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Abstract - Entrepreneurial Bricolage, Subjective Wellbeing and Performance of New Small and Medium Enterprises in the Retail Sector of South Africa
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Abstract: Most new small and medium enterprises (SMEs) cannot borrow funds from commercial banks in South Africa. Inaccessibility to bank credit is one of the major causes of the failure of new SMEs as most of them are resource constrained. The mobilisation of resources through bricolage may be of vital importance to the success of new SMEs at the individual and firm levels. The aim of the study is to investigate the effect of entrepreneurial bricolage on the subjective wellbeing of entrepreneurs and the financial performance of new SMEs. The study used the quantitative research approach and the causal research design. The cross-sectional survey method was used for data collection. Questionnaire was distributed to 400 owners of new SMEs. 175 respondents participated in the survey. Descriptive statistics, Pearson correlation and regression analysis were used for data analysis. The Cronbach’s alpha was used as the measure of reliability. The results indicate a significant positive relationship between entrepreneurial bricolage and subjective wellbeing and financial performance of new SMEs. The paper concludes that entrepreneurial bricolage can reduce the need to borrow from commercial banks. Bricolage is important in reducing resources constraints and improving the performance of new SMEs in South Africa. Keywords: Entrepreneurial bricolage, new, small and medium enterprises, financial performance, subjective wellbeing, South Africa. |
Editorial - Africa’s Economic Development Agenda and Sustainable Growth
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Abstract - Financial Sector Development and Poverty Alleviation in the SADC Region
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Abstract: Financial development is widely regarded as another conduit through which poverty can be reduced. The study empirically examines the relationship between financial sector development and poverty reduction in SADC countries utilising the Generalised Method of Moments technique for the period 1980 to 2017. The empirical results indicate that the effect of the different measures of financial sector development on poverty in the SADC region is mixed. Six out of nine financial development variables have a negative effect on poverty in the SADC region. In terms of financial depth, the empirical results reveal mixed outcomes. Results on financial system stability confirm the notion that a stable financial system is beneficial to the poor. The results also reveal that financial inclusion or access to financial services significantly reduces poverty in the SADC region. The results thus suggest that financial sector development is beneficial to the poor when it is inclusive and stable. The results imply that policies aimed at ensuring a stable financial system, which is also inclusive, should be pursued if the poor are to benefit from the financial system. Keywords: Financial sector development, poverty, GMM. |
Abstract - Revisiting the Causal link Between Agriculture, Industrial output and Financial Sector Development in South Africa
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Abstract: This study seeks to establish the relationship between agriculture, industrial output and financial sector development in South Africa. It uses the Autoregressive Distributed Lag, Error Correction models and Granger causality techniques to test for long- and short-run relationships. The evidence from the models indicates the presence of a long-run relationship between industrial output and agriculture, which suggests that these sectors depend on each other for raw materials and inputs. In addition, stock market development represented by market capitalization has a long-run relationship with agriculture. However, no long-run relationship is established between credit extension and agriculture; and between gross fixed capital formation and agriculture, suggesting that an increase in agricultural output does not impact investment in long-term fixed assets. The evidence also shows a long-run relationship between exports and agricultural output, which is consistent with the export-led growth hypothesis. These findings have implications for policy formulation and allocation of resources. Keywords: Granger Causality, agricultural output, industrial output, financial development. |
Abstract - Possibility of SADC Monetary Union: Testing for Coordination of Fiscal and Monetary Policies
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Abstract: There is consensus that fiscal and monetary policies should be coordinated into a broader macroeconomic framework for sustainable monetary union. The Brexit scenario, and the debt problems of some European Union members has vindicated re-consideration of premises on which monetary unions are set-up. Southern African Development Community (SADC) had mooted the idea of a monetary union, despite the Rand Common Currency Area not being successful. However, there has been little literature on coordination of fiscal and monetary policies within and across SADC countries. The aim of this study is to examine whether the key macroeconomic policies are coordinated in order to create a spring-board for a sustainable monetary union. The study employed panel data analysis techniques on 14 SADC countries. The Pooled Mean Group (PGM) method was applied to constrain the long-run coefficients to be identical, but allow the short-run coefficients and error variance to differ across groups. The application of PGM technique allows the study to control for heterogeneity across countries and the time dependence that exist on most macroeconomic series. The empirical results show that there is fiscal and monetary policies coordination amongst some SADC countries. However, cross-country differences on key macroeconomic fundamentals such debts, fiscal balances and money supply may hinder the formation of a monetary union and obstruct the economic survival initiatives for trade amongst member states. The paper concludes monetary union may naturally become necessary to facilitate cooperation and trade amongst countries once there exists shared goals. Keywords: Macroeconomic policy, policy coordination, International Finance, Economic Development, Monetary Union. |