The European Educational Researcher

Educational Strategies Employed by Successful SMEs in KwaZulu-Natal

The European Educational Researcher, Volume 2, Issue 2, 2019, pp. 111-126
OPEN ACCESS VIEWS: 354 DOWNLOADS: 159 Publication date: 15 Jun 2019
ABSTRACT
Successful SMEs in KwaZulu-Natal do not all follow formal or ‘classical’ strategic planning methodologies taught by most business schools. While many SMEs collapse within the first year of operation, others become successful in their endeavours to firstly make a living for themselves and secondly to employ others in order to improve and uplift the economy of South Africa. In this qualitative study, four business models were selected which are taught at most business schools. All SMEs engaged in this study acknowledged the value of using business models to support strategic planning. The medium size enterprises did prepare formal strategic plans and monitored all their activities on a regular basis. Small size SMEs use a mixture of business ‘creativity’ to accommodate uncertain economic conditions and make quick decisions and have been able to succeed even during poor economic times. A new concept called ‘extremely flexibile’ strategic planning was introduced to enable small size SMEs to consider an alternate method of making strategic plans in a less-structured manner.
KEYWORDS
Business models, Extremely flexible strategic planning, Small and Medium size Enterprises, Strategic planning, Business success factors.
CITATION (APA)
Chapman, G. (2019). Educational Strategies Employed by Successful SMEs in KwaZulu-Natal. The European Educational Researcher, 2(2), 111-126. https://doi.org/10.31757/euer.223
REFERENCES
  1. Amit, R., & Zott, C. (2001). Value creation in e-business. Strategic.Management Journal, 22, 493-520. In Jablonski, A. & Jablonski, M. (2016). Research on Business Models in their Life Cycle, Sustainability, 8(430),1 - 37.
  2. https://www.mdpi.com/Journal/sustainability
  3. Ayandibu, A.O., & Houghton, J. (2017). The role of Small and Medium Scale Enterprise in local economic development (LED). Journal of Business and Retail Management Research (JBRMR), 11(2), 133 – 139.
  4. Bazeley, P. (2009). Analysing qualitative data: More than “identifying Themes”. The Malaysian Journal of Qualitative Research, 2(2), 6 – 22.
  5. Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77 – 101.
  6. Brown, J. (2018). Fin24 - SA Economy is in for a rough ride. https://www.fin24.com/Economy/sa-economy-is-on-for-a-rough-ride-20180610-2
  7. Bureau for Economic Research Report, (2016). The Small, Medium and Micro Enterprise Sector of South Africa. Research Note 1 / 2016. Commissioned by The Small Enterprise Development Agency (SEDA).
  8. http://www.seda.org.za/publications/seda.pdf
  9. Burshan, M., Gibbs, E., Strovink, K. (2014). Rethinking the role of the strategist. McKinsey Quarterly. http://www.mckinsey.com/insights/stratgy/rethinking_the_role_of_the_strategist
  10. Cameron, S., & Price, D. (2009). Business Research Methods: A practical Approach. London: Chartered Institute of Personnel and Development (CIPD).
  11. Casadesus-Masanell, R. & Ricart, J.E. (2010). From strategy to business models and onto tactics. Long Range Plan 2010. (43), 195 - 215. In Jablonski, A. & Jablonski, M. (2016). Research on Business Models in their Life Cycle, Sustainability, 8(430), 1 – 37.
  12. http:// www.mdpi.com/Journal/sustainability
  13. Creswell. J.W. (2012). Educational Research: Planning, Conducting and Evaluating Quantitative and Qualitative Research. (4th ed.). Boston: Pearsons.
  14. Desai, A.B. (2000). Does strategic planning create value? The stock market’s belief. Management Decision Journal, 38(10), 685 – 693.
