uni ies.
Familiness as coined by Hebbe shon e al. (2003) speaks o he a e
amoun o esou ces which he en i y owns because o posi i e ies ha
exis wi hin he amily and in e ac ions be ween indi idual membe s and
he business. Acco ding o Maas (2009), a amily business is a en u e ha
is dependen on amily ela ionships o achie e i s ision which can be
desc ibed as he amily’s ision ha is passed om one gene a ion o he
nex . Fou key issues can be no ed om he gi en de ini ion, which a e:
• The amily (whole o pa ) is ac i ely in ol ed in he decision-making
and daily unning o he business ac i i ies.
• The business ge s i s manda e om he amily who de e mine he
s a egic di ec ion ha he business mus ake o achie e he obliga ion
in ques ion.
• A leas one membe o he amily is ac i ely in ol ed in he business.
• The o e all goal is o sus ain he business o he bene i o u u e amily
gene a ions.
Whe e a husband and wi e a e unning a business en u e, ha en u e
does no quali y o be ca ego ised as a amily business. The en u e can
only quali y o become a amily business when hei child en also become
c i ical playe s in he unning o he en u e (Ven e & U ban 2015). Howe e ,
he in en ion mus emain ha o passing he business o he u u e
gene a ion o quali y he en u e as a amily business. Fo he amily o be
able o in luence he s a egic di ec ion o he business, hey should
command a la ge s ake in he business. In o he wo ds, hey should be he
majo sha eholde o he en u e in ques ion. This is impo an i he amily
is o be able o ensu e ha he business is un in line wi h amily alues and
belie s.
Family businesses and co po a e
go e nance
The his o y o amilies being in ol ed in business ac i i ies is as old as he
his o y o he wo ld. Families s a ed being in ol ed in business ac i i ies
An insigh in o amily-owned businesses, g ow h and sus ainabili y
86
du ing he e a o ba e ade. The Indus ial Re olu ion only made
business ac i i ies o indi iduals and amilies simple and manageable,
pa icula ly conce ning eco d keeping. Howe e , as indus ialisa ion
became o e shadowed by in o ma ion and communica ion echnology
(ICT), his opened a new sec o o amily-owned businesses o h i e.
The mos p ominen amily businesses globally a e now ound in he ICT
sec o (KPMG 2017). Some amily businesses ha e managed o emb ace
he digi al economy, in he o esigh o echnological changes; hence,
hey ha e e ol ed o become mul i-conglome a e en i ies (KPMG 2017).
Digi alisa ion, inno a ion, succession planning and go e nance a e some
o he majo challenges a ec ing he sus ainabili y o amily-owned
businesses (Liu, Zhou & Li 2023). Sou h A ican amily-owned businesses
as pa o SMEs a e no immune and a e he mos ulne able o he ou
s a ed challenges.
This chap e e iews he li e a u e and in es iga es whe he he
implemen a ion o co po a e go e nance p inciples could mi iga e he
planning, and he o e all go e nance challenges aced by amily businesses
in Sou h A ica, ha is, succession. The e a e no Sou h A ican s udies ha
ha e in es iga ed his subjec albei calls o esea ch on he phenomena
(Fahed-S eih 2009; Gompe s, Ishii & Me ick 2003; Neubaue & Lank 1998;
Sa bah & Xiao 2015). This chap e a emp s o ill his oid and con ibu e
o he li e a u e by e iewing empi ical li e a u e on amily-owned SMEs
and co po a e go e nance o iden i y a eas whe e co po a e go e nance
p inciples can be u ilised o ensu e he sus ainabili y o amily-owned SMEs
in Sou h A ica. Acco ding o Bhaga and Bol on (2019), co po a e
go e nance e e s o a s uc u ed me hod o go e ning an en i y, consis ing
o ules, p ocesses and p ac ices implemen ed by managemen and
leade ship o e ec i ely di ec and con ol he o ganisa ion. Gi en he
impo ance o amily-owned businesses in Sou h A ica, he need o
implemen co po a e go e nance p inciples o he sus ained success o
amily-owned SMEs is di icul o o e look.
Co po a e go e nance, in i s simples o m, is a sys em h ough which
en i ies a e di ec ed and con olled (Pu bawangsa e al. 2020). This
de ini ion is cen ed on wo aspec s namely, managemen and s ewa dship.
Addi ionally, he elemen o disclosu e has been acknowledged o be
ex emely c i ical gi en ha public con idence is key o unning a
p o i able en i y. In addi ion o disclosu e, checks and balances a e e y
impo an o he con inui y o he i m. Howe e , he key o all his is ha
concen a ion o powe on one indi idual in he amily businesses should
be a oided o ensu e ha decision-making becomes a democ a ic
app oach whe e all playe s mus ha e a say in he daily a ai s o he
en i y. Bo owing om co po a e go e nance p inciples, special emphasis
is on he need o an independen boa d o di ec o s wi h su icien
Chap e 4
87
au ho i y o challenge amily decisions. On he con a y, esea ch indica es
ha amily membe s a ely appoin a boa d o di ec o s which is likely o
weaken hei con ol (Se ia-A maja, Tanewski & Skully 2009). This implies
ha amily-owned SMEs s uggle wi h he implemen a ion o co po a e
go e nance p inciples, and his aises ques ions ega ding hei
sus ainabili y.
The agency cos heo y ad oca es o he sepa a ion o managemen
and i m owne ship. Thus, i m owne ship should be widely dis ibu ed
among sha eholde s, while con ol o he i m should be exe cised by
manage s (Jensen 1986). I is commonly known ha in amily-con olled
en i ies, he agency cos heo y is applied di e en ly as amily membe s
a e also en i y owne s; hence, hey a e di ec ly in ol ed in managing and
con olling he en i y (Ang, Cole & Lin 2000). I he e o e ollows ha
he e is a high p obabili y ha amily membe s will dis ega d in es men
decisions ha bene i he mino i y s akeholde s and pu sue ha which
inc ease hei own weal h (Villalonga & Ami 2006). In o he wo ds, amily
membe s make use o mino i y s akeholde s’ esou ces o en ich
hemsel es (Kilinca slan 2021). This is conce ning gi en ha some
in es men decisions app o ed by amilies may u n ou o be unp o i able
in he long e m a e incu ing huge capi al expendi u es. Such a scena io
could be easily a oided in he p esence o an independen boa d o
di ec o s wi h su icien au ho i y, and when he e is p ope disclosu e on
how he en i y u ilises i s inancial esou ces, among o he s. This indica es
ha he adop ion o co po a e go e nance in amily-owned businesses
may po en ially minimise con lic s o in e es ha a ise be ween owne ship
and con ol o he SMEs.
The chap e u he discusses succession planning in amily businesses
a leng h and iden i ies how co po a e go e nance can make his p ocess
less s enuous and con lic - ee. This is impe a i e gi en ha wi hin amily
businesses, managemen is o en passed om one gene a ion o he nex
as he o he gene a ion ge s olde , dies o e i es om amily business
ac i i ies. By doing his, he chap e answe s he ques ion, how can
co po a e go e nance be applied o ensu e a less s enuous and con lic -
ee succession p ocess wi hin amily businesses? The chap e u he
explains how he p ocess o deciding on a new manage is o en ca ied
ou o ensu e a smoo h manage ial ans e and sus ainabili y o a amily-
owned business. The chap e unpacks go e nance challenges a ec ing
amily-owned businesses in Sou h A ica. Mo e impo an ly, he chap e
sugges s se e al co po a e go e nance s a egies o be used o add ess
amily-owned en i y go e nance challenges. By aking his app oach, he
s udy answe s he ques ion, Wha challenges do amily-owned SMEs in
Sou h A ica encoun e , and how can co po a e go e nance p inciples be
used o o e come such obs acles?
An insigh in o amily-owned businesses, g ow h and sus ainabili y
88
Succession planning in he con ex o a
amily business
The in en ion o s a ing a amily business is o un he en i y o he bene i
o he i s gene a ion ( he en u e c ea o s) and u u e gene a ions ( he
child en, g andchild en o close amily membe s) (Ven e & U ban 2015).
I ollows ha as he bu on is passed om one gene a ion o he nex ,
ca e ul planning and hough ul conside a ion mus ake place (Michel &
Kamme lande 2015). Succession in he con ex o amily business desc ibes
a p ocess o choosing a leade who will assume leade ship oles in he
business when he cu en leade s eps down (Renuka & Ma a h 2021). The
new leade can ei he be a amily membe o a non- amily membe who
hen can be ca ego ised as a p o essional manage . Ca e ul planning and
hinking a e needed as he business isks collapse i a new successo is
poo ly chosen.
The ad en o echnology has s imula ed he g ow h o many amily
businesses. Sus ainable g ow h equi es a pa adigm shi , pa icula ly in
he ec ui men o non- amily manage s in o he business. By applying
co po a e go e nance p inciples, succession planning can be less s enuous
and a con lic - ee exe cise (Idigbe, Tadema & Ojewumi 2021). I is he e o e
impo an o men ion ha co po a e go e nance has wo ace s, ha is,
he co po a e go e nance s uc u e and co po a e go e nance p ocesses
(Sa bah & Xiao 2015). On he one hand, go e nance s uc u es’ ocus is
solely on he owne ship s uc u e as well as he boa d s uc u e. I s co e
manda e is ins illing discipline and guiding he beha iou o people in ol ed
(co po a e go e nance ac o s), in unning he a ai s o he i m, ha is, he
execu i e eam comp ising o he boa d, managemen and owne s. On he
o he hand, go e nance p ocesses ensu e ui ul engagemen s o achie e
he desi ed objec i es and goals h ough se go e nance s uc u es.
In a amily-owned en i y, succession planning can be e y challenging
especially i he ounde is he one o be eplaced. Replacing a ounde who
has been a he o e on o building a i m om 0 o 200 employees is no
like eplacing a leade who has g own a i m om 201 o 500 employees.
The key issue is ha o leade ship s yles equi ed o con inue he i m
cul u e and compe i i eness (Moa s & DeNicola 2021). Co po a e
go e nance p inciples sol e his issue by ensu ing ha he exis ing boa d
and managemen look in o he en i y da a o iden i y unc ional manage s
who a e consis en in e ms o pe o mance and men o hem o become
he nex en i y leade s (Be en -B aun & Uhlane 2012; Leade ship Dynamics
2023; Suess 2014). Business playe s us and ely on exis ing depa men al
pe o mance da a in he p ocess o choosing he nex successo . Hence,
elying on pe o mance da a o de e mine he nex successo elimina es
con lic s and is a less s enuous exe cise.
Chap e 4
89
Succession planning mus no be limi ed o eplacing he leade a e
qui ing o e i emen . Some imes, leade s may be incapaci a ed, owing o
men al illness and acciden s, making hem unable o con inue hei
leade ship du ies. Spence S ua (2021) ound ha du ing he co ona i us
disease 2019 (COVID-19) pandemic e a, abou 75% o Chie Execu i e
O ice s (CEO) e i ed o s epped down, 20% esigned unde p essu e, 4%
s epped down ci ing heal h issues and 2% esigned owing o me ge s and
acquisi ion decisions. The a o emen ioned s a is ics ei e a e he impo ance
o p oac i e succession planning. Smi h and Conlon (2010) emphasised
ha he managemen eam, ha is, he CEO, boa d o di ec o s and he
human esou ces eam, should egula ly ca y ou an in-dep h analysis o
he exis ing eam e sus u u e demands o each leade ship ole. This
allows he managemen eam o iden i y he equi ed ap i ude, skill,
expe ience, knowledge and beha iou s ma ching he leade ship ole. By so
doing, managemen can p epa e and mo e he igh people in o ce ain
posi ions, in o he wo ds, posi ioning he igh indi iduals o ake o e
leade ship oles when he ime comes.
Co po a e go e nance is c i ical in succession planning as i p omo es
compliance and in ce ain ma ke s, pa icula ly he inancial sec o , he e
a e imelines a which appoin men s o manage s o leade s mus be made
and hese mus be obse ed (A eaga & Menéndez-Requejo 2017). Adhe ing
o co po a e go e nance p inciples compels he i m o make succession
appoin men s wi hin he se imelines o a oid in es o panic, lack o
leade ship and unnecessa y dis up ions on he alue-chain.
Acco ding o esea ch (see Be schi-Michel, Siege & Kamme lande
2019; Capu o e al. 2018; Chang, Muba ik & Nagha i 2021), se e al challenges
can hinde a success ul ans e o he business o a new leade which
include bu a e no limi ed o:
• A leade who does no wan o elinquish leade ship oles.
• A leade who is in denial and does no accep he a e o li e ha
e e yone dies.
• A leade who hinks child en will ne e achie e any hing meaning ul
wi hou him o he ha ing a pa in i .
• A leade who does no ealise he need o new ideas, skills and
knowledge as he en i onmen is changing.
• A leade who e uses o ind a successo .
• A leade who chooses only a pe son who sees hings om his o he
pe spec i e as i i is only his o he opinion ha ma e s.
The scena ios highligh ed he e emphasise he ole o leade ship in
succession planning i he amily business is o emain sus ainable. Basically,
pa icipa i e leade ship is c i ical as opposed o he au oc a ic leade ship
s yle in any socie y, including in business en u es. This is because e e y
An insigh in o amily-owned businesses, g ow h and sus ainabili y
90
pe son in ol ed in he day- o-day ope a ions o he en u e has some hing
aluable o con ibu e anging om business managemen expe ise,
echnical expe ise, cus ome managemen skills and ma ke ing as well as
human esou ces skills. Collec i ely, he men ioned skills play a pi o al ole
in os e ing he sus ainabili y o any amily business.
I is also impo an o no e ha succession planning is no he sole
esponsibili y o he leade . E e y amily membe who is in ol ed in unning
he en u e has a ole o play in succession planning (Umans e al. 2020).
Gi en ha no all amily businesses a e wholly owned by an indi idual
amily, i he e o e ollows ha when he e a e o he sha eholde s in ol ed,
he whole succession p ocess mus be anspa en o hei sa is ac ion.
A non- anspa en succession p ocess will esul in in es o s losing
con idence in he new leade and his may esul no only in con lic s
be ween he amily and non- amily sha eholde s bu ul ima e ailu e o he
business. To ensu e a anspa en succession planning p ocess, a amily
cons i u ion can be a e y e ec i e way o dealing wi h and managing
succession planning (Vasquez 2017).
The ole o he amily cons i u ion, which mus be se up by amily
membe s, is o bind hei ac ions and inac ions, as a as he leade ship o
he en i y is conce ned (Siddiqui 2018). The use o ex e nal consul an s in
se ing up he amily cons i u ion can p o e o be i al. The cons i u ion
may include clauses and guidelines on when o no i y hei s o he business,
ec ui men and dismissal o amily membe s, he p ocedu e o handling
key leade ship oles in he business, boa d o di ec o s, enac men o
go e ning policies, sha e owne ship o non- amily execu i es and
amendmen s o he amily cons i u ion among o he in eg al issues o he
smoo h unning o he amily business (A eaga & Menéndez-Requejo
2017). Ha ing a amily cons i u ion does no gua an ee ha he succession
planning p ocess will be smoo h o ha he e will no be dispu es in he
managemen o he business; howe e , i p o ides a ou e map o handling
issues as hey ma e ialise including an eme gency ans e o leade ship
(Idigbe e al. 2021).
No all successions will be simila gi en he changes ha exis in he
mac o en i onmen which in luence he cul u e o one gene a ion o he
o he . In addi ion, he indus y in which he business ope a es also de e mines
how u gen succession planning is needed. Compe i i e indus ies would
need a obus succession plan whe eas s able indus ies may no equi e
such. Howe e , he bo om line is ha succession is ine i able al hough i
may no be imminen . The challenge is ha he absence o a succession plan
complica es he smoo h unning o he business en u e (Ca e , Young &
Alde son 2019; Hilleb and 2019; Umans e al. 2021). S akeholde s a e gene ally
Chap e 4
91
conce ned wi h he con inui y p ospec s o he en u e. The e o e, a clea
succession s a egy ha enables s akeholde s o iden i y he successo o
he business can simpli y a complica ed p ocess. Consequen ly, co po a e
go e nance p inciples – which include es ablishing a amily cons i u ion,
c ea ing a s akeholde s’ ag eemen , implemen ing a code o conduc and
de eloping a emune a ion s uc u e o he boa d o di ec o s and senio
managemen – a e designed o s eamline succession planning and should
be inco po a ed in o amily businesses (Umans e al. 2021). O he c i ical
go e nance s uc u es ha can smoo hen he succession planning p ocess
in amily business include ha ing ad iso y boa ds, a amily council and
se ing up a o mal induc ion p ocess o in oducing new amily membe s
in o he business, among o he s (Idigbe e al. 2021).
Managing succession planning in he amily
business o sus ainabili y
Succession planning in amily businesses is no an easy ask gi en ha i is
mainly associa ed wi h p oblems ha a e emo ional and non- echnical in
na u e (Pa ada e al. 2020). Resul an ly, i is a isk ha can ha e nega i e
consequences leading o he o al collapse o he business en u e.
The e o e, o a oid such a phenomenon, succession planning as a p ocess
needs o be ca e ully managed h ough es ablished co po a e go e nance
s uc u es (Michel & Kamme lande 2015).
Acco dingly, esea ch has es ablished ha he e is a signi ican posi i e
ela ionship be ween go e nance s uc u es and he success o he
succession planning p ocess and ha he e is a posi i e co ela ion be ween
go e nance s uc u es and he managemen o succession planning
(Renuka & Ma a h 2021). Findings om se e al s udies e eal ha he
p esence o a p ope co po a e go e nance s uc u e ensu es ha he e is
ha mony leading o consolida ed e o s om amily membe s owa ds he
success o he en e p ise (B enes, Mad igal & Requena 2011; Hilleb and
2019; S eih, Lussie & Son ield 2019).
Despi e he posi i es ha succession planning b ings o amily
businesses (Umans e al. 2020), esea ch indica es ha mos amily
businesses ei he de e succession planning (Gilding, G ego y & Cosson
2015) o igno e he p ocess al oge he (Decke e al. 2016; Jose y e al.
2017). Howe e , o hose who choose o unde ake succession planning,
i is c ucial o e e yone in ol ed o emembe ha he long- e m su i al
o he amily business la gely depends on selec ing he igh successo
and adhe ing o sound co po a e go e nance p ocedu es (Renuka &
Ma a h 2021).
An insigh in o amily-owned businesses, g ow h and sus ainabili y
98
i m (Mish a & Kapil 2018). In he con ex o a amily-owned en i y, his means
ha he chosen en i y leade ship is empowe ed o engage he ounde s on
e e y decision hey pu o wa d. The boa d also plays he ole o e iewing
and ad ising he execu i e eam. Fo amily-owned en i ies, i is a challenge
o ind amily membe s who a e quali ied o ac in he capaci y o he boa d
o di ec o s. Taking in o conside a ion ha amily-owned i ms always shy
away om appoin ing non- amily membe s in o execu i e posi ions, he e is
a need o amily-owned en i ies o be lexible and inc ease he boa d size o
accommoda e quali ied non- amily membe s o occupy execu i e posi ions.
The hinking is ha hey will pa icipa e in cons uc i e decision-making o
ensu e he sus ainabili y o amily-owned en i ies, as he en i y will ap in o
hei expe ience, compe encies and knowledge o he business wo ld.
Ano he c i ical co po a e go e nance p inciple ound in he King Code is
boa d independence, which is discussed in his sec ion.
Independence o he boa d
A me e appoin men o di ec o s o he boa d wi hou gi ing hem ull
independence o app o e o disapp o e op managemen decisions and
make meaning ul con ibu ions owa ds he sus ainable pe o mance o
he i m is a meaningless e en . Acco ding o he agency heo y, di ec o s
who independen ly pa icipa e in he ac i i ies o he i m wi hou any
a ilia ion o he cu en en i y, excep o hei di ec o ship a e in a be e
posi ion o make a meaning ul con ibu ion owa ds sus ainable i m
pe o mance (Shlei e & Vishny 1997). On he deba e o whe he an
independen boa d o di ec o s posi i ely con ibu es o sus ainable i m
pe o mance, esea ch p o ides mixed esul s.
E idence suppo ing he no ion ha an independen di ec o has a
posi i e impac on i m pe o mance exis s (see Jackling & Johl 2009; Kao
e al. 2019). Con e sely, e idence o he con a y also exis s; o example,
esea ch indica ing a nega i e ela ionship (see Singh & Gau 2009), as
well as s udies poin ing o a non-signi ican ela ionship be ween boa d
independence and i m pe o mance (Zab i, Ahmad & Wah 2016).
