graduate school of management (gsm)
TRANSCRIPT
Graduate School of Management (GSM)
Masters in Business Administration (MBA)
AN INVESTIGATION INTO THE CHALLENGES INHIBITING
GROWTH OF INDIGENOUS SUPPLIERS OF PROTECTIVE
CLOTHING TO URBAN COUNCILS: A CASE OF INDIGENOUS
SUPPLIERS IN HARARE (JANUARY 2009-DECEMBER 2012)
BY
PHILLIP PEMHIWA
R093652N
A DISSERTATION SUBMITTED TO THE GRADUATE SCHOOL OF
MANAGEMENT OF THE UNIVERSITY OF ZIMBABWE IN PARTIAL
FULFILMENT OF THE REQUIREMENTS OF A MASTER DEGREE IN
BUSINESS ADMINISTRATION
OCTOBER 2013
SUPERVISOR: DR. A.B. MADZIVIRE
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DECLARATION
I, Phillip Pemhiwa, do hereby declare that this dissertation is my own work,
investigation and research, except to the extent indicated in the acknowledgements,
references and my comments included in the body of the report. The dissertation is
being submitted for the Degree in Master of Business Administration offered by the
University of Zimbabwe. It has not been submitted before to any research project,
degree or examination in any other University.
Student signature _______________________ Date_______________________
Supervisor’s signature ____________________ Date______________________
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DEDICATION
I dedicate this work to my wife, Praxedice Pemhiwa, and my three children Tatenda,
Simbarashe, Kudzaishe and my niece Patience, who failed to get my quality
attention as most of the weekends and holidays during the course of my study were
spent in the lecture room. A special dedication also goes to members of my
immediate and extended family whom I failed to be with at social family gatherings.
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ACKNOWLEDGEMENTS
I pay tribute to my supervisor, Dr. A.B. Madzivire whose guidance contributed
immensely to the production of this dissertation. I also acknowledge post-humously
the able leadership of the Director, Graduate School of Management, the late Dr. M.
Mutowo, the current Director Dr. N Kaseke and his team of lecturers and
administration staff who made it possible for me to complete the MBA programme.
Special mention goes to Harare City Council Human Capital Director Dr. Chingombe,
who assisted me with necessary information since my research involved urban
councils. I would also like to acknowledge assistance which I received from
indigenous suppliers of protective clothing to urban councils who are based in
Harare for providing me with vital information needed for the completion of this MBA
programme.
I would also like to express my gratitude to my group members who gave me a lot of
support and encouragement throughout the research period. My wife, Praxedice,
also deserve special mention for her support, encouragement and understanding
throughout the MBA programme period.
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ABSTRACT
Since independence in 1980 indigenous businesses have been struggling to grow.
The introduction of the Indigenisation and Economic Empowerment Act of 2007
brought up another phase of meaningful strides toward the establishment of proper
businesses by the indigenous business people of Zimbabwe. These include the
manufacturing and trading in protective clothing. Despite all the effort being put by
the government, the growth of indigenous suppliers of protective clothing has
remained a challenge. The study was conducted to examine factors which are
inhibiting growth of these indigenous suppliers of protective clothing to urban
councils.
The overall objective of the research was to investigate factors restricting the growth
of indigenous suppliers of protective clothing in Harare to urban councils over the
period January 2009 to December 2012. Other objectives were: to identify the
challenges faced by indigenous suppliers of protective clothing, establish the cause
of the challenges, find ways to overcome the challenges and make
recommendations in light of the findings from the study. A sample of 105 participants
was drawn from a population of 160. Simple random sampling method was used and
two research instruments: the questionnaire and interview, were used to obtain the
information.
The research established that the indigenous suppliers of protective clothing to
urban councils are not growing due to lack of funding, stiff competition from
imported products which have flooded the local market, inadequate knowledge of
financial management systems and late payment by the urban councils. The
suggested solutions to challenges are a ban on imports, banks to provide long term
loans, government to give assistance, training on good financial management,
regular maintenance of machinery, and revival of the local clothing industry.
The researcher recommends that the government should assist with adequate
funding through Small Enterprise Development Corporation (SEDCO), banks to
provide long term loans and reduce the high interest rate on loans for
recapitalisation, training in financial management systems to be offered, urban
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councils to make early payment after the delivery of products and that the indigenous
suppliers practise good corporate governance.
Table of Contents
DECLARATION .......................................................................................................................................... i
DEDICATION ............................................................................................................................................ ii
ACKNOWLEDGEMENTS .......................................................................................................................... iii
LIST OF TABLES .............................................................................................................................. viii
LIST OF FIGURES .............................................................................................................................. ix
LIST OF ABBREVIATIONS ........................................................................................................................ xi
CHAPTER ONE ......................................................................................................................................... 1
1.0 Introduction .................................................................................................................................. 1
1.1 Background of the Clothing Industry ........................................................................... 2
1.2 PESTEL Analysis. ............................................................................................................................ 5
1.2.1 Political Factors ...................................................................................................................... 5
1.2.2 Economic Factors ................................................................................................................... 6
1.2.3 Social Factors ......................................................................................................................... 6
1.2.4 Technological Factors ............................................................................................................. 6
1.2.5 Legal Factors .......................................................................................................................... 7
1.3 Porter’s 5 forces ......................................................................................................................... 7
1.4 Problem Statement ..................................................................................................................... 10
1.5 Objectives.................................................................................................................................... 11
1.6 Research Question ...................................................................................................................... 11
1.7 Research Proposition .................................................................................................................. 12
1.8 Justification of Research ............................................................................................................. 12
1.9 Scope of Research ....................................................................................................................... 12
1.10 Dissertation outline ................................................................................................................... 13
CHAPTER TWO ...................................................................................................................................... 14
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2.0 Literature Review ............................................................................................................................ 14
2.1 Introduction ................................................................................................................................ 14
2.3 Challenges faced by Small Businesses in Developed World ....................................................... 16
2.4 Challenges Faced by Small Businesses in the Clothing Industry in Africa .................... 19
2.5 Global SMEs More Successful ..................................................................................................... 24
2.6 Business Growth ......................................................................................................................... 24
2.7 How Organizations Grow ............................................................................................................ 28
2.8 Growth strategies ....................................................................................................................... 32
2.9 Chapter Summary ....................................................................................................................... 35
CHAPTER THREE ............................................................................................................................. 36
3.0 Research Methodology ................................................................................................................... 36
3.1 Introduction ................................................................................................................................ 36
3.2 Research Design .......................................................................................................................... 36
3.3. Case Study .............................................................................................................................. 39
3. 4 The Population ........................................................................................................................... 40
3.5 Sampling ...................................................................................................................................... 40
3.7 Data Collection Instruments ...................................................................................................... 45
3.8 Data Analysis Techniques ........................................................................................................... 48
3.9 Research limitations .................................................................................................................... 49
3.10 Chapter Summary .................................................................................................................... 49
CHAPTER FOUR ..................................................................................................................................... 50
4.0. Data analysis, presentation, interpretation and discussion .......................................................... 50
4.1 Introduction ................................................................................................................................ 50
4.2 Summary of Responses ............................................................................................................... 50
4.3 Demographic Characteristics - Workers ..................................................................................... 51
4.3.9 Causes of the organisation challenges ..................................................................................... 57
4.4 Sample Analysis: Managers ........................................................................................................ 61
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4.5 Response from owners ............................................................................................................... 70
4.6 Interview Results ......................................................................................................................... 84
4.7 Chapter summary........................................................................................................................ 88
CHAPTER FIVE ....................................................................................................................................... 89
5.0 CONCLUSION AND RECOMMENDATION..................................................................................... 89
5.1 Introduction ................................................................................................................................ 89
5.2 Conclusion ................................................................................................................................... 89
5.3 Recommendations ...................................................................................................................... 90
5.4 Areas of Further Research .......................................................................................................... 91
REFERENCES .......................................................................................................................................... 92
APPENDICES ........................................................................................................................................ 100
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LIST OF TABLES
Table 3:1 Size of a sample in a given population......................................................42
Table 4:1 Questionnaire response rate………………..............................................50
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LIST OF FIGURES
Figure 1:1 Pestel Analysis...........................................................................................6
Figure 1.2 Porter’s Five Forces…...........................................................................37
Figure 3:1 The Methodology of Research..……………..........................................38
Figure 4:1 Respondents distribution by gender for workers..................................51
Figure 4.2 Respondents of workers by age…………………………………………..52
Figure 4:3 Level of education for respondents: workers……………......................53
Figure 4:4 Type of industry........................................................................................54
Figure 4:5 Respondents by period of service............................................................54
Figure 4:6 Urban Councils supplied…………………................................................55
Figure 4:7 Organisation challenges………………………..........................................56
Figure 4:8 Causes of organisation challenges…………...........................................57
Figure 4:9 Factors hindering growth of indigenous suppliers.................................58
Figure 4:10 Solutions to the challenges.................................................................59
Figure 4:11 Business growth strategies…………………….....................................60
Figure 4:12 Response rate by gender: managers..................................................61
Figure 4:13 Response rate by age: managers…………………………….................62
Figure 4:14 Response rate by gender: managers.....................................................62
Figure 4:15 Response rate by level of education: managers……………..................63
Figure 4:16 Types of business................................................................................63
Figure 4:17 Response by period of service: managers……………………………....64
Figure 4:18 Urban councils supplied…………………………………………………....65
Figure 4:19 Challenges in organisations………………………………………………..66
Figure 4:20 Causes of challenges……………………………………………………….67
Figure 4:21 Solutions to the challenges………………………………………………...68
Figure 4:22 Business plan………………………………………………………………..69
Figure 4:23 Factors hindering growth…………………………………………………..70
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Figure 4:24 Response by gender……………………………………………………….71
Figure 4:25 Level of education…………………………………………………………..72
Figure 4:26 Type of organisation………………………………………………………..73
Figure 4:27 Period of service…………………………………………………………….73
Figure 4.28 Source of finance…………………………………………………………...74
Figure 4:29 Workers started with………………………………………………………..75
Figure 4:30 Current manning levels…………………………………………………….76
Figure 4:31 Challenges being faced by the organisation…………………………….76
Figure 4:32 Causes of the challenges………………………………………………….78
Figure 4:33 Solutions to the challenges………………………………………………..79
Figure 4:34 Succession plan……………………………………………………………..80
Figure 4:35 Business outlook in five years time………………………………………..81
Figure 4:36 Government assistance……………………………………………...........82
Figure 4:37 Factors hindering growth………………………………………………….83
Figure 4:38 Challenges facing indigenous suppliers of protective clothing……….84
Figure 4:39 Causes of challenges………………………………………………………85
Figure 4:40 Hindrance to growth………………………………………………………..86
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LIST OF ABBREVIATIONS
AGOA African Growth and Opportunity Act
CABS Central African Building Society
CBZ Commercial Bank of Zimbabwe
CCAB Canadian Council for Aboriginal Business
COMESA Common Market for East and Southern Africa
CRIB Cotton Research Industry Board
EU European Union
IMF International Monetary Fund
IT Information Technology
MDG Millennium Development Goal
NOPAT Net Operating Profit after Taxes
NSBA National Small Business Associations
SADC Southern African Development Community
SBA Small Business Administration
SEDCO Small Enterprise Development Corporation
SME Small and Medium Enterprise
SMEDAN Small and Medium Development Agency of Nigeria
SPSS Statistical Package for Social Science
UK United Kingdom
USA United States of America
WB World Bank
ZESA Zimbabwe Electricity Supply Authority
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CHAPTER ONE
1.0 Introduction
The aim of this study is to establish the challenges inhibiting the growth of
indigenous suppliers of protective clothing to Urban Councils in Zimbabwe. The
government of Zimbabwe has realized the importance of protective clothing and has
set out some legal requirements to be followed by employers. This is embodied in
the Factories and Works Act Chapter 14:08. This issue has been strengthened by
work related deaths which are on the increase due to HIV hence the need to have
protective clothing all the time (The Herald, 2010).
