The quality management practices of medium-sized enterprises operating in the city of Mbombela, Mpumalanga, SA

Abstract

SMMEs play a crucial role in the economy of South Africa. They create employment, contribute significantly to the GDP and close the income gap. The growth and sustainability of SMMEs is important and government had put in place a number of policies, programs and strategies to address the plight of SMMEs. Institutions exist by public and private mandate to support the development of the SMME sector. However, internal constraints such as weak quality control hinder such growth and generally lead to low levels of entrepreneurial activity and high rates of business discontinuity. Generally, SMMEs are known for losing customers and resultantly discontinuing after establishment. Research needed to be conducted to establish the quality management practices of medium-sized enterprises. Available knowledge lacked practical orientation on quality management practices and rather focused more on development trends, problems and needs of SMMEs. Published research did not provide much knowledge on how medium-sized enterprises respond to the customers’ expectation of quality thereby pointing to a need for this study. The purpose of the study was therefore devised to determine whether medium-sized enterprises in the city of Mbombela are aware of and committed to quality management in order to satisfy their customers and to identify the quality management practices applied by the enterprises. The research was quantitative and was conducted using a non-experimental survey design. Participants were a group of 95 medium-sized enterprise owners or managers of which 47 returned the research instrument allowing the survey to obtain a response rate of 49.5%. The medium-sized enterprises were selected using probability based stratified random sampling. A standardised survey questionnaire was used to collect field data and a MoonStats program was used to perform statistical analysis and interpretation. The findings revealed that medium-sized enterprises in the city of Mbombela have a high level of quality awareness at the level of the owner or manager, are oriented towards customer and apply quality management practices in their operation. However, the level of quality awareness declines at the level of administrative, artisan or trade and general staff and the enterprises do not participate and compete in business excellence models and quality awards to assess their management practices, measure their growth and seek recognition. The study recommends that medium-sized enterprise owners and managers should raise the level of quality awareness amongst their staff and evaluate their management practices on a regular basis. Government, SMME development and support agencies should coherently promote business excellence models and quality award programs to medium-sized enterprises and provide incentive for participation in such programs as this will ensure that due diligence is paid to the development of the enterprises.