The influence of market-driven strategies and access to finance on competitive growth of small and medium-sized enterprises in selected districts of Lesotho

Abstract

Small and medium enterprises play a significant role in the economic growth of Lesotho, however, they face low survival rates and competitive growth drawbacks. Market-driven strategies and access to finance have been identified as the major constraints hindering their survival, growth and effective operation in Lesotho. The purpose of the study was to investigate the influence of market-driven strategies and access to finance on the competitive growth of small and medium-sized enterprises in selected districts of Lesotho. A quantitative descriptive-correlation survey approach was followed in the data collection and the analysis phases of the research study. The target population consisted of a probability sample of (N = 400) entrepreneurs in the four selected districts of Lesotho. The data was captured and analysed for descriptive statistics, convergent and discriminant validity, composite and internal reliability and correlation in order to inform the structural equation modelling (SEM). SEM was used to test the research model and hypotheses to answer the research questions. The correlation analysis revealed a positive significant relationship between the market-driven strategies and access to finance constructs and related to the competitive growth of SMEs. The regression results showed a positive and significant influence of market-driven strategies (technological dynamic and competitive intensity) and access to finance (collateral requirement and financial information access) on the competitive growth of SMEs. The structural equation modelling analysis further indicated that the equation model derived from the covariance estimates of all explanatory factors of market-driven strategies and access to finance on competitive growth were within the goodness-of-fit threshold. The study was specific to small and medium enterprises, and the findings suggest that to address their challenges in Lesotho (i) enterprises need to be equipped with market-driven strategic (competitive intensity and technological dynamic) resources to deliver superior value to customers; and (ii) adequate policy initiatives are needed to improve enterprises’ access to finance, and such should (a) focus on improving access to financial information through awareness programmes, (b) consider adequate information on policy initiatives, support programmes and financial schemes geared to support Basotho small and medium-sized enterprises access to finance, and (c) harmonise the collateral requirements by banks to ease Basotho SMEs access to adequate credit funds. In sum, the results suggest the joint implementation of market-driven strategies and access to finance as enabling resources to assist enterprises to achieve and stay competitive in the current dynamic business environment.

Klein en medium ondernemings (KMO’s) speel ʼn beduidende rol in die ekonomiese groei van Lesotho. Hulle ervaar egter lae oorlewingstempo’s en mededingendegroei-nadele. Markgedrewe strategieë en toegang tot finansiering is geïdentifiseer as die vernaamste beperkings in die voortbestaan, groei en doeltreffende bedryf van hierdie ondernemings in Lesotho. Die doel van die studie was om die invloed van markgedrewe strategieë en toegang tot finansiering op die mededingende groei van KMO’s in bepaalde distrikte van Lesotho, te ondersoek. ʼn Kwantitatiewe beskrywende-korrelasie-opname-benadering is in die data-insameling en -ontledingsfases van die navorsingsondersoek gevolg. Die teikenpopulasie het bestaan uit ʼn waarskynlikheidsmonster van (N = 400) entrepreneurs in die vier gekose distrikte van Lesotho. Die data is vasgelê en ontleed vir beskrywende statistiek, konvergente en diskriminantgeldigheid, saamgestelde en interne betroubaarheid en korrelasie, as deel van strukturele vergelykingsmodellering, wat gebruik is om die navorsingsmodel en hipoteses te toets ten einde die navorsingsvrae te beantwoord. Die korrelasie-ontleding het ʼn positiewe beduidende verwantskap tussen die volgende konsepte getoon: markgedrewe strategieë, toegang tot finansiering en die mededingende groei van KMO’s. Die regressieresultate het daarop gedui dat markgedrewe strategieë (tegnologies dinamiese en mededingende intensiteit) en toegang tot finansiering (kollaterale vereiste en toegang tot finansiële inligting) ʼn positiewe en beduidende invloed op die mededingende groei van KMO’s het. Die strukturele vergelykingsmodelleringontleding het verder getoon dat die vergelykingsmodel afkomstig van die kovariansie-skattings van alle verduidelikende faktore van markgedrewe strategieë en toegang tot finansiering rakende mededingende groei, binne die geskiktheidsdrumpel val. Die studie was spesifiek oor KMO’s, en die bevindinge toon dat om die struikelblokke wat in Lesotho ervaar word te bowe te kom, (i) hierdie ondernemings toegerus moet word met markgedrewe strategiese (mededingende-intensiteit en tegnologies dinamiese) hulpbronne sodat hulle voortreflike waarde aan hul klante kan bied; en (ii) voldoende beleidsinisiatiewe nodig is om die ondernemings se toegang tot finansiering te verbeter; hierdie beleidsinisiatiewe moet (a) fokus op verbetering van toegang tot finansiële inligting deur bewustheidsprogramme (b) voldoende inligting voorsien oor beleid, ondersteuningsprogramme en finansiële skemas gerig op beter toegang vir KOMO’s tot finansiering, en (c) die kollaterale vereistes deur banke harmonieer om toegang deur KMO’s tot toereikende kredietfondse te fasiliteer. Kortom stel die resultate die gesamentlike implementering van markgedrewe strategieë en toegang tot finansiering as instaatstellingshulpbronne voor om ondernemings te help om mededingendheid te bewerkstellig en te behou in die huidige dinamiese sakeomgewing.