  15. Dubihlela, J & Sandada, M. (2017). Impact of Strategic Planning on Small and Medium-Sized Enterprises’ (SMEs) Performance: The Role of Employee Participation, Implementation Incentives and Evaluation and Control, 45 – 55. https://www.tandfonline.com/doi/abs/10.1080/09765239.2014.11884983?journalCode=recn20
  16. Du Plooy, G.M. (2009). Communication Research: Techniques, Methods and Applications. Cape Town: Juta.
  17. Fieldt, E. (2013). Conceptualising business models: Definitions, frameworks and classifications. Journal of Business Models, (1), 85 - 105.
  18. Fraser, D.L., & Stupak, R.J. (2002). A synthesis of the strategic planning process with the principles of learning, leading and linking. International Journal of Public Administration, 25(9), 1199 – 1220.
  19. Furawo, T., & Scheepers, C.A. (2018). Factors impacting innovative capacity of small and medium-sized enterprises in Cape Town. Journal of Management and Administration, (2), 31 – 59.
  20. Goncalves, H.S. (2009). Proposal of a strategy model planning aligned to the balanced scorecard and the quality environments, The TQM Journal, 21(5), 462 – 475.
  21. Hambrick, D., & Chen, J. (2007). What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic Management Journal, 28(9), 935 – 955.
  22. Hough, J., Thompson, A.A(jr)., Strickland, A.J.(iii), Gamble, J.E. (2008). Crafting and Executing Strategy, South African Edition. Text, Readings and Cases. London: McGraw-Hill.
  23. Jablonski, A. & Jablonski, M. (2016). Research on Business Models in their Life Cycle, Sustainability, 8(430), 1 - 37.
  24. http://www.mdpi.com/Journal/sustainability
  25. Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring Corporate Strategy: text & cases. Essex: Pearsons Education.
  26. Jones, R., & Sisay, S. (2014). Small and Medium Enterprises. Strategic Management in SMEs: An Orientation Approach. In Todorov, K., & Smallbone, D. (Eds.) Handbook of Research on Strategic Management in Small and Medium Enterprises, Hershey, PA: IGI.
  27. https://doi.org/10.4018/978-1-5666-5962/wp15-2002.pdf?....1
  28. Kaplan, R.S., & Norton, D.P. (1996). The Balanced Scorecard. Boston: Harvard Business Review Press.
  29. Kim. W. Chan. & Mauborgne, R. (2005). Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. Boston: Harvard Business School Press.
  30. Lambert, S. (2008). 21st Bled eConference eCollaboration: Overcoming boundaries through multi-channel interaction (June 15 – 18, 2008; Bled, Slovenia).
  31. McMillan, J.H., & Schumacher, S. (1993). Research in Education, (3rd ed.). New York: HarperCollins College Publishers.
  32. Maguire, M., & Delahunt, B. (2017). Doing a Thematic Analysis: A Practical, Step-by-Step Guide for Learning and Teaching Scholars. All Ireland Journal of Teaching and Learning in Higher Education (AISHE-J), (3) Autumn 2017, 3351 – 33514.
  33. Majama, N.S., Israel, T., Magang, T. (2017). Strategic Planning in Small and Medium Enterprises (SMEs): A Case Study of Botswana SMEs. Journal of Management and Strategy, 8(1), 74-103.
  34. https://doi.org/10.5430/jms.v8n1p74
  35. MANCOSA. (2017). Corporate Strategy, MBA Module Guide. Durban: Mancosa.
  36. Martin. M. (2018). Business News Daily. What is a BCG Matrix? September 27, 2018. https://www.businessnewsdaily.com/5693-bcg-matrix.html
  37. Mazzarol, T., Rebound, S., & Soutar, G.N. (2009). Strategic planning in growth oriented small firms. International Journal of Entrepreneurial Behaviour and Research, 15(4), 320 – 345.
  38. Morris, M., Schindehutte, M., Richardson, J. and Allen, J. (2006). Is the Business Model a useful Strategic Concept? Conceptual, Theoretical, and Empirical insights. Journal of Small Business Strategy; Spring/Summer 17(1), ABI/INFORM Complete.
  39. Mughan, T. Lloyd-Reason, L., & Zimmeran, C. (2004). Management consulting and international business support for SMEs: need and obstacles. Education and Training Journal, 46(8/9), 424 - 432.
