Tita Anthanasius Fomum and Pieter Opperman
Micro, small and medium-sized enterprises (MSMEs) are the backbone of economic development for every economy. They contribute to local economic development through household…
Abstract
Purpose
Micro, small and medium-sized enterprises (MSMEs) are the backbone of economic development for every economy. They contribute to local economic development through household wealth creation, employment generation and poverty reduction. Despite this pivotal role, MSMEs lack access to finance, and scholarship on the enabling role of financial inclusion on micro, small and medium-sized enterprises' performance is scant. The authors contribute to closing the knowledge gap by examining the enabling effect of financial inclusion on MSMEs using the FinScope MSME 2017 survey for the Kingdom of Eswatini. This paper aims to discuss the aforementioned objective.
Design/methodology/approach
The study used the re-centered influence function regression framework to estimate unconditional quantile regressions and the generalized ordered logit model to analyze the data.
Findings
The findings from the unconditional quantile regression revealed that small changes in access to bank accounts, saving for business, formal saving, stokvel and informal saving at the 50th and 75th percentiles have a positive and statistically significant effect on microenterprises' annual turnover profit. Conversely, small changes in formal insurance have a mixed effect on annual turnover profit. At the 10th and 25th percentiles, a small increment in insurance reduces annual turnover profit but increases microenterprise annual turnover profit at the 75th percentile. Meanwhile, the evidence from the generalized ordered logit model showed that financial inclusion reduces the likelihood of microenterprises being classified as least developed and increased the chances of microenterprises falling into emerging and developed business categories.
Research limitations/implications
This study makes use of a cross-sectional survey dataset, as a result, it does not infer causal relationships over the long term, but rather an association between the independent and dependent variables.
Practical implications
Overall, formal and informal financial inclusion enhances the annual turnover profit for microenterprises, particularly at the 50th and 75th percentiles in the Kingdom of Eswatini. The authors recommend a specialized institution such as a micro, small and medium-sized partial credit guarantee scheme to improve the quality and affordability of credit for microenterprises, and a mix of financial and non-financial supports depending on the development stage to boost a sustainable microenterprises' sector.
Originality/value
The study uses two advanced cross-sectional techniques, the recentered influence function framework and the generalized ordered logit model to analyze the data. The paper is original and contributes to the discussion of the role of financial inclusion in enabling microenterprises' success in Africa, using the FinScope 2017 survey of microenterprises in Eswatini as a case study.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2020-0689.
Details
Keywords
Anthanasius Fomum Tita and Pieter Opperman
Homeownership provides shelter and is a vital component of wealth, and house purchase signifies a lifetime achievement for many households. For South Africa confronted with social…
Abstract
Purpose
Homeownership provides shelter and is a vital component of wealth, and house purchase signifies a lifetime achievement for many households. For South Africa confronted with social and structural challenges, homeownership by the low and lower middle-income household is pivotal for its structural transformation process. In spite of these potential benefits, research on the affordable housing market in the context of South Africa is limited. This study aims to contribute to this knowledge gap by answering the question “do changes in household income per capita have a symmetric or asymmetric effect on affordable house prices?”
Design/methodology/approach
A survey of the international literature on house prices and income revealed that linear modelling that assumes symmetric reaction of macroeconomic variables dominates the empirical strategy. This linearity assumption is restrictive and fails to capture possible asymmetric dynamics inherent in the housing market. The authors address this empirical limitation by using asymmetric non-linear autoregressive distributed lag models that can test and detect the existence of asymmetry in both the long and short run using data from 1985Q1 to 2016Q3.
Findings
The results revealed the presence of an asymmetric long-run relationship between affordable house prices and household income per capita. The estimated asymmetric long-run coefficients of logIncome[+] and logIncome[−] are 1.080 and −4.354, respectively, implying that a 1% increase/decrease in household income per capita induces a 1.08% rise/4.35% decline in affordable house prices everything being equal. The positive increase in affordable house prices creates wealth, helps low and middle-income household climb the property ladder and can reduce inequality, which provides support for the country’s structural transformation process. Conversely, a decline in affordable house prices tends to reduce wealth and widen inequality.
