A framework for enhancing business model performances for indigenous and foreign-owned small and medium scale businesses in Gauteng Province

PhD (Business Management), North-West University, Mafikeng Campus, 2017 The purpose of this study is to develop a business model framework that can be used to enhance the business model performances of both indigenous and immigrant SMEs owners in Gauteng province. Studies have indicated that, there is a disparity between the successes achieved by immigrant SME owners as compared to the indigenous, with immigrants outperforming the indigenous. Since, business performance is driven by the business model this suggests that immigrant owned SMEs use different business models from the indigenous owned. It is therefore necessary to find out the different business models used by these two groups of business owners in order to be able to design a business model framework that can be used to enhance the business performance of all SMEs in the province. This study used a mixed method design that takes the form of quantitative and qualitative process in addressing the problem. The data used in this research was collected through a closed-ended questionnaire and structured interviews. The analysis for the quantitative study was done using the SPSS statistical package of confirmatory factor analysis (CFA) and exploratory factor analysis (EFA) while the structured interview was done using thematic content analysis. The results of the analysis on all aspects on the quantitative measuring instruments (Socio demographics, characteristics and challenges, business model building block, performance measurement and ensuring the success of SMEs) indicated that there is a difference between the business models used by indigenous SME owners and immigrant SME owners. From the qualitative results, a number of factors, components and elements where identified that affects the SM Es and the findings speaks to the needs and expectations of the different business owners. It was also established that the immigrant business owners have better ways to run the small businesses successfully than the indigenous. The results from the study culminated in the formulation and design of a business model framework for all SMEs in Gauteng province. This framework will assist the existing and new business owners to better improve and grow their business. In an effort to improve SMEs, there is need that further studies be conducted in the areas of finances, training and development in order to further improve the SMEs not only in Gauteng province but also in other provinces. Doctoral