Al hough esea ch esul s a e no conclusi e ega ding he ole o an
independen boa d in i m pe o mance, he a gumen o ha ing an
independen boa d o di ec o s is gaining momen um and is well- ecei ed
by co po a e go e nance p oponen s (Singh & Gau , 2009). Family-owned
en i ies o en s uggle o ind quali ied indi iduals o assume execu i e
posi ions wi hin he business. To add ess his gap, he appoin men o non-
amily membe s as independen boa d membe s ensu es meaning ul
pa icipa ion in sus aining he en i y. They achie e his by assuming
ad iso y oles, among o he c i ical du ies, which equi e no a ilia ion wi h
he amily-owned en i y beyond hei di ec o ship.
Chap e 4
99
Di ec o s: Appoin men , nomina ion, emo al and
e m o o ice
Gi en amily dynamics, indi iduals in ol ed o en exhibi di e en economic
in e es s and disag eemen s on how o e ec i ely un he en i y ensue.
Thus, he managemen o amily-owned en i ies is inc easingly becoming a
challenging ask h ea ening hei sus ainabili y (Ismail e al. 2019).
Implemen ing co po a e go e nance p inciples such as he appoin men
o managemen o di ec o s o he i m can esol e managemen issues o
amily-owned en i ies (Suess-Reyes 2017). This is because he boa d o
di ec o s’ p ima y manda e is o p o ide managemen o e sigh , whe e
hey exe cise con ol, alloca e esou ces and p o ide he necessa y
in o ma ion o managemen o unde ake hei du ies including succession
planning (A eaga & Menéndez-Requejo 2017). The leade ship o be
appoin ed mus ha e a clea e m o o ice and au ho i y, and hey mus
be isiona y and compe en people o lead he amily-owned en i y.
Fo example, he 21s -cen u y business en i onmen is domina ed by
echnological changes; he e o e, he en i y di ec o s mus ha e a clea
s a egy on which echnology hey would exploi o ensu e he
compe i i eness o he i m.
Co po a e disclosu e
Remune a ion is a c i ical subjec and s akeholde s a e paying mo e
a en ion o disclosu e and o ing on he subjec o emune a ion. I should
be no ed ha employees and managemen o he en i y a e paid by he
en i y. The unds hey ecei e a e unded by in es o s coming om all o e
he globe, and he di ec o s o he i m mus be emune a ed ai ly,
esponsibly and anspa en ly. This will ensu e he sus ainabili y o he i m
h ough sound iscal managemen p ac ices.
In he con ex o a amily-owned en i y, ounde s expec he en i y o
und hei li e expenses as payback o he ime hey spen building he
i m om he g ound up (Nyamwanza, Ma hiki & Ganyani 2018).
Suchp ac ices do no help as he en i y may no be making money as i
was du ing he s a -up e a. I is, he e o e, ad isable ha as he ounde s
pass on he i m o he nex gene a ion, hey should e i e and in es hei
unds elsewhe e (Ven e & U ban 2015). In o he wo ds, hey mus s op
pa icipa ing in he daily ope a ions o he i m. Howe e , om ime o ime,
he new leade ship can consul hem whene e necessa y as hei
expe ience is an in aluable esou ce (Ven e & Bosho 2007). This will
ensu e minimal in e e ence in he i m’s ac i i ies. I ounde s a e le o
pa icipa e in he daily ac i i ies o he i m a e hey ha e e i ed, hey
o en a gue agains expansion p ojec s in ea o losing hei e i emen
An insigh in o amily-owned businesses, g ow h and sus ainabili y
100
package, among o he hings, a ec ing he b oad pe o mance o he
en i y. This limi s he su i al chances o he i m as he compe i ion
landscape changes and he mic o and mac o en i onmen ac o s demand
signi ican changes in he business app oach.
Role duali y
As men ioned ea lie , amily-owned en i ies a e ad e sely a ec ed by he
a ailabili y o quali ied indi iduals o assume execu i e oles in he en i y.
This esul s in a scena io whe eby he CEO has dual oles including ha o
en i y chai pe son. On he one hand, subsc ibe s o he agency heo y
s ongly ejec he duali y phenomenon and a gue ha his o en leads o
oppo unis ic beha iou s, which ha e di e long- e m consequences,
comp omising he sus ainabili y o he en i y in he p ocess (Jensen &
Meckling 1976). They u he a gue ha o mi iga e agains oppo unis ic
beha iou s; he e is a need o sepa a e he oles o CEO and chai pe son.
On he o he hand, subsc ibe s o he s ewa dship app oach ally behind
he duali y ole. They a gue ha i o e s g ea e au onomy o hose
en us ed wi h maximising weal h o sha eholde s (Donaldson & Da is
1991). Resea ch is needed on his subjec o asce ain whe he in ins ances
whe e ole duali y exis s e sus whe e i does no , wha a e he i m
pe o mance ou comes and o wha ex en ha a ec s he sus ainabili y o
amily-owned en i ies.
Family en i ies and co po a e social
esponsibili y
Fi ms ca y ou CSR ac i i ies o demons a e hei commi men o social,
economic and en i onmen al issues a ec ing he ci izens (Pe ini 2005).
InSou h A ica, ou d i e s o CSR ac i i ies a e ound in li e a u e namely,
ma ke , e hics, go e nmen and social d i e s (Kloppe s 2013). The guiding
heo y in he implemen a ion o CSR ac i i ies by i ms is he T ipple
Bo om Line heo y (Elking on 1997). The heo y emphasises ha each
en i y is equally esponsible o p o ec ing he en i onmen and is equally
o blame o he c imes commi ed agains he en i onmen by i s pa ne s
in he alue chain. Wha his means is he en i y mus ca e ully choose i s
pa ne s o do business wi h. The key issue is as he i m and i s pa ne s
pu sue p o i s, his mo i e mus ha e a simila weigh o p o ec ing he
plane and i s people.
I is he esponsibili y o he amily-owned en i y o clea ly communica e
i s CSR p og ammes o demons a e i s commi men o sus ainable
de elopmen . Such ac ions a e highly alued by all s akeholde s, who, in
e u n, a e likely o be sa is ied o con inue doing business wi h he i m,
Chap e 4
101
leading o i s sus enance. This a gumen is well suppo ed by s akeholde
heo y (F eeman, 1984), which posi s ha i ms a e expec ed o es ablish
and main ain ela ionships wi h all pa ies di ec ly o indi ec ly in ol ed in
he en i y’s a ai s. Fi ms a e u he expec ed o p o ide all in e es ed
pa ies wi h in o ma ion hey may need as CSR is aimed a c ea ing and
imp o ing open channels o communica ion wi h s akeholde s o enhance
e hical and socially esponsible beha iou wi hin i ms (Lim & G eenwood
2017).
As amily businesses con inue o con ibu e o he Sou h A ican
economy, hei sus ainabili y is c i ical. The mos impo an ac o o amily-
owned businesses is hei abili y o di e amily alues owa ds socie y, he
en i onmen and he economy a la ge (Be gamaschi & Rande son 2016).
Acco ding o Be one, C uz and Gomez-Mejıa (2012), o enhance hei
sus ainabili y, amily-owned en i ies p ese e hei socio-emo ional weal h.
In addi ion, esea ch indica es ha amily alues which include long- e m
o ien a ion, employee ela ionship, social and business communi y,
in eg i y, con inui y and a en ion o epu a ion (Le B e on-Mille 2005),
make i ela i ely easie o amily-owned en i ies o implemen CSR
ac i i ies as opposed o non- amily-owned en i ies (Campopiano & De
Massis 2015; Nekhili e al. 2017). All ma e s discussed in his s udy his a
p o ide su icien e idence ha he implemen a ion o co po a e
go e nance p ac ices no only leads o be e pe o mance (economic and
inancial) o amily-owned en i ies bu also enhances hei sus ainabili y.
Di e si y
The gene al ag eemen among co po a e go e nance p oponen s is ha a
di e se boa d is equi ed o ensu e ha he en i y does no miss ou on
ends and oppo uni ies in he business wo ld. This places he i m in a
be e posi ion o exploi new p o i able oppo uni ies, an impo an s ep
owa ds sus aining he i m. Howe e , he emphasis is ha as i ms seek o
di e si y hei boa d membe ship, appoin ing indi iduals solely o hei
s a us – a he expense o compe encies, knowledge and expe ience – will
nega i ely impac he i m’s pe o mance and jeopa dise he sus ainable
agenda in he p ocess.
Es ablishing a boa d made up o people om di e en backg ounds can
be a sou ce o compe i i e ad an age. In Sou h A ica, mos black people
excel in so skills which include human esou ces managemen and public
se ice, and play an impo an ole on issues o na ional in e es such as
ans o ma ion and gende . Al hough hey lack ha d skills, o example,
enginee ing, accoun ing and ac ua y among o he s, hei con ibu ion in
boa d ooms is immense (Spence S ua 2009). In addi ion o ace, di e si y
is also looked a om he gende lens. The esou ce-based app oach a gues
An insigh in o amily-owned businesses, g ow h and sus ainabili y
102
ha males and emales b ing a ied opinions, ne wo ks and leade ship
app oaches when a ending o co po a e issues (Ca e e al. 2019). In
addi ion, esea ch also ound ha male execu i es a e oppo uni y-o ien ed
as opposed o emale execu i es and his g ea ly a ec s hei app oach o
decision-making wi h males being known o be mo e isk ake s while
emale execu i es end o be mo e cau ious (Adams & Fe ei a 2009).
Based on his e idence, o ensu e ha amily-owned en i y is sus ainable, a
di e se boa d is he e o e ecommended.
Conclusion
This chap e discussed amily-owned businesses and how he use o
co po a e go e nance p inciples can enhance hei sus ainabili y. The
sca ci y o li e a u e om a Sou h A ican pe spec i e ma ying he wo
disciplines, albei calls o esea ch, led o he esea che in es iga ing his
impo an subjec o con ibu e o esea ch on his deba e. Family
businesses we e de ined as business en i ies ha a e un by bo h a husband
and wi e wi h he in ol emen o child en, biological o o he wise, aking
pa in daily ope a ions o he i m o pass i m leade ship and con ol o
he child en. This cycle mus con inue esul ing in he business changing
leade ship as one gene a ion passes he o ch o he nex gene a ion.
Toensu e ha he amily-owned becomes a sus ainable business, ha is,
su i ing many gene a ions, succession planning is c i ical. Empi ical
esea ch concluded ha nomina ing a successo ea ly is necessa y o a oid
amily euds and c ea e a clea message ega ding he u u e di ec ion o
he i m. To ensu e he e a e no con lic s in naming a successo , a amily
cons i u ion is c i ical, and each amily business mus ha e d a ed i s being
led by ained consul an s o ake he lead in he p ocess.
Recommenda ions
This chap e discussed amily business and i was e ealed ha he majo
con ibu o o hei ailu e is he inabili y o in use co po a e go e nance
p inciples on c i ical issues such as succession planning. Chie among
hese co po a e go e nance p inciples is he amily business cons i u ion.
I is he e o e ecommended ha because la ge en i ies ely on a icles o
associa ion as a guide on in e nal and ex e nal ela ions and ope a ions,
amily-owned en i ies mus adop a amily business cons i u ion o
simila pu poses. A amily business cons i u ion will guide he business in
e e y aspec o i s ope a ions. The amily business cons i u ion will
p obably ha e clauses o deal wi h he ollowing key issues: P ac ising
co po a e go e nance p inciples which include he appoin men o a
boa d o di ec o s, ha ing an independen boa d o di ec o s, co po a e
disclosu e, ole duali y and di e si y is suppo ed by empi ical esea ch
Chap e 4
103
which sugges s ha his may enhance he sus ainabili y o amily-owned
businesses in Sou h A ica and globally. O he c i ical co po a e
go e nance p inciples ha enhance he sus ainabili y o amily-owned
businesses include he pu suan o CSR ac i i ies. When a amily-owned
en i y begins aking pa in ac i i ies ha ma e o he communi y such
as spo s sponso ships and he building o public clinics and pa ks among
o he key conside a ions, his sends a clea message ha he en i y alues
humani y and he plane when seeking p o i s. Such a ges u e posi ions
he amily-owned en i y be e han i s compe i ion esul ing in be e
o e all pe o mance, he eby enhancing i s sus ainabili y p ospec s. As
s a ed ea lie , he adop ion o a amily business cons i u ion does no
gua an ee he sus ainabili y o he amily business, no does i gua an ee
ha he en i y will un smoo hly wi h ewe con lic s. The amily business
cons i u ion p o ides a oadmap o help he amily esol e issues as hey
a ise. This ensu es ha in e nal p oblems a e add essed quickly, allowing
he amily o ocus on he business’s key manda e.
105
How o ci e: Masha, AK, Ma enda, S, Fihla, S & Mbodila, M 2024, ‘Sus ainabili y o su i alis mic oen e p ises
and hei ole in in o mal employmen c ea ion’, in M Magocha & M Ma ashu (eds.), Co po a e go e nance
p ac ices p omo ing he sus ainabili y o small, medium and mic oen e p ises in Sou h A ica, AVARSITY
Books, Cape Town, pp. 105–127. h ps://doi.o g/10.4102/aosis.2024.BK404.05
Sus ainabili y o su i alis
mic oen e p ises and hei
ole in in o mal employmen
c ea ion
An hony K Masha
Depa men o Managemen S udies,
Facul y o Economics and In o ma ion Sys ems,
Wal e Sisulu Uni e si y,
Queens own, Sou h A ica
S en o d Ma enda
Depa men o Ma ke ing, Public Rela ions and Communica ion,
Facul y o Public Managemen and Adminis a ion Sciences,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Siphena hi Fihla
Depa men o Managemen S udies,
Facul y o Managemen and Public Adminis a ion Sciences,
Wal e Sisulu Uni e si y,
Bu e wo h, Sou h A ica
Munienge Mbodila
Depa men o In o ma ion Technology Sys ems,
Facul y o In o ma ion Technology Sys ems,
Wal e Sisulu Uni e si y,
Queens own, Sou h A ica
Chap e 5
Sus ainabili y o su i alis mic oen e p ises and hei ole in in o mal employmen c ea ion
106
Abs ac
O e he pas ew yea s, unemploymen among young people has been
ising, leading many o u n o su i alis en ep eneu ship o hei needs.
This app oach in ol es in es ing minimal capi al in o a business o ensu e
amily su i al, wi h his o ical oo s in Sou h A ica. Despi e he g ow h o
his sec o , no esea ch has been conduc ed in he Eas e n Cape o
demons a e how su i alis en ep eneu ship con ibu es o job c ea ion
and how hese en e p ises can be sus ained. The sus ainabili y o
su i alis mic oen e p ises and hei ole in c ea ing in o mal employmen
can be enhanced h ough co po a e go e nance p ac ices. This chap e is
in o med by case s udy esea ch conduc ed in he Bu alo Ci y Me opoli an
Municipali y in he Eas e n Cape, which employed a mixed me hods
esea ch app oach o explo e he sus ainabili y o su i alis en ep eneu s
and hei con ibu ion o he c ea ion o in o mal employmen
oppo uni ies. The s udy is g ounded in he acknowledgemen by a ious
w i e s ha en ep eneu ship, e en a a su i alis le el, leads o job
c ea ion. The esea che s adop ed a posi i is esea ch pa adigm and
app oach. Using a andom sampling echnique, da a we e collec ed
h ough s uc u ed sel -adminis e ed and d op-o ques ionnai es. Simple
desc ip i e s a is ics we e used o da a analysis. The s udy ound ha
su i alis en ep eneu s gene a e a signi ican numbe o jobs, indica ing
hei con ibu ion o employmen c ea ion. The s udy ecommended ha
su i alis en ep eneu s be gi en access o unding and aining sessions
o enhance hei skills. Fu he mo e, he s udy emphasised ha Sou h
A ican suppo policy should no o e look he impo ance o su i alis
en ep eneu s.
In oduc ion
In an en i onmen whe e you h unemploymen is ampan as in Sou h
A ica, he e is a need o suppo su i alis en ep eneu ship. Recen ly,
his ype o en ep eneu ship has become an a ea o ocus. Su i alis
en e p ises a e cha ac e ised by unemployed pe sons, ocusing on in es ing
li le capi al o gene a e minimum income o keep hei amilies ali e
(Mbom u e al. 2021; Mo hoa & Rankhumise 2021; Ouma-Mugabe, Chan &
Ma ais 2021).
The exis ence o su i alis mic oen e p ises is g ounded in he his o ical
backg ound o he coun y. Kambikambi (2003) in o ms us ha since he
apa heid e a, he Sou h A ican economy has been a mix o wo sepa a e
dis inc economies, ha is, de eloped economy consis ing o mos ly
whi e-owned and o mal businesses on one hand and de eloping economy
Chap e 5
107
consis ing mos ly o black-owned and in o mal businesses. F ancis,
HabibandValodia (2021) a i m ha sepa a e economic sec o de elopmen
has i s oo s in he apa heid pe iod when he economy was delibe a ely
s uc u ed as non-inclusi e. Howe e , pos -democ acy, i appea s he e has
been a su ge o su i alis mic oen e p ises. The in o mal sec o in Sou h
A ica has g own eno mously o e he pas 10 yea s, illus a ing why
en ep eneu ship is seen as an impo an ca ee op ion o bo h men and
women (Bo ha 2019). People who ha e alen s, expe iences, d i e and
se e al o he capabili ies, none heless, ind hemsel es wi hou employmen
(Bo ha 2019). This scena io explains why many indi iduals eso o
su i alis en e p ising o ea n a li ing and sus ain hei li es. En ep eneu s
a e i al because hey con ibu e signi ican ly o employmen , job c ea ion
and weal h c ea ion (Bo ha 2019; Nieuwenhuizen 2019). Jus i iably, i can
be p oposed ha he su i alis mic oen e p ises ha e been cen al o he
li elihoods in unde p i ileged socie ies. Conside ing hese poin s, ensu ing
he sus ainabili y o su i alis mic oen e p ises’ ole in in o mal employmen
c ea ion becomes impe a i e.
Fo ins ance, he ends indica e ha Sou h A ican you h su e om
he iple challenges o po e y, inequali y and unemploymen (C ame ,
Sende & Oqubay 2020; F ancis, Habib & Valodia 2021; Mangena 2021;
Mohale 2022). The absence o o mal employmen o abso b he you h in
an en i onmen ha is a lic ed by social and economic ills u he jus i ies
he need o he sus ainabili y o su i alis businesses o employmen
c ea ion. Indi iduals who c ea e business oppo uni ies a his le el do so
o su i alis easons. Su i alis en e p ises do no ha e he powe o add
eal economic alue o c ea e sus ainable employmen oppo uni ies along
he alue chain (Van Aa d & Massyn 2017).
Su i alis en ep eneu ship mus be unde s ood in he con ex o small-
scale businesses. The impo ance o he small, medium and mic oen e p ises
(SMMEs) sec o is well ecognised wo ldwide, wi h such en e p ises o en
being desc ibed as he hea bea , backbone o building blocks o an
economy and la gely being accep ed as signi ican d i e s o economic
g ow h and job c ea ion (B uma & Ma newick 2020). Globally, mo e han
95% o businesses a e SMMEs accoun ing o o e 50% o employmen
(Bay ak a & Algan 2019). Because he go e nmen has high expec a ions
conce ning he SMME sec o , i has made se e al e o s o boos
en ep eneu ship and SMMEs (Moise, Khoase & Ndayizigamiye 2020;
Ouma-Mugabe, Chan & Ma ais 2021). The sus ainabili y o su i alis
mic oen e p ises’ ole in in o mal employmen c ea ion is deba able and
wa an s u he in es iga ions in esea ch, speci ically om a con ex
pe spec i e.
Financial go e nance p ac ices and sus ainable de elopmen
210
o au oma ion solu ions and digi ised me hods. This ansi ion is placing
excessi e p essu e on inancial manage s and business owne s esponsible
o managing he inances o hei o ganisa ions o keep up wi h new
echnologies and skills. As a esul , hese SMMEs lag in e ms o inancial
inno a ion and adap i i y. Fo hese manage s o emain compe i i e, hey
mus be up o da e wi h he new echnical and analy ical skills needed in he
new ma ke s in e ms o epo ing and p o iding eal- ime da a. Howe e ,
da a handling is s ill a challenge o inancial manage s among he SMMEs.
The SMMEs lack inancial suppo om well-es ablished and acc edi ed
inance p o ide s. The easons o no accessing such suppo include no
quali ying and lack o awa eness o he oppo uni ies and in o ma ion
needed o apply. In addi ion, a lack o inancial, ope a ional and s a egic
s uc u es hinde s he SMMEs om accessing inance and making he
compe en use o exis ing capi al o boos hei ope a ions. Also, he lack
o abili y and capaci y in accessing inance and c edi a e he c i ical
hinde ing ac o s in business en u es. This is a c i ical impedimen o
SMMEs’ g ow h, pa icula ly in de eloping economies (Chakab a e al.
