University of South Africa
Kumalo, Nkosi Hugh.
The role of cloud computing in addressing small, medium enterprise challenges in South Africa.
Degree: 2018, University of South Africa
This thesis was motivated by Roberts (2010) who found that 63% of SMEs in South Africa do not make it past second year of operation. To expand further on this problem, we reviewed literature to understand key business challenges experienced by SMEs in South Africa which contribute to this high failure rate. The challenges include red tape, labour legislation, lack of skills, lack of innovation, impact of crime, and lack of funds. The research project aimed to answer a key question: “How can information technology, in the form of Cloud Computing be used to address the challenges faced by small and medium businesses in South Africa?” To answer this question, data was collected from 265 SME companies and quantitatively analysed. It is important to note that the profile of SMEs targeted in this study are those that employed fewer than 200 employees, with a turnover of not less than 26 million rand per annum, and registered with South African Revenue
Services (SARS) and also with the Companies and Intellectual Property Commission (CIPC) of South Africa. Over 60% of the firms that responded to the survey were in business for more than 10 years which means we are mainly dealing with data from businesses that have past the survivalist stage and are matured businesses. These are businesses that can share their experiences and challenges they faced throughout their journey. The profile of SMEs in this study should not be confused with that of Very Small Medium Enterprise Businesses. The questionnaire was designed to address four themes being the Demographic profile, SME Business Environment, Threat of Survival, and lastly Technology Adoption. Key finding in this research is that 60% of the panellists stated that red tape is the overriding challenge that small businesses contend with. 67% of the panellists confirmed that they have not invested in their businesses in the past year; and 53% stated that they have not applied for finance
from the bank for fear of being rejected. Only 30% of the SME market were found to use enterprise resource planning (ERP) and 62% do not have their own IT department. Of great concern is that 65% of the panellists have experienced server down time at least once in the past year. Inability to predict the rising IT costs in a firm has been cited as the main concern when running IT on premise. The cost predictability finding was also discovered to be a benefit enjoyed by the SMEs who use Cloud Computing. The conclusion is that there is a relationship between Cloud Computing, Small and Medium Enterprise businesses and the challenges they face in their business environment. To address the identified business challenges, technology adoption studies by Gumbi & Mnkandla (2015), Carcary, Doherty & Conway (2014), Lacovou et al (1995), Mohlomeane & Ruxwana (2014), Kshetri (2010), BMI Research (2018), Conway & Curry (2012), Li, Zhao & Yu (2015), Wernefeldt (1985),
Schindehuitte & Morris (2001), Tornatzy & Flesher (1991) were reviewed. From these publications, the Technology, Organisational and Environmental…
Advisors/Committee Members: Van der Poll, John Andrew (advisor).
Subjects/Keywords: SME; Small and mdeium enterprise; Cloud adoption; Cloud computing; Cloud; Enterprise business challenges; South Africa; Information technology; IT
to Zotero / EndNote / Reference
APA (6th Edition):
Kumalo, N. H. (2018). The role of cloud computing in addressing small, medium enterprise challenges in South Africa. (Doctoral Dissertation). University of South Africa. Retrieved from http://hdl.handle.net/10500/24939
Chicago Manual of Style (16th Edition):
Kumalo, Nkosi Hugh. “The role of cloud computing in addressing small, medium enterprise challenges in South Africa.” 2018. Doctoral Dissertation, University of South Africa. Accessed November 12, 2019.
MLA Handbook (7th Edition):
Kumalo, Nkosi Hugh. “The role of cloud computing in addressing small, medium enterprise challenges in South Africa.” 2018. Web. 12 Nov 2019.
Kumalo NH. The role of cloud computing in addressing small, medium enterprise challenges in South Africa. [Internet] [Doctoral dissertation]. University of South Africa; 2018. [cited 2019 Nov 12].
Available from: http://hdl.handle.net/10500/24939.
Council of Science Editors:
Kumalo NH. The role of cloud computing in addressing small, medium enterprise challenges in South Africa. [Doctoral Dissertation]. University of South Africa; 2018. Available from: http://hdl.handle.net/10500/24939