Economic and Management Sciences

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Browsing Economic and Management Sciences by Author "Barnard, D."

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    A business generator for online undergraduate programme offering at a Dual-Mode University
    (University of the Free State, 2020) Saayman, Herman; Barnard, D.
    In the current economic climate, public higher education institutions cannot afford to carry on doing business as usual. This is not only due to increased costs and decreased government funding, but also because the world is increasingly digitalised. Digitisation in the higher education arena has been intensified during the Covid-19 pandemic where staff and students very quickly had to adapt to the so-called “new normal” of working and studying from home, and this trend is likely to continue. Online learning indeed offers a unique opportunity for public higher education institutions to expand their programme offerings, and thus also increase their income. Online programme delivery comes with its own cost, and these must be considered when decisions are taken about this mode of delivery. The main purpose of this study is thus to compare the current financial model used at the distance education campus of one institution with models used by other online universities around the world to improve its ability to inform decision-making with regard to future fully online structured programmes accurately. In addition, the researcher aimed to review knowledge on current financial models available in the literature and described the importance of current financial model variables incorporating the view of other higher education institutions worldwide. A mixed-method approach was used in the study: the qualitative data was collected through interviews and the quantitative data by means of an online survey. Findings suggest that the model used by the institution compares well with other models. All financial model variables included were also included by the other institutions from which respondents hailed. Some important insights were the suggestion to include a market analysis, to ensure higher accuracy with the estimation of student numbers along with the finding regarding the importance of the experience and knowledge of the person capturing the data in the financial model. In conclusion, the study highlighted that the current South Campus business Generator financial model used by the University of the Free State are useful in providing information with regard to future online structured qualifications, especially in the absence of any replacement model. Future developments should include making it more user friendly and establishing an accountability culture where section heads will take responsibility for the information submitted.
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    Evaluation of enterprise risk management culture at lesotho highlands development authority
    (University of the Free State, 2022) Molelekoa, Tseko Isaac; Barnard, D.
    A culture of Enterprise Risk Management (ERM) at Lesotho Highlands Development Authority (LHDA) is impacted by risk-behaviour factors, which are risk governance leadership and strategy, communication and people, accountability and staff involvement, risk competence and learning, the risk management process, performance management and decision making. The ability to develop a strong risk culture at LHDA helps the organisation to manage risks and opportunities and accomplish its strategic goals and objectives. A quantitative research method was used to gather data by means of closed-ended questionnaires. One hundred and twenty-seven (127) employees of the targeted 190 responded to the questionnaire, resulting in a response rate of 67%. Descriptive and inferential statistics were computed from the data collected and analysed in order to derive a meaningful conclusion. The overall factors / findings that negatively influence risk culture at LHDA were lack of a good attitude towards receiving and handling bad news, lack of reward for staff escalating risk issues, risk management not being an agenda item for monthly branch meetings, lack of influence by CRPM for board decisions and LHDA not adapting to regulatory and environmental changes. The research helped to evaluate the ERM Culture, and the recommendations were proposed based on recommended best practices that can be adopted to improve the ERM culture at LHDA. Periodic risk cultural awareness and monitoring, holding employees accountable for failing to manage their risks, periodic review of risk culture maturity and development of LHDA ERM culture framework were documented as some of the mitigation strategies that might bring about a positive change at LHDA.
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    Exploring challenges faced by SMMEs in the construction industry in Mangaung Metropolitan Municipality of the Free State Province
    (University of the Free State, 2022) Khetha, Ntahle Snowhite Charlotte; Barnard, D.
    Since the democratic dispensation, the Small, Medium, and Macro-enterprises (SMMEs) have witnessed significant support from the government, which was not available before 1994. The entrepreneurial support and contribution to the development of emerging businesses were informed by the identified roles these businesses played in a country's economy. The promulgation of the White Paper on National Strategy for the Development and Promotion of Small Business in South Africa (1995) contributed to this transformation, which the government saw, fit since millions of citizens live in poverty due to unemployment. In this regard, small businesses, mainly those regarded as SMMEs, play a pivotal role in the mission to address challenges faced by South Africa in absorbing labour, and expanding the economy by penetrating new markets through innovation and creativity. SMMEs are needed to contribute to economic growth, job creation, and equity in South Africa. Small enterprise development in South Africa is envisioned as an engine of employment growth through creating jobs. However, the SMMEs in the construction industry, particularly those in the Mangaung Metropolitan Municipality, is still faced with significant growth challenges. Therefore, the purpose of this research was to explore growth challenges faced by SMMEs in the construction industry in the Mangaung Metropolitan Municipality of the Free State Province so that the appropriate strategies can be provided to enhance the performance of these SMMEs as far as growth is concerned. This research followed a quantitative research approach. A self-administered questionnaire (open-ended) was developed to understand these challenges that affect SMMEs in the construction industry. In developing the questionnaire, the supervisors guided the whole process of developing the research instruments, and the Cronbach Alpha test was used to test the reliability and validity of the statements. The approved questionnaires were distributed to 154 participants, all of them SMMEs owners. These participants were selected purposively, which resulted in a 100% response rate. This study found that 55% of SMMEs in the construction industry show some progress, compared to 45% of those still struggling to show good profit margins or grow in the construction industry. Some