2020). One o he majo ac o s ci ed is ha banks see i challenging o
gauge whe he SMMEs can pay back hei deb s on ime. As a esul o he
c edi c unch, egula o s ac oss he wo ld a e en o cing s ingen capi al
adequacy equi emen s, which leads o an inc easing eluc ance o gi e o
he pe sonal and business sec o s du ing and e en a e he inancial c isis.
In Sou h A ica, is he e a co ela ion be ween good inancial in o ma ion
and he success o SMMEs? Acco ding o (Smi h 2020), poo access o
inance o SMMEs has been a challenge in Sou h A ica, ac ing as an
inhibi ing ac o o hei g ow h and sus ainable de elopmen . This lack o
inance can be a ibu ed o poo co po a e go e nance, lack o sui able
inance p oduc s a ailable o SMMEs, insu icien c edi in o ma ion,
pe cei ed iskiness o lending o SMMEs and lack o colla e al. All hese
ac o s de e sus ainable g ow h and de elopmen among hese i ms.
Banks a e na u ally isk-a e se and a e adaman abou hei eques o
s ingen unde w i ing condi ions be o e o e ing inancial assis ance and
c edi o SMMEs. This makes i ha d o en ep eneu s o access his c edi .
In se e al cases, mos o he bank lending is biased owa ds bigge and
mo e es ablished businesses a he han he SMMEs which igh o mee
bank lending equi emen s. This sys ema ic sidelining o he SMMEs
exposes hem o inancial c ises and leads o bank up cy. Acco ding o he
SARB (2021) c edi s, loans and ad ances o companies and businesses
d opped somewha a he end o 2020 because o gloomy c edi
en i onmen s which emained adaman because o he ea s and unce ain y
b ough abou by he COVID-19 pandemic. Ramlee and Be ma (2013)
indica e ha he low and e a ic le el o SMME inancing can emana e om
bo h supply-side and demand-side issues. On he demand side, his
Chap e 9
211
happens when se e al SMMEs disclose ha hey do no ha e access o
inancial o ganisa ions while he supply side includes he ex eme cos s o
inancing oge he wi h high colla e al obliga ions. In he Sou h A ican
case, go e nmen inancing o SMMEs is p o ided h ough g an s and
unding om de elopmen inance ins i u ions (DFIs).
Financial go e nance challenges o small,
medium and mic oen e p ises
The inancial go e nance componen o SMME ope a ions has an ex emely
impo an posi ion in he mode n business en i onmen . Fi s ly, he
managemen o he mo emen o capi al in he business is co e o mode n
SMMEs’ ope a ions managemen . The e iciency o inancial go e nance
will wholly a ec he o al ope a ional bene i . Secondly, whe he he
SMME’s u no e is smoo h, easonable and e ec i e will also de e mine i s
su i al and de elopmen . To achie e luency in business ope a ions,
SMMEs mus o e come a ious inancial go e nance challenges.
Financial go e nance sys ems a e no su icien
The majo i y o SMMEs lack adequa e inancial go e nance sys ems. They
do no main ain inancial eco ds, ha e unclea hie a chical s uc u es o
inancial go e nance ac i i ies and lack de ined epo ing sys ems (B ijlal,
Enow & Isaacs 2014). They also do no ha e de ailed e alua ions, con ol
and moni o ing sys ems. The managemen s yles a e no mally dic a ed by
he owne -manage s. In addi ion, hey o en ha e p oblems such as
in e e ence be ween ela i es o managemen and a lack o dis inc i e
oles o s a , which easily leads o unclea esponsibili ies.
The s uc u e o inancial epo s is inconsis en
and i egula
Reco ds o c i ical asse s a e no accoun ed o such componen s as o al
asse s, accoun s ecei able and in en o y. The s uc u e o cu en asse s is
no mally badly managed which exposes he SMMEs’ business ope a ions.
The neglec o inancial eco ds o en leads o bad deb s as unds low
canno be acked. This inc eases ope a ional and inancial isks and
educes in es o con idence (Min ah e al. 2022).
The cos sys em is no pe ec
The SMMEs cos managemen sys ems do no ha e a comple e wo king
sys em and do no ollow accoun ing s anda ds. The accoun abili y sys ems
a e o en implemen ed badly and andomly. I is no easy o es ablish he
Financial go e nance p ac ices and sus ainable de elopmen
212
s anda ds ha SMMEs ollow, cos o ecas s, inancial decisions, e alua ions,
analyses, e c. Fo example, SMMEs ha e challenges es ima ing da a on
p oduc ion quo as, pe sonnel wo kloads, e alua ion indexes o ma e ial
consump ion pe uni a ea o p oduc ion cos es ima es. This may be
because o poo co po a e go e nance and his de e s hei g ow h.
Poo planning o inancing op ions
The SMMEs lack a de ailed plan o und managemen and p ecise p edic ion
o unds on demand. The p oduc ion and co po a e ope a ional e en s
es ic ed by he ma ke condi ions a e o en poo ly planned (Mahambehlala
2019). As he p oduc ion plans a e a ely a ailable, inancial o ice s mos
o en ail o p edic he unds-on-demand accu a ely, leading o inancing
gaps o cos ly op ions. In addi ion, unclea unding a ailabili y causes a
high cos o unding. As manage s do no ecognise ways o inc ease
capi al, hey acqui e ma e ials on loans om inancial ins i u ions when
acing cash- low di icul ies, which inc eases he bu den o he SMMEs.
Minimal o no use o accoun ing in o ma ion
so wa e
Ve y ew SMMEs selec sui able accoun ing o managemen in o ma ion
so wa e o hei ope a ions o accoun ing in o ma ion sys ems (AIS)
(Amanamah, Mo ison & Asiedu 2016). Al hough hese op ions a e
a ailable on he ma ke , SMMEs do no u ilise so wa e ha in eg a es
basic cashie unc ions wi h o e all accoun ing and managemen ac i i ies.
Accoun ing and managemen sys ems can enable non-cen alised
managemen o p oduc s and assis inancial s a in imely examining
in oicing, ecei ables, accoun s payable and cos s o p o ide ele an
decision-making in o ma ion.
Small, medium and mic oen e p ises
access o inance and in o ma ion
The e is ha mony in he li e a u e acknowledging good inancial
go e nance skills as key o he sus ainable de elopmen o SMMEs.
E icien inancial go e nance p ac ices gi e a pas analysis o he ou look
o he business, which may hen be used o p edic p ospec i e u u e
pe o mance and gi e ways o o ecas any u u e inancial c isis. Op imal
u ilisa ion o inancial go e nance enhances he g ow h o SMMEs and
con ibu es o imp o ing he o e all g ow h o he economies in gene al.
To enhance g ow h among SMMEs, Bho a e al. (2018) ecommend ha
SMMEs should conside seeking business and inancial ad ice om
Chap e 9
213
ou side sou ces like accoun an s. This is because he ma ke o assis ance,
pa icula ly conce ning he egula ions ha a ec SMMEs, is con inuously
changing. Asa esul , many ield expe s a e o e ing a b oade ange o
se ices. Recen ly, he quali y, quan i y and ype o in o ma ion p o ided
by accoun an s ha e e ol ed o mee he needs o SMMEs and e lec he
delibe a e in en o accoun an s.
Many s udies on inancial in o ma ion, inancial li e acy and inancial
inclusion con inue o a ac in e es ing in es iga ions on a ious concep ual
dimensions (Ozili 2018). The e is a no able dea h o collabo a ion be ween
policy and academic esea ch on inancial in o ma ion (P abhaka 2019),
pa icula ly as i ela es o SMMEs. Ozili (2018) posi s ha p ac i ione s eel
ha heo ies o inancial in o ma ion and inclusion a e a was e o ime and
ha such heo ies could lead o a lack o signi icance o p ac i ione s and
policymake s. Resea che s a gue ha i is ad isable o ocus on he
accumula ion o ac s ega ding inancial in o ma ion and inclusion, which
will lead o in o med decisions (Ozili 2020), a he han concen a ing on
opinions abou he ex en o cons uc s embedded in heo ies.
Despi e he di e gen iews, he e is a need o a s uc u e, amewo k
o p inciples o he unde s anding o inancial in o ma ion, and how i will
bene i SMMEs p og ammes. Financial in o ma ion can enhance he
p o ision o inancial se ices o SMMEs a a easonable cos and imp o e
he use o , oge he wi h access o, o icial inancial se ices (Sahay e al.
2015). The inc eased need o expand he colla ion and dissemina ion o
inancial in o ma ion on he SMMEs will enable add essing po en ial
sho alls and a e hei inancial exclusion (Ozili 2020). Such in e en ions
would make i easie o inancial se ice p o ide s o asce ain iabili y
and inc ease anspa ency, po en ially lowe ing he isk pe cep ions
owa ds SMMEs. Financial in o ma ion is impo an bo h om he SMMEs’
pe spec i e and om he iewpoin o he inancial se ices p o ide s
(Demi güc-Kun , Klappe & Singe 2017).
On one side, SMMEs equi e in o ma ion o iden i y hei po en ial
supplie s o unding and o he inancial needs and o e alua e he cos o
he inancial se ices a ailable on he ma ke . On he o he hand, inancial
se ices p o ide s need inancial in o ma ion which can assis hem in
es ima ing he isks ela ed o he SMME which pe ains o applying o
unding and assessing he p ospec s o he SMME wi hin he ope a ional
segmen .
Success s o ies and e o s a policy le el
Financial in o ma ion and o e all inclusi i y ha e been key policy in en o
go e nmen al policies o many eme ging and de eloping coun ies. The e is a
Financial go e nance p ac ices and sus ainable de elopmen
214
s ong belie ha inancial in o ma ion will help b ing SMMEs and he unbanked
popula ion in o he o mal inancial se ices sec o , allowing hem access o
o mal inancial p oduc s and se ices. Many economies a e making signi ican
e o s o achie e op imal le els o inancial in o ma ion and inclusion. Small,
medium and mic oen e p ises ha ope a e in in o mal spaces will ha e access
o cheape banking acili ies wi h minimal documen a ion equi emen s. The
expec a ion is ha SMMEs should be able o ob ain debi ca ds and bank
iden i ica ion numbe s, access cheape c edi acili ies, insu ance policies, and
mobile banking echnology and adop op imised paymen sys ems wi hou
ha ing o make compulso y equi y down paymen s.
Va ious coun ies ha e had some no able success s o ies o access o
banking and inancial in o ma ion a ound he wo ld. Good examples o
de eloping economies a e India (Demi guc-Kun e al. 2017), Kenya (Ho e &
Dubus 2019), Rwanda (O ioma, Madu ei a & Ma inez 2019) and Pe u (Cáma a
& Tues a 2015). In India, inancial inclusion was seen o ha e a di ec link o
po e y educ ion, which con ibu es o economic g ow h and de elopmen .
The case o Rwanda in ol es he communi y sa ings and c edi coope a i es
(SACCOs), a communi y-d i en coope a i e bank, commonly known as
Umu enge SACCOs. In 2019, hey a ac ed mo e han 1.6 million cus ome s
in only 3 yea s. O e 90% o Rwandans a e epo ed o li e wi hin a 5-km
adius and eely access he inancial in o ma ion o an Umu enge SACCO
(O ioma e al. 2019). The case o Kenya in ol es he popula M-Pesa inno a i e
banking sys em. M-Pesa has, o e he yea s, been he chie ins umen in
achie ing g ea inancial in o ma ion access o he Kenyan popula ion and
he SMMEs in Kenya. Pe u saw he in oduc ion o an in e ope able mobile
banking pla o m popula ly known as Modelo Pe u. Modelo Pe u was
in oduced o c ea e mobile inancial se ices and banking o he people
who need i such as he SMMEs, wi h he p ime objec i e o p omo ing
inancial in o ma ion low and access o inancial se ices.
The e is no ques ion ha he inancial se ices p og ammes and
p ocedu es adop ed in some o hese na ions ha e been success ul.
Howe e , wo key conce ns o en a ise: he inancial in o ma ion s eam
and access o banking se ices pose isks o SMMEs and a - isk cus ome s
in socie y. The second conce n is whe he his inancial in o ma ion low
and banking se ices should be aimed a SMMEs ha ha e ne e been
in ol ed in he ecognised inancial sec o o a indi iduals who ha e been
dis an om o mal inancial p oduc s.
Financial go e nance and good co po a e
go e nance p ac ices
Good co po a e go e nance in o ganisa ions leads o an imp o emen
on he pa o inancial go e nance. Danoshana and Ra i a hani (2019)
Chap e 9
215
concu ha he success o an o ganisa ion ega ding inance depends on
he managemen ’s e icacy and inno a i eness, oge he wi h i s compliance
wi h he p inciples o co po a e go e nance. Co po a e go e nance
s anda ds lead o an imp o emen in he company’s inancial pe o mance,
whe e enhanced disclosu es a e mean o p o ec s akeholde in e es s
(Al Mansoo i, Alsaud & Yas 2021). The co e is ha i he co po a e
go e nance wi hin a company is in o de , us is buil be ween he company
and all s akeholde s. As a esul , in he SMMEs, co po a e go e nance
imp o es hei abili y o access unds by c ea ing in es men oppo uni ies
on a long- e m basis.
Se e al s udies ha e been ca ied ou on SMME de elopmen , bo h in
de eloped and de eloping coun ies. These s udies ha e aken a ious
ocuses and di ec ions. Some ocused on SMME de elopmen (Lich ens ein
2018; Roge son 2008), and some on hei su i al and ope a ions (Adam &
Ala i 2021; Dubihlela & Sandada 2014). The o he b anch o s udies explo ed
he linkage be ween o ganisa ional pe o mance using bo h inancial and
non- inancial indica o s and compe i i e p io i ies (Chakab a e al. 2020).
These s udies ha e made meaning ul con ibu ions o he body o
knowledge. Howe e , despi e he unanimous ag eemen ha SMMEs play a
signi ican ole in he economies’ pe o mances, many a e s ill oubled by
inancial go e nance and cons ain s (Tha mini & Lakshan 2021). This
chap e will, he e o e, ocus on he inancial go e nance and co po a e
go e nance p ac ices adop ed in he SMMEs.
Conclusion
The chap e in es iga ed he con ibu ion o SMMEs o he economy and
p o ided hei o e iew in Sou h A ica. In Sou h A ica, he SMMEs’ success
is la gely aligned wi h he his o y o he coun y whe e hose ope a ing in
p e iously ma ginalised egions s ill s uggle in e ms o suppo , and his
limi s hei g ow h and p ospe i y. The go e nmen o Sou h A ica has
since in oduced se e al policies including he NDP which aims a c ea ing
jobs e en h ough he SMMEs. Howe e , ex e nal shocks like he ou b eak
o COVID-19 ha e decele a ed all hese e o s. Financial go e nance, being
a ac o o co po a e go e nance is a concep ha in ol es planning,
o ganising, handling and con olling he inancial and in es ing ac i i ies o
any business ype. The impo ance o p ope inancial go e nance canno
be o e emphasised as i leads o business su i al, g ow h and sus ainabili y
among he SMMEs. The concep o inancial go e nance is b oad and
co e s in es men decisions, inancial decisions and di idend decisions.
Good inancial go e nance esul s in minimisa ion o e o s, imp o ed
compliance, abili y o measu e g ow h, imp o ed p oduc i i y, da a and
inancial anspa ency. Among he SMMEs, inancial go e nance is a
challenge because o low s a ing esul ing in some wo ke s holding
Financial go e nance p ac ices and sus ainable de elopmen
216
mul iple asks in which hey a e no ained. In some cases, he owne uns
all depa men s including inance and his c ea es p oblems whe e inancial
issues a e no well managed. In such cases, inancial go e nance sys ems
a e no su icien , he s uc u e o inancial epo s is inconsis en and
i egula , he cos sys em is no pe ec , he e exis s poo planning o
inancing op ions and he e is minimal o no use o accoun ing in o ma ion
so wa e. The bene i s o inancial go e nance and heo ies ha e been
explained.
Access o inancial in o ma ion and unds is closely linked o he g ow h
o he business. The e is ha mony in he li e a u e ha mos es ablished
inance p o ide s a e eluc an o lend hei unds o small businesses
because o insecu i y and lack o secu i ies. Based on he con en s o his
chap e , he inancial di icul ies ha SMMEs ace, p ope inancial
go e nance sys ems and good co po a e go e nance a e needed o he
sus ainabili y and g ow h o SMMEs.
Recommenda ions
Small, medium and mic oen e p ises should p ac ice good co po a e
go e nance by cla i ying he oles o he chie execu i e o ice (CEO),
inance di ec o and manage s. I is impo an o unde s and ha
go e nance and he es ablishmen o a sound inancial isk managemen
sys em a e he esponsibili ies o he inancial manage . E ec i e inancial
isk managemen enhances su i al and sus ainabili y. Small, mic o and
medium en e p ises should de elop e ec i e go e nance in as uc u es in
he o m o speci ic policies o guide hei beha iou ega ding p ocesses,
p ocedu es, in o ma ion and communica ion on inancial ma e s. Financial
in o ma ion and o e all inclusi i y should be conside ed in he go e nmen al
policies o many poo , de eloping and eme ging na ions. The e is a s ong
belie ha inancial in o ma ion will help b ing SMMEs and he unbanked
popula ion in o he o icial inancial se ices sec o , g an ing hem access
o hese se ices. This will enhance good inancial go e nance among
SMMEs. Small, medium and mic oen e p ises ope a ing in in o mal spaces
can access cheape banking acili ies wi h minimal documen a ion
equi emen s. Small, medium and mic oen e p ises should be able o ob ain
insu ance policies, bank debi ca ds and mobile banking echnology, as
well as access cheape c edi acili ies and adop op imised paymen
sys ems, wi hou being o ced o make manda o y equi y down paymen s.
The in oduc ion o an in e ope able mobile banking pla o m is in ended
o p omo e inancial go e nance and access o inancial se ices among
SMMEs. A mas e policy o SMMEs should be de eloped, a ge ing he
c ea ion o s ong and sus ainable policy condi ions ha place SMMEs a
he cen e o as e economic g ow h and de elopmen . Policies ha hinde
Chap e 9
217
he g ow h and sus ainabili y o SMMEs, including access o aining, c edi
and skills de elopmen , should be in e oga ed. The Depa men o Small
Business De elopmen should be empowe ed o play a key ole in
es ablishing a policy and egula o y en i onmen o SMMEs ha acili a es
hei g ow h, sus ainable de elopmen , job c ea ion and empowe men
while add essing key cons ain s o SMME de elopmen . This also includes
ensu ing good co po a e go e nance.
219
How o ci e: Sibanda, K & Ho e-Sibanda, P 2024, ‘Sus ainable en ep eneu ship pe o mance h ough
adop ion o sound co po a e go e nance p ac ices’, in M Magocha & M Ma ashu (eds.), Co po a e
go e nance p ac ices p omo ing he sus ainabili y o small, medium and mic oen e p ises in Sou h A ica,
AVARSITY Books, Cape Town, pp. 219–242. h ps://doi.o g/10.4102/aosis.2024.BK404.10
Abs ac
Small businesses, especially small and medium en e p ises (SMEs) oday
expe ience a ious isks emana ing om economic, en i onmen al and
social ailu es. As such s a egies o mi iga e clima e change, p o ec he
en i onmen and gene a e social gains owa ds sus ainable de elopmen
mus be complemen ed by a good co po a e go e nance s uc u e ha can
be p io i ised bo h in go e nmen s’, business p ac i ione s’ and policy
make s’ agendas. As such, co po a e go e nance is c i ical o sus ainable
Sus ainable en ep eneu ship
pe o mance h ough
adop ion o sound co po a e
go e nance p ac ices
Kin Sibanda
Business Managemen and Economics Depa men ,
Facul y o Economic and Financial Sciences,
Wal e Sisulu Uni e si y,
M ha ha, Sou h A ica
P og ess Ho e-Sibanda
Logis ics Depa men , School o Managemen Sciences,
Facul y o Business and Economic Sciences,
Nelson Mandela Uni e si y,
Po Elizabe h, Sou h A ica
Chap e 10
Sus ainable en ep eneu ship h ough co po a e go e nance
226
A ailabili y o go e nmen suppo
The a ailabili y o go e nmen suppo is key o p omo ing he SME sec o
as mos SME-sized businesses, pa icula ly in de eloping coun ies, a e
es ablished p ima ily o su i al (Ahmed e al 2020, p. 158). This means
ha i le wi h no ex e nal inancial and non- inancial suppo , SMEs a e
likely o p io i ise ope a ional cos e iciency o s ay a loa and shy away
om any addi ional cos s such as hose om sus ainable en ep eneu ship
ini ia i es implemen a ion. Ahmed e al (2020, p. 158) de ined go e nmen
suppo as he ex e nal suppo o assis ance made a ailable by a ious
go e nmen al ins i u ions o help de elop SMEs. This can be inancial (in
he o m o inancial incen i es) o non- inancial, o example h ough
p omo ing easy access o ad anced echnologies, p oduc eco e y
acili ies, ma ke s, sca ce and ye low-cos esou ces, social suppo and
ax b eaks/ elie s, among o he s (Han e al. 2017, p. 8). Go e nmen suppo
is needed o d i e he SME sec o in gene al, p omo e he success ul
implemen a ion o sus ainable en ep eneu ship p ac ices and boos
sus ainable en ep eneu ship pe o mance in SMEs (Ahmed e al 2020,
p.158; Alkah ani, No din & Khan 2020, p. 3).