Practical implications
This paper recommends both supply- and demand-side policies to support affordable housing development. Supply-side stimulants should include incentives to attract developers to affordable markets such as municipal serviced land and tax credit. Demand-side policy should focus on asset-based welfare policy; for example, the current Finance Linked Income Subsidy Programme (FLISP). Efficient management and coordination of the FLISP are essential to enhance the affordability of first-time buyers. Given the enormous size of the affordable property market, the practice of mortgage securitization by financial institutions should be monitored, as a persistent decline in income can trigger a systemic risk to the economy.
Social implications
The study results illustrate the importance of homeownership by low- and middle-income households and that the development of the affordable market segment can boost wealth creation and reduce residential segregation. This, in turn, provides support to the country’s structural transformation process.
Originality/value
The affordable housing market in South Africa is of strategic importance to the economy, accounting for 71.4% of all residential properties. Homeownership by low and lower middle-income households creates wealth, reduces wealth inequality and improves revenue collection for local governments. This paper contributes to the empirical literature by modelling the asymmetric behaviour of affordable house prices to changes in household income per capita and other macroeconomic fundamentals. Based on available evidence, this is the first attempt to examine the dynamic asymmetry between affordable house prices and household income per capita in South Africa.
Details
Keywords
Christina Swart-Opperman, Claire Barnardo and Sarah Boyd
The learning outcomes are as follows: to understand why talent management is a vital component of a company’s broader strategy for long-term operational excellence; to understand…
Abstract
Learning outcomes
The learning outcomes are as follows: to understand why talent management is a vital component of a company’s broader strategy for long-term operational excellence; to understand the impact of generation, life stage and career stage on an employee’s professional needs, goals and expectations of their firm; to understand how organisational culture contributes, in this case, to ineffective people management practices; and to develop a talent management strategy: new policies, processes or practices that will address the identified issues and create a sustainable pipeline of talent.
Case overview/synopsis
This case finds the successful agro-processing firm Namib Mills in a state of internal tension in April 2019. As Namibia’s premier supplier of staple food products, Namib Mills is performing well in a struggling economy. Then yet, CEO Ian Collard is concerned that his senior management team is not exhibiting the kind of leadership and strategic management needed to take the company into the future. As Ian examines the issue further – with the aid of a report from an external consultant – he begins to see that the weaknesses of his senior managers, who are prone to micromanaging and poor communication, are part of a bigger issue of talent management in the firm. The junior employees, who are energetic and ready to innovate, are growing restless as they wait for career growth and promotion opportunities. The rising leaders in middle management are also struggling to break through. Ian must confront how organisational culture and generational diversity within this family-owned business have created talent management barriers and develop a strategy for sustainably developing employees into the leaders of the future.
Complexity academic level
This case is designed for a master’s level management program and is well-suited for courses that deal with organisational behaviour, people management or human resources management. Specifically, the case is aimed at students interested in talent management, generational diversity and organisational culture.
Subject code
CSS 6: Human Resource Management.
Details
Keywords
Haywantee Ramkissoon, Robin Nunkoo and Dogan Gursoy
Scholars acknowledge the crucial role of values in influencing behavior and market choices. This paper examines the role of consumption values in influencing destination image and…
Abstract
Scholars acknowledge the crucial role of values in influencing behavior and market choices. This paper examines the role of consumption values in influencing destination image and travel behavior by proposing a destination image formation model. Having as theoretical base the means-end chain theory and the theory of consumption values, the model suggests that destination image is a function of five consumption values and that these in turn influence travel behavior. The essay discusses some pertinent issues with respect to the measurement of such values. This involves conducting in-depth interviews based on the laddering technique, developing a structured questionnaire based on data from laddering, applying fuzzy logic to quantify the consumption values, and finally using k-means clustering to define segments of travelers holding similar images of the destination.
The paper emphasizes that combined use of a qualitative data collection method such as laddering with a structured questionnaire is an effective way of researching consumption values and their influence on image and travel behavior. The study also discusses a k-means clustering approach to define segments of travelers holding similar images of a destination and the degree of membership of travelers to each value. The paper concludes that segmenting travelers based on their consumption values enables destination marketers to better understand travelers' behavior. Value research has particular application for market analysis, segmentation, destination product planning, and promotional strategies. This paper contributes to the very limited number of studies that analyze the influence of consumption values on destination image and travel behavior. The theoretical frameworks and methodological approaches that the paper proposes are also new contributions to destination image studies. However, the paper does not empirically test the theoretical frameworks and methodological steps. To contribute further to this field of study, scholars should attempt to empirically test the approaches that the study discusses.