The issue of protective clothing has reached a point where it is considered by the
employees in the medical field to be a life and death issue. The Canadian Centre for
Occupational Health and Safety (2008) has described protective clothing as
something used in addition to normal clothing to protect both the service user and
the staff member from potential risks of cross infection, and reduce the opportunities
for the transmission of micro-organisms in services. The type of protective clothing
worn must be based upon an assessment of the risk of transmission of micro-
organisms to the service user, and the risk of contamination of the staff member’s
clothing and skin by the service user’s blood, body fluids, secretions and excretions.
Besides the legal requirement on the provision of protective clothing, workers have
taken a strong position to protect themselves by refusing to work if they are not
provided with protective clothing. A classic example is that of Chinhoyi municipal
workers who went on strike in December 2010 because the Urban Council had
delayed to provide them with protective clothing (The Sunday Mail, 2010).This has
caused suppliers of such items to go in the lime-light and their business activities to
be on the spot-light. This has prompted the researcher to critically look at the
challenges which are hindering the growth of these indigenous suppliers of
protective clothing to urban councils in Zimbabwe.
This chapter will look at the background of the clothing industry in general, PESTEL
analysis and Porter’s five forces, urban councils background, background of
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indigenous suppliers of protective clothing in Zimbabwe, problem statement,
objectives, research question, proposition, justification of research and scope of the
research.
1.1 Background of the Clothing Industry
1.1.1 Overview of Clothing Industry in the World
Clothing and textile is a substantial industry in the European Union accounting for
7% of manufacturing employment and 4% of manufacturing production. Over two
million people are employed in the sector across over 177 000 firms. Most of the
firms are small to medium enterprise. The EU is the world’s largest trader in the
clothing industry and it is the largest exporter of textile, second to China in exporting
of clothing.
SADC is a net exporter of cotton of 145 000 tons per annum which, if utilized in the
sub-region, would go a long way in supplying fabric for AGOA exports (Chemonics
International Report, 2004). The same report went on to reveal that Africa could in
the medium term become the next low-cost world producer of clothing, as Asian
countries diversify away from the next largest producer of apparel for the global
market. This means that there is great opportunity for growth in the clothing industry
in The SADC region. This growth will positively affect growth in the clothing sector in
Zimbabwe which the researcher is researching on.
1.1.2 Background of Indigenous Suppliers of Protective Clothing in Zimbabwe
The history of the Zimbabwe clothing industry can be traced back to the early 1920’s
when the then government after realizing that they would not get as much mineral
deposits as they had found in the Union of South Africa, decided to look for other
opportunities (Mlambo, 2006). The Cotton Research Industry Board (CRIB) was
established to monitor growth of the industry in Zimbabwe. The board established
three ginneries in Kadoma and built the first cotton-spinning mill in 1941. By 1954,
the industry had entered a phase of consolidation.
The Zimbabwe clothing industry experienced extensive growth during the 1980s.
Sixty one percent of the clothing manufacturers started manufacturing business
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during 1980 to 1989 period. This period saw an apparent development of the whole
clothing sector (Mlambo, 2006).
Some drastic changes on policies were introduced by the government during the
1990s. The International Monetary Fund (IMF) and World Bank (WB) introduced the
economic structural adjustment programme to Zimbabwe government. This had a
negative impact on all sectors including the clothing sector. Because of this negative
effect, in 1990, 100 clothing companies went broke. This exerted pressure on the
remaining firms to strategically change their game plan from growth to survival
strategies.
The period 2000 to 2010 was the most difficult for the clothing sector in Zimbabwe.
During this period, a large number of firms closed down and a significant number of
workers became unemployed. During this difficult time, those who were given
retrenchment packages started their own manufacturing companies and re-entered
the clothing industry as indigenous business people, those who survived during this
period were those indigenous manufacturers who were into corporate wear,
protective clothing and those who had penetrated the export market. This group got
encouragement from the government by the enactment of the Indigenisation and
Economic Empowerment Act of 2007 (Chapter 14:33). Among this group of
indigenous manufacturers and traders is where some concentrated on supplying
protective clothing to Urban Councils. This was because of the ready market
available and lucrative business. Urban councils have a great demand for protective
clothing because of the nature of most of their duties. These include road
maintenance, refuse collection, sewerage operations, and treatment of patients with
contagious diseases at their health centres.
However, despite being given preference to supply the protective clothing to the
Urban Councils (Procurement Act Chapter 22: 14) (Statutory Instrument 160 of
2012), these indigenous suppliers have remained small. They are holed up into small
shops scattered within the urban centres. No indigenous supplier of protective
clothing has ventured to open the closed manufacturing industries or to replace the
closed white owned big factories in the industrial sites. The clothing manufacturing
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industry is still a sorry sight. The industrial sites are still tottering in the doldrums for
lack of take-overs by indigenous manufacturers of protective clothing. The few who
have attempted have closed down after a few years of operation due to reasons
which are not known at the moment and are subject of this research.
In support of the indigenous business people, the Minister of Small to Medium
Enterprises and Cooperative Development has taken a positive stance and ordered
a survey to be carried out to find out the extent of current small enterprise
development going on around the whole country of Zimbabwe (The Herald, 2012).
This included indigenous suppliers of protective clothing.
According to the 2012 tender documents at Harare City Council Procurement
Department, 60 indigenous suppliers of protective clothing applied to be put on their
suppliers list for 2012, 10 were rejected for various reasons which include non
availability of ZIMRA tax documents, no permanent address of operation, insufficient
required documents, and lack of proof of financial ability.
The research focused on indigenous suppliers of protective clothing of cloth material
only, this includes work-suits, overalls, dust-coats, aprons and floppy hats or any
type of head-gear made from cloth.
Urban Councils are established in terms of section 4 of the Urban Councils Act, 29:
15. In terms of section 4(1), it is the President of Zimbabwe who establishes
councils. One of the Urban Councils is Harare, which is the largest urban council in
Zimbabwe. It has a staff complement of ten thousand workers. Harare as the capital
and largest city in Zimbabwe has a population of 3 million people as of 2010
(Brinkoff, 2010). Harare city council, like any other urban council has three
departments which heavily depend on protective clothing. These are city health
department, amenities department and engineering services department.
The researcher used the PESTEL Analysis and Porter’s five Forces to analyse the
environment in which these suppliers are operating. The researcher used this
analysis in order to find out how much the PESTEL is affecting the growth of the
indigenous suppliers of protective clothing. Porter’s five forces are used in analyzing
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competition. The forces also affect the growth of the sector under study either
positively or negatively.
1.2 PESTEL Analysis.
According to Armstrong (2006) PESTEL analysis is a tool that is used to find out the
current status of an organisation or industry in relation to its environment and
activities. It allows an organisation or industry to go in-depth into its current status
and weaknesses. PESTEL is an acronym which stands for Political, Economic,
Social, Technological, Environmental and Legal factors.
Fig 1.1 Pestel analysis
1.2.1 Political Factors
The political situation in the country is very uncertain (FOSA Country report on
Zimbabwe, 2011) (www.zimbabwesituation.com retrieved on 2/10/12). The
Government of National Unity (GNU) yielded stability in the business environment,
but the political future is not clear and this reduces investor confidence. The GNU
and its implementation framework caused a number of both positive and negative
outcomes. In addition, it brought in some degree of accountability and transparency.
According to The Herald 27, September 2012 (Elections set for March next year;
2013) preparations are in place for elections to be held in 2013 to replace the GNU.
This can result in instability in the country which directly affects business.
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1.2.2 Economic Factors
The Zimbabwean economic crisis has seen demand becoming entrenched at very
low levels as a result of both falling real incomes and shrinking producer and
consumer markets (Simpson, 2008).
The introduction of the multicurrency system in February 2009 brought in normalcy
and stability since it halted hyper-inflation and made normal forms of business
possible. It cleared the streets of over-night millionaires and brought people to think
in terms of proper business development. The national budget presented in
parliament on 16 November 2012 expected the country to maintain a single digit
inflation of about 4% per year and this on its own brings about a stable economy.
However, there are still high levels of unemployment in the country. Zimbabwe has
inadequate and dilapidated economic and social infrastructure. The positive
economic factors cited make business growth possible to the indigenous business
supplier of protective clothing. However, the negative economic factors cited, restrict
the growth of business on the part of the indigenous supplier of protective clothing.
1.2.3 Social Factors
The hyper-inflation period prior to 2009, forced Zimbabweans to be all over the globe
seeking greener pastures. This resulted in the flight of critical skills. The high
incidence of HIV/AIDS has resulted in low productivity due to loss of lives of skilled
human capital. A total of 200 lives are lost every month (National AIDS Council
Report, 2010). This social pandemic negatively affects growth of small businesses
like the indigenous suppliers of protective clothing as those who are skilled also get
wiped out. The overall social situation, according to FOSA country report on
Zimbabwe (2012), remains fragile.
1.2.4 Technological Factors
Zimbabwe has managed to install a high speed fibre optic network cable
interconnecting major cities and the world. Technology infrastructure such as
Internet and other information exchange systems are driving business in Zimbabwe,
for example; e-marketing and e-commerce. At a press conference, Information,
Communication and Technology Minister Chamisa reported that “mobile penetration
now stands at 89,9% and Internet penetration has been set at a conservative 18.4%
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due to absence of data of those accessing Internet services through cellphones
(www.herald.co.zw. retrieved on 27 September 2012). However, though the Minister
conservatively put internet penetration at 18.4%, the figure is well above 60% as
people are now able to access internet through the cell-phone.
An E-Tech Africa Exhibition, an annual event which takes place in Harare is done to
conscientise and bring advanced technology closer home, but the local businesses
in the clothing manufacturing sector lack interest in such exhibitions. Most of the
small businesses including those who supply protective clothing are still lagging
behind in terms of technology, since their marketing strategies are still off-line. The
world has become a global village and it becomes very difficult to compete and
succeed by using rudimentary methods of manufacturing and marketing while
competitors are online and are using advanced technology.
1.2.5 Legal Factors
The indigenous suppliers of protective clothing operate under a legal framework
which includes the Indigenisation and Economic Empowerment Act of 2007 (Chapter
14:33) and other relevant pieces of legislation. The introduction of 51% ownership in
any business for indigenous Zimbabweans and 49% ownership for non-indigenous
is still just on paper and its fruits have not yet been seen in the industry. If what is on
paper is implemented to the letter, this might enhance the growth of indigenous
suppliers of protective clothing through mergers with foreign investors.
1.3 Porter’s 5 forces
Porter’s Five Forces is a simple but powerful tool for understanding where power lies
in a business situation. With a clear understanding of where power lies, one can
take fair advantage of a situation of weakness, and avoid taking wrong steps. This
makes it an important part of one’s planning tool kit (Simon and Schuster, 1965).
The nature and degree of competition in an industry hinge on 5 forces according to
Michael Porter (Harvard Business Review, 2008).