P e ious s udies ha e so a associa ed go e nmen suppo wi h
imp o ed p oduc quali y, echnological de elopmen and capabili y,
en e p ise g ow h, enhanced i m pe o mance and new job c ea ion om
SMEs in de eloping coun ies (Guan & Yam 2015; Han e al. 2017, p. 8; Wei&
Liu 2015). A s udy by Alkah ani e al. (2020, p. 3) epo s a s ong
posi i eand signi ican impac o go e nmen suppo on he sus ainable
compe i i e pe o mance o SMEs in Pakis an. As such, lack o go e nmen
suppo can de e SME pe o mance in gene al, and hinde SMEs’ and hei
alue chains’ abili y o achie e sus ainable en ep eneu ship pe o mance.
This can in u n hinde hese en e p ises’ abili y o gene a e new employmen
and ul ima ely sh ink he g ow h o he economy.
Access o adequa e esou ces
The success ul achie emen o sus ainable en ep eneu ship pe o mance
also depends on he SME’s access o a ailable esou ces. These esou ces
include he a ailable echnologies, in as uc u e, inancial esou ces
and skilled pe sonnel. Gene ally, SMEs in de eloping coun ies a e
epo ed o be ei he slow o unwilling o ake ac ion o add ess
en i onmen al issues because o a lack o o mal s uc u es and
limi ed access o ime, inancial and o he non- inancial esou ces like
echnology (Chongoo e al.2016). These SMEs ha e also been epo ed o
ha e caused en i onmen al and socie al challenges such as en i onmen al
deg ada ion, exhaus ion o na u al esou ces, po e y, disease,
unemploymen and emission o dange ous gases in de eloping coun ies
Chap e 10
227
(La ip e al. 2022, p. 51; Ogujiubae al. 2020, p. 14). All hese a e consequences
o poo sus ainableen ep eneu ship pe o mance o SMEs, and gi en he
challenges aced by hese SMEs in mos de eloping coun ies, he only
a ional decision o hese en e p ises o make is ha o p io i ising i m
su i al a he expense o socie al and en i onmen al needs.
Can and Wiid (2013) poin ou ha SMEs in Sou h A ica ind i di icul
o success ully adop sus ainable p og ammes because o a lack o access
o adequa e inance, echnology, in o ma ion and ising c ime a e. This
de e s SMEs om success ully achie ing sus ainable en ep eneu ship
pe o mance. In he case o Zambia, a s udy by Chongoo e al. (2016)
ound insigni ican e ec s o he SMEs’ knowledge o he na u al/social
en i onmen and he h ea s o he na u al/social en i onmen on he
iden i ica ion o sus ainable oppo uni ies. This could be because he
SMEs did no ha e adequa e knowledge o en i onmen al issues and how
o capi alise on he oppo uni ies in a manne ha bene i s he SME,
socie y and he en i onmen . This esona es wi h Chongoo e al.’s (2016,
p. 1) s udy which ecommends ha SMEs need o be ained e en on
en i onmen al and social issues because his migh impac he
sus ainabili y oppo uni ies, as well as hei sus ainable en ep eneu ship
ac ion and o ien a ion.
O ganisa ional cul u e
O ganisa ional cul u e is he e lec ion o he p edominan no ms, alues,
belie s and ideological unde pinnings ha guide he way in which hings
a e ca ied ou in an o ganisa ion (Adebayo e al. 2020, p. 1). I can se e as
an en e p ise’s co e compe ence ha gene a es di e en ial alue o
o ganisa ions ega dless o size (Adebayo e al. 2020, p. 1). P e ious s udies
ha e iden i ied o ganisa ional cul u e as a key eason why en e p ises ail
o success ully implemen hei o ganisa ional change p og ammes and
s a egies such as digi isa ion and co po a e sus ainabili y (Gu e man
2020; Linnenluecke & G i i hs 2010, p. 357). This is especially he case
when he change s a egies and p og ammes a e no aligned wi h an
en e p ise’s o ganisa ional cul u e. E en in SMEs, change s a egies such as
hose ha seek o p omo e sus ainable en ep eneu ship pe o mance can
only succeed once he owne /manage ies o p ope ly align such change
p og ammes and s a egies o he alues, no ms, belie s and ideological
unde pinnings o he SME’s cul u e. This is cong uen wi h Linnennluecke
and G i i hs’ (2010, p. 258) and Medina-Al a ez and Sanchez-Medina’s
(2023, p. 399) supposi ion ha o ganisa ional cul u e impac s he way in
which co po a e sus ainabili y is implemen ed as well as p edic s he ex en
o success o ailu e ha may be obse ed by in oducing such change
ini ia i es in o he o ganisa ion.
Sus ainable en ep eneu ship h ough co po a e go e nance
228
In hei s udy, Linnennluecke and G i i hs (2010, p. 258) also cau ioned
en e p ises which seek o os e a commi men o co po a e sus ainabili y
and ye a e domina ed by in e nal p ocess alues, o he possibili y o
expe iencing ension be ween exis ing o ganisa ional cul u e based on
s abili y and con ol, a need o in oduce cu iosi y, explo a ion as well as
lexibili y. Conside ing he abo e, Gu e man (2020, p. 29) ecommended
ha sus ainabili y leade s mus implemen bo h o mal and in o mal
o ganisa ional cul u al p ac ices o achie e posi i e long- e m bene i s
om he implemen a ion o sus ainabili y p og ammes and s a egies.
The o mal o ganisa ional cul u al p ac ices (i.e. ules and p ocedu es)
will help b ing some o m o s uc u e and se e as suppo o he
ounda ion o inno a ion and o he u u e changes in he o ganisa ion.
Implemen ing in o mal o ganisa ional cul u al p ac ices will c ea e he
needed momen um o change in he en e p ise and suppo a
sus ainable inno a ion cul u e by gene a ing he la es ideas necessa y
o b ing he o ganisa ion close o i s long- e m sus ainabili y goals
(Gu e man 2020, p. 29).
Be els (2010) a gued ha o make sus ainabili y an endu ing pa o
he o ganisa ion, he e is a need o embed sus ainabili y goals in he
o ganisa ional cul u e. O ganisa ional sus ainabili y cul u e has been
de ined as a cul u e in which he membe s o he en e p ise ha e sha ed
assump ions, ideologies and belie s abou he need o balance economic
e iciency, social equi y and en i onmen al s ewa dship, esponsibili y and
accoun abili y (Gu e man 2020, p. 29). Be els’ (2010) s udy u he
elabo a ed ha en e p ises wi h a s ong o ganisa ional sus ainabili y
cul u e endea ou o p omo e he heal h o he en i onmen and enhance
he li elihoods o he socie y while enjoying long- e m su i al, e iciency
and p o i abili y g ow h.
Small and medium en e p ise leade ship’s
sus ainabili y o ien a ion, commi men and suppo
Small and medium en e p ise leade s (owne s/manage s) a e he key
decision make s o he SMEs. They p o ide di ec ion o he SME’s ision,
mission, s a egies, and long- e m goals and alues (Jahanshahi, B em &
Bha acha jee 2017, p. 1636). Likewise, hese leade s can cul i a e a cul u e
ha ei he a ou s o discou ages any sus ainabili y ac ions in he en e p ise.
Acco ding o Closs, Speie and Meacham (2011, p. 102), en e p ise leade s
play a signi ican ole in making decisions ela ed o he en e p ise’s
sus ainabili y engagemen s. Lopez-To es (2022, p. 1) poin s ou ha ,
ecen ly, SMEs ha e been epo ed o p esen low sus ainabili y in e es ,
commi men and ma u a ion le els and a e seemingly neglec ing and
ques ioning he ac ual impac o ans o ming sus ainabili y as a p io i y in
Chap e 10
229
hei en e p ise’s ope a ions. Gi en he cu en ha dships and dis up ions
( he cu en COVID-19 pandemic, he 2022 Russia-Uk aine wa and he
cu en economic ecession), i is unusual o SME leade s o delibe a ely
igno e social and en i onmen al ma e s while p io i ising he decisions on
SME inancial well-being o help ensu e he long- e m su i al and g ow h
o he SME.
A s udy by Jahanshahi and B em (2017) explo ed he ela ionship
be ween op managemen eams’ beha iou al in eg a ion wi h hei
inno a i eness and sus ainabili y o ien a ion in 40 I anian SMEs. Thei
s udy ound ha highly beha iou ally in eg a ed op managemen eams
will pu sue mo e sus ainabili y-o ien ed ac ions han hei coun e pa s
who a e less beha iou ally in eg a ed (Sa ango-Lalangui, Al a ez-Ga cia &
Rio-Rama 2018). This can be achie ed h ough a cul u e o knowledge
sha ing ha will encou age ui ul collabo a ions as well as high beha iou al
in eg a ion be ween SME leade s, which will, in u n, p omo e sus ainabili y
engagemen s and hus enhance sus ainable en ep eneu ship pe o mance
in SMEs.
En e p ise leade s’ beha iou and a i udes a e shaped by nume ous
ac o s, including hei expe iences, educa ion, knowledge and compe ence.
Fo ins ance, i an SME leade has had p io posi i e expe iences wi h
sus ainabili y ac ions, hey a e mo e likely o make decisions ha a ou
sus ainabili y ini ia i es in he SME. Con e sely, p e ious nega i e
expe iences may lead he leade o adop a nega i e a i ude owa ds
sus ainabili y- ela ed decisions.
Also, in cases whe e he leade has mo e knowledge o he impo ance
o pu suing sus ainabili y engagemen s, and he expe ise in he
implemen a ion o such sus ainabili y engagemen s, he leade will show a
posi i e a i ude, and show mo e commi men and suppo owa ds such
sus ainabili y engagemen s in he en e p ise. Whe e SME owne s and
manage s show a posi i e a i ude, as well as p o ide be e suppo and
commi men owa ds sus ainabili y issues, he SME will no only excel in
gene a ing mo e p o i s, bu i will achie e p o i s h ough p io i isa ion o
en i onmen al heal h and socie y’s well-being. As such, i is c ucial ha
SME leade s a ain knowledge on sus ainabili y engagemen s o make
in o med decisions on sus ainabili y ma e s in he en e p ise. P e ious
s udies ha e linked he SME owne /manage ’s le el o educa ion and
knowledge o imp o ed decision-making abili ies, sel - eliance, he
p omo ion o a new se o a i udes and cul u e, as well as he long- e m
su i al and g ow h o SMEs (A ogundade 2011, p. 26; Mhlongo & Daya
2023, p. 7; Pe e s e al. 2014, p. 1127). Such knowledge can be ob ained
h ough o mal educa ion, as well as by a ending sus ainabili y- ela ed
wo kshops and symposiums. These e en s allow SME leade s o in e ac
wi h o he en e p ise leade s, acili a ing he sha ing and exchange o
Sus ainable en ep eneu ship h ough co po a e go e nance
230
knowledge on sus ainabili y issues. This in e ac ion is especially impo an ,
as i in o ms he decisions made by SME leade s.
The SME leade ’s le el o educa ion and knowledge is also linked o he
SME leade ’s compe ency le el in engaging in he en e p ise’s ac i i ies,
which jus i ies i s success in e ms o quali y and e ec i eness. An SME
leade ’s compe ency le el can encompass he leade ’s abili ies o assess
isk, manage ime, de ine he ci cle o pe sonal in e es s, plan, analyse
si ua ions, sol e p oblems, o mula e iable s a egies, esol e dispu es
and lead he en e p ise (Ismail & W igh 2022, p. 1). Exis ing li e a u e
(Cue as-Ve gas, Pa ga-Mon oya & Es ada 2020, p. 69; Da adkeh 2021,
p.42; Siho ang e al. 2020, p. 1607) ha e epo ed di ec links be ween SME
leade s’ compe encies, sus ainabili y engagemen and SME pe o mance.
Acco ding o Ismail and W igh (2022, p. 1), al hough hese compe encies
a e also associa ed wi h sus ainabili y-o ien ed ac i i ies, hey should be
complemen ed by o he ac o s o enhance he sus ainable en ep eneu ship
pe o mance o SMEs, pa icula ly du ing imes o ha dship. Ismail and
W igh (2022, p. 1) u he no e ha SMEs mus manage hei compe encies
success ully and inno a i ely o succeed in hei sus ainabili y engagemen s.
Small and medium en e p ise sus ainable
en ep eneu ship pe o mance e alua ion
me ics and app oaches
Acco ding o Lysons and Fa ing on (2016, p. 606), pe o mance e alua ion
o en employs bo h subjec i e/quali a i e and objec i e/quan i a i e
app oaches. Simila ly, he pe o mance o sus ainable en ep eneu ship in
SMEs can be assessed using ei he quan i a i e o quali a i e me hods.
Va ious app oaches o e alua ing pe o mance include accoun ing me hods
(e.g. p o i cen es, ac i i y-based cos ing and s anda d and budge a y
con ol), sus ainabili y audi s (such as inno a i e con inuous sus ainable
audi s) and compa a i e me hods (like benchma king and a io analysis)
(Lysons & Fa ing on, 2016, p. 606). Pisa and Kupec (2021, p. 193) desc ibe
inno a i e sus ainabili y audi s as cos -e icien , dynamic and con inuous,
in ol ing he emo e collec ion o audi da a. Because o hei cos e iciency,
hese audi me hods can also be applied o mic o and small-sized en e p ises.
In he case o de ia ions om a ge sus ainable en ep eneu ship
pe o mance, audi da a can be ansmi ed o sus ainabili y emo e con ol
cen es, which can ei he p o ide he SME wi h app op ia e emedies online
o de e mine he co ec i e cou se o ac ion o line (Pisa & Kupec 2021,
p.193). Small and medium en e p ises can also use o mal o in o mal con ol
measu es o e alua e hei sus ainable en ep eneu ship pe o mance.
The o mal con ol app oaches can be in o med by s anda dised
en i onmen al managemen p ac ices such as he sus ainabili y s anda ds
Chap e 10
231
p o ided by he In e na ional S anda ds O ganisa ion ISO 14001, while he
in o mal con ols a e shaped by he o ganisa ional cul u e. A s udy by
Johns one (2021, p. 560), al hough conduc ed on SMEs in a de eloped
coun y (No he n Eu ope) con ex , ound ha SMEs adop ed o mal con ol
measu es ha a e p ima ily o ien ed owa ds quan i a i e measu es ela ing
o esou ce e iciency and en i onmen al impac s o disc e e a ge s and
con ols. In he same s udy, p ocess e iciency ela ed o was e managemen
o ca bon emissions was ci ed by he su eyed SMEs as one o he
undamen al en i onmen al pe o mance measu es.
Figu e 10.2 desc ibes co po a e go e nance p ac ices and sus ainable
en ep eneu ship pe o mance me ics o small and medium en e p ises.
Sus ainable en ep eneu ship pe o mance can be e alua ed using a ious
me ics and me ics dimensions. Chedli (2016) conside s he e alua ion o
en ep eneu ial en e p ises’ pe o mance o encompass ac ions ha span
beyond economic/objec i e measu es and pe spec i es. In o he wo ds,
en ep eneu ial en e p ise pe o mance should ac o in good co po a e
go e nance p ac ices. Fo example, in mos en e p ises, wha mos
sha eholde s a e conce ned wi h is no longe he idea o co po a e
p o i abili y, bu a he a socially esponsible go e nance model ha is
esponsi e o he needs o he o ganisa ion as well as hose o he socie y
and en i onmen . Nhemachena and Mu imbika (2018, p. 117) documen ed
he s eps ha add ess en i onmen al, economic and social goals o measu e
he pe o mance o sus ainable en ep eneu s. Based on he abo e, his
chap e b oadly ca ego ises SME sus ainable en ep eneu ship pe o mance
e alua ion me ics in o h ee dimensions, namely, social, en i onmen al and
economic (see Figu e 10.2). Small and medium en e p ises’ en i onmen ally
sus ainable en ep eneu ship pe o mance assesses how success ully an
SME can use i s p oduc s, p ocesses, policies and s a egies o minimise i s
nega i e impac s and enhance i s posi i e e ec s on he na u al en i onmen
(Adebayo e al. 2020, p. 3; Babalola 2012). As shown in Figu e 10.2, SME
en i onmen al en ep eneu ship pe o mance can be e alua ed based on
he SME’s pe cen age educ ion o emissions, solid was e, wa e consump ion,
ene gy consump ion and was e disposed, along wi h he amoun s o
p oduc s eused, ma e ials ecycled as well as p oduc s eco e ed pe gi en
pe iod. Fo SMEs o achie e posi i e en i onmen al en ep eneu ship
pe o mance, he en e p ises’ sus ainabili y s a egies need o be embedded
in he SMEs’ o ganisa ional cul u e. Collabo a ions wi h s akeholde s ha
acili a e he ans e o he equi ed knowledge and echnology a e equi ed
o enhance he en i onmen al en ep eneu ship pe o mance o SMEs and
ha o hei alue chains. This will also enable a conduci e en i onmen o
e ec i e inno a i e con inuous sus ainabili y audi s and con ols ha will
show he SMEs any gaps in pe o mance as well as he emedial ac ions
equi ed o keep hei en i onmen al pe o mance on a posi i e ajec o y.
Sus ainable en ep eneu ship h ough co po a e go e nance
232
Sou ce: Adap ed om Nhemachena & Mu imbika (2018), p. 117; Rosa io, Raimundos & C uz (2022), pp. 6–8;
Sa ango-Lalangui, Al a ez-Ga cia & Rio-Rama (2018), p. 12.
Key: SME, small and medium en e p ise.
FIGURE 10.2: Co po a e go e nance p ac ices and sus ainable en ep eneu ship pe o mance e alua ion
me ics o small and medium en e p ises.
SME sus ainable en ep eneu ship
pe o mance me ics
SME en i onmen al en ep eneu ship
pe o mance
•% o educ ion o emissions
•% o educ ion o solid was e
• Was e ma e ial ecycled as a % o ma e ial
consumed
•% o educ ion in wa e consump ion
• Volumes o p oduc eco e y
•% o educ ion in ene gy consump ion
• Volumes o was e disposed o incine a ed
• Volumes o p oduc s eused
SME social en ep eneu ship pe o mance
• Numbe o s akeholde engagemen s on
sus ainabili y issues
• Numbe o ini ia i es ha ully and
ac i ely engages SME s akeholde s in
sus ainabili y ini ia i es
• Numbe o SME inia i es aimed o
p omo e communi y engagemen
• Numbe o SME p og ammes conduc ed
o p omo e social well being and di e si y
• Employee ewa ds and incen i es in place
o sus ainabili y excellecnce
SME economic en ep eneu ship
pe o mance
•% o SME ma ke sha e g ow h
•% o cos sa ings associa ed wi h
sus ainabili y ac i i ies
•% o p o i g ow h om sus ainabili y
ac i i ies
•% o sales g ow h om sus ainabili y
ac i i ies
Co po a e
go e nance
p ac ices
As ea lie no ed in he a gumen s abo e, sus ainable en ep eneu ship plays
a leading ole in sol ing socie al and en i onmen al issues h ough he
achie emen o he long- e m p o i abili y and g ow h goal o SMEs. Thus,
SME social en ep eneu ship pe o mance is pe cei ed as a dimension ha
e alua es sus ainable en ep eneu ship pe o mance based on he social
alue c ea ed h ough he SME’s ini ia i es o p omo e equali y and di e si y,
social well-being, communi y de elopmen , li elihood secu i y, as well as
human igh s (Rosa io e al. 2022, p. 12). As shown in Figu e 10.1, his dimension
also ocuses on me ics such as he numbe o s akeholde engagemen s on
Chap e 10
233
sus ainabili y issues as well he employee ewa ds and incen i es o p omo e
a cul u e o social sus ainabili y excellence in SMEs. Such a pe o mance
dimension equi es SME owne s/manage s o cons an ly pe o m a
communi y need analysis, as well as benchma k hei social sus ainabili y
ini ia i es agains he indus y s anda ds and wo ld-class s anda ds as well
as agains he needs o he communi ies in which hese en e p ises ope a e.
I is also impo an ha clea lines o anspa en dialogue be ween he SMEs
and socie y be es ablished o minimise he gaps in communi y needs and
maximise he gene a ed social alue by he SMEs.
Small and medium en e p ise economic en ep eneu ship pe o mance
dimension is ano he undamen al p emise o SME exis ence which is
c ucial in unde s anding he basis o SME sus ainabili y (Tshiaba e al.
