The funding model of small and medium social enterprises in KwaZulu-Natal, South Africa

Southern African Journal of Entrepreneurship and Small Business Management

Field Value
Title The funding model of small and medium social enterprises in KwaZulu-Natal, South Africa
Creator Hasseno, Remedan Tefera, Orthodox Taylor, Simon
Subject Social enterprises; Entrepreneurship; small and medium social enterprise social enterprise; small and medium social enterprise; funding model; entrepreneurship; revenue generation and growth.
Description Background: Small and medium social enterprises (SMSEs) in developing countries, particularly in South Africa, play a crucial role in a country’s economy. With an entrepreneurial mindset, they respond innovatively to social, economic and environmental societal problems. However, SMSEs in emerging economies experience critical survival and performance challenges, including financial sustainability. Thus, investigating the funding model is important to overcome those challenges.Aim: The study aims to investigate the funding model of SMSEs in KwaZulu-Natal (KZN), South Africa, to identify the initial and primary funding source, and to explore the revenue-generating activities and revenue growth.Setting: The research was conducted in KZN with SMSEs participated in the champions’ programme of local economic development (LED) project at the University of KwaZulu-Natal (UKZN).Methods: A qualitative research design of 10 purposively selected case studies were conducted using an in-depth interview. The data were analysed using NVivo software.Results: The study found that self-funding followed by revenue generated from a commercial business is the most common funding model SMSEs adopt. A lack of access to different funding sources to secure success and sustainability hindered the development and growth of SMSEs.Conclusion: Diversifying funding might help SMSEs avoid the challenge of sustainability and will enable them to focus on improving their activities towards achieving their social mission.Contribution: The study brings a new theoretical approach to the funding model of SMSEs. Furthermore, the study contributes to the enterprises’ management.
Publisher AOSIS Publishing
Contributor No agencies or contributors are used
Date 2024-03-13
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — —
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/sajesbm.v16i1.711
Source The Southern African Journal of Entrepreneurship and Small Business Management; Vol 16, No 1 (2024); 11 pages 2071-3185 2522-7343
Language eng
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Coverage South Africa 2020- 2022 Purposive and social enterprises
Rights Copyright (c) 2024 Remedan Hasseno, Orthodox Tefera, Simon Taylor