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Fig. 1.2 Porter’s five forces
1.3.1 Threat of Entry
This depends on the barriers to entry. If the barriers are high and if the new-comer
expects sharp retaliation, he will think twice before entering the market and his
approach will be cautious. In the protective clothing industry, barriers to entry are low
however the competition is stiff. A new-comer will have to find marketing strategies
to penetrate the market. There are 6 barriers to entry, which are:- Economies of
scale; Product differentiation; Capital requirements; Cost disadvantages independent
SUPPLIERS
• Modzone
Enterprises
• Zimbabwe
spinners
• Bernstein
POTENTIAL ENTRANTS
• Foreign firms( BRICS)
• Local firms (non indigenous)
SUBSTITUTES
• Barrier creams
• Protective guides
BUYERS
• Urban
Councils
• Others
INDUSTRY
COMPETITORS
• Pro garments
• Gliding Star
• King sport
• Lifel Investments
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of size; Access to distribution channels; and Government policy (Harvard Business
Review, 2008)
Economies of scale means larger firms can produce at lower cost per unit. This
tends to lower the number of firms in the industry and reduce competition. The
indigenous suppliers of protective clothing do not enjoy the economies of scale since
they are remaining small. Barriers to entry by new-comers remain weak as there are
no economies of scale to take advantage of the situation.
Product differentiation is the characteristic that make a product appeal to a large
market segment. The indigenous supplier of protective clothing has no advantage on
this one as his products can be copied easily by competitors at low cost. Financial
Gazette (2009) gave a good example of Zimsafe, a company in the Msasa industrial
area which came up with reflective overalls and work suits as an innovation from the
ordinary protective clothing. As soon as the products were introduced on the market
it did not take time before its competitors copied the product.
Capital requirements are another barrier to entry. It is the total cost of acquiring the
plant and equipment necessary to begin operating in the industry. This may be a
challenge to the new-comers in the indigenous manufacturing industry because of
the harsh economic conditions being experienced in Zimbabwe.
1.3.2 Bargaining Power of Customer
In this area the customers have an upper hand since they are dealing with many
suppliers; they dictate the price of the products. Urban Councils are big
organisations which can take advantage of the indigenous suppliers who are still
small. The position of indigenous suppliers here is rather weak as the customer can
switch to a competitor easily because the suppliers of protective clothing are many.
Urban Councils compile a suppliers list which they update annually. From the list,
they deal with those who have favorable conditions.
1.3.3 Bargaining Power of Suppliers
These are suppliers who supply either raw materials to manufacturers of protective
clothing or finished products to the traders (indigenous suppliers). Suppliers of the
raw materials have an upper hand since they are now few in Zimbabwe. Indigenous
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suppliers were mostly depending on David Whitehead for raw material for work suits,
overalls, and dust coats but unfortunately the company is now no more. The other
company is Modzone Enterprises in Chitungwiza but availability of raw materials is
intermittent due to sanctions affecting the country (The Herald, 2010). The few
suppliers left are exerting bargaining power on the indigenous players by increasing
prices and reducing on quality of goods.
1.3.4 Threat of Substitute
Oxford Dictionary (2003) has defined a substitute as “a person or thing acting or
serving in place of another; replace with another” At the moment there is a very low
to non existent risk of substitutes for protective clothing. The Canadian Centre for
Occupational Health and Safety (2008) has come up with barrier creams as
substitutes for protective clothing, especially when gloves or sleeves cannot be used
safely, however they do not shield firmly as what protective clothing do. Some other
possible substitutes could be in the form of machine guards and electronic gadgets
which can repel or absorb danger before a worker is injured, however this is still far
fetched. The indigenous suppliers are still safe in this area.
1.3.5 Competitive Rivalry
Rivalry among existing competitors takes the familiar form of jockeying for position,
using tactics like price competition, product introduction, and advertising. Intense
rivalry is related to the presence of a number of factors like:--numerous competitors;
Slow industry growth; the product differentiation or switching costs; high fixed costs
or the product is perishable; and exit barriers are high (California Management
Review, 2008). Indigenous suppliers of protective clothing concentrate on grabbing
market share from their rivals. They compete on the basis of price, quality, and
safety.
1.4 Problem Statement
Since the inception of black majority rule in Zimbabwe in 1980 the indigenous
business people have been receiving great support from the government. The
Indigenisation and Economic Empowerment Act of 2007, require that at least 51%
ownership in any business be in the hands of indigenous Zimbabweans. Two
ministries have been created to deal with the indigenous business people. These are
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the Ministry of Youth Development, Indigenisation and Empowerment and the
Ministry of Small to Medium Enterprises and Cooperative Development.
The Government of Zimbabwe is offering loans through Small Enterprise
Development Corporation (SEDCO), which is a public enterprise established by
Government to promote entrepreneurship and through the two financial institutions;
Central African Building Society (CABS) and Commercial Bank of Zimbabwe (CBZ)
In light of such a background expressed above, this research investigated the
challenges inhibiting the growth of the indigenous suppliers of protective clothing to
the Urban Councils.
1.5 Objectives 1.5.1. Overall objective
The overall objective of this study is to investigate factors restricting the growth of
indigenous suppliers of protective clothing in Harare to Urban Councils over the
period January 2009 to December 2012.
1.5.2 Specific Objectives
The specific objectives are to:
1. Identify the challenges being faced by indigenous suppliers of protective
clothing which are inhibiting growth.
2. Establish the causes of the challenges that inhibit growth.
3. Find ways to overcome these challenges and achievement of growth by
indigenous suppliers.
4. Make any necessary recommendations in light of the findings from the study
1.6 Research Question
1.6.1 The main research question is:
What are the factors restricting the growth of indigenous suppliers of protective
clothing in Harare to urban councils during the period January 2009 to December
2012?
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1.6.2 Research sub questions
The research sub questions are as follows:
1. What were the challenges faced by indigenous suppliers of protective clothing
during the period under study?
2. What were the causes of these challenges?
3. How can these challenges be overcome?
4. What are the recommendations that can be made in line with the research
findings?
1.7 Research Proposition
The research proposition was:-
Indigenous suppliers of protective clothing are restricted from growth by lack of
capital, poor management, lack of experienced staff and quality of products.
1.8 Justification of Research
1.8.1 Organisational Level
The study will contribute to the body of knowledge that already exists and
recommendations made will help the growth of indigenous suppliers of protective
clothing.
1.8.2 National Level
The study will lay ground for comparison with other suppliers in Zimbabwe and other
indigenous suppliers in countries in the sub-Saharan region who are still battling with
the problem of growth.
1.9 Scope of Research
The study sought to investigate challenges hampering development of indigenous
suppliers of protective clothing to Urban Councils over the period from January 2009
to December 2012. The study covered indigenous suppliers of protective clothing
based in Harare.
13
1.10 Dissertation outline
The dissertation is made up of five chapters as follows:
Chapter one gives an overview on the purpose of the study, the reasons for
embarking on the study and the justification for the study. Chapter two is a critical
review of literature on what has been done and published on the subject matter by
accredited scholars and researchers. The review of literature provides a framework
for discussion of findings in chapter four. Chapter three gives details on the research
methodology, methods and philosophies. It also highlights the research method and
data collection techniques adopted by the researcher. Chapter four presents findings
from the research supported by evidence of data collected during the research. The
presentation and analysis seeks to establish the relationship between the research
problem, objectives and the literature review by addressing the research questions.
Chapter five provides the conclusion of the research study and draws appropriate
recommendations for the industry under study and other stakeholders. It also
identifies areas for further research.
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CHAPTER TWO
2.0 Literature Review
2.1 Introduction
Literature review reveals a fact, a truth, or a point of light to a project. It ushers the
researcher into a familiar ground. Leedy (2007) has defined literature review as “the
process of locating, analyzing and synthesizing the published research articles and
opinion papers pertaining to a particular topic”. Literature review ensures that the
researcher is not re-inventing the wheel.
Areas reviewed were to do with the challenges faced by the small businesses in the
clothing industry in the developed world, Africa and Zimbabwe. Business growth and
its strategies were also discussed.
2.2 Indigenous Supplier of Protective Clothing
The Indigenisation and Economic Empowerment Act of 2007 (Chapter 14: 33) has
described indigenisation as a deliberate involvement of indigenous Zimbabweans in
the economic activities of the country to which they had no access, so as to ensure
the equitable ownership of the nation’s resources. The same Act went on to define
an indigenous Zimbabwean as any person who, before 18 April, 1980, was
disadvantaged by unfair discrimination on the grounds of his race, and any
descendant of such person, and includes any company, association, syndicate or
partnership of which indigenous Zimbabweans form the majority of the members
holding the controlling interest.
According to this definition, the researcher concentrated his research on indigenous
black Zimbabwean suppliers of protective clothing. The word supplier will include
both the manufacturer and the trader of protective clothing.
An Indian researcher, Antweiler (1998) added a flavour on the meaning of
indigenous. He explained that originally, indigenous was equivalent to local or folk or,
when applied to knowledge, informal knowledge. Gono (2012), in the Reserve Bank
report went further to explain indigenisation. He described indigenisation as a
15
process of transferring ownership of the resources of a country to its rightful owners,
who are the indigenous people.
However, this transference of ownership of the resources, as mentioned by Gono
(2012) in his report, will only take place if the indigenous business people realize the
importance of growth, for example, if providers of protective clothing move away
from their small shops dotted around old tall buildings in Harare and move to the
industries and take over closed factories left by whites. Only then, will the
transference be complete. This stride of business growth will be realized if a solution
is found on challenges which are hampering growth of indigenous suppliers of
protective clothing to urban councils.
2.2.1 Production - Supply Capacity
Two groups can be identified in the clothing industry when it comes to capacity
utilisation in Zimbabwe. The first one has those companies operating between 0 to
30%. These are those which were negatively affected by dollarisation and the
flooding of the local market by cheap products from China and India. The second
group is that operating between 30 to 60%. This group has managed to establish
itself in the export market, many of the firms in this category export to South Africa.
In this group we see also those companies that manufacture protective clothing for
the local mining companies that are opening up in Zimbabwe (Nkala, 2012), like
Mbada Diamonds, Zimplats, African Mills and Minerals etc.
2.2.2 Export Market
The export markets for the Zimbabwe clothing are: SADC, COMESA, European
Union and United States of America. Those companies that are still exporting to the
USA and the EU are those who established relations long back and they are still
supplying their old clients whom they have developed relations with (Nkala, 2007).
The research under study will establish whether among this group we have any
indigenous suppliers of protective clothing to urban councils who are also exporters
to other nations. Is there any relationship between business growth and export? Can
it be another secret to the growth of a company, especially those who are into the
business of providing protective clothing..
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2.3 Challenges faced by Small Businesses in Develop ed World
Developed world is referred in other quarters as the first world, the advanced world
and is differentiated by the Oxford Dictionary (2003) from developing world, which is
a poor agricultural country that is seeking to become more advanced economically
and socially. However, advanced as it is, it has been discovered that small
businesses in the developed world also face challenges, especially those in the
clothing industry, which at times hinder them from growth. The following are some of
the challenges which are faced by these small businesses in the developed world.
2.3.1 Lack of Capital
Capital is the backbone of an organization. In any business including that of
protective clothing, one needs capital for infrastructure, procurement of raw materials
and in kick starting the whole business operation. Capital was found to be one of the
challenges which impede business growth among small businesses in the developed
world, including those in the clothing industry.