Amabhizinisi amancane nasafufusa (SME) adlala indima esemqoka ekuhlumiseni umnotho wasezweni laseLesotho. Yize-kunjalo, lincane kakhulu inani lamabhizinisi asindayo futhi lincane kakhulu inani lalawo ahlumayo kwizimakethe zamabhizinisi ezincintisanayo. Amasu aqhutshwa yizimakethe kanye nokutholakala kwezimali kubonwe njengezihibhe ezinkulu ezivimba ukuphumelela, ukuhluma kanye nokusebenza kahle kwamabhizinisi eLesotho. Injongo yalesi sifundo socwaningo bekukuphenya umthelela wamasu aqhutshwa yizimakethe kanye nokutholakala kwezimali zokuhlunyiswa komnotho wama-SME ngendlela ekhonyayo kwizifunda zaseLesotho. Indlela yesaveyi ebizwa nge-quantitative descriptive-correlation survey iye yalandelwa ekuqoqweni kwedatha kanye nakwizigaba zokuhlaziya kwisifundo socwaningo. Inani eliphelele labantu eliqondiwe linamasampuli wethuba lokwenzeka (probability sample of (N = 400) losomabhizinisi abakwizifunda ezine ezikhethiwe zaseLesotho. Idatha iqoqiwe yahlaziywa ukwenzela amanani achazayo, i-convergent and discriminant validity, i-composite kanye ne-internal reliability and correlation ngenhloso yokuhlomisa uhlelo lwe-structural equation modelling ngolwazi, ulwazi olusetshenziswe ukuhlola imodeli yocwaningo kanye nehayipothesisi ukuze kuphenduleke imibuzo yocwaningo. Uhlaziyo lwe_correlation analysis luveze ubudlelwano obubonakalayo phakathi kwezinhlaka zamasu aqhutshwa yizimakethe, ukutholakala kwezimali kanye nokuhluma ngamandla kwezomnotho kwamabhizinisi amancane nasafufusa (SMEs). Imiphumela yohlelo lwe-regression ikhombe amasu aqhutshwa yizimakethe (technological dynamic and competitive intensity) kanye nokutholakala kwezimali (collateral requirement and financial information access) njengezinhlaka ezinomthelela omuhle nobalulekile phezu kokuhluma ngamandla komnotho wamabhizinisi asafufusayo (SMEs). Uhlelo lokuhlaziya imodeli elibizwa nge-structural equation modelling liqhubeke nokuveza uhlelo lwe- equation model olususelwe kwisilinganiso se-covariance sezinhlaka zonke ezichazayo zamasu aqhutshwa yizimakethe kanye nokutholakala kwezimali kumnotho ohluma ngamandla wamabhizinisi amancane nasafufusa ukuthi kube ngaphakathi kohlelo lwe-goodness-of-fit threshold. Ucwaningo belugxile ikakhulu kumabhizinisi aamancane nasafufusa, , kanti ulwazi olufunyenwe luphakamisa ukuthi ukuze kuqedwe izinkinga okuhlangabezanwa nazo eLesotho, (i) la mabhizinisi adinga ukuba ahlonyiswe ngamasu aqhutshwa yimithombo yezimakethe (competitive intensity and technological dynamic) ngenhloso yokuletha izinga eliphezulu lomkhiqizo kumakhasimende; kanti (ii) kudinga imizamo yemigomo eyanele ukuthuthukisa izinga lokutholakala kwezimali ngamabhizinisi; le mizamo yomgomo kufanele (a) igxile ekuthuthukiseni izinga lokutholakala kolwazi lwezimali ngokusebenzisa izinhlelo zokwexwayisa, (b) ukunikeza ulwazi olwanele olumayelana nezomgomo, nezinhlelo zokuxhasa kanye nezikhwama zezimali ezihlelelwe ukuthuthukisa ukuthuthukisa uhlelo lizinga lokutholakala kwezimali ngamabhizinisi amancane nasafufusa, kanti futhi (c) ukuhlanganisa ndawonye izimfuno ezifanayo ngamabhange ukwenzela ukulungisa uhlelo olusiza ukunikezwa kwamabhizinisi amancane nasafufusa izikweletu zemali eyanele. Sekukonke nje, imiphumela iphakamisa ukuthi kube nohlelo oluhlanganyelwe lokusetshenziswa kwamasu aqhutshwa yizimakethe kanye nokutholakala kwezimali ezinceda imithombo ukuthi incede amabhizinisi ekufinyeleleni izinhloso kanye nokugcina ummoya wokuncintisana kwisizinda samanje sezebhizinisi.