reasons are linked to this challenge, such as the unavailability of policies guiding SMMEs to operate sustainably lack of access to government financial support. Moreover, this study found that macro-environmental factors such as crime, corruption, inflation, interest, and labour regulations contribute to the slow growth of SMMEs in the construction industry. Furthermore, this research found that the lack of managerial skills (72%), a skilled labour force (72%), acceptance of technology (69%), acquisition of marketing skills (66%), access to finance (64%), and networking and convenient location (63%) have the most significant impact. Therefore, these factors are needed to reduce the impact of the challenges facing SMMEs in the construction industry. This study found that factors such as tendering process are among the factors contributing to the failures of emerging SMMEs in the construction industry (68.2%). On the other hand, a lack of cash flow (47.4%), lack of financial management knowledge (50.6%), lack of communication (29.9%), an increase in equipment factor lease prices (48.7%), and an increase in the cost of skilled labour (49.4%) in the industry are also seen as contributing factors. From these findings, this study recommends key strategies to mitigate the challenges faced by SMME companies in the construction industry in the Mangaung Metropolitan Municipality in the Free State Province. Small to medium enterprises should employ advanced technologies to improve their operations. Technologies offer various benefits to quality and market-related problems. Technologies can also improve small businesses' profitability and sustainability. Small to medium enterprises should improve their participation in municipal incubation contractor programs to mitigate tendering irregularities. These programs can contribute significantly to the success of small businesses in the construction industry. Regarding cash flow financing, it is advised that contractors create a thorough financial plan with efficient controls based on the study's findings to assure plan compliance and prevent cross-financing of several projects. A financial strategy must be created and followed to provide adequate financial management, which will then ensure cash flow stability and, as a result, improve project performance. Given the role of government as stipulated in the White Paper on National Strategy for the Development and Promotion of Small Business in South Africa (1995), the government must develop policies and strategies to assist small to medium regional enterprises and access markets, equipment, and research and development services. The government and small businesses must work hand in hand with non-governmental organisations to improve sustainable development challenges. Policy formulation and the implementation of access to financial resources can be made easier for SMMEs through the intervention of the government and other stakeholders. Lastly, this study recommends that local authorities be mandated to create a conducive environment for SMMEs' growth, increase business support and reasonably extend tender support services to SMMEs, and improve sustainable development initiatives or policies.
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    Factors affecting time and cost overruns in road construction projects in a Metropolitan Municipality of the Free State Province
    (University of the Free State, 2020) Ndlovu, Mlondolozi; Barnard, D.
    Time and cost overruns in construction projects remain a significant challenge facing the construction industry worldwide. The purpose of this study was, therefore, to assess the most significant factors affecting time and cost overruns in road construction projects in a metropolitan municipality of the Free State Province to facilitate the formulation of comprehensive mechanisms to enhance project performance. The study employed a quantitative research approach and cross-sectional research design. A structured questionnaire was developed from 61 factors identified in existing literature as the leading causes of time and cost overruns in construction projects. The questionnaire was reviewed by the study supervisor and industry experts to guarantee the face validity of the study and thereafter piloted with five industry practitioners before distribution. The final questionnaire was disseminated to 66 purposively nominated participants classified into three groups, namely, client (12), consultant (21), and contractor (33). The respondents were nominated based on their direct participation in 47 selected road projects completed between July 2014 and March 2020. The response rate for the valid questionnaires was 56% (37 out of 66). The empirical data were analysed using the Relative Importance Index (RII), Importance Index (IMPI), and weighted RII and IMPI methods to identify the hierarchical order of importance of the 61 variables on the performance of the road construction projects in the municipality. The Spearman's rank correlation coefficient was employed to assess the degree of correlations of perceptions between the respondent groups on the subject. Cronbach's alpha was used to evaluate the reliability of the survey instrument. The study found that 83% (39 out of 47) of the selected projects experienced time overruns, with an average overrun percentage of 107.33%. Out of the sample projects, 44.68% (21 out of 47) experienced cost overruns with an average overrun percentage of 24.48%. Using the weighted RII and IMPI methods, the study identified the top ten variables contributing to the poor performance of projects from the collective responses of all the participants to be: appointment of contractors with political clout; contractor's cash flow; community disruptions; labour unrest; corruption; delays in progress payments; subcontracting challenges (dispute and performance); under-pricing of the work due to strategic misrepresentation; under-pricing of the work due to overconfidence in own ability; and appointment of consultants with political clout. The Spearman's rank correlation results indicated an overall high agreement between the client and consultant groups (0.79), consultant and contractor groups (0.75), and client and contractor groups (0.68) for the weighted RII and IMPI indexes. The questionnaire was found to be reliable with a Cronbach's alpha value of 0.97. The study recommends the following key measures to improve the performance of projects at the municipality: vetting bidders and supply chain management practitioners; appointing qualified and competent staff with integrity; developing a comprehensive financial plan by contractors; introducing payment guarantee clauses in contracts for advance payments and delayed progress payments; conducting a comprehensive risk assessment during the bidding process; blacklisting service providers caught practising bribery; conducting adequate public participation; introducing capacity development programmes; paying wages in line with BCCEI and standardising wages among all the contractors working in a site; ring-fencing the project budget; limiting subcontracting to projects equal to or above R30 million; appointing experienced subcontractors that are registered with the CIDB; implementing cession payments for subcontractors; and appointing competent cost estimators by the contractors.