In a research carried out in Canada by the Canadian Council for Aboriginal Business
(CCAB) in 2011(www.ccab.com accessed 13/11/12), it was discovered that lack of
capital was a challenge among the indigenous small business in Canada. In Canada
they use the term aborigines instead of indigenous. This group, that is CCAB was
founded in 1984 by a small group of visionary business and community leaders
committed to the full participation of aboriginal people in Canada’s economy.
The problem of capital was also cited in a research done by the Small Business
Administration (SBA) in the United States of America. The research was done in
Washington DC in 2012 at a Fair called Small Business Week 2012. The research
revealed that banks in Washington DC were very strict in lending for small business
growth. The small business owners lacked access to information on the tight lending
conditions hence most of their applications were turned down (Berens, 2012)
According to a study carried out in the United Kingdom (www.powerhomebiz.com
retrieved 1/11/12) concerning challenges faced by small businesses in clothing
industry, it came out that access to adequate capital was a key challenge hampering
growth of these small businesses in United Kingdom. It was discovered that 27%in
the clothing industry were affected by financial inadequacy.
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All these researches cited, point to the fact that lack of capital is a challenge which is
also affecting the growth of small businesses in the clothing industry in the
developed world. The researcher sought to find out whether this challenge of capital
which is affecting small businesses in developed world is also affecting indigenous
small businesses in Zimbabwe. Can this be a reason why indigenous providers of
protective clothing are not growing in Zimbabwe? Can this challenge affecting
developed countries also affect the developing countries like Zimbabwe?
2.3.2 Lack of Annual Business Plan
A business plan is vital because it provides a clear picture of the desirable future of a
company. It helps to understand the market place and customer needs and can be
used as a vehicle for sourcing funding. When the business is operational, a business
plan can be used as an evaluation and monitoring tool for performance against the
original objectives. It is a window into who you are, and who you are capable of
becoming. In a research carried out in Canada by CCAB (www.ccab.com accessed
13/11/12), it was discovered that all this was being ignored by the aborigines in
Canada who are into the business of manufacturing of protective clothing. Most of
those who were not growing were found not to have a business plan. They used the
thumb suck approach and leave business plans to the big organizations in Canada.
They assume that business plans are only for big organizations.
The researcher sought to find out whether this is the same with indigenous business
people in Zimbabwe, particular, suppliers of protective clothing.
2.3.3. Lack of Stronger Network
Building stronger networks lead to a sharing of expertise and knowledge among
business people. Bozbura (2007) carried out a research on 150 SMEs in Turkey on
some of the challenges which hamper growth of SMEs in the clothing industry and
the research revealed that Turkish SMEs do not like to share knowledge even within
the company. The managers are afraid of losing control of the knowledge. Since the
managers close the information channels, incoming knowledge is limited as well
thereby causing a black out in growth. Networking is discouraged among the small
businesses in the clothing industry in Turkey. The same challenge was cited in
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Canada in a research carried out by the CCAB. It was discovered that the Canadian
aborigines tend to operate in isolation from other business organizations. This
selfishness is an impediment to their growth. It is doing more harm than good to their
business. The researcher sought to find out whether this might be the same in a
developing country like Zimbabwe
2.3.4 Financing Employee Health Care
Another financial worry in the developed world was the financing of employee health
care as cited in the USA by the SBA. According to the laws of the land, in USA, it is
mandatory for the employer to meet all the medical expenses of their worker no
matter how small is the company. The medical bill is too heavy for the small
business owner and this is affecting their growth. Money supposed to be ploughed
back into business for growth is channeled towards the health bill leaving the small
business owner with very little to invest (Berens, 2012). This includes small
businesses in the clothing industry.
This same challenge of employee health care was also cited in the United Kingdom
(www.powerhomebiz.com retrieved 1/11/12). In the United Kingdom, 35% of small
businesses are hampered their growth by legal requirements, the state and federal
regulations which bind the industry. This includes provision of employee health care
package. The research under study tried to cover this area and established where
the indigenous suppliers of protective clothing in Zimbabwe are inhibited their growth
by providing medical expenses to its workers.
2.3.5 Finding and Retaining Qualified Workers
Qualified workers demand high salaries and better conditions of service. If an
organization fail to provide this to the qualified worker, the personnel do not hesitate
to move to the next organization which offer better salaries and other conditions of
service. This challenge is mostly met by small businesses which are still keen to
plough back their meager profits for the purpose of growth. This lack of continuity in
a small organization negatively affects its growth. In the United Kingdom, 61% of
small businesses in the clothing industry are hampered in their growth because of
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this challenge (www.powerhomebiz.com retrieved 1/11/12). In their findings it was
cited as ‘the most significant challenge’ to the business.
2.3.6 Keeping up with Technology
Small businesses in the clothing industry face economic uncertainty about the future
of their business. Most of these small businesses in the United Kingdom are always
behind when it comes to technology. A study done in the United Kingdom concerning
challenges faced by small businesses in the clothing industry revealed that 16% of
them are afraid to do business on internet, 29% face economic uncertainty and 28%
are hindered on their growth because of not keeping up with technology
(www.powerhomebiz.com retrieved 1/1/12).
Technology is fast changing in the business world today and any business whether
big or small which does not keep in step with technology is bound to face hindrances
in its growth. Technology is one of the key determinant factors in industrial or
company growth. The area of technology will be looked at by the researcher in this
study and establish whether indigenous suppliers of protective clothing in Zimbabwe
are no being affected by technology in their growth.
2.4 Challenges Faced by Small Businesses in the Clo thing Industry in Africa
Entrepreneurs include not just the founders of business firms but also “second
generation operators of family owned firms, franchisees, and owner managers who
have bought out the founders of existing firms” (Longenecker, Moore, and Petty,
2003). Small business has been defined by African Development Bank and
International Finance Corporation, as a firm with less than 50 employees or assets of
less than $15 million.
The European Commission (2005) has further defined small to medium enterprises
(SMEs) as “micro enterprises have fewer than ten employees, a maximum turnover
of $2 million; small enterprises have 10-49 employees, a turnover of less than $10
million, and medium firms have 50-250 employees, and a turnover of no more than
$50 million”. Previous studies have shown that in many SMEs in the clothing industry
there is an absence of systematic knowledge management (McAdam and Reid,
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2001) (Wong and Aspinwall, 2005). Some of the key challenges faced by these
small businesses in the clothing industry include:-
a) Globalisation of Markets and Production
Globalisation refers to a fundamental shift in world economy in which nations are
moving toward an interdependent global economic system (Hill, 2009). Globalisation
is a threat to small companies in Africa in the form of increased competition from
foreign entrants. Locally manufactured goods now compete with cheaper good
quality products from emerging economies, such as China, India, and Brazil. These
inexpensive imports are rapidly replacing locally made goods and shutting down
small-scale manufacturers.
b) Lack of Financial Support
Despite existing policies on financial support for small businesses, very few
entrepreneurs receive financial help when they need it. For Mambula (2002), 72% of
entrepreneurs in Nigeria considered lack of financial support as the number one
constraint in developing their business. Small businesses consider procedures for
securing business loans from banks cumbersome, and the collateral demanded for
such loans excessive. Banks on the other hand defend their behaviour by noting that
most small firms that apply for loan do not present acceptable feasibility study or
good business plan. Furthermore, many entrepreneurs do not even have a deposit
account in a bank, which is a condition for advancing a loan to an applicant.
c) Poor Infrastructure
Basic physical infrastructure required for economic development, such as good
roads, ample power supply, and good rail and river transportation facilities, are in
very poor shape in most African countries. This has combined to make small
business operations difficult. According to Akwani (2007), damage to equipment
because of power surges and down time due to unavailability of electricity during
production hours are major problems for small manufacturers in some African
countries. This is especially affecting business operations in Zimbabwe as the
Zimbabwe Electricity Supply Authority (ZESA) is failing to provide continuous supply
of electricity to industries. The load shedding time table is not being followed by the
21
providers of power; electricity comes and goes at will, unexpectedly, thereby
damaging machinery in the process.
d) Government-Sponsored Assistance
This is weak and inadequate in most African countries. According to Wallace
(1999), The Nigerian government established a Small and Medium Scale Industries
Development Agency (SMEDAN), The agency is no way near providing the kind of
support the United States Small Business Administration (SBA) gives to small
businesses. The SBA provides financial aid, counseling, and other forms of
assistance and protection to entrepreneurs and small business startups, and is a
good model for African countries to adopt.
Most research studies on African entrepreneurship have concluded that training
programs for entrepreneurs have been few and far between and different in content
than what is needed (Wallace, 1999).
e) Entrepreneurial Myth or E-Myth.
Oxford English dictionary (2003) has described myth as a traditional story
concerning the early history of a people or explaining a natural or social
phenomenon typically involving the supernatural. This has been further explained in
the Encyclopedia of Essential Knowledge (2008) as “a widely held but false belief“
Myth comes from a Greek word ‘muthos’ which means a fictitious person or thing.
There is a mythic assumption in the African culture which state that an expert in a
given technical field will also be an expert at running that kind of business. This was
proved to be wrong and latest studies have recommended that additional business
management skills be acquired to keep a business running smoothly. A tailor or
dressmaker who specializes in making protective clothes can not suddenly become
a good entrepreneur, he needs basic knowledge in running a business through
training.
The researcher sought to find out whether this is the case in Zimbabwe. Do the
indigenous suppliers of protective clothing in Zimbabwe undergo any business
course before embarking on this business?
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f) Peer Pressure
Small businesses also face a form of peer pressure from larger forces in their
respective industries making it difficult to oppose and work against industry
expectations. It has also been discovered that many of these small businesses in the
clothing industry face resource constraint (Jarillo, 1989).
The researcher sought to find out whether big companies in the clothing industries
like Paramount Garments, James North and Modzone Enterprises are not exerting
pressure to these small indigenous suppliers of protective clothing in Zimbabwe.
g) Lack of Succession Plan as a Hindrance to Small Business Growth
The greatest challenge facing indigenous business is that it dies with its founders
(Forrest: 1994) (Wild: 1997). Every organisation must experience a leadership or
managerial succession, the process by which key officials, especially the Chief
Executive Officer (CEO), are replaced by others (Grusky: 1961). The organisation
should look beyond the founder and develop strategies and create conditions for a
smooth succession. An earliest study on the effects of succession on the
organisation was carried out by Goulder (1954).
The study revealed that lack of succession plan disrupted the operations of the
organisation, increased tension, lowering of worker morale, and the general decline
in productivity culminating in a wild cat strikes.
Grusky (1961) made a follow up to this study and discovered that lack of succession
plan promotes organisational instability. One of the greatest challenges facing
indigenous businesses today is the crisis of succession, that is, uncertainty about the
future of the organisation beyond the founder. Forrest (1994) observed that this
problem was not peculiar to Zimbabwe alone but to many African Countries. Willer
(1996) found that in Nigeria they have the same problem.
Another contributor to lack of succession plan is poor knowledge management. In
small firms in the clothing industry the owner-manager take on a central position
(Bridge et al., 2003). Business planning and decision making are limited to only one
person (Culkin and Smith, 2000) .This and lack of financial resources and expertise
(Bridge et al.,2003) results in most knowledge being kept in the mind of the owner
23
rather than physically stored or shared through substitution arrangements (Wong
and Aspinwall, 2004).
Owner managers in clothing firms prevent the outflow of knowledge from the
company and thereby block knowledge sharing (Beijerse, 2000: Matlay, 2000:
McAdam and Reid, 2001; Corso et al.,2003; Bozbura, 2007;Hutchinson and Quintas,
2008).Thus if this owner- manager dies he will die with his business. In order to
counter this challenge of succession plan Chirico (2008) carried out case studies in
Switzerland and Italy. Findings revealed that these small businesses, some of them
which operate as family businesses can increase their survival rate by using various
means to transfer knowledge between generations: trust between family members,
commitment to the family business, and seeking experience from outside through
training or working.
h) Lack of Joint Ownership
There is a general unwillingness among African business people to form partnership
or to establish corporate forms of business involving the pooling of resources either
between kin and non relatives (Kennedy, 1988) (Wild, 1997). Although some
businesses may be registered as companies most African businesses do not involve
core-ownership. The reasons are (Kennedy, 1988):-
1. Mistrust.
2. Failure to get relatives with requisite skills.
3. requisite personalities.
4. requisite resources and
5. reluctance to share power and decision making.
The researcher investigated whether this is still pertinent, as the latest studies by
Rubenstein and Grundy (2012) had shown that pooling resources together was
a very effective growth strategy.
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2.5 Global SMEs More Successful
A study was carried out on 410 SMEs in G7 and BRICS (Brazil, Russia, India, China,
South Africa) as reported in the Business Herald of 7 February 2013 revealed that
SMEs trading internationally are more successful than those trading locally. SMEs
trading internationally benefit through accessing latest technology, products and
services. This will enable SMEs to grow faster. These SMEs included suppliers of
protective clothing in these countries. This study was carried out by IHS, a leading
global research company contracted by DHL.
Better performing SMEs identified in the study employ more than 50 workers and
they under scored the importance of resources in overcoming growth barriers. The
researcher will find out whether this is the same with SMEs in Zimbabwe, especially
those who trade in protective clothing.
2.6 Business Growth
The key word in this research is ‘growth’. Why indigenous suppliers are not growing?
Oxford Dictionary (2003) has defined growth as “the process of growing, full
development; maturity, a stage of development”. The term business growth has been
defined online as the process of improving some measure of an enterprise’s
success. Business growth can be achieved by boosting revenue of the business with
greater product sales or service income. It can also be achieved by increasing
profitability of the operation by minimizing costs (www.businessdictionary.com
accessed 2/12/12)
Growth of a business is measured in terms of infrastructure, profitability, leadership,
sustainability, technology, number of workers, organisational structure, assets and
capital base (Tsikirayi, 2011). Rubenstein and Grundy (2008) have added some
characteristics of business growth as; more revenue, more sales, more profit, more
shareholder value, more economic value, more cash flow, more customers, more
assets, and more markets served. If this is occurring in a small business, it means
the business is growing.
2.6.1 Infrastructure
Infrastructure is basic physical and organisational structures needed for the
operation of society or enterprise, or the services and facilities necessary for an
25
economy to function (Sullivan and Sheffrin, 2003). It can be used as a measuring rod
to measure the growth of a country or region. It include such structures like
telecommunication, bridges, sewers, roads, water supply, and electrical grids.
Business or industrial development takes place where there is good infrastructure.
Production of goods and services and distribution of products are well supported by
a good infrastructure.
There are 2 types of infrastructure. (http//www.opendb./element/ accessed 2/12/12);
that is, hard infrastructure and soft infrastructure. “Hard” infrastructure refers to the
large physical networks necessary for the functioning of a modern industrial nation.
This includes both the fixed assets and the control systems and software required to
operate, manage and monitor the systems as well as any accessory buildings,
plants, or vehicles that are an essential part of the system.
“soft” Infrastructure refers to all the institutions which are required to maintain the
economic, health, and cultural and social standards of a country, such as the
financial system, the education system, the system of government, and law
enforcement as well as emergency services.
According to researchers at the Overseas Development Institute, the lack of
infrastructure in many developing countries represents one of the most significant
limitations to economic growth and achievement of the Millennium Development
Goals (MDGs). Any business in any sector can not grow without good infrastructure.
This includes those in the clothing industry, in particular, the indigenous suppliers of
protective clothing. It can also be argued that infrastructure investments contributed
to more than half of Africa’s improved growth performance between 1990 and 2005
(Kangombe, 2011).
In Africa, in order to reach the seven annual growth calculated to be required to meet
the MDGs by 2015 would require infrastructure investments of about fifteen of GDP,
or around US$93 billion a year (Kangombe, 2011).
According to the research under study, growth of a business is measured in terms of
growth, development, expansion or improvement of both hard and soft infrastructure.
26
Stagnant infrastructure means the business is not growing, worse still if the
infrastructure is poor.
2.6.2 Profitability
Profitability means the ability to earn a profit. Economic profit is the residual wealth
calculated by deducting the cost of capital from the firm’s operating profit. It is
defined as: Net operating profit after taxes (NOPAT) minus cost of capital employed.
Capital employed is the amount of funds which has been used over the period by the
company to generate the NOPAT.
Oxford Dictionary (2001) has defined profit as a financial gain, especially the
difference between an initial outlay and the subsequent amount earned. Profitability
has been described as a financial benefit. An indigenous business is said to be
profitable if the amount earned is significantly more than the expenses. Whenever a
business remain with surplus to plough back for growth purpose, that business is
profitable, however if the opposite is happening, then the business is not profitable
and its growth is hindered.
2.6.3 Technology
In a survey carried out by the National Small Business Association (NSBA) in the
United Kingdom in 2010, it was discovered that 98% of the small business owners
think it is important to keep up with technology. Larry Nannis, NSBA chairman had
this to say “Small businesses look to technology as a critical tool to increase
efficiency and grow business networks, which is particularly important now given the
down turned economy”.
The survey found that an average small business had 19 computers at the
workplace. About 47% of the respondents said they spend 3 to 5 hours per day on a
computer. Owners of small businesses were using technology to make their
business more efficient, 89% have a website for their business, but only 26%
actually sell their products or services online. Only 47% said they use sites such as
Linkedin and Face book for business networking.
Technology is making workplace arrangements more flexible for small business. In
1997, 9% of small businesses used telecommuting, today the figure has galloped to
27
44%.Technology does not just play a prominent role in how small business are
operated, but is a key business practice.
Recent research by the Oxford Economics has found that investment in information
and communication technology generates a bigger return to productivity growth than
most other forms of capital investment.
Figures from the National Statistics of the United Kingdom indicate that the use of
computers by staff in manufacturing companies’ raises productivity by 2.2% for each
additional 10% of employees who become information technology (IT) enabled. IT
can be an important tool for small business owners trying to put their companies on a
course to sustainable growth. IT makes business owners more efficient by freeing up
badly needed manpower. However, despite the critical roles it can play, particularly
in a small business, IT is often a forgotten companion when companies build their
long term growth plans. Small businesses sometimes neglect to factor IT into their
company’s growth strategy (Mansfield, 2010).
2.6.4 Sustainability
Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs
(Brundtl and Commission, 1987). Suppliers need to adopt business strategies and
activities that meet the needs of the enterprise and its stakeholders today while
protecting, sustaining and enhancing the human and natural resources that will be
needed in the future. Small business need to be actively involved in sustainable
development, adopt environmentally sound business principles and translate them
into action.
A study was carried out in South Africa. The primary aim was to calculate the
survival rate of small businesses within the rapidly changing trade environment. The
data set also allowed for contrasting e-business profiles of successful businesses
with those closing their doors and for identifying principal reasons for small business
sustainability in a more intensive competitive environment. After analysing the
literature on business sustainability (Morrison, Breen and Shameen, 2003, p418)
synthesized the literature by proposing a framework for identifying small business
sustainability and growth factors and their characteristics. They confirm the finding in
28
the discussion earlier in the study that the human factor constitutes the
overwhelming force that determines whether or not a business will survive and
prosper. The picture emerging from the analysis in this study highlights
entrepreneurial behavior as the key predictor of small business sustainability.
2.7 How Organizations Grow
According to Wren and Voich (1984) organizations grow in two ways; horizontally
and vertically.
Horizontal Growth
This is the addition of people to perform the same function. It is caused by the
necessity to add more and more operative workers in order to get the job done. One
important feature of horizontal growth in organisations is that it comes about initially
because ‘operational’ rather than ‘managerial’ work is divided or shared by new
workers. This is especially true in small to medium sized organisations and at lower
organisational levels. Another feature of horizontal growth is that the manager
maintains direct contact with old and new subordinates.
Vertical (Scalar) Growth
As an organisation grows and new operational workers increase, coordination
becomes more difficult. One manager can effectively supervise only so many people.
Vertical growth is caused by a division of managerial work as the organisation grows.
One important feature of vertical growth is the dividing or sharing of the total
management job of the organisation between the top manager and the assistant
managers or supervisors (Wren and Voich, 1984)
Complexities of Organisational Growth
Organisational growth is necessary to expand or improve operations, but it also
creates more complex working relationships among people. Each type of growth
presents different opportunities and problems. As other operational employees are
added, supervision of them becomes more complex and may become ineffective. As
the scalar (vertical) growth alleviates the problems of ineffective supervision of
operational employees, other types of problems may occur, especially for the top
manager of the organisation. Reaction time to problems becomes longer because of
29
indirect relationships with managerial assistants and operational workers. Often
malfunctions in operations occur because managerial assistants do not have the
same dedication to the business as the owner, or because their managerial
capabilities have been miscalculated in the hiring decision, or for other reasons
(Wren and Voich, 1984)
It is for these kinds of reasons that some small business owner-managers are
reluctant to have their business grow vertically beyond the size where their personal
visibility of operations is lost and where they must rely on many assistant managers
and supervisors to coordinate operations
2.7.1 The Five Stages of Small Business Growth
Small businesses vary widely in size and capacity for growth. They are characterized
by independence of action, differing organisational structures and varied
management styles. These points of similarity can be organised into a framework
that increases our understanding of the nature, characteristics, and problems of
business ranging from corner tailoring shops to large manufacturing companies
experiencing a 40% annual growth rate. For a small business, cash flow planning is
important and for a big organisation, strategic planning and budgeting to achieve
coordination and operating control are most important.
In coming up with the five stages of growth, Churchill and Lewis (2008) used a
combination of their experience in this area of study, a search of the literature, and
empirical research. Each of the stage is characterised by size, diversity, and
complexity and described by five management factors, which are; management
style, organisational structure, extent of formal systems, major strategic goals, and
the owner’s involvement in the business.
Stage 1-Existence
In this stage the main problems of the business are obtaining customers and
delivering the products or service contracted for. The organisation is a simple one.
The owner does everything and directly supervises subordinates who should be of at
least average competence. Systems and formal planning are minimal to non
30
existent. The company’s strategy is simply to remain alive. The owner of the
business performs all the important tasks.
Many companies at this stage never gain sufficient customer acceptance to become
viable. In these cases the owner closes the business when the capital runs out, and
if they are lucky, sell the business for its asset value. For those companies that
continue operating move up to Stage 2, this is the survival stage (Churchill and
Lewis, 2008).
Stage 2-Survival
In reaching this stage, the business has demonstrated that it is a workable business
entity. It has enough customers and satisfies them sufficiently with its products. The
key problem thus shifts from existence to the relationship between revenue and
expenses. The company may have a limited number of employees supervised by a
sales manager or a general foreman.
Neither of them makes major decisions independently, but instead carries out the
rather well defined orders of the owner. Formal planning is, at best, cash forecasting.
The major goal is still survival and the owner is still synonymous with the business.
In this stage the enterprise may grow in size and profitability and move on to stage 3,
which is success or it may, as many companies do, remain at the survival stage for
some time, earning marginal returns on invested time and capital and eventually go
out of business when the owner gives up or retires.
