Volume 7 Issue 2

A sound system of internal control is a necessity for business entities; comprising five inter-related elements. The soundness of such a system is influenced by the control environment; often described as the foundation of any system of internal control. According to guidance documents, the definition and the description of the control environment are known however a common approach to assess the control environment of business entities mostly pertain to a quantitative “tick and bash” checklist. Such a yes-no-predicament causes a paradox regarding the axiom that one can only manage what one can measure. By referring to a recently developed internal control framework – the Control Legacy-K (CLK) Framework – the probability exists that the control environment of non-JSE listed business entities can be assessed in both a quantitative and qualitative manner. To this end, the primary objective of this study was to investigate whether the CLK Framework, particularly its first two steps, covers the definition and description of the control environment sufficiently. A meta-analysis of relevant reviewed literature was performed. From the research conducted it appears that the first two steps of the CLK Framework do cover the definition and description of the control environment sufficiently; enough to be considered as a mixed-method instrument to assess the control environment of non-JSE listed business entities.

This article examines the influence of multinational (MNC) and transnational (TNC) activity over the corporate and business diplomacy practice, according to the industry type, the development extent of each corporation, and the degree of corporate power decentralization. The methodology used in the research papers analyzed included literature review, case studies and qualitative data collection based on interviews with managers from the international corporate environment. Research shows that in practice, there is a confusion in regard with significance of business and corporate diplomacy expressions and their activities extent. This view is also shared by literature, since the association of the terms diplomacy and corporate activities would have more meaning into a philanthropic context, compared to international business. By studying the different managerial actions of multinational and transnational corporations, results show that business diplomacy characterizes with a higher degree the TNC activity, while multinational diplomats perform actions specific to corporate diplomacy.

Small, Medium and Micro Enterprises (SMMEs) play a significant role in the stimulation of economies around the globe. In South Africa, though SMMEs add significant socio-economic value to the national economy, approximately 75 per cent of these business entities fail after being in existence for less than four years. Among the economic factors which have been highlighted to adversely affect the sustainability of these business entities is the lack of scarce skills – in particular, that of critical innovation skills. The objective of this study was to ascertain whether critical innovation skills had any statistically significant influence on the perceived profitability of South African SMMEs. Empirical research, exploratory research, and survey research were conducted in this quantitative research study whereby 387 responses were received from South African SMME management who had to adhere to relevant delineation criteria. Based on the results, the critical innovation skills of management of sampled South African SMMEs did not have any statistically significant influence on the perceived profitability of their respective business entities.

The study assesses the state of leadership of entrepreneurship at the macro level. It further explores the effectiveness of leadership; the gaps, issues and challenges; and the roles of government and the private sector with regards to entrepreneurship leadership. At its core, the study challenges the assumption that entrepreneurship must be led by government and considers the alternative proposition that entrepreneurship can be led by itself – by an independent body of entrepreneurs. The research finding is that entrepreneurship is not effectively led: 1) Several private and public sector initiatives exist to support entrepreneurs, but remain largely uncoordinated. 2) There are a lack of standards and benchmarking at the macro level, even though entrepreneurs could benefit from accreditation, guidelines, governance and strategy frameworks. 3) Entrepreneurship lacks a unified voice. 4) The stakeholders of entrepreneurship compete, rather than collaborate. Government does not understand or effectively communicate with entrepreneurs. The private sector does not always have the best interests of entrepreneurs at heart, due to conflicting interests. Incubators, accelerators and universities compete among themselves for funding and accolades, which hinders their assistance to entrepreneurs. 5) Entrepreneurship carries a negative culture. 6) The leadership style applied to entrepreneurship is inappropriate. 7) There is little vision and direction setting for entrepreneurship as industry or fraternity.

This study aims to analyze parents' socio-economic relationships which include parental education, parental occupation, and parental income towards financial literacy. This study uses a sample of young entrepreneurs, students who are active in college and they also run a business. The results showed that the level of financial literacy of young entrepreneurs was at a moderate level. Furthermore, parental education and income have a relationship with financial literacy, whereas parental work does not influence financial literacy.