2021, p. 1). I e alua es he economic iabili y o an SME and gene a es
employmen bene i s, c ea es social alue and p omo es en i onmen al
wel a e (Sa ango-Lalangui e al. 2018, p. 6). Howe e , wha is missing
in mos SMEs is he unde s anding o how o e ec i ely inco po a e
good go e nance p ac ices o achie e sus ainable en ep eneu ship
pe o mance. Good co po a e go e nance, as such, ensu es ha he
SMEs’ capi al s uc u e, pe cep ion o he ma ke , p o i abili y and s abili y
a e sus ainably hinged on good go e nance.
Acco ding o Rosa io e al. (2022, p. 12), he economic en ep eneu ship
pe o mance dimension assesses he en e p ise’s economic alue h ough
he p o i , e u n on in es men s, inancial esilience, long- e m iabili y
and business s abili y measu es. Thus, as shown in Figu e 10.2, he SME
economic en ep eneu ship pe o mance dimension e alua es he SME’s
long- e m iabili y, s abili y and inancial esilience using he pe cen age o
SME ma ke sha e g ow h, cos sa ings and sales g ow h associa ed wi h
he en e p ise’s sus ainabili y ac i i ies. As no ed ea lie , o p omo e
long- e m iabili y, s abili y and inancial esilience, i is impe a i e o SMEs
o pu sue his dimension simul aneously wi h he social and en i onmen al
en ep eneu ship pe o mance dimensions. Clea ly, o SMEs o achie e
long- e m posi i e economic pe o mance ou comes, key ac o s include
p ope esou ce planning and u ilisa ion, aining s a on sus ainabili y
ma e s, aligning sus ainabili y p og ammes and s a egies wi h
o ganisa ional cul u e and policies, and cul i a ing mu ually bene icial
collabo a i e ela ionships wi h s akeholde s (Gu e man 2020, p. 29).
Ways in which co po a e go e nance can
enhance he sus ainable pe o mance o
small and medium en e p ises
Co po a e go e nance plays a undamen al ole in he sus ainable
pe o mance o SMEs. Al hough he e ha e been limi ed s udies on he link
Sus ainable en ep eneu ship h ough co po a e go e nance
234
be ween co po a e go e nance p ac ices and sus ainable en ep eneu ship
pe o mance, ew o he s udies like A o a and Dha wadka (2011) claim
ha co po a e go e nance plays a c ucial ole in he sus ainable pe o mance
o SMEs by p omo ing e ec i e decisions abou sus ainabili y p ac ices.
Mo eo e , co po a e go e nance is pa icula ly impo an in he achie emen
o sus ainable en ep eneu ship pe o mance o SMEs because i enhances
be e moni o ing o en i onmen al and social pe o mance (Ajeigbe &
Ganda 2022, p. 155).
Apa om he abo e, pu suing sus ainable en ep eneu ship
pe o mance h ough he implemen a ion o co po a e go e nance
p ac ices in SMEs can p o e o be oo cos ly because such ini ia i es mus
be egula ly e alua ed agains he legal sys ems in he coun y in which
he SMEs ope a e be o e manda ing o he o addi ional sus ainable
en ep eneu ship ini ia i es. This is c i ical because i will ul ima ely assis
egula o s in enhancing co po a e go e nance e ec i eness and co po a e
social esponsibili y. Mo eo e , imp o ing co po a e go e nance in he
sus ainable en ep eneu ship pe o mance o SMEs bene i s no only
manage s, employees and sha eholde s bu is also i al o he su i al o
hese SMEs, especially in ligh o g owing en i onmen al and social
conce ns.
In ac , mos SMEs s uggle wi h co po a e iden i y. Co po a e iden i y
is a key go e nance issue because i e lec s wha he SME uly ep esen s,
a he han wha i migh ad oca e o . In his con ex , mos SMEs would
bene i om inco po a ing b anding in o hei co po a e go e nance
s a egies o enhance sus ainable en ep eneu ship pe o mance. E ec i e
b anding can help SMEs c ea e and main ain a compe i i e ad an age o e
hei i als. This, in u n, can enable SMEs o align hei ope a ions wi h
socie al alues du ing a ime o apid change. Gi en his, e hical beha iou
becomes essen ial o all SMEs. Such e hical beha iou o ms he SME’s
cul u e, which consis s o a sha ed se o alues and guiding p inciples
deeply ing ained h oughou he o ganisa ion (Aid 2010; Mhlongo & Daya,
2023, p. 7). Consequen ly, e hical beha iou and cul u e become in eg al o
he de ini ion o co po a e iden i y.
Sus ainable en ep eneu ship:
T endsandp ac ices
En ep eneu ship has gained p ominence as an ini ia i e o gene a ing
economic bene i s (Munoz & Cohen 2018, p. 313). Howe e , a c i ical aspec
o en ep eneu ship is he concep o sus ainable de elopmen , which has
eme ged as a p essing issue a ec ing he global sys em. Mo eo e , as
sus ainable de elopmen akes cen e s age in he en ep eneu ial ac i i ies
o SMEs and la ge es ablished businesses, he e ha e been inc easing calls
Chap e 10
235
o en ep eneu ship o ocus no only on gene a ing weal h (Schal egge
e al. 2018, p. 140). Gi en he signi ican ocus on p ese ing he na u al
en i onmen , he e ha e been calls o emb ace sus ainable en ep eneu ship.
Sus ainable en ep eneu ship, in i s simples o m, in ol es conduc ing
business wi hou neglec ing he en i onmen . In o he wo ds, while
p o i -making is he co e unc ion o any business, i should ne e ake
p ecedence o e en i onmen al conside a ions. Likewise, he en i onmen
should no o e shadow business in e es s, which is he essence o
sus ainable en ep eneu ship. Howe e , as awa eness o he wo ld’s
escala ing en i onmen al p oblems has g own, en ep eneu s now need o
in eg a e social and en i onmen al agendas wi h hei p ima y comme cial
ope a ions (Mason & B own 2014, p. 25).
Ha and Mils ein (1999, p. 18) we e among he i s schola s o connec
he concep s o en ep eneu ship and sus ainable de elopmen . They
a gued ha sus ainable de elopmen p esen s a p omising oppo uni y o
en ep eneu s and inno a o s. In his con ex , en ep eneu s mus
demons a e ha hey a e aking measu es o minimise hei ad e se
e ec s on he en i onmen (Choi & G ay 2008, p. 347) and inco po a e
p o-socio-en i onmen al alues in o hei co e business ac i i ies
(Gas ,Gundol & Cesinge 2017, p. 48; Muñoz e al. 2018, p. 320).
Sou h A ica has p omo ed he idea o ans o ma ion as a means o
add ess p essing socio-economic issues such as po e y, unemploymen
and inequali y. Addi ionally, he coun y has been g appling wi h high
g adua e unemploymen , excessi e bu eauc acy, co up ion and poo -
quali y in as uc u e, all o which hinde sus ainable en ep eneu ship.
Recen ly, Sou h A ica, h ough he Depa men o Coope a i e Go e nance
and T adi ional A ai s (COGTA), adop ed a model based on he concep o
En i onmen al and Social Go e nance (ESG) (Coope a i e Go e nance &
T adi ional A ai s, 2021). These ini ia i es encou age SMEs o pu sue
sus ainabili y in a ious ways, including ecycling.
Mo eo e , he e ha e been mo es o emb ace e-comme ce. Ube Ea s is
one en e p ising company ha has le e aged e-comme ce o i s ad an age.
Fo example, people can o de hei ood online and ha e i deli e ed o
hem. The same applies o g oce y s o es, such as Shop i e and Pick n Pay.
I should be highligh ed ha his end gained p ominence du ing he
COVID-19 pandemic. In all hese businesses, co po a e go e nance is a key
ea u e, especially ega ding p oduc s ha align wi h en i onmen al
p o ec ion. Fo example, ins ead o using plas ics, mos o he
a o emen ioned businesses p e e o use biodeg adable ma e ials while
encou aging hei cus ome s o adop he same sus ainable p ac ices.
Mo e so, he e a e also calls by mos o hese businesses no o do
business wi h o he companies ha migh be in ol ed in child labou o
Sus ainable en ep eneu ship h ough co po a e go e nance
242
sus ainable co po a e go e nance h ough esea ch and educa ion.
By emphasising i s impo ance and p o iding he necessa y ools and
knowledge, hey can empowe he nex gene a ion o business leade s o
make in o med and esponsible decisions.
In es o s and s akeholde s also ha e a ole o play by in eg a ing
co po a e go e nance and sus ainabili y in o hei in es men c i e ia. This
shi owa ds esponsible in es men no only mi iga es isks bu also
encou ages businesses o adop mo e sus ainable p ac ices. The c ea ion
o indus y-speci ic sus ainabili y o ums o ne wo ks wi hin he b oade
business communi y can acili a e knowledge-sha ing and collec i e ac ion,
accele a ing p og ess owa ds a sus ainable u u e.
Ul ima ely, he dynamic na u e o sus ainabili y and co po a e
go e nance necessi a es con inuous imp o emen and adap abili y. These
ecommenda ions collec i ely emphasise ha os e ing a cul u e o
esponsibili y and e hical beha iou is undamen al o sus ainable
en ep eneu ship in Sou h A ica. By implemen ing hese sugges ions, he
na ion can ake signi ican s ides owa ds building a p ospe ous and
sus ainable business en i onmen ha bene i s no only he economy bu
also socie y and he en i onmen a la ge.
243
Re e ences
Chap e 1
Abo , J & Adjasi, CK 2007, ‘Co po a e go e nance and he small and medium en e p ises
sec o : Theo y and implica ions’, Co po a e Go e nance: The In e na ional Jou nal o
Business in Socie y, ol. 7, no. 2, pp. 111–122. h ps://doi.o g/10.1108/14720700710739769
Abo , J & Biekpe, N 2007, ‘Co po a e go e nance, owne ship s uc u e and pe o mance
o SMEs in Ghana: Implica ions o inancing oppo uni ies’, Co po a e Go e nance:
The In e na ional Jou nal o Business in Socie y, ol. 7, no. 3, pp. 288–300. h ps://doi.
o g/10.1108/14720700710756562
Achim, MV, Văidean, VL & Sa a, IL 2023, ‘The impac o he quali y o co po a e go e nance
on sus ainable de elopmen : An analysis based on de elopmen le el’, Economic
Resea ch-Ekonomska is aži anja, ol. 36, no. 1, pp. 930–959. h ps://doi.o g/10.1080/133
1677X.2022.2080745
A olabi, H, Ram, R, Hussainey, K, Nandy, M & Lodh, S 2023, ‘Explo a ion o small and medium
en i ies’ ac ions on sus ainabili y p ac ices and hei implica ions o a g eene economy’,
Jou nal o Applied Accoun ing Resea ch, ol. 24, no. 4, pp. 655–681. h ps://doi.o g/10.1108/
JAAR-09-2022-0252
A i a, GA & Tau ingana, V 2015, ‘Co po a e go e nance and pe o mance o UK lis ed small
and medium en e p ises’, Co po a e Go e nance, ol. 15, no. 5, pp. 719–733. h ps://doi.
o g/10.1108/CG-03-2015-0029
Agwani u, A 2023, ‘ICT as a s a egy o sus ainable small and medium en e p ises in Nige ia’,
Doc o al disse a ion, Cali o nia Bap is Uni e si y.
Ajeigbe, KB & Ganda, F 2023, ‘The implica ions o he pandemic o he co po a e go e nance,
emune a ion and sus ainabili y pe o mance o Sou h A ican lis ed companies’,
In e na ional Jou nal o Inno a i e Resea ch and Scien i ic S udies, ol. 6, no 1, pp. 174–184.
h ps://doi.o g/10.53894/iji ss. 6i1.1174
Almeida, F & Wasim, J 2023, ‘Eco-inno a ion and sus ainable business pe o mance:
Pe spec i es o SMEs in Po ugal and he UK’, Socie y and Business Re iew, ol. 18, no. 1,
pp. 28–50. h ps://doi.o g/10.1108/SBR-12-2021-0233
Alzayani, F, Mohammed, A & Shoaib, HM 2023, ‘The impac o sma echnologies on SMEs’
sus ainabili y: The media ion e ec o sus ainabili y s a egy’, Compe i i eness Re iew:
An In e na ional Business Jou nal, ol. 34, no. 1, pp. 28–50. h ps://doi.o g/10.1108/CR-09-
2022-0136
Asiimwe, F 2017, ‘Co po a e go e nance and pe o mance o SMEs in Uganda’, In e na ional
Jou nal o Technology and Managemen , ol. 2, no. 1, pp. 14–14.
Be le, A & Mean G 1932, The mode n co po a ion and p i a e p ope y, Macmillan, New Yo k.
Bol on, JE 1971, Small i ms: Repo o he Commi ee o Inqui y on Small Fi ms CMND 4811,
HMSO, London.
Bol on, JE 1982, ‘The u u e o small businesses: A e iew o de elopmen s since he commi ee
o inqui y (1969–71)’, Jou nal o he Royal Socie y o A s, ol. 130, no. 5310, pp. 305–320.
B and, R 2006, ‘De elopmen o a business amewo k o in eg a e in e nal SMME and
En ep eneu s wi h he o mal Sou h A ican Economy’, Doc o al disse a ion, S ellenbosch
Uni e si y, S ellenbosch.
B unninge, O, No dq is , M & Wiklund, J 2007, ‘Co po a e go e nance and s a egic change
in SMEs: The e ec s o owne ship, boa d composi ion and op managemen eams’, Small
Business Economics, ol. 29, no. 3, pp. 295–308. h ps://doi.o g/10.1007/s11187-006-9021-2
Re e ences
244
Bu e-Sea on, K 2023, An assessmen o bes p ac ices o co po a e sus ainabili y s a egies in
Canadian SMEs, B ock Uni e si y, S . Ca ha ine’s, On a io.
Cadbu y, A 1992, The Financial Aspec s o Co po a e Go e nance (Cadbu y Repo ), The
Commi ee on he Financial Aspec o Co po a e Go e nance (The Cadbu y Commi ee)
and Gee and Co. L d., London.
Casco, ADPR, Paguay, AVB, Díaz, RPM & Cando, SPI 2023, ‘Co po a e go e nance as a ool o
compe i i eness in ex ile SMEs in Qui o’, Jou nal o Su ey in Fishe ies Sciences, ol. 10,
no. 3S, pp. 4161–4181.
Cas ellani, P, Rossa o, C, Gia e a, E & Va gas-Sánchez A 2023, ‘Pa ne selec ion s a egies o
SMEs o eaching he Sus ainable De elopmen Goals’, Re iew o Manage ial Science, ol.
18, pp. 1317–1352. h ps://doi.o g/10.1007/s11846-023-00656-7
Cha zis amoulou, N 2023, ‘Is digi al ans o ma ion he Deus ex Machina owa ds sus ainabili y
ansi ion o he Eu opean SMEs? Ecological Economics, ol. 206, p. 107739. h ps://doi.
o g/10.1016/j.ecolecon.2023.107739
Da Po ciúncula Júnio , SA & And eoli, CV 2023, ‘P oposal o a simpli ied sus ainabili y epo
o small and medium sized en e p ises’, B azilian Jou nal o En i onmen al Sciences
(RBCIAMB), ol. 58, no. 1, pp. 67–80. h ps://doi.o g/10.5327/Z2176-94781513
Depa men o Small Business De elopmen Republic o Sou h A ica 2022, Na ional in eg a ed
small en e p ise de elopmen mas e plan 2022, iewed 20 Oc obe 2022. <h p://www.
dsbd.go .za/gaze ed_no ice/na ional-in eg a ed-small-en e p ise-de elopmen -nised-
mas e plan>
Dhondge, NN 2023, ‘Applica ion o co po a e go e nance measu es in Indian small and
medium en e p ises: A way o wa d’, Indian Jou nal o Comme ce and Managemen S udies
ol. 14, no. 2, pp. 14–21. h ps://doi.o g/10.18843/ijcms/ 14i2/02
Dzomonda, O 2022, ‘En i onmen al sus ainabili y commi men and access o inance by small
and medium en e p ises: The ole o inancial pe o mance and co po a e go e nance’,
Sus ainabili y, ol. 14, no. 14, p. 8863. h ps://doi.o g/10.3390/su14148863
El-Sady, HM, Ahmed, H & Hamdy, H 2022, ‘The impac o asse s s uc u e and he componen s
o cash con e sion cycle on he Egyp ian SMEs inancial ailu e p edic abili y’, The Jou nal
o En ep eneu ial Finance, ol. 24, no. 1, pp. 25–43. h ps://doi.o g/10.57229/2373-1761.1427
Enai oghe, A & Vezi-Magigaba, MF 2023, ‘Concep ualizing he ole o en ep eneu ship and
SME in os e ing Sou h A ica’s local economic de elopmen ’, In e na ional Jou nal o
Resea ch in Business and Social Science, ol. 12, no. 4, pp. 96–105. h ps://doi.o g/10.20525/
ij bs. 12i4.2444
Enciso-Al a o, SY & Ga cía-Sánchez, IM 2023, ‘Co po a e go e nance and en i onmen al
sus ainabili y: Add essing he dual heme om a bibliome ic app oach’, Co po a e Social
Responsibili y and En i onmen al Managemen , ol. 30, no. 3, pp. 1025–1041. h ps://doi.
o g/10.1002/cs .2403
Eu opean Union (EU) 2023, En ep eneu ship and small and medium-sized en e p ises, iewed
23 No embe 2022. <h ps://single-ma ke -economy.ec.eu opa.eu/smes_en>
Fama, EF & Jensen, MC 1983, ‘Sepa a ion o owne ship and con ol’, Jou nal o Law and
Economics, ol. 26, no. 2, pp. 301–325. h ps://doi.o g/10.1086/467037
F eeman, RE 1984, S a egic managemen : A s akeholde app oach, Pi man, Bos on.
F iedman, LM 1974, The legal sys em: A social science pe spec i e, Russell Sage Founda ion,
New Yo k.
Geo ge, LK 1993, ‘Sociological pe spec i es on li e ansi ions’, Annual Re iew o Sociology,
ol. 19, no. 1, pp. 353–373. h ps://doi.o g/10.1146/annu e .soc.19.1.353
Global En ep eneu ship Moni o Repo (GEM) 2023, 2022/2023 Global Repo : Adap ing
o a ‘New No mal’, iewed 23 Oc obe 2023. <h ps://www.gemconso ium.o g/ epo s/
la es -global- epo >
Re e ences
245
Günay, GY & Apak, S 2014, ‘Compa ison o public and non-public SMEs’ co po a e go e nance
s a egies in Tu key’, P ocedia-Social and Beha io al Sciences, ol. 150, pp. 162–171. h ps://
doi.o g/10.1016/j.sbsp o.2014.09.022
Hakimah, Y, P a ama, I, Fi i, H, Gana i, M & Sulbah ie, RA 2019, ‘Impac o in insic co po a e
go e nance on inancial pe o mance o Indonesian SMEs’, In e na ional Jou nal o
Inno a ion, C ea i i y and Change, ol. 7 no. 1, pp. 32–51.
Haohan, W & Beinan, G 2023, ‘Realis ic dilemmas and s a egies o p omo e he ans o ma ion
o SMEs d i en by digi al economy’, SHS Web o Con e ences, ol. 170, p. 1020. h ps://doi.
o g/10.1051/shscon /202317001020
Ho e-Sibanda, P, Sibanda, K & Pooe, D 2017, ‘The impac o co po a e go e nance on i m
compe i i eness and pe o mance o small and medium en e p ises in Sou h A ica: A case
o small and medium en e p ises in Vande bijlpa k’, Ac a Comme cii, ol. 17, no. 1, pp. 1–11.
h ps://doi.o g/10.4102/ac. 17i1.446
Islam, MT, Islam, MA, Hossain, MM & Olale e, OE 2023, ‘In e na ionaliza ion o SMEs:
A de eloping coun y pe spec i e’, Sus ainabili y, ol. 15, no. 15, p. 11654. h ps://doi.
o g/10.3390/su151511654
Ismail, IJ & W igh , LT 2022, ‘En ep eneu s’ compe encies and sus ainabili y o SMEs
in Tanzania: A media ing e ec o en ep eneu ial inno a ions’, Cogen Business and
Managemen , ol. 9, no. 1, pp. 1–22. h ps://doi.o g/10.1080/23311975.2022.2111036
Jaakkola, E 2020, ‘Designing concep ual a icles: Fou app oaches’, AMS Re iew ol. 10,
no.1–2, pp. 18–26. h ps://doi.o g/10.1007/s13162-020-00161-0
Jensen, MC & Meckling, WH 1976, ‘Theo y o he i m: Manage ial beha io , agency cos s, and
owne ship s uc u e’, Jou nal o Financial Economics, ol. 34, no. 4, pp. 305–350. h ps://
doi.o g/10.1016/0304-405X(76)90026-X
Keasey, K, Thompson, S & W igh , M 1997, Co po a e go e nance, economic, managemen and
inancial issues, Ox o d Uni e si y P ess, Ox o d.