Stage 3-Success
The decision facing owners at this stage is whether to exploit the company’s
accomplishments and expand or keep the company stable and profitable, providing a
base for alternative owner activities. Thus, a key issue is whether to use the
company as a platform for growth (sub stage 3-G) or as a means of support for the
company (stage 3-D). In the success-disengagement sub stage 3-D, the company
has attained true economic health, has sufficient size and product-market
penetration to ensure economic success, and earns average or above average
profits. Organisationally, the company has grown large enough to require functional
managers to take over certain duties performed by the owner. The first professional
31
staff members come on board. Basic financial, marketing and production systems
are in place. If it is successful, the 3-G company proceeds into stage 4.
Stage 4- Take-off
In this stage the key problems are how to grow rapidly and how to finance that
growth. The most important factors to consider are:-
Delegation:- Owner should be able to delegate responsibility to others in order to
improve the managerial effectiveness of a fast growing and increasingly complex
enterprise.
Cash:- There should be enough cash to satisfy the great demands brought by
growth.
The key managers must be very competent to handle a growing and complex
business environment. The owner and the business have become reasonably
separate, yet the company is still dominated by both the owner’s presence and stock
control. If the owner rises to the challenges of a growing company, both financial and
managerially, it can become a big business.
If not, it can usually be sold – at a profit provided he recognizes his limitations soon
enough. Too often, those who bring the business to the success stage are
unsuccessful in stage 4, either because they try to grow too fast or run out of cash
(the owner falls victim to the omnipotent syndrome), or are unable to delegate
effectively enough to make the company work (the omniscience syndrome).
Stage 5-Resource Maturity
The greatest concerns of a company entering this stage are, to consolidate and
control the financial gains brought on by rapid growth and, to retain the advantages
of small sizes, including flexibility of response and the entrepreneurial spirit. The
corporation must expand the management force fast enough to eliminate the
inefficiencies that growth can produce and professionalise the company by use of
such tools as budget, strategic planning , management by objectives, and standard
cost system. It has the advantages of size, financial resources, and managerial
talent. If it can preserve its entrepreneurial spirit, it will be a formidable force in the
32
market. If not, it may enter a sixth stage of sorts:-Ossification. Ossification is
characterized by a lack of innovative decision making and the evidence of risks.
2.8 Growth strategies
Growth of the business means expanding the amount of trade it undertakes. It also
means that the resources, systems and structures of the business venture will need
to be expanded but not necessarily proportionately. Pettinger’s (1996) defined
corporate strategy as “concerned with directing and guiding the inception and growth
of an organization and the changes that occur as they conduct their activities”. The
basic growth strategies are aimed at, either internal growth, external growth or a
combination of the two. Internal growth strategies can take one or more of the
following forms (Nieman, 2003):-
a) Increasing core market share
Expansion demands an increase in the volume of the ventures turnover (sales). If
the market is mature and not increasing in volume this can imply an increase in
market share as well.
This percentage in market share can also be achieved through any of the following
actions:-
1. The achievement of economies of scale, command of technology and distribution.
2. The command of the means of gaining and managing customer and customer
confidence.
b) Lateral Integration
This occurs when the integrated business is not a supplier, customer nor competitor.
This is mostly done when a company wishes to diversify to another industry or
product to reduce the risk or the seasonality of its existing business. Another
approach is to look at Porter’s five forces model. In this model competition is vested
in competitors, suppliers, distribution rivals and substitutes (Pettinger, 1994). From
this model Porter developed two additional integration strategies; the northern
integration and the southern integration.
33
c) Northern Integration
This is where a firm buys up those seeking to enter the particular sector in order to
prevent this from happening. It is used as a drive towards some form of market
domination.
d) Southern Integration
The firm buys up the means of production for critical substitute products. This is
done to dominate the sector, increase influence or preserve and maintain the original
product.
e) External Growth Methods
External growth strategies give direction to the venture in respect of its positioning in
the industry value chain. Examples of external growth strategies are Joint ventures,
mergers and acquisitions.
2.8.1Three Growth Strategies for Achieving and Sustaining Growth
Many small companies in the clothing industry fail to achieve their growth targets in
revenue and profitability. Bill Liabotics (2007) believes this is caused by lack of clear
growth strategy and strong execution infrastructure. Studies which he carried out
report success rates as low as 20%. Why is growth so elusive? In his research he
came up with two major reasons :-
1. Inadequate consideration of opportunities within the core business, adjacent to the
core business or within new customer sub-segments.
2. An organisational infrastructure that cannot support successful execution.
In order to overcome the above, the author of this article recommended three growth
strategies and three elements for successful execution which are:-
a) Growing the Core Business
Zook (2004) emphasized that is, the products, services, customers, channels and
geographic areas that generate the largest proportion of revenue and profits. After
identifying the core business, evaluation on overall performance of the core business
34
is carried out. This involves measuring and benchmarking profitability, rate of
revenue growth and the firm’s reputation with its most important customers.
Acklands-Grainger Inc., a leading Canadian industrial supply company initiated such
a process. In less than 12 months it had been transformed from a “stodgy Canadian
supply company with 4% growth rate to an exciting place to work with a 20% growth
rate and higher profitability.
b) Growth by Segmenting Customers
The second customer –focused growth strategy is based on the firm’s existing
customers. The most important factor in this strategy is the willingness to view
customers through a different set of lenses. Knowing customer’s needs and
preferences is important in this strategy. Key elements are:-
1. Sub-segmenting existing customers group.
2. Creating innovative and high impact value propositions for the most attractive sub
segments.
3. Field testing the new value proposition.
4. Scaling up based on the results of tests (Seldon and Colvin; 2003).
c) Adjacent Business
This is the third customer-focused strategy is to enter businesses that have strong
strategic links to the core (Slywotzky and Wise, 2003). The first port of call to this
process is to focus on current customers. A series of meetings with the most
innovative customers can be a valuable source of opportunities. When considering
adjacent growth alternatives, the relationship to the core business requires special
consideration - specifically an assessment of the major strategic differences and
similarities with the case (Hortons, 2006).
2.8.2 Executing Growth Strategies
The three Customer-Focused Growth Strategies described above require supporting
infrastructure to increase the chances of successful implementation. Lack of an
adequate infrastructure is the second reason cited for not achieving growth
objectives. A supportive infrastructure includes (1) organization capabilities that are
valued by customer (Stalk, Evans and Shulman, 1992), a management-performance
35
system and scorecard which focuses on leading indicators and the drivers of growth.
The focus is on measuring and monitoring leading indicators (Baer, 2005).
-Strong leadership practice at every level of the organisation. Leaders are people
throughout the organisation who influence the attitudes and actions of colleagues.
Leaders are found at all levels in organisations including non titled, non managerial
positions. They are best identified by their behaviours and influence rather than the
hierarchical position.
2.9 Chapter Summary
Chapter two examined literature and provided insight into various factors that hinder
growth of an indigenous supplier of protective clothing. A funnel approach was used
starting with the global outlook, SADC, Nigeria, and then Zimbabwe.
The literature highlighted challenges faced by small businesses in Canada, USA,
United Kingdom, Turkey, Nigeria, and Zimbabwe. Causes and solutions to these
challenges were also highlighted. Literature relating to business growth, business
strategies and strategy execution was given its fair share.
36
CHAPTER THREE
3.0 Research Methodology
3.1 Introduction
This chapter provides an overview of the method used to conduct the research and
collect the necessary data for interpretation and analysis. Methodology is a term
derived from three Greek elements; meth- meaning after; odos-means way and
ology means the study of, a method is therefore a following after the way that
someone found to be effective in solving a problem, a methodology is the study of a
particular method (Leedy, 2007). A research is a systematic investigation to find
answers to a problem (Macionis and Plummer, 1998).
Research methodology informs the reader exactly how one intends to proceed and
handle the data. It helps to explain the nature of the data and what method to use in
processing in order to arrive at the conclusion
3.2 Research Design
According to Burns (1994) research design is classified into two categories namely
positivism and phenomelogical approach. The two approaches are referred to as
quantitative and qualitative research methods. The nature of the data dictates the
methodology. If the data is verbal, the methodology is qualitative and if it is
numerical, the methodology is quantitative.
Goodwin and Goodwin (1984) have made an addition of the third approach, which is
triangulation. They emphasized and concluded that “many studies could be
enhanced considerably if a combined approach were taken.” In a similar vein
Reichardt and Cook (2006), have admonished readers that “it was time to stop
building walls between methods and start building bridges”. Triangulation means the
combination of qualitative and quantitative approaches to come up with a superior
result. In this section, the two methodologies were discussed with the aim of
selecting the most appropriate combination for the research.
37
3.2.1 Quantitative Research
Quantitative research is objective and hypothetically free from bias. It focuses on the
accumulation of facts and causes of behaviour. According to Denzin and Lincoln
(1994), quantitative research stresses on the analysis and measurement of causal
relationships between variables rather than processes. The procedure is highly
structured and designed to verify predetermined hypothesis. It is typically expressed
in numbers and the data is collected under controlled conditions in order to rule out
the possibility of bias. Quantitative research focuses heavily on reliability.
3.2.2 Qualitative Research
According to Leedy (2007) qualitative research is verbal, it is concerned with human
beings; interpersonal relationships, personal values, meanings, beliefs, thoughts,
and feelings. The researcher attempted to attain rich, real, deep, and valid data, and
from a rational standpoint, the approach is inductive. Qualitative research is a
method that makes use of a small number of respondents who provide descriptive
information about their perceptions which are not easily shown by the whole
population.
The qualitative researcher believes that first hand experience provides the most
meaningful data. It was developed in the social sciences to enable researchers to
study social and cultural phenomena (Myers, 2009). Qualitative data are collected
within the context of their natural occurrence; this permits any variables that naturally
influence the data to operate without interference. In contrast to quantitative
research, qualitative research concentrates on validity rather than reliability.
The study made use of both research methods. Qualitative analysis was used to
ascertain various stakeholder opinions on the challenges hindering the growth of
indigenous suppliers of protective clothing. Quantitative analysis was used to
measure the scope and scale of the data. The combination of these two methods is
aimed at enhancing the true representativeness of the information gathered.
3.2.3 Similarities between quantitative and qualitative research
There are similarities between quantitative and qualitative research methods
(Saunder’s et al., 2003). The first one is that both approaches rigorous and
systematically answer the question under study in that the quantitative approach
38
plays a discovery role while qualitative approach plays a confirmatory role on cases
and samples. The second one is that the two approaches open the way to innovative
methods and encourage people to adopt new systems. These two therefore
complement each other resulting in accurate results through observation and
discovery
3.2.4. Differences between quantitative and qualitative research
The first difference is that the qualitative research follows a flexible design whilst
quantitative research has a drafted design which has to be followed for the outcome
to be accepted. The second one is that quantitative approach put emphasis on
reliability and replicability while in qualitative research validity is the main emphasis
(Bryman, 1995).
THE METHODOLOGY OF RESEARCH
Qualitative research Quantitative research (Data : Principally verbal) (Data: principally numerical)
Descriptive studies Experimental studies Survey studies quasi-experimental Historical studies statistical-Case studies analytical studies
Triangulation a compatibility procedure designed to reconcile the two major methodologies by eclectically using elements from each of the major methodologies as these contribute to the solution of the major problem
Figure 3.1: (adopted from Paul Leedy 2007 p.145)
39
Research design is a strategy, a plan and a structure of conducting a research
project (Kweit and Kweit, 1981). This was further explained by Hakim (1987) that
research has two categories, the quantitative and the qualitative. Research design is
about how to select the people or things that will give the researcher valid and
valuable information. It is also how to ask in such a manner that the data will be
representative.