  40. National Small Business Amendment Act, (Act No.26 of 2003).
  41. https://www.banking.org.za/what-we-do/sme/sme-definition
  42. Neuman, W.L. (2003). Social Research Methods: Qualitative and quantitative approaches. Boston: Allyn & Bacon.
  43. Notter, J. (2011). Book review: Blue Ocean Strategy. http://jamienotter.com/2011/06/book-review-blue-ocean-strategy/
  44. Odame, A. M. (2007). The relevance of strategic planning for entrepreneurial businesses in South Africa (MBA dissertation). University of Pretoria.
  45. Polit, D.F., & Beck, C.T. (2010). Essentials of Nursing Research-Appraising evidence for Nursing Practice. (7th ed.). Phildelphia: Wolters, Kluwer.
  46. Porter, M. (1979). How Competitive Forces Shape Strategy. March issue. Boston: Harvard Business Review.
  47. https://hbr.org/1979/03/how-competitive-forces-shape-strategy
  48. Reeves, M., Moose, S., & Venema, T. (2014). BCG Classics Revisited: The Growth Share Matrix.
  49. https://www.bcg.com/publications/2014/growth-share-matrix-bcg-classics-revisited.aspx
  50. Sandada, M., Pooe, D., & Dhurup, M. (2014). Strategic Planning and Its Relationship with Business Performance Among Small and Medium Enterprises In South Africa.
  51. International Business & Economics Research Journal, May/June, 13(3), 659 – 670. The Clute Institute.
  52. Sandberg, W.R., Robinson, R.B., & Pearce, J.A. (2001). Why small businesses need a strategic plan. Business and Economic Review, 48(1),12-15.
  53. Small Enterprise Development Agency (SEDA). (2018). SMME Quarterly Update, 3rd Quarter 2017. http://www.seda.org.za/Publications/Publications/SMME%20Quarterly%202017-Q3.pdf
  54. Small Enterprise Development Agency (SEDA). Annual Report (2016/17). http://www.seda.org.za/Publications/Annual%20Reports/seda%20Annual%20Report%202016-17.pdf
  55. Thompson, C., Bounds, M., & Goldman, G.A. (2012). The status of strategic planning in small and medium enterprises: priority or afterthought. Southern African Journal of Entrepreneurship and Small Business Management (SAJESBM), 5(127), 34 – 53.
  56. Thompson, A.A.Jr., Strickland, A.J., Gamble, J.E. (2007). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. New York: McGraw-Hill.
  57. Torzhevskaia, D., & Porasamaa, M. (2017). Size doesn’t matter: The importance of Strategic Management & Planning in SMEs.
  58. http://www.lamkpub.fl/2017/10/25size-doesnt- matter-the-importance-of-strategic-management-planning-in-smes/
  59. Tummons, J. (2014). Using software for qualitative data analysis: Research outside Paradigmatic Boundaries in Big Data? Qualitative approaches to digital research, 155 – 177.
  60. Valsmoradl, M., Jones, J., Turunen, H., Snelgrove, S. (2016). Theme development in qualitative content analysis and thematic analysis. Journal of Nursing Education and Practice, January, 100 – 110.
  61. Van Scheers, L., & Makhitha, K.M. (2016). Are Small and Medium Enterprises (SMEs) Planning for Strategic Marketing in South Africa? Foundations of Management, (8), 243 – 250. ISSN 2080-7279.
  62. http://works.bepress.com/janice_redmond/33/
  63. Walliman, N. (2006). Social Research Method. London: Sage.
  64. Wang, W., Walker, E., Redmond, J., Breen, J. (2008). Making plans – Home-based businesses. In Van Scheers, L. & Makhitha, K.M. (2016). Are Small and Medium Enterprises (SMEs) Planning for Strategic Marketing in South Africa. Foundations of Management, (8), 243 - 250. ISSN 2080-7279. http://works.bepress.com/janice_redmond/33/
LICENSE
Creative Commons License