Corporate Social Responsibility (CSR) for businesses has been mainly associated with large corporations, Small and Medium Enterprises (SMEs) were insignificant as they regarded CSR a costly unsustainable business initiative. This scenario undermines the importance and critical role that SMEs play in the economy. Therefore, the study aimed at exploring the impact of CSR on the sustainable growth of Wholesale and Retail SMEs in the eThekwini Municipal region. Results were attained through assessing attitude levels of SMEs towards CSR; investigating the practice of CSR by SMEs; exploring barriers undermining the practice of CSR and exploring SME owners' values key to the sustainable growth of their businesses. Stakeholder Theoretical framework guided the study; the philosophical paradigm that guided the research was post-positivist, which subsequently recommends a mixed-method approach, i.e. qualitative and quantitative. Data was obtained using self-administered questionnaires and semi-structured interviews. It emerged that majority of the respondents had a negative attitude towards CSR. CSR stakeholders were not valued the same as required by Stakeholder Theory. SMEs believe CSR is meant for large corporations regarding it as a costly extra-curricular from their core business. As new knowledge, a model based on the Stakeholder Theory titled, “Corporate Social Responsibility: A simplified practical approach” was proposed meant to assist wholesale and retail SMEs to positively embrace CSR in their businesses. The study recommended that local authorities must be proactive in supporting SMEs to practise CSR through revisiting the phrase Corporate Social Responsibility as it is psychologically intimidating to SMEs, hence resistance to the practice of CSR.

This article articulates the challenges of the supply chain management practices impeding service delivery within the Department of Justice and Constitutional Development (DoJ and CD). The objectives of the study determines the nature and extent to which the SCM policy, procedures and practices are implemented in the DoJ and CD; the challenges in the supply chain management processes impeding service delivery; the impact of the SCM challenges regarding service delivery; and to recommend appropriate SCM practices that can be adopted and implemented in order to enhance the value chain and improve the service delivery constituent accordingly. The research methodology was a quantitative approach and a random sample of 132 questionnaires were distributed and the data was analysed using inferential statistics. The key research findings revealed that the department does not have a fully capacitated and competent team to perform all aspects of SCM that added value to their respective business units. The article concludes with recommendations made for Supply Chain Management practices and key strategic interventions for consideration and implementation within the department, which include Human Resource Capacity and Skills, SCM Strategy, Procurement Planning, Customer Relationships and Information Sharing.

The development of entrepreneurial orientation cannot be separated from the role of parenting. While emerging adolescents tend to try to break away from their parents because they want to be closer to their peers. This purpose of this study is discovering differences of entrepreneurial orientation based on parental attachments to father, mother or both. This study used the survey method to 291 emerging adolescents in six major cities on the island of Java, Indonesia. The results showed that early adolescents who were close to both parents had higher entrepreneurial orientation than they who were only close to once parent or not close to both parents. This study also examined the role of parental attachment on each dimension of the entrepreneurial orientation.

The study considered and investigated the heuristics of entrepreneurs in the fields of management, strategy, innovation, marketing, sales, HR, and tactics. Overall, a very sophisticated heuristic set was surfaced. None of the areas studied can be described as under-developed. The sophistication of the heuristic set contrasts strongly with previous research on entrepreneurs' heuristics. Entrepreneurs did not always and initially acknowledge their use of heuristics. It equally implies entrepreneurs may not be actively developing their thinking at all times. Although impressive, comprehensive, and original, the heuristics set may not truly be that distinct from the typical heuristics set of business leaders. Entrepreneurs differ in terms of the level of maturity or comprehensiveness they have reached in terms of the heuristics they consider and use. Entrepreneurs demonstrate natural proficiency and deficiency in terms of heuristics pertaining to areas they excel in and struggle with, respectively. Entrepreneurs may develop heuristics through experience. Education impacts the development of heuristics. Some entrepreneurs make up for the areas in which they lack, by seeking help, assistance, expertise, etc. Entrepreneurs may also pick up and learn heuristics from others.