Kim, SS 2022, ‘In luen ial indica o s and measu emen s o media ing and mode a ing oles on
SME pe o mance’, In e na ional Jou nal o Knowledge Managemen , ol. 18, no. 1, pp. 1–18.
h ps://doi.o g/10.4018/IJKM.20220101.oa7
King 2009, King Repo 111 on Co po a e Go e nance o Sou h A ica, iewed 21 Oc obe
2023. <h ps://www.iodsa.co.za/page/go e nance_s anda ds_and_codes#>
King 2016, King 1V Repo on Co po a e Go e nance o Sou h A ica, iewed 21 Oc obe 2023.
<h ps://www.iodsa.co.za/page/king-i >
Kocmano á A, Docekalo a, M, Nemecek, P & Simbe o a, I 2011, ‘Sus ainabili y: En i onmen al,
social and co po a e go e nance pe o mance in Czech SMEs’, in P oceedings o he
15 h Wo ld Mul i-Con e ence on Sys emics, Cybe ne ics and In o ma ics, 19–22 July 2011,
O lando, ol. 1, pp. 94–99.
Kye eboah-Coleman, A & Amidu, M 2008, ‘The link be ween small business go e nance and
pe o mance: The case o he Ghanaian SME sec o ’, Jou nal o A ican Business, ol. 9,
no.1, pp. 121–143. h ps://doi.o g/10.1080/15228910802052880
Lakehal, L, Da ies, M, Di S e ano, V, Ma as, P & Buisine, S 2023, ‘No embe : Building a
posi i e co po a e go e nance’, 19 h Eu opean Con e ence on Managemen Leade ship
and Go e nance-ECMLG 2023, No embe , London, iewed 22 Oc obe 2023. <h ps://hal.
science/hal-04173314/documen >
La Po a, R, Lopez-de-Silanes, F, Shlei e , A & Vishny, RW 1997, ‘Legal de e minan s
o ex e nal inance’, The Jou nal o Finance, ol. 52, no. 3, pp. 1131–1150. h ps://doi.
o g/10.1111/j.1540-6261.1997. b02727
La Po a, R, Lopez-de-Silanes, F, Shlei e , A & Vishny, RW 2002, ‘In es o p o ec ion
and co po a e alua ion’, The Jou nal o Finance, ol. 57, pp. 1147–1170. h ps://doi.
o g/10.1111/1540-6261.00457
Re e ences
246
La Rosa, F & Be nini, F 2018, ‘Co po a e go e nance and pe o mance o I alian gambling
SMEs du ing ecession’, In e na ional Jou nal o Con empo a y Hospi ali y Managemen ,
ol. 30, no. 3, pp. 1939–1958. h ps://doi.o g/10.1108/IJCHM-03-2017-0135
Leboea, ST 2017, ‘The ac o s in luencing SME ailu e in Sou h A ica’, Mas e ’s hesis, Uni e si y
o Cape Town.
Mandal, J, Ponnamba h, DK, & Pa ija, SC 2016, ‘U ili a ian and deon ological e hics in medicine’,
T opical Pa asi ology, ol. 6, no. 1, p. 5. h ps://doi.o g/10.4103/2229-5070.175024.
Mandal, S, Anand, U, López-Bucio, J, Kuma , M, Lal, MK, Tiwa i, RK & Dey, A 2023, ‘Bios imulan s
and en i onmen al s ess mi iga ion in c ops: A no el and eme ging app oach o ag icul u al
sus ainabili y unde clima e change’, En i onmen al Resea ch, ol. 233, p.116357. h ps://
doi.o g/10.1016/j.en es.2023.116357
Ma anga, GM 2014, ‘The e ec o co po a e go e nance on inancial pe o mance o small and
medium en e p ises in Nai obi Coun y, Kenya’, Doc o al disse a ion, Uni e si y o Nai obi.
Ma ashu, M 2010, ‘The impac o impac o go e nmen suppo p og ammes o small,
medium and mic o-en e p ises (SMEs) on SMEs in b i s’, Doc o al disse a ion, No h-Wes
Uni e si y, Sou h A ica.
Ma ashu, M 2016, ‘An in eg a ed co po a e go e nance amewo k o enhancing economic
g ow h: E idence om sub Saha an A ican coun ies’, Doc o al disse a ion, No h-Wes
Uni e si y, Sou h A ica.
Ma ei, G, Cane a, L, So lini, M & Capocasale, F 2023, ‘Sus ainabili y implemen a ion and
epo ing in SMEs: O e coming ba ie s and le e aging oppo uni ies. E idence om an
ex ensi e indus ial su ey in Ticino’, in 2023 IEEE In e na ional Con e ence on Enginee ing,
Technology and Inno a ion (ICE/ITMC), IEEE, pp. 1–10.
Naci i, V, Cesa oni, F & Pulejo, L 2021, ‘Co po a e go e nance and sus ainabili y: A e iew o
he exis ing li e a u e’, Jou nal o Managemen and Go e nance, ol. 26, no. 3, pp. 1–20.
h ps://doi.o g/10.1007/s10997-020-09554-6
Naldi, L, No dq is , M, Sjöbe g, K & Wiklund, J 2007, ‘En ep eneu ial o ien a ion, isk aking,
and pe o mance in amily i ms’, Family Business Re iew, ol. 20, no. 1, pp. 33–47. h ps://
doi.o g/10.1111/j.1741-6248.2007.00082.x
Nas allah, N & El Khou y, R 2022, ‘Is co po a e go e nance a good p edic o o SMEs inancial
pe o mance? E idence om de eloping coun ies ( he case o Lebanon)’, Jou nal o
Sus ainable Finance & In es men , ol. 12, no. 1, pp. 13–43. h ps://doi.o g/10.1080/204307
95.2021.1874213
Na ional In eg a ed Small En e p ise De elopmen (NISED) Mas e plan 2022, Depa men o
Small Business De elopmen Republic o Sou h A ica, iewed 23 No embe 2022. <h p://
www.dsbd.go .za/gaze ed_no ice/na ional-in eg a ed-small-en e p ise-de elopmen -
nised-mas e plan>
Na ional Planning Commission 2012, Na ional de elopmen plan ision 2030, The P esidency
o he Republic o Sou h A ica, P e o ia.
Ngwakwe, CC & Ngoepe, MA 2017, ‘Quali y assu ance audi and co po a e go e nance issues
in highe deg ees: Towa d a amewo k o enhanced objec i i y’, Co po a e Owne ship &
Con ol, ol. 14, no. 4–2, pp. 396–404. h ps://doi.o g/10.22495/coc 14i4c2a 5
Nye, J ., JS 2008, ‘B idging he gap be ween heo y and policy’, Poli ical Psychology, ol. 29,
no. 4, pp. 593–603. h ps://doi.o g/10.1111/j.1467-9221.2008.00651.x
Olawale, F & Ga we, D 2010, ‘Obs acles o he g ow h o new SMEs in Sou h A ica: A p incipal
componen analysis app oach’, A ican Jou nal o Business Managemen , ol. 4, no. 5,
pp.729–738.
Ones i, G & Palumbo, R 2023, ‘Tone a he op o sus ainable co po a e go e nance o p e en
aud’, Sus ainabili y, ol. 15, no. 3, p. 2198. h ps://doi.o g/10.3390/su15032198
O ganisa ion o Economic Co-Ope a ion and De elopmen (OECD) 2015, P inciples o
co po a e go e nance 2004, iewed 25 Oc obe 2023. <www.oecd.o g>
Re e ences
247
O ganisa ion o Economic Co-Ope a ion and De elopmen (OCED) 2022, OECD SME and
en ep eneu ship s a egy, iewed 23 No embe 2022. <h ps://www.oecd.o g/c e/smes/
s a egy.h>
O ganisa ion o Economic Co-Ope a ion and De elopmen (OECD) 2023, OECD SME and
En ep eneu ship S a egy, iewed 13 Oc obe 2023. <h ps://www.oecd.o g/c e/smes/
s a egy.h ml>
Pe e s, R & Naicke , V 2013, ‘Small medium mic o en e p ise business goals and go e nmen
suppo : A Sou h A ican case s udy’, Sou h A ican Jou nal o Business Managemen ,
ol.44, no. 4, pp. 14–24. h ps://doi.o g/10.4102/sajbm. 44i4.165
Rachagan, S & Sa kunasingam, E 2009, ‘Imp o ing co po a e go e nance o SMEs in eme ging
economies: A Malaysian expe ience’, Jou nal o En e p ise In o ma ion Managemen ,
ol.22, no. 4, pp. 468–484. h ps://doi.o g/10.1108/17410390910975068
Ramak ishna, Y, Alzoubi, H & Indi an, L 2023, ‘An empi ical in es iga ion o e ec o sus ainable
and sma supply p ac ices on imp o ing he supply chain o ganiza ional pe o mance in
SMEs in India’, Unce ain Supply Chain Managemen , ol. 11, no. 3, pp. 991–1000. h ps://doi.
o g/10.5267/j.uscm.2023.5.001
Republic o Sou h A ica 1995, Depa men o T ade and Indus y. Na ional S a egy o he
De elopmen and P omo ion o Small Business in Sou h A ica, Go e nmen P in e , Cape
Town. (No ice 213 o 1995, 16317).
Roge son, CM 2004, ‘The impac o he Sou h A ican go e nmen ’s SMME p og ammes:
A en-yea e iew (1994–2003)’, De elopmen Sou he n A ica, ol. 21, no. 5, pp. 765–778.
h ps://doi.o g/10.1080/0376835042000325697
Ropega, J 2011, ‘The easons and symp oms o ailu e in SME’, In e na ional Ad ances in
Economic Resea ch, ol. 17, no. 4, pp. 476–483. h ps://doi.o g/10.1007/s11294-011-9316-1
Sa ah, RM 2017, ‘The bene i s o good co po a e go e nance o small and medium en e p ises
(SMEs) in Sou h A ica: A iew on op 20 and bo om 20 JSE lis ed companies’, P oblems
and Pe spec i es in Managemen , ol. 15, no. 4, pp. 271–229. h ps://doi.o g/10.21511/
ppm.15(4-1).2017.11
Sha ma, JP & Khanna, S 2014, ‘Co po a e social esponsibili y, co po a e go e nance and
sus ainabili y: Syne gies and in e - ela ionships’, Indian Jou nal o Co po a e Go e nance,
ol. 7, no. 1, pp. 14–38. h ps://doi.o g/10.1177/0974686220140102
Shlei e , HA & Vishny, RW 1997, ‘A su ey o co po a e go e nance’, The Jou nal o Finance,
ol. 5, no. 22, pp. 737–783. h ps://doi.o g/10.1111/j.1540-6261.1997. b04820.x
Singh, K & Pillai, D 2022, ‘Co po a e go e nance in small and medium en e p ises: A e iew’,
Co po a e Go e nance: The In e na ional Jou nal o Business in Socie y, ol. 22, no. 1,
pp.23–41. h ps://doi.o g/10.1108/CG-10-2020-0470
Singh, K & Ras ogi, S 2023, ‘Co po a e go e nance, con igu a ional app oach and inancial
pe o mance: Some e idence om Indian lis ed SMEs’, Benchma king: An In e na ional
Jou nal, ol. 31, no. 4, pp. 1115–1141. h ps://doi.o g/10.1108/BIJ-10-2022-0658
Smi h, A 1776, The weal h o he na ions, Penguin Classics, s.l.
Solomon, J 2011, Co po a e go e nance and accoun abili y, 3 d edn., John Wiley & Sons, Wes
Sussex.
Sony, M, An ony, J, To o ella, G, McDe mo , O & Gu ie ez, L 2022, ‘De e mining he c i ical
ailu e ac o s o indus y 4.0: An explo a o y sequen ial mixed me hod s udy’, IEEE
T ansac ions on Enginee ing Managemen , ol. 8, no. 1, pp. 1–18.
Sou h A ica 1996, Na ional Small Business Ac , No. 102 o 1996. No ice No. 1901, iewed
21Oc obe 2023. <h ps://www.go .za/documen s/na ional-small-business-ac >
Sou he n A ican De elopmen Communi y (SADC) 2023, Unlocking he po en ial o SMEs o
egional indus ial de elopmen , iewed 23 Oc obe 2023. <h ps://www.sadc.in /la es -
news/unlocking-po en ial-smes- egional-indus ial-de elopmen >
Re e ences
248
S a is ics Sou h A ica 2023, Qua e ly labou o ce su ey, Qua e 2: 2023, Depa men o
S a is ics o he Republic o Sou h A ica, P e o ia, iewed 20 Oc obe 2023. <h ps://www.
s a ssa.go .za/>
T icke , B 2009, Co po a e go e nance: P inciples, policies, and p ac ices, Ox o d Uni e si y
P ess Inc., New Yo k.
Tu ne , JH 1998, ‘Mus sociological heo y and social p ac ice be so a apa ?’, Social
Pe spec i e, ol. 41, no. 2, pp. 243–258. h ps://doi.o g/10.2307/1389475
Van Schee s, L 2011, ‘SMEs’ ma ke ing skills challenges in Sou h A ica’, A ican Jou nal o
Business Managemen , ol. 5, no. 13, pp. 5048.
Wagne , R 2007, ‘Achie ing bes p ac ices h ough knowledge managemen benchma king
and compe i i e in elligence as a echnique o s a egic decision making in small medium
sized en e p ises’, A hesis submi ed o a deg ee o Mas e o Philosophy In o ma ion and
Knowledge Managemen , Uni e si y o S ellenbosch.
Wang, L, U Rehman, A, Xu, Z, Amjad, F & U Rehman, S 2023, ‘G een co po a e go e nance,
g een inance, and sus ainable pe o mance nexus in Chinese SMEs: A media ion mode a ion
model’, Sus ainabili y, ol. 15, no. 13, p. 9914. h ps://doi.o g/10.3390/su15139914
Wen, K, Alessa, N, Ma ah, K, Kye emeh, K, Ansah, ES & Tawiah, V 2023, ‘The impac o
co po a e go e nance and in e na ional o ien a ion on i m pe o mance in SMEs: E idence
om a de eloping coun y’, Sus ainabili y, ol. 15, no. 6, pp. 5576. h ps://doi.o g/10.3390/
su15065576
Whi e Pape 1995, Na ional s a egy o he de elopmen and p omo ion o small business in
Sou h A ica, Depa men o T ade and Indus y, Sou h A ica, P e o ia.
Williams, DA 2014a, ‘Resou ces and business ailu e in SMEs: Does size ma e ?’, Jou nal o
Business & Managemen , ol. 20, no. 2, pp. 89–102. h ps://doi.o g/10.1504/JBM.2014.141226
Williams, DA 2014b, ‘Resou ces and ailu e o SMEs: Ano he look’, Jou nal o De elopmen al
En ep eneu ship, ol. 19, no. 1, pp. 1–5. h ps://doi.o g/10.1142/S1084946714500071
Wo ld Bank 2022, Small and medium en e p ises (SMEs) inance, iewed 22 Oc obe 2023.
<h ps://www.wo ldbank.o g/en/ opic/sme inance>
Wo ld Commission on En i onmen and De elopmen (WCED) 1987, Ou common u u e,
ol.17, no. 1, pp. 1–91.
Yuso , T, Wahab, SA, La i , AS, Osman, SI, Zawawi, NF & Fazal, SA 2018, ‘Sus ainable g ow h in
SMEs: A e iew om he Malaysian pe spec i e’, Jou nal o Managemen and Sus ainabili y,
ol. 8, no. 3, p. 43. h ps://doi.o g/10.5539/jms. 8n3p43
Zah a, SA, Neubaum, DO & Naldi, L 2007, ‘The e ec s o owne ship and go e nance on SMEs’
in e na ional knowledge-based esou ces’, Small Business Economics, ol. 29, pp. 309–327.
h ps://doi.o g/10.1007/s11187-006-9025-y
Zhang, L, Zhang, X, An, J, Zhang, W & Yao, J 2023, ‘Examining he ole o s akeholde -o ien ed
co po a e go e nance in achie ing sus ainable de elopmen : E idence om he SME CSR
in he con ex o China’, Sus ainabili y, ol. 14, no. 13, p. 8181. h ps://doi.o g/10.3390/
su14138181
Zide, O & Jokonya, O 2022, ‘Fac o s a ec ing he adop ion o da a managemen as a se ice
(DMaaS) in small and medium en e p ises (SMEs)’, P ocedia Compu e Science, ol. 196,
pp. 340–347. h ps://doi.o g/10.1016/j.p ocs.2021.12.022
Chap e 2
Aken oye, T, Owens, JD, Oyegoke, AS, Elbaz, J, Belal, HM & Jebli, F 2022, ‘SME’s disinclina ion
owa ds subcon ac ing in he public sec o ma ke s: An a ibu ional pe spec i e’, Jou nal
o Public P ocu emen , ol. 22, no. 2, pp. 109–127. h ps://doi.o g/10.1108/JOPP-05-2021-0032
Akinsanya, OA & Alake, TJ 2012, ‘Impac s o g id elec ici y supply on mic o en e p ises in Eki i
S a e’, In e na ional Jou nal o Enginee ing Resea ch & Technology (IJERT), ol. 1, no.10,
pp. 1–12.
Re e ences
249
Alliance o a G een Re olu ion in A ica (AGRA) 2021, The global ood c isis, A ica’s esponse,
Annual Repo . A ican Union, Nai obi
Al a ez, S & Ba ney, JB 2020, ‘Has he concep o oppo uni ies been ui ul in he ield
o en ep eneu ship?’, Academic Managemen Pe spec i es, ol. 34 no. 3, pp. 300–310.
h ps://doi.o g/10.5465/amp.2018.0014
And e sch, DB, G ilo, I & Thunik, A 2007, Handbook o esea ch in en ep eneu ship policy,
Edwa d Elge Publishe s, Chel enham.
An wi-Adjei, A, Kong, Y, Kwame, O & An wi-Adjei, NA 2020, ‘A e iew: Co po a e go e nance
and sus ainabili y’, In e na ional Jou nal o Scien i ic Resea ch in Science and Technology,
ol. 7, no. 6, pp. 79–89. h ps://doi.o g/10.32628/IJSRST20769
A gade, P, Salignac, F & Ba kemeye , R 2021, ‘Oppo uni y iden i ica ion o sus ainable
en ep eneu ship: Explo ing he in e play o indi idual and con ex le el ac o s in
India’, Business S a egy and he En i onmen , ol. 30, no. 8, pp. 3528–3551. h ps://doi.
o g/10.1002/bse.2818
A e ido, R, Hla swayo, A, Pie e se, D & S eenkamp, A 2019, Fi m dynamics, job ou comes
and p oduc i i y: A ican o mal businesses, 2010–14, Wo ld Bank Policy Resea ch
Wo king Pape 8788, iewed 16 Augus 2021. <h p://documen s.wo ldbank.o g/cu a ed/
en/140241553174981836/pd /WPS8788.pd >
Aud e sch, DB & Moog, P 2022, ‘Democ acy and en ep eneu ship’, En ep eneu ship Theo y
and P ac ice, ol. 46, no. 2, pp. 368–392. h ps://doi.o g/10.1177/1042258720943307
Aue bach, C 2023, ‘Democ acy and human na u e: A laye ed sys em analysis’, Jou nal o C i ical
Realism, ol. 22, no. 5, pp. 882–903. h ps://doi.o g/10.1080/14767430.2023.2253608
Ayandibu, AO & Hough on, J 2017, ‘The ole o small and medium scale en e p ise in local
economic de elopmen (LED)’, Jou nal o Business and Re ail Managemen Resea ch
(JBRMR), ol. 11, no. 2, pp. 133–139.
Ayankoya, K 2016, En ep eneu ship in Sou h A ica – A Solu ion, Nelson Mandela Me opoli an
Uni e si y Business School, Sou h A ica, Resea ch Ga e, pp. 1–12, iewed 13 Oc obe 2023.
<h ps://www.Resea chga e.Ne /Publica ion/303875944_En ep eneu ship_In_Sou h_
A ica_-_A_Solu ion>
Ba en, J 2016, A his o y o he global economy. F om 1500 o he p esen , Camb idge Uni e si y
P ess, Camb idge.
Be ge , ES, Von B iel, F, Da idsson, P, Kucke z, A 2021, ‘Digi al o no – he u u e o
en ep eneu ship and inno a ion: In oduc ion o he special issue’, Jou nal o Business
Resea ch, ol. 125, pp. 436–442. h ps://doi.o g/10.1016/j.jbus es.2019.12.020
Bho a , H, Asmal, Z, Lilens ein, K & Van de Zee, K 2018, SMMEs in Sou h A ica: Unde s anding
he cons ain s on g ow h and pe o mance, De elopmen Policy Resea ch Uni Wo king
Pape 201802, DPRU, Uni e si y o Cape, Cape Town.