3.3. Case Study
In this research a case study was used .The researcher chose this design because it
gives an analysis which is detailed in a single case. It allows the use of interviews
and questionnaires by the researcher. Yin (2003) has explained that a case study
allows the researcher to explore individual organisation simply through complex
institutions, relationships, communities or programmes. He went on to give the
following considerations-
1. When the focus of the study is to answer “how” and “why”.
2. When you cannot manipulate the behaviour of those involved in the study.
3. When you want to cover contextual conditions because you believe they are
relevant to the phenomenal under study.
4. When the boundaries are not clear between the phenomenon and context
Before Yin came up with the above definition in 2003, Miles and Huberman (1994)
had defined a case study as a “Phenomenon of some sought recurring in a bounded
context”. It is in fact your unit of analysis (p.25).
A case study is bounded by
(a) time and place (Cresswell, 2003)
(b) time and activity (Stoke, 1995)
(c) by definition and context (Miles and Huberman, 1994)
Case binding ensures the study to remain reasonable in scope. Under this study, the
researcher has used time and place in that the research is being carried out between
January 2009 and December 2012, the place is Harare, where the respondents are
based. This creation of boundaries has allowed the study to remain reasonable in
scope.
40
The three purposes of case study are; to produce detailed description of a
phenomenon, to develop possible explanation of the phenomenon and to evaluate
the phenomenon (Borg and Gall, 1996). The strength of a case study design is that it
allows one to look at the world through the researcher’s eyes and to see things one
might otherwise would not have seen.
3. 4 The Population
The group that the researcher intends to research on is called the population.
Population is a group of individuals that has one or more characteristics that are of
interest to the research (Khan, 1983). It may not be practical to carry out a research
through using the whole population because of various limitations like time and cost
but a representation of the population may be withdrawn.
According to Stansfield and Eddowes (2000), it is very important to define a
population at the onset of the study in order to ensure that conclusions made are
meaningful. In this study the population was the indigenous suppliers of protective
clothing to urban councils who are based in Harare which were 160, as per Harare
City Council suppliers list, December 2012. This included the owners, managers and
workers.
3.5 Sampling
Blumberg, Cooper and Schindler (2011) have defined a sample as a group of cases,
respondents or records comprising of part of the target population, carefully selected
to represent that population. The researcher chose to study a sample of the
population because samples save time and money since it reduces number of
individuals to be studied. However this should not be done at the expense of quality.
A sample survey can give an accurate indication of the population characteristics
being studied. Agnew and Pyke (2002) stressed a point that large samples are more
likely to give reliable information than small ones.
Sampling is taking any portion of a population or universe (Kerlinger, 1986). When a
survey covers 100% of the population, it is therefore known as a sample survey
(Howard and Sharp, 1983). It is important that members of a sample are selected so
that the sample is a representative of the population (Baker, 1999).
41
3.5.1 Sample Selection and Size Determination
A sample is a small portion of population which represents the entire population. This
is normally adopted where the population figure is very large or is infinite or where
the researcher has resource limitations. According to Cooper and Schindler (2001) a
good sample size has to be highly representative of the population it aims to
represent. It has to be free of sampling errors which are a consequence of the
random changes which occur in the sampling process. The sample method to be
used in this study was found to be less costly and less time consuming. However,
the researcher made sure that it did not compromise on the quality of the results.
The researcher also chose an appropriate sampling procedure to address the
research problem and the research question. In this study a sample was drawn from
the indigenous suppliers of protective clothing in Harare. A sample of 99 was made
in this study and questionnaires were distributed to respondents comprising workers,
managers and owners.
42
Table 3: 1
Size of a Sample in a given Population
Population % Suggested Sample Size
20 100 20
30 80 24
50 64 32
100 45 45
200 32 64
500 20 100
1000 14 140
10000 4.5 450
100000 2 2000
200000 1 2000
Source: Vermeulen (1998)
3.5.2 Sampling and Sampling Techniques
According to Wegner (2003) there are two main ways of selecting sample members,
namely probability and non probability sampling.
3.5.2.1 Probability sampling
The main type of probability sample is the random sampling. Saunders, Lewis &
Thornhill (2007) has classified random sampling into four classes, which are; simple
random sampling, systematic random sampling, stratified random sampling and
cluster sampling.
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3.5.2.1.0 Simple Random Sampling
According to Cooper and Schindler (2001) simple random sampling method ensures
that every element of the population has an equal chance of being selected. Under
this study, every element of the population had an equal chance of selection. Among
the four classes of random sampling, simple random sampling is the most basic
probability sampling design. It is included in all the other three categories. Under this
study, the population sample of suppliers was easily obtained from Harare City
Council procurement division and this included the records of the suppliers and their
profiles.
Robson (1995) found out that the easiest way to select a sample randomly is to use
random numbers. These numbers can be generated either by using a computer
program to scramble numbers or by a table of random numbers which should
properly be called a table of random digits.
3.5.2.1.1 Stratified Random Sampling
Instead of being homogeneous mass, the population is composed of layers of
discretely different types of individual units. Generally the stratification layers are
some what equal. Cooper and Schindler (2001) have noted that it involved
separating the population elements into various subgroups and then selecting
sample elements from each sub-population. One of its disadvantages is that if sub-
sets are selected at different rates, increased error will result. Because of some of
these disadvantages, the researcher did not use the method under this study.
This enhances statistical efficiency, provides data to represent and analyze
subgroups and enables various methods to be used on the groups.
3.5.2.1.2 Cluster Sampling
In most large scale survey studies, cluster sampling is recommended among the
other sampling techniques which are very expensive as compared to the cluster
sampling. According to Nachmias and Nachmias (1985) the clusters are selected by
simple or stratified sample. They need not necessarily be natural aggregates such as
districts, schools, or classes. They normally take advantage of the existing groupings
44
of the population, but artificial clusters can also be made, as when researchers
impose grids onto maps. It is important that each cluster be as similar to the others
as possible and that within the clusters the individuals be heterogeneous.
Its disadvantage is that it has higher chance for more errors due to the subgroups
being uniform rather than different. It is complex as compared with other methods.
3.5.2.1.3 Systematic Sampling
Systematic sampling is the selection of certain items in a series according to a
predetermined sequence. Systematic sampling has a random beginning and
proceeds with the choosing of every kth element from then onwards. In such a case,
k is the population size divided by the sample size.
The disadvantage of the systematic sampling is the risk of periodicities in the list. If
periodicity is there, the period is a multiple or factor of the interval used, the sample
will then most likely be unrepresentative of the overall population.
3.5.2.2 Non-probability Sampling
According to Leedy (2007), in non-probability sampling there is no way of fore-
casting, estimating, or guaranteeing that each element in the population will be
represented in the sample. The population elements have unknown selection
probabilities and could thus be unequal. Non-probability sampling can be divided into
two types: convenience sampling and quota sampling. Convenience sampling makes
no pretense of being representative of a population. It takes the units as they arrive
on the scene or as they are presented to the researcher by mere happening. Non-
probability sampling cannot be adopted for statistical inference and thus is not
relevant for the proposed study.
3.5.2.3 Errors in Sampling
It is any error in a survey that occurs because a sample has been used. It is caused
by two factors; method of sample selection and size of the sample. Sampling errors
may be minimized by increasing the sample size. In this research, the following are
the possible sampling errors which may have arisen:-
1. Distortions caused by shallow depth in data collection
2. Changes over time distortions
3. Insufficient breadth in sampling
45
Under this study, the simple random sampling method was used. This method
ensures that every element of the population has an equal chance of selection. It is
basic, cuts across the board and is easy to use.
3.6 Types of Data
There are two types of data, primary and secondary data. Primary data is the
specific information gathered by the person carrying the research, collected for the
first time and for the study being undertaken whilst secondary data originates from
elsewhere (Cohen and Manion, 1992)
For the purpose of research, both types are essential. Cohen and Manion (1992),
have agreed that secondary data can only be used if the data cannot be found in the
primary. Secondary data has some limitations as pointed out by Forshaw (2000).
The limitations are that the value is not satisfactory, data may have been collected
for a different purpose and lack of compatibility. In this research, primary data was
collected through questionnaires and interviews. Secondary data was gathered and
used to support the researcher’s argument.
3.7 Data Collection Instruments
Two instruments were used to collect data: questionnaire and interviews. The
researcher used tables, pie charts, bar graphs, line graphs, and area graphs to
display the collected data. Data collection methods include observation,
questionnaire, interviews and experiments (Cooper and Schindler, 2001).
In this study the researcher used a combination of positivism and phenomenological
data collection methods through questionnaires, interviews and records.
3.7.1 Observation
Observation is a purposeful, systematic and selective way of watching, listening and
interacting as it takes place. It can take place in a laboratory setting or in a natural
setting. Fossey, Harvey, McDermott and Davidson (2002) have defined observation
as a method of collecting data used to learn about naturally occurring routines,
interactions and practices of a particular group of people in their social environment,
and so to understand their culture.
46
Cooper (2001) explained that observation qualifies as a scientific instrument when it
is specifically designed to answer a research question, systematically planned, and
implemented, with proper control to provide a reliable and valid account of what
transpired. According to Saunders (2003), observation is more relevant in handling
quantitative data where one can measure and count the relevant variables.
There are two types of observation; participative observation and non participative
observation. This method was not used on this study because of time and sample
size.
3.7.2 Questionnaire
A questionnaire has been defined by Mupunga (2012) as “a list of carefully
structured questions chosen after considerable testing with a view to elicit reliable
responses from a chosen sample”. This is supported by Vengesai (1995) who said
that a questionnaire is a document containing questions designed to solicit
information for analysis. The advantages of this instrument are that there is
uniformity in approach, individual views on factors are required and hence the
questionnaire uses both closed and open ended questions.
The questionnaire as an instrument is simple, clear, and concise. Harper (1991)
notes that the use of questionnaires allows for a quick collection of data though the
response rate are lower in some cases. Zacharias and Zacharias (1981), asserts
that for many surveys the reported response rate for questionnaires is usually
between 20 and 40% and are lower than for personal interviews. These same
assertions were supported by Holbrok et al.(2007), who found out that surveys with
much lower response rates were only minimally less accurate.
The researcher used the questionnaire as an instrument because it has capacity for
the collection of large amounts of information and they are cost effective. They
further permit the respondents to give considerable responses without pressure
generated by the presence of the researcher. The disadvantage of a questionnaire is
that it might be difficult to transfer to a computer package; hence coded numbers
were used. A questionnaire is also difficult to use if the population is illiterate. The
47
study used three sets of questionnaires on the respondents which were a sample of
indigenous suppliers of protective clothing in Harare.
Data collection was thus designed as follows:
Three structured questionnaires were administered to three groups within the
indigenous suppliers of protective clothing in Harare. These questionnaires were
intended to capture qualitative information on the nature of challenges hindering
growth of indigenous suppliers of protective clothing, and how they can be resolved.
Administration of Questionnaire: The researcher is based in Harare. Since all the
respondents were based in Harare CBD, the researcher managed to hand deliver
the questionnaire enclosed in a sealed envelope. This ensured high participation
levels of targeted respondents.
3.7.2.1 Reliability of Questionnaire
Barbie (1989) regards reliability as a matter of whether a particular instrument, if
applied repeatedly to the same respondents would yield the same results each time.
Repeatability means that if researchers have findings from a group they should be
able to repeat the survey and get exactly the same results. In this research the
questionnaires were administered in three weeks. This was seen as reasonable time
to gather information which could be reliable.
3.7.2.2 Validity of the Questionnaire
Validity refers to the degree to which the measurement procedure actually measures
the concept that it is intended to measure. Validity comes in several forms and these
are content validity, criterion validity, discriminate validity and internal and external
validity (William and Trochim, 2006) Content validity was used in this research.
Leedy (2007) further explained that validity is concerned with the soundness and the
effectiveness of the measuring instrument. He went on to say if the instruments are
consistent they should always produce the same results under the same conditions.
As a way of ensuring validity the questionnaire, a pilot study of ten respondents per
each set was done to see the validity and reliability of the questionnaire as
pretesting. The result of the pretest was used to clarify and improve grey areas on
48
the questionnaire. The questions were structured so that respondents would
understand them better.
According to Dillow (1993) pretesting is a process of determining the
appropriateness of a group of response categories. This enables the researcher to
be sure that the validity of questions and the subsequent reliability of the data
(Saunders et al., (2003). Pre-testing is a very important process for making sure the
researcher has a good questionnaire and for the success of the proposed research.
3.7.3 Interviews
Borg and Gall (1995), says an interview is a conversation between an interviewer
and an interviewee, which is meant to reveal data in a face to face interaction.
Cohen, Minion and Morrison (2000), supported this definition by adding that “the
interview is not simply concerned with collecting data about life; it is part of life itself,
its human embeddedness is inescapable”
It may be structured or unstructured, to allow some of the questions to be led by
responses of the interviewee. On this study the researcher also used interviews to
collect data, since the targeted respondents were reasonably accessible. An
interview is user friendly and efficient method which gives room for probing further.
Body language and non-verbal cues can also be picked up using this method. Its
main limitation is that it is time consuming and is expensive where the sample is
highly spaced.
In order to improve on efficiency in administering this approach, the researcher
designed an interview guide. An interview guide is the list of questions, topics, and
issues that the researcher wants to cover during the interview. The interview method
was used to gather information from officials from Harare City Council, Ministry of
Youth, and Ministry of Small to Medium Enterprise. These officials had some
information which could not be put on the questionnaire since the information
required specialist attention. Its main limitation is that it is time consuming and is
expensive where the sample is highly spaced.
3.8 Data Analysis Techniques
This relates to the principles and procedures used in the presentation and analysis of
the information derived from the primary and secondary data. According to Howard
49
and Sharp (1993), the role of data analysis is to supply evidence which justify claims
that the research changes beliefs or knowledge and is of sufficient value. The
researcher interpreted findings from trends, patterns, and results of statistical
analysis. The researcher used the Statistical Package for Social Science (SPSS) to
carry out data analysis. This is because of its easy of use and efficiency in
comprehensively analyzing quantitative and qualitative data.
3.9 Research limitations
The research methodology selected is likely to have the following limitations:
a. Some of the respondents are less educated therefore could not express
themselves fully and could not express their position clearly.
b. It was difficult to get hold of some of the suppliers of protective clothing who had
closed shop due to the prevailing challenges
It is the researcher’s hope and belief that the research will inspire other researchers
to embark on a similar exercise to verify findings of this research as it is an area of
importance in fostering health and safety issue.
3.10 Chapter Summary
This chapter presented how the research study was conducted. A case study was
used by the researcher as the research design. The research instruments used were
the questionnaire and an interview guide. The study had a sample size of 130 for the
questionnaire respondents and 4 interviewees to make a total of 134. The
respondents were drawn from indigenous suppliers of protective clothing in Harare.
The questionnaire was used to collect data as it allowed respondents to express
their views without the influence of the researcher.
Interviews were conducted with selected managerial officials from Harare urban
council, Ministry of Youth and Ministry of Small to Medium Enterprises.
50
CHAPTER FOUR
4.0. Data analysis, presentation, interpretation and discussion
4.1 Introduction
Chapter four presents data analysis, presentation, interpretation and discussion of
the research findings. The data is analysed with the aid of tables, pie charts, and bar
graphs. Analysis and discussion was based on objectives and research questions in
chapter one and reference was also made to literature reviewed. The reason for
collecting the data was to find out challenges hindering the growth of indigenous
suppliers of protective clothing who supply urban councils in Zimbabwe.
A study was done on indigenous suppliers of protective clothing based in Harare.
The records were provided by Harare City Council. Questionnaires and interviews
were used and the responses are presented below. Respondents were grouped into
three different categories which are workers, managers and business owners. Three
different questionnaires were sent to the three categories and the responses are
presented separately.
4.2 Summary of Responses
Table 4.1 Questionnaire response rate
Target group No. of Questionaires Responses Responses Rate
Workers 50 39 78%
Managers 40 30 75%
Owners 40 30 75%
Total 130 99 76%
Questionnaire allows for a quick collection of data though the response rate is lower
in some cases (Haper, 1991). In this study the response rate for all three groups was
very high because the researcher visited the respondents in person and collected
questionnaires again in person, ensuring that most of the questionnaires are
returned. This warrants validity and reliability of the research findings. The response
51
rate is viewed as an important indicator of survey quality. The higher response rate
as in this study assures accurate results.
The response rate was 76%, which is acceptable according to the literature. This is in line with Neuman (2005), who suggested that response rates above 10
4.3 Demographic Characteristics - Workers
4.3.1 Respondents distribution by gender for workers
Zimbabwe is a country which is gender sensitive and urges all employers to provide equal employment opportunity. Equal employment opportunity is practiced in the clothing industry. This research sought to find out how gender is distributed in the industry and establish whether this has any link with the growth of a company.
Figure 4.1 Respondents distribution by Gender for Workers
Figure 4.1 shows that 69% of respondents were males and 31% were females. This
indicates that the majority of the workers in the sector are males. In other words, this
means that the findings of this study will be dominated by factors inclined to males
since the majority of the respondents are males. This industry is dominated by males
because the work involved is too heavy for the females. Naturally, females are of a
weaker sex and can not cope with the operation of heavy duty machinery which is
used in tailoring.
69%
31%
male
female
Though the females clamour for equality, there are some jobs which they do not
envy if given choice. Females go on maternity leave and breast feeding period and
all this negatively affects the industry if females were to dominate the industry. Those
few who are employed in this sector are not involved in operating the heavy duty
machines. The above reasons force owners to be biased against females when
recruiting for employment.
4.3.2 Respondents of workers by age
Figure 4.2 Respondents by
Figure 4.2 shows that 15% of
respondents are between 25
years of age, another 15% of
between 41-50 years and 24%
conclusively indicates that the majority of th
age of 40 years. The sector is filled by workers who are not aged but are still
energetic. This is the group which was retrenched during hard times (2003 to 2008)
and moved to be employed by the indigenous business
were above 40 years went to their rural homes and established themselves there.
females clamour for equality, there are some jobs which they do not
envy if given choice. Females go on maternity leave and breast feeding period and
all this negatively affects the industry if females were to dominate the industry. Those
few who are employed in this sector are not involved in operating the heavy duty
ines. The above reasons force owners to be biased against females when
4.3.2 Respondents of workers by age
Figure 4.2 Respondents by age
Figure 4.2 shows that 15% of respondents are below 25 years of age,
between 25-30 years, 24% of respondents are betwe
years of age, another 15% of respondents are between 36-40 years,
50 years and 24% are above the age of 51years. The information
conclusively indicates that the majority of the respondents in this study are below the
age of 40 years. The sector is filled by workers who are not aged but are still
energetic. This is the group which was retrenched during hard times (2003 to 2008)
and moved to be employed by the indigenous business owners. Most of those who
were above 40 years went to their rural homes and established themselves there.
52
females clamour for equality, there are some jobs which they do not
envy if given choice. Females go on maternity leave and breast feeding period and
all this negatively affects the industry if females were to dominate the industry. Those
few who are employed in this sector are not involved in operating the heavy duty
ines. The above reasons force owners to be biased against females when
respondents are below 25 years of age, 15% of
respondents are between 31-35
40 years, 7% are aged
are above the age of 51years. The information
e respondents in this study are below the
age of 40 years. The sector is filled by workers who are not aged but are still
energetic. This is the group which was retrenched during hard times (2003 to 2008)
owners. Most of those who
were above 40 years went to their rural homes and established themselves there.
53
4.3.3 Level of Education for the Workers who responded
Figure 4.3 Level of Education for Workers
According to Fig 4.3 above, 9% of the respondents have Zimbabwe Junior Certificate
(ZJC), 55% have Ordinary Level of education and 36% of the respondents are
holders of an Advanced level of education. This shows that the majority of the
respondents are holders of ‘O’ Level certificate. It means that the majority fairly
understood the questions posed on the questionnaires and were not negatively
affected by the english language used. The majority of the respondents were
positively affected by the government policy of ‘education for all’ introduced
immediately after independence in 1980. During that time primary education was
free and secondary education was heavily subsidised.
9%
55%
36% ZJC
O Level
A level
54
4.3.4 Type of Industry
The research covered two groups of industries; the manufacturing and traders.
Traders do buy and sale completed protective clothing.
Figure 4.4 Type of Industry
Figure 4.4 shows that 77% of the respondents are into manufacturing and only 23%
are just traders. This shows that the majority of the respondents are into
manufacturing, which is good for the research under study. This is the group
targeted to take over the previously white dominated clothing industry which is
currently in the doldrums.
4.3.5 Respondents by Period of Service
Figure 4.5 Respondents by period of Service
77%
23%
Manufacturing
Traders
0%
10%
20%
30%
40%
50%
60%
70%
Less
than 1 yr
1-5yrs 1-5yrs 6-10yrs 11-15yrs +15yrs
No of people
55
Figure 4.5 shows that 18% of respondents joined the company less than 1 year, 59%
of respondents are between 1-5years period of service, 9% are between 6-10 years,
the other 9% are between 11-15 years and the last 9% respondents are above 15
years of service. This shows that almost 54% of the respondents, which is the
majority fall under 1-5 years bracket. Contributions by respondents under this
bracket is acceptable since they have fairly gained some experience in the industry.
This is the group which is looking forward to the growth of the company and is likely
to contribute objectively. This is in line with the literature reviewed where Bernadin
(2003) has supported the employees when he cited that valuable information about
an organisation and its challenges are better expressed by its employees.
4.3.6 Urban Councils Supplied
Figure 4.6 Urban Councils Supplied
Figure 4.6 shows that 8% of the respondents supply Chitungwiza Town Council,
77% supply Harare City Council and the other 8% supply other urban councils. Since
the case study concentrated on indigenous suppliers based in Harare it is expected
that the majority of the respondents supply Harare City Council. This obviously is
due to proximity. However, Harare City Council is the biggest urban council based in
the capital city of the country. This follows that the contribution by the respondents is
acceptable as they are operating in the capital city. They are in the thicket of the
economic activities.
8%
84%
8%Chitungwiza
Harare
other
56
4.3.7 Use of Computors
Computers are very essential in this day and age. Results below indicate that even
in Zimbabwe, business people have come to appreciate the importance played by
computers in business operations. Hundred percent of the respondents use
computers. They use computers for typing, keeping records and internet services.
This is in line with literature by Mansfield (2010) who explained that information
technology makes business owners more efficient by freeing up badly needed