Bo ha, F, Booysen, F & Wou e s, E 2018, ‘Sa is ac ion wi h amily li e in Sou h A ica: The
ole o socioeconomic s a us’, Jou nal o Happiness S udies, ol. 19, no. 8, pp. 2339–2372.
h ps://doi.o g/10.1007/s10902-017-9929-z
B uwe JP & Wa kins JA 2010, ‘Sus ainabili y o as -mo ing consume goods e ail SMMEs’,
A ican Jou nal o Business Managemen , ol. 4, no. 16, pp. 3550–3555, iewed 10 July
2022. <h p://hdl.handle.ne /11189/6623>
B uma, S & Ma newick, C 2020, ‘Sus ainable li elihoods o ownship small, medium, and mic o
en e p ises owa ds g ow h and de elopmen ’, Sus ainabili y, ol. 12 no. 8, pp. 1–17. h ps://
doi.o g/10.3390/su12083149
Cen e o Compe i ion, Regula ion and Economic De elopmen (CCRED) 2016, Compe i ion,
Ba ie s o En y and Inclusi e G ow h: Telecommunica ions Sec o S udy, iewed 23 June
2023. <h p://www.compe i ion.o g.za/s/Ba ie s oen yTelecommunica ionSec o S udy.pd >
Cla k, JD, Cole, GH, Isaac, GL & Kleindiens , MR 1966, ‘P ecision and de ini ion in A ican
a chaeology’, The Sou h A ican A chaeological Bulle in, ol. 21, no. 83, pp. 114–121. h ps://
doi.o g/10.2307/3888427
Re e ences
250
Colonnelli, E & P em, M 2017, Co up ion and i ms: E idence om andomized audi s in B azil,
S an o d Uni e si y, S an o d.
Cu aj, E 2018, ‘Business digi aliza ion o SMEs in Albania: Inno a i e app oaches and hei
Impac on pe o mance’, Doc o al deg ee a his Eu opean Uni e si y o Ti ana.
Couch, R 2023, Tackling en i onmen al heal h inequali ies in a Sou h A ican Ci y?:
Redisco e ing egula ion, local go e nmen and i s en i onmen al heal h p ac i ione s,
Taylo & F ancis, Cape Town.
Daniels, RJ, D’Ama o, ME, Lesaoana, M, Kasu, M, Ehle s, K, Chauke, PA, Lecheko, P, Challis, S,
Rocke , K, Mon ina o, F & González-San os, M 2023, ‘Gene ic he i age o he Baphu hi
highligh s an o e -e hnicized no ion o “Bushman” in he Malo i-D akensbe g, Sou he n
A ica’, The Ame ican Jou nal o Human Gene ics, ol. 110, no. 5, pp. 880–894. h ps://doi.
o g/10.1016/j.ajhg.2023.03.018
Da ies, R 2021, Towa ds a new deal, 1s edn., Jona han Ball, Johannesbu g.
Da ila, T, Eps ein, M & Shel on, R 2012, Making inno a ion wo k: How o manage i , measu e i ,
and p o i om i , FT P ess, Manches e .
Depa men o Small Business De elopmen 2022, Na ional In eg a ed Small En e p ise
De elopmen Mas e plan D a , Go e nmen Gaze e, P e o ia, iewed 10 May 2022. h ps://
www.dsbd.go .za/index.php/ca ego ies/2022?page=1
Depa men o T ade and Indus y (DTI) 2018, Indus ial Policy Ac ion Plan 2018/19–2020/21,
Depa men o T ade and Indus y, P e o ia.
Du oi , DC, Romonyai, MD, Lubbe, PA & N ushelo, V 2011, Food secu i y, ol. 48, no. 4, Di ec o a e
Economic Se ices, P oduc ion Economics Uni , pp. 13—25, iewed 26 Ap il 2022. <h ps://
www.dal d.go .za/phocadownloadpap/Gene al_Repo s/FoodSecu i y.pd >
Egholm, L, Heyse, L & Mou ey, D 2020, ‘Ci il socie y o ganiza ions: The si e o legi imizing he
common good – A li e a u e e iew’, VOLUNTAS: In e na ional Jou nal o Volun a y and
Nonp o i O ganiza ions, ol. 31, no. 1, pp. 1–18. h ps://doi.o g/10.1007/s11266-019-00171-y
Enai oghe, A & Ramsu aj, T 2023, ‘Examining he Func ion o en ep eneu ship h ough small
and medium en e p ises as d i e s o local economic g ow h in Sou h A ica’, A ican
Jou nal In e /Mul idisciplina y S udies, ol. 5, no. 1, pp. 1–11. h ps://doi.o g/10.51415/ajims.
5i1.1172
Enai oghe, A & Vezi-Magigaba, MF 2023, ‘Concep ualizing he ole o en ep eneu ship and
SME in os e ing Sou h A ica’s local economic de elopmen ’, In e na ional Jou nal o
Resea ch in Business and Social Science, ol. 12, no. 4, pp. 96–105. h ps://doi.o g/10.20525/
ij bs. 12i4.2444
Espoi , DK & Ngepah, N 2021, ‘The e ec s o inequali y on o al ac o p oduc i i y ac oss
dis ic s in Sou h A ica: A spa ial econome ic analysis’, GeoJou nal, ol. 86, pp. 2607–2638.
h ps://doi.o g/10.1007/s10708-020-10215-2
Fedde ke, JW & Mengis eab DK 2017, ‘Es ima ing Sou h A ica’s ou pu gap and po en ial
g ow h a e’, Sou h A ican Jou nal o Economics, ol. 85, no. 2, pp. 161–177. h ps://doi.
o g/10.1111/saje.12153
F ancke, E & Alexande , B 2019, ‘En ep eneu ial de elopmen in Sou h A ica h ough
inno a ion: A model o po e y alle ia ion’, Ac a Comme cii – Independen Resea ch
Jou nal in he Managemen Sciences, ol. 19, no. 1, pp. 1–11. h ps://doi.o g/10.4102/
ac. 19i1.631
Fe nandez-A mes o, F 2006, Pa h inde s: A global his o y o explo a ion, No on, New Yo k,
pp. 177–178.
Fisman, R & Golden, MA 2017, Co up ion: Wha e e yone needs o know, Ox o d Uni e si y
P ess, Ox o d.
Flowe s, D, Pa ke , H, A enz, J, Ga ley, J, G eigh on, L, F ed icks, L, Rasdien, S, Ma hews,T,
Pie e sen, V & Smi , Y 2013, ‘An explo a o y s udy on co po a e go e nance p ac ices
in small and mic o as mo ing consume goods en e p ises in he Cape Me opole,
Re e ences
251
Wes e n Cape, Sou h A ica’, A ican Jou nal o Business Managemen , ol. 7, no. 22,
pp.2119–2125. DOI: 10.5897/AJBM
Fox, L & Gandhi, D 2021, You h employmen in sub-Saha an A ica: P og ess and p ospec s,
A ica G ow h Ini ia i e a B ookings, Wo king Pape #28, Policycommons, New Yo k.
Ga cia, FT, Ten Ca en, CS, De Campos, EAR, Callega o, AM & De Jesus Pacheco, DA 2022,
‘Mo ali y isk ac o s in mic o and small businesses: Sys ema ic li e a u e e iew
and esea ch agenda’, Sus ainabili y, ol. 14, no. 5, p. 2725. h ps://doi.o g/10.3390/
su14052725
Gedeon, S 2010, ‘Wha is en ep eneu ship?’, En ep eneu ial P ac ice Re iew, ol. 1, no. 3,
16–35.
Gup a, H 2022, Ha dik, poli ical & adminis a i e anspa ency and en ep eneu ship (Decembe 7,
2021), HKUST Business School Resea ch Pape No. 2021-045, iewed 27 Janua y 2023.
<h ps://ss n.com/abs ac =3979502 > o h ps://doi.o g/10.2139/ss n.3979502
Halizah, SN 2022, ‘De elopmen en ep eneu ship in en ion as an e o o imp o e he le el
o he consume household economy’, Bulle in o Science, Technology and Socie y, ol. 1,
no.1, pp. 30–34. h ps://ejou nalisse.com/index.php/isse/a icle/download/40/36
Ha dik, Poli ical & Adminis a i e T anspa ency and En ep eneu ship 2022, HKUST Business
School Resea ch Pape No. 2022–054, iewed 27 Augus 2023. <h ps://ss n.com/
abs ac =4006316 >
Hocke , RC & Gunn-W igh , R 2019, The g een new deal: Mobilizing o a jus , p ospe ous,
and sus ainable economy, Co nell Legal S udies Resea ch Pape No. 19–09, iewed 26 July
2023. <h ps://ss n.com/abs ac =3342494 o h ps://doi.o g/10.2139/ss n.3342494>
H bek, I & Muhammad, F 1988, A ica om he se en h o he ele en h cen u y, UNESCO,
London.
Jaimes-Valdez, MA & Jacobo-He nandez, CA 2016, ‘Sus ainabili y and co po a e go e nance:
Theo e ical de elopmen and pe spec i es’, Jou nal o Managemen and Sus ainabili y,
ol.6, no. 3, pp. 44–56. h ps://doi.o g/10.5539/jms. 6n3p44
Janang, JS, Joseph, C & Said, R 2020, ‘Co po a e go e nance and co po a e social
esponsibili y socie y disclosu e: The applica ion o legi imacy heo y’, In e na ional
Jou nal o Business and Socie y, ol. 21, no. 2, pp. 660–678. h ps://doi.o g/10.33736/
ijbs.3281.2020
Kademe eme, E & B uma, S 2023, ‘Using blockchain echnology o imp o e he in eg i y and
anspa ency o p ocu emen p ocesses be ween SMMEs and go e nmen : A sys ema ic
li e a u e e iew’, The Jou nal o The B i ish Blockchain Associa ion, ol. 7, no. 1, pp. 4–12
h ps://doi.o g/10.31585/jbba-7-1-(1)2024
Kah, S, O’B ien, S, Kok, S & Gallaghe , E 2022, ‘En ep eneu ial mo i a ions, oppo uni ies,
and challenges: An in e na ional pe spec i e’, Jou nal o A ican Business, ol. 23, no. 2,
pp.380–399. h ps://doi.o g/10.1080/15228916.2020.1838835
Kamal, Y 2021, ‘S akeholde s expec a ions o CSR- ela ed co po a e go e nance disclosu e:
E idence om a de eloping coun y’, Asian Re iew o Accoun ing, ol. 29, no. 2, pp. 97–127.
h ps://doi.o g/10.1108/ARA-04-2020-0052
Kaplan, JM & Wa en, AC 2010, Pa e ns o en ep eneu ship managemen , 3 d edn., John
Wiley and Sons, Hoboken.
King 1994, King 1 epo on co po a e go e nance o Sou h A ica, iewed 21 Oc obe 2023.
<h ps://www.iodsa.co.za/page/go e nance_s anda ds_and_codes#>
King 2000, King Repo 11 on co po a e go e nance o Sou h A ica, iewed 21 Oc obe 2023.
<h ps://www.iodsa.co.za/page/go e nance_s anda ds_and_codes#>
King 2016, King Repo IV on co po a e go e nance o Sou h A ica, iewed 21 Oc obe 2023.
<h ps://www.iodsa.co.za/page/king-i >
Kloppe s, HJ & Kloppe s EM 2006, ‘A pa h ou o po e y: A Sou h A ican pe spec i e on he
ole o SMEs in CSR’, Co po a e Responsibili y Resea ch Con e ence 03–05 Sep embe ,
Re e ences
258
Masi e a, E 2019, ‘The mo al signi icance o he Da e sys em in seeking jus ice and peace
among he Shona people o Zimbabwe’, in N Ma ongwe, FPT Du i & M Mawe e (eds.),
Violence, peace and e e yday modes o jus ice and healing in pos -colonial A ica, Langaa
Resea ch and Publishing Common Ini ia i e G oup, Bamenda, pp. 291–311. h ps://doi.
o g/10.2307/j.c h9 x65.16
Ma ashu, M 2016, ‘An in eg a ed co po a e go e nance amewo k o enhancing economic g ow h:
E idence om sub Saha an A ican coun ies’, Doc o al disse a ion, No h-Wes Uni e si y.
McClune, C 2018, ‘Ubun u Linux in Zimbabwe: The digi al Unhu in open sou ce p ac ices’,
Media, Cul u e & Socie y, ol. 40, no. 2, pp. 161–177. h ps://doi.o g/10.1177/0163443717745119
Meckling, WH & Jensen, MC 1976, ‘Theo y o he i m. Manage ial beha io , agency cos s and
owne ship s uc u e’, Jou nal o Financial Economics, ol. 3, no. 4, pp. 305–360. h ps://doi.
o g/10.1016/0304-405X(76)90026-X
Me z, DW 2016, On he elemen s o on ology: A ibu e ins ances and s uc u e, ol. 68,
Wal e de G uy e GmbH & Co KG, London.
Me z, T 2016 ‘Recen philosophical app oaches o social p o ec ion: F om capabili y o
Ubun u’, Global Social Policy, ol. 16, no. 2, pp. 132–150.
Mi is, P & Googins B 2018, ‘Ca alyzing social en ep eneu ship in A ica: Roles o Wes e n
uni e si ies, NGOs and co po a ions’, A ica Jou nal o Managemen , ol. 4, no. 1, pp. 57–83.
h ps://doi.o g/10.1080/23322373.2018.1428020
Moo e, M & Pe in, M 2017, Co po a e go e nance: Law, egula ion and heo y, Bloomsbu y
Publishing, New Delhi.
Mugumba e, JR & Che eni, A 2020, ‘Now, he heo y o Ubun u has i s space in social wo k’,
A ican Jou nal o Social Wo k, ol. 10, no. 1, pp. –x .
Muswaka, L 2014, ‘A c i ical analysis o he p o ec ion o s akeholde s in e es s unde he
Sou h A ican Companies Ac (Pa 2)’, Medi e anean Jou nal o Social Sciences, ol. 5,
no.3, p. 66. h ps://doi.o g/10.5901/mjss.2014. 5n3p66
Na ional In eg a ed Small En e p ise De elopmen (NISED) Mas e plan 2022, Final d a
(Execu i e Summa y), Go e nmen P in e s, iewed 26 Oc obe 2023. <h ps://www.go .
za/si es/de aul / iles/gcis_documen /202205/nised-mas e plan.pd >
Ncube, C 2010, ‘Con es ing hegemony: Ci il socie y and he s uggle o social change in
Zimbabwe, 2000–2008’, Doc o al disse a ion, Uni e si y o Bi mingham.
Ngcukai obi, T 2021, The land ma e s. Sou h A ica’s ailed land e o ms and he land ahead,
Penguin Books, Cape Town.
Nicolaides, A 2014, ‘U ilizing Ubun u o In o m Chie Execu i e O ice (CEO) hinking on
co po a e social esponsibili y (CSR) and codes o e hics’, Business. Jou nal o Social
Sciences, ol. 41, no. 1, pp. 17–25. h ps://doi.o g/10.1080/09718923.2014.11893337
Ogujiuba, KK, Olamide, E, Bosho , E, Agholo , I & Ogujiuba, C 2023, ‘SMEs, success, and
capi al s a ups: E idence om he se ice sec o in Sou h A ica’, Adminis a i e Sciences,
ol. 13, no. 5, p. 127. h ps://doi.o g/10.3390/admsci13050127
Onyango, P 2013, A ican cus oma y law: An in oduc ion. Law A ica, A ican Books Collec i e,
Nai obi.
O uka, OH 1994, Philosophy, humani y and ecology, Ac s P ess, Nai obi.
Pandya, H 2011, ‘Co po a e go e nance s uc u es and inancial pe o mance o selec ed
Indian banks’, Jou nal o Managemen and Public Policy, ol. 2, no. 2, pp. 4–21.
Pie e se, JN 2004, Globaliza ion o empi e?, Rou ledge, New Yo k.
Radebe, SB & Phooko, MR 2017, ‘Ubun u and he law in Sou h A ica: Explo ing and
unde s anding he subs an i e con en o ubun u’, Sou h A ican Jou nal o Philosophy=
Suid-A ikaanse Tydsk i i Wysbegee e, ol. 36, no. 2, pp. 239–251. h ps://doi.o g/10.108
0/02580136.2016.1222807
Ramose, MB 2003. ‘The s uggle o eason in A ica’, in PH Coe zee & APJ Roux (eds.),
The A ican philosophy eade , 2nd edn., Rou ledge, New Yo k, pp. 1–9.
Re e ences
259
Rankopo, M, Osei-Hwedie, K & Modie-Mo oka, T 2007, ‘Issues in se ice olun ee ism in
Bo swana’, in L Pa el & R Mupedziswa (eds.), Resea ch pa ne ships build he se ice ield in
A ica. Special issue o JSDA and Social Wo k P ac i ione –Resea che , A join issue o The
Social Wo k P ac i ione -Resea che , Uni e si y o Johannesbu g and he Jou nal o Social
De elopmen in A ica, School o Social Wo k, Uni e si y o Zimbabwe, Ha a e, pp. 24–39.
Ra en, V 2020, ‘A ican en ep eneu ship’, Small En e p ise Resea ch, ol. 27, no. 2, pp. 103–109.
h ps://doi.o g/10.1080/13215906.2020.1770120
Regine, B 2009, ‘Ubun u: A pa h o coope a ion’, In e being, ol. 3, no. 2, pp. 17–22.
Ri e a-San os, M, Hol , D, Li lewood, D & Kolk, ANS 2015, ‘Social en ep eneu ship in sub-
Saha an A ica’, Academy o Managemen Pe spec i es, ol. 29, no. 1, pp. 72–91. h ps://doi.
o g/10.5465/amp.2013.0128
Rushwaya, M 2018, ‘Indigenisa ion/black economic empowe men and he app op ia ion o
he spi i o capi alism in pos -colonial A ica: A c i ical s udy on he eme gence o A ican
business e hics’, Doc o al disse a ion, Uni e si y o KwaZulu Na al, E hics S udies.
Sku nik, S 2002, ‘The ole o coope a i e en ep eneu ship and i ms in o ganising economic
ac i i ies–Pas , p esen and u u e’, LTA, ol. 1, no. 2, pp. 103–124.
Samkange, S & Samkange, TM 1980, Hunhuism o Ubun uism: A Zimbabwean indigenous
poli ical philosophy, G aham Publishing, Ha a e.
Solomon, J 2011, Co po a e go e nance and accoun abili y, 3 d edn., John Wiley & Sons, Wes
Sussex.
Swa z, EM, Ama ucci, FM & Ma ks, JT 2017, ‘Con ex ual embeddedness as a amewo k:
Thecase o en ep eneu ship in Sou h A ica’, Jou nal o De elopmen al En ep eneu ship,
ol. 24, no. 03, p. 1950018. h ps://doi.o g/10.1142/S1084946719500183
Taylo , DFP 2014, ‘De ining Ubun u o business e hics – A deon ological app oach’,
Sou hA ican Jou nal o Philosophy, ol. 33, no. 3, pp. 331–345. h ps://doi.o g/10.1080/02
580136.2014.948328
Tshoose, C 2009, ‘The eme ging ole o he cons i u ional alue o ubun u o in o mal social
secu i y in Sou h A ica’, A ican Jou nal o Legal S udies, ol. 3, pp. 12–19. h ps://doi.o g/
10.1163/221097312X13397499736822
Ughulu, J 2022, ‘En ep eneu ship as a majo d i e o weal h c ea ion’, In e na ional Jou nal
o Economic Beha io and O ganiza ion, ol. 13, no. 2, pp. 78–82.
Van No en, DE 2023, ‘Ubun u humani y and sus ainable de elopmen goals’, in B Ba eye,
MMasaeli, LF Mülle & A Roo haan (eds.), Beau y in A ican hough : C i ical pe spec i es
on he wes e n idea o de elopmen , Lexing on Books, Lanham, p. 113.
Von Feigenbla , OF, Pa do, P & Coope , M 2021, ‘Su iciency Economy Philosophy (SEP):
Thailand’s emic app oach o go e nance and de elopmen as e idence o an Asian- alue
o ien ed inclusi e leade ship managemen philosophy’, Jou nal o Asia Paci ic S udies,
ol.6, no. 2, pp. 289–299.
Wa ikandwa, TV, Mnubi-Mchombu, C, Jo ge, A, Libebe, E, Ha is, C & Iikwambi, P 2023, ‘Global
ci izenship and Sou he n A ica Libe a ion his o y educa ion in Sou he n A ica: A 21s
cen u y socio-legal pe spec i e’, Cogen Social Sciences, ol. 9, no. 1, p. 2207884. h ps://
doi.o g/10.1080/23311886.2023.2207884
Wel e , FT, Bake & Wi sching, K 2018, ‘Th ee wa es and coun ing: The building ide o
con ex ualiza ion in en ep eneu ship esea ch’, Small Business Economics, ol. 52,
pp.319–330. h ps://doi.o g/10.1007/s11187-018-0094-5
Wes , A 2014, ‘Ubun u and business e hics: P oblems, pe spec i es and p ospec s’, Jou nal o
Business E hics, ol. 121, no. 1, pp. 47–61. h ps://doi.o g/10.1007/s10551-013-1669-3
Whi wo h, A & Wilkinson, K 2013, ‘Tackling child po e y in Sou h A ica: Implica ions
o ubun u o he sys em o social g an s’, De elopmen Sou he n A ica, ol. 30, no. 1,
pp.121–134. h ps://doi.o g/10.1080/0376835X.2013.756219
Wo ld Commission on En i onmen and De elopmen (WCED) 1987, Ou common u u e,
Special Wo king Session, Be lin, ol. 17, no. 1, pp. 1–91.
Re e ences
260
Chap e 4
Adams, RB & Fe ei a, D 2009, ‘Women in he boa d oom and hei impac on go e nance
and pe o mance’, Jou nal o Financial Economics, ol. 94, no. 2, pp. 291–309. h ps://doi.
o g/10.1016/j.j ineco.2008.10.007
Adendo , C & Bosho , C 2011, ‘The impac o cul u e- ela ed ac o s on good go e nance in
G eek amily businesses in Sou h A ica’, Sou h A ican Jou nal o Business Managemen ,
ol. 42, no. 2, pp. 1–14. h ps://doi.o g/10.4102/sajbm. 42i2.490
Adendo , C, Ven e , E & Bosho , C 2008, ‘The impac o amily ha mony on go e nance
p ac ices in Sou h A ican G eek amily businesses’, Managemen Dynamics: Jou nal o he
Sou he n A ican Ins i u e o Managemen Scien is s, ol. 17, no. 3, pp. 28–44. h ps://doi.
o g/10.10520/EJC69738
Ang, JS, Cole, RA & Lin, JW 2000, ‘Agency cos s and owne ship s uc u e’, The Jou nal o
Finance, ol. 55, no. 1, pp. 81–106. h ps://doi.o g/10.1111/0022-1082.00201
A eaga, R & Menéndez-Requejo, S 2017, ‘Family cons i u ion and business pe o mance:
Mode a ing ac o s’, Family Business Re iew, ol. 30, no. 4, pp. 320–338. h ps://doi.
o g/10.1177/0894486517732438
Be en -B aun, M & Uhlane , L 2012, ‘Family go e nance p ac ices and eambuilding: Pa adox
o he en e p ising amily’, Small Business Economics, ol. 38, no. 1, pp. 103–119. h ps://doi.
o g/10.1007/s11187-010-9269-4
Be gamaschi, M & Rande son, K 2016, ‘The u u es o amily businesses and he de elopmen
o co po a e social esponsibili y’, Fu u es, ol. 75, pp. 54–65. h ps://doi.o g/10.1016/j.
u u es.2015.10.006
Be one, P, C uz, C & Gomez-Mejıa, LR 2012, ‘Socioemo ional weal h in amily i ms heo e ical
dimensions, assessmen app oaches, and agenda o u u e esea ch’, Family Business
Re iew, ol. 25, no. 3, pp. 258–279. h ps://doi.o g/10.1177/0894486511435355
Be schi-Michel, A, Siege , P & Kamme lande , N 2019, ‘Succession in amily-owned SMEs:
The impac o ad iso s’, Small Business Economics, ol. 56, pp. 1531–1551. h ps://doi.
o g/10.1007/s11187-019-00266-2
Bhaga , S & Bol on, B 2019, ‘Co po a e go e nance and i m pe o mance: The sequel’, Jou nal
o Co po a e Finance, ol. 58, pp. 142–168. h ps://doi.o g/10.1016/j.jco p in.2019.04.006
Biz i, R 2016, ‘Succession in he amily business: D i e s and pa hways’, In e na ional Jou nal o
En ep eneu ial Beha iou and Resea ch, ol. 22, no. 1, pp. 133–154. h ps://doi.o g/10.1108/
IJEBR-01-2015-0020
B enes, E, Mad igal, K & Requena, B 2011, ‘Co po a e go e nance and amily business
pe o mance’, Jou nal o Business Resea ch, ol. 64, no. 3, pp. 280–285. h ps://doi.
o g/10.1016/j.jbus es.2009.11.013
By ne, J, Fa oum, S & Thebaud, S 2018, ‘A sui able boy? Gende ed oles and hie a chies in
amily business succession’, Eu opean Managemen Re iew, ol. 16, no. 3, pp. 579–596.
h ps://doi.o g/10.1111/em e.12298
Campopiano, G & De Massis, A 2015, ‘Co po a e social esponsibili y epo ing: A con en
analysis in amily and non- amily i m’, Jou nal o Business E hics, ol. 129, no. 1, pp. 511–534.
h ps://doi.o g/10.1007/s10551-014-2174-z
Capu o, A, Ma zi, G, Pelleg ini, MM & Rial i, R 2018, ‘Con lic managemen in amily businesses’,
In e na ional Jou nal o Con lic Managemen , ol. 29, no. 4, pp. 519–542. h ps://doi.
o g/10.1108/IJCMA-02-2018-0027
Ca lock, R & Wa d, J 2001, S a egic planning o he amily business, pa allel planning o uni y
he amily and business, Palg a e Macmillan, New Yo k.
Ca e , JJ, Young, M & Alde son, K 2019, ‘Con ibu ions and cons ain s o con inui y in Mexican-
Ame ican amily i ms’, Jou nal o Family Business Managemen , ol. 9, no. 2, pp. 175–200.
h ps://doi.o g/10.1108/JFBM-08-2018-0022
Re e ences
261
Chang, AA, Muba ik, MS & Nagha i, N 2021, ‘Passing on he legacy: Explo ing he dynamics
o succession in amily businesses in Pakis an’, Jou nal o Family Business Managemen ,
ol.11, no. 2, pp. 161–184. h ps://doi.o g/10.1108/JFBM-10-2019-0065
Daspi , JJ, Hol , DT, Ch isman, JJ & Long, RG, 2016, ‘Examining amily i m succession om
a social exchange pe spec i e: A mul iphase, mul i s akeholde e iew’, Family Business
Re iew, ol. 29, no. 1, pp. 44–64. h ps://doi.o g/10.1177/0894486515599688
De Alwis, AC 2016, ‘Incumben s in luence on amily business succession p ocess’, Eu opean
Jou nal o Business and Managemen , ol. 8, no. 13, pp. 96–105.
Decke , C, Hein ichs, K, Jaskiewicz, P & Rau, S 2016, ‘Wha do we know abou succession in
amily businesses? Mapping cu en knowledge and unexplo ed e i o y’, in F Kelle manns
& F Hoy (eds.), The Rou ledge companion o amily business, Rou ledge, New Yo k,
pp.15–44.
De Massis, A, Siege , P, Chua, JH & Visma a, S 2016, ‘Incumben s’ a i ude owa d in a amily
succession: An in es iga ion o i s an eceden s’, Family Business Re iew, ol. 29, no. 3,
pp.278–300. h ps://doi.o g/10.1177/0894486516656276
De Villie s, C & Dimes, R 2021, ‘De e minan s, mechanisms and consequences o co po a e
go e nance epo ing: A esea ch amewo k’, Jou nal o Managemen and Go e nance,
ol. 25, pp. 7–26. h ps://doi.o g/10.1007/s10997-020-09530-0
Donaldson, L & Da is, JH 1991, ‘S ewa dship heo y o agency heo y: CEO go e nance and
sha eholde e u ns’, Aus alian Jou nal o Managemen , ol. 16, no. 1, pp. 49–64. h ps://
doi.o g/10.1177/031289629101600103
Elking on, J 1997, Cannibals wi h o ks, he iple bo om line o 21s cen u y business, Caps one
Publishing L d., Ox o d.
Fahed-S eih, J 2009, ‘An explo a o y s udy on a new co po a e go e nance mechanism:
E idence om small amily i ms’, Managemen Resea ch News, ol. 32, pp. 50–61. h ps://
doi.o g/10.1108/01409170910922023
Felix, EGS & Da id, DST 2019, ‘Pe o mance o amily-owned i ms: The impac o gende a
he managemen le el’, Jou nal o Family Business Managemen , ol. 9, no. 2, pp. 228–250.
h ps://doi.o g/10.1108/JFBM-10-2018-0051
F eeman, RE 1984, S a egic managemen : A s akeholde app oach, Pi man, Bos on.
Ga cia, PRJM, Sha ma, P, De Massis, A, W igh , M & Scholes, L 2019, ‘Pe cei ed pa en al
beha iou s and nex -gene a ion engagemen in amily i ms: A social cogni i e
pe spec i e’, En ep eneu ship: Theo y and P ac ice, ol. 43, no. 2, pp. 224–243. h ps://
doi.o g/10.1177/1042258718796087
Gilding, M, G ego y, S & Cosson, B 2015, ‘Mo i es and ou comes in amily business succession
planning’, En ep eneu ship Theo y and P ac ice, ol. 39, no. 2, pp. 299–312. h ps://doi.
o g/10.1111/e ap.12040
Glo e , JL 2014, ‘Gende , powe and succession in amily a m business’, In e na ional Jou nal
o Gende and En ep eneu ship, ol. 6, no. 3, pp. 276–295. h ps://doi.o g/10.1108/IJGE-
01-2012-0006
Glo e , JL & Reay, T 2015, ‘Sus aining he amily business wi h minimal inancial ewa ds: How
do amily a ms con inue?’, Family Business Re iew, ol. 28, no. 2, pp. 163–177. h ps://doi.
o g/10.1177/0894486513511814
Gompe s, PA, Ishii, JL & Me ick, A 2003, ‘Co po a e go e nance and equi y p ices’, The Qua e ly
Jou nal o Economics, ol. 118, pp. 107–156. h ps://doi.o g/10.1162/00335530360535162
Habbe shon, TG, Williams, M & Macmillan, IC 2003, ‘A uni ied sys ems pe spec i e o amily
i m pe o mance’, Jou nal o O ganiza ional Change Managemen , ol. 16, no. 1, pp. 135–153.
Habe man, H & Danes, SM 2007, ‘Fa he -daugh e and a he -son amily business managemen
ans e compa ison: Family FIRO model applica ion’, Family Business Re iew, ol. 20,
no.2, pp. 163–184. h ps://doi.o g/10.1111/j.1741-6248.2007.00088.x
Re e ences
262
Hilleb and, S 2019, ‘Inno a ion in amily i ms – A gene a ional pe spec i e’, Jou nal o Family
Business Managemen , ol. 9, no. 2, pp. 126–148. h ps://doi.o g/10.1108/JFBM-04-2018-0011
Hjo h, D 2016, ‘The bu den o his o y in he amily business o ganiza ion’, O ganiza ion
S udies, ol. 37, no. 8, pp. 1089–1111. h ps://doi.o g/10.1177/0170840615613375
Hough, J, Thompson, AA J , S ickland, AJ & Gamble, JE 2008, C a ing and execu ing s a egy:
Tex s, eadings, and cases, McG aw-Hill, Be kshi e.
Huang, T 1999, ‘Who shall ollow? Fac o s a ec ing he adop ion o succession plans in
Taiwan’, Long Range Planning, ol. 32, no. 6, pp. 609–616. h ps://doi.o g/10.1016/s0024-
6301(99)00077-1
Idigbe, E, Tadema, O & Ojewumi, F 2021, Nige ia: The ole o co po a e go e nance in succession
planning o amily-owned en e p ises in Nige ia, iewed 16 Ma ch 2023. <h ps://www.
mondaq.com/nige ia/co po a e-go e nance/1047490/ he- ole-o -co po a e-go e nance-
in-succession-planning- o - amily-owned-en e p ises-in-nige ia>
Ismail, HN, Mohd Puzi, MA, Banki, MB & Yuso , N 2019, ‘Inhe en ac o s o amily business and
ansgene a ional in luencing ou ism business in Malaysian islands’, Jou nal o Tou ism
and Cul u al Change, ol. 17, no. 5, pp. 624–641. h ps://doi.o g/10.1080/14766825.2018.15
49058
Jackling, B & Johl, S 2009, ‘Boa d s uc u e and i m pe o mance: E idence om India’s op
companies’, Co po a e Go e nance: An In e na ional Re iew, ol. 17, no. 4, pp. 492–509.
h ps://doi.o g/10.1111/j.1467-8683.2009.00760.x
Jensen, MC 1986, ‘Agency cos s o ee cash low, co po a e inance and akeo e s’, Ame ican
Economic Re iew, ol. 76, no. 2, pp. 323–329.
Jensen, MC & Meckling, WH 1976, ‘Theo y o he i m: Manage ial beha iou , agency cos s and
owne ship s uc u e’, Jou nal o Financial Economics, ol. 3, no. 4, pp. 305–360. h ps://doi.
o g/10.1016/0304-405X(76)90026-X
Jijana, C & Che y, N 2015, ‘In es iga ing he na u e, pu pose and e ec i eness o business
escue in Sou h A ica: Chap e 6 o Companies Ac 71 o 2008 as amended’, A abian
Jou nal o Business and Managemen Re iew, ol. 5, no. 3, pp. 70–110. h ps://doi.
o g/10.12816/0019019
Jose y, MA, Ha ison, JS, Si mon, DG & Ca nes, C 2017, ‘Li ing and dying: Syn hesizing he
li e a u e on i m su i al and ailu e ac oss s ages o de elopmen ’, The Academy o
Managemen Annals, ol. 11, no. 2, pp. 770–799. h ps://doi.o g/10.5465/annals.2015.0148
Kao, MF, Hodgkinson, L & Jaa a , A 2019, ‘Owne ship s uc u e, boa d o di ec o s and i m
pe o mance: E idence om Taiwan. Co po a e Go e nance’, The In e na ional Jou nal o
Business in Socie y, ol. 19, no. 1, pp. 189–216. h ps://doi.o g/10.1108/CG-04-2018-0144
Ka zew, J 2011, ‘C ossing he di ide be ween he business o he co po a ion and he
impe a i es o human igh s- he impac o Sec ion 7 o he Companies Ac 71 o 2008’,
Sou h A ican Law Jou nal, ol. 128, no. 4, pp. 686–711.
Kaunda, S & Nkhoma, A 2013, ‘In e gene a ional su i al o amily businesses: Fac o s
a ec ing he succession success o amily owned businesses in Malawi’, Eu opean Jou nal
o Business and Managemen , ol. 5, no. 7, pp. 157–164.
Kilinca slan, E 2021, ‘The in luence o boa d independence on di idend policy in con olling
agency p oblems in amily i ms’, In e na ional Jou nal o Accoun ing & In o ma ion
Managemen , ol. 29, no. 4, pp. 552–582. h ps://doi.o g/10.1108/IJAIM-03-2021-0056
Kloppe s, H J2013, ‘D i ing co po a e social esponsibili y (CSR) h ough he companies Ac :
An o e iew o he ole o he social and e hics commi ee’, Po che s oom Elec onic
Law Jou nal/Po che s oomse Elek oniese Regsblad, ol. 16, no. 1, pp. 165–199. h ps://doi.
o g/10.17159/1727-3781/2013/ 16i1a2307
KPMG 2017, Family businesses in he digi al economy, iewed 20 Oc obe 2023. <h ps://
asse s.kpmg.com/con en /dam/kpmg/sg/pd /2017/05/Family-Businesses-in- he-Digi al-
Economy.pd >
Re e ences
263
Leade ship Dynamics 2023, Why p i a e equi y succession planning is good go e nance,
Viewed 20 Oc obe 2023. <h ps://www.leade shipdynamics.io/insigh s-and-impac /
succession-planning-go e nance>
Le B e on-Mille , I 2005, Managing o he long un: Lessons in compe i i e ad an age om
g ea amily businesses, Ha a d Business P ess, Bos on.
Lim, JS & G eenwood, CA 2017, ‘Communica ing co po a e social esponsibili y (CSR):
S akeholde esponsi eness and engagemen s a egy o achie e CSR goals’, Public
Rela ions Re iew, ol. 43, no. 4, pp. 768–776. h ps://doi.o g/10.1016/j.pub e .2017.06.007
Liu, Z, Zhou, J & Li, J 2023, ‘How do amily i ms espond s a egically o he digi al
ans o ma ion end: Disclosing symbolic cues o making subs an i e changes?’ Jou nal
o Business Resea ch, ol. 155, p. 113395. h ps://doi.o g/10.1016/j.jbus es.2022.113395
Maas, G 2009, ‘En e ing he amily business’, in G Nieman & C Nieuwebhuizen (eds.),
En ep eneu ship: A Sou h A ican pe spec i e, Van Schaik Publishe s P e o ia, pp. 217–231.
Makiwane, M, Gumede, NA, Makoae, M & Vawda, M 2017, ‘Family in a changing Sou h A ica:
S uc u es, unc ions and he wel a e o membe s’, Sou h A ican Re iew o Sociology
ol.48, no. 2, pp. 49–69. h ps://doi.o g/10.1080/21528586.2017.1288166
Mega a alli, AV & Sampagna o, G 2019, ‘P edic ing he g ow h o high-g ow h SMEs: E idence
om amily business i ms’, Jou nal o Family Business Managemen , ol. 9, no. 1, pp. 98–109.
h ps://doi.o g/10.1108/JFBM-09-2017-0029
Michel, A & Kamme lande , N 2015, ‘T us ed ad iso s in a amily business’s succession-
planning p ocess—An agency pe spec i e’, Jou nal o Family Business S a egy, ol. 6,
no.1, pp.45–57. h ps://doi.o g/10.1016/j.j bs.2014.10.005
Michiels, A, Voo decke s, W, Lybae , N & S eij e s, T 2014, ‘Di idends and amily go e nance
p ac ices in p i a e amily i ms’, Small Business Economics, ol. 44, no. 2, pp. 299–314.
h ps://doi.o g/10.1007/s11187-014-9594-0
Mischel, L & Ianna elli, C 2011, ‘Unde s anding a a he -daugh e succession case: Applying he
5 + 5 + 5 model’, Ame ican Jou nal o Economics and Business Adminis a ion, ol. 3, no. 2,
p. 270. h ps://doi.o g/10.3844/ajebasp.2011.265.271
Mish a, RK & Kapil, S 2018, ‘E ec o boa d cha ac e is ics on i m alue: E idence om India’,
Sou h Asian Jou nal o Business S udies, ol. 7, no. 1, pp. 41–72. h ps://doi.o g/10.1108/
SAJBS-08-2016-0073
Mmako, N 2021, ‘The ole o he JSE ALTX as a pla o m o sus ainabili y and g ow h o high
g ow h po en ial SMEs’, Doc o al disse a ion, Uni e si y o Sou h A ica (UNISA).
Moa s, MC & DeNicola, P 2021, How he bes boa ds app oach CEO succession planning,
iewed 08 Janua y 2024. <h ps://co pgo .law.ha a d.edu/2021/09/20/how- he-bes -
boa ds-app oach-ceo-succession-planning/>
M iki, X 2023, ‘P edic ing co po a e bank up cy in JSE-Al X lis ed i ms’, The Jou nal o
De eloping A eas, ol. 57, no. 3, pp. 31–48. h ps://doi.o g/10.1353/jda.2023.a907733
Nekhili, M, Naga i, H, Ch ioui, T & Rebolledo, C 2017, ‘Co po a e social esponsibili y disclosu e
and ma ke alue: Family e sus non amily i ms’, Jou nal o Business Resea ch, ol. 77,
pp.41–52. h ps://doi.o g/10.1016/j.jbus es.2017.04.001
Nelson, T & Cons an inidis, C 2017, ‘Sex and gende in amily business succession esea ch:
A e iew and o wa d agenda om a social cons uc ion pe spec i e’, Family Business
Re iew, ol. 30, no. 3, pp. 219–241. h ps://doi.o g/10.1177/0894486517715390
Neubaue , F & Lank, A 1998, The amily business: I s go e nance o sus ainabili y, MacMillan
P ess L d., Houndmills, pp. 65–67.
Nonkwelo, PR 2019, ‘Family business succession planning in Sou h A ica: A daugh e ’s
pe spec i e’, Doc o al disse a ion, Uni e si y o he Wi wa e s and, Facul y o Comme ce,
Law and Managemen , School o Business.
Nyamwanza, T, Ma hiki, S & Ganyani, R, 2018, ‘Succession planning in polygamous amily
businesses: A case o a amily business in Zimbabwe’, Jou nal o Business and Managemen ,
ol. 20, no. 8, pp. 32–39.
[Document text truncated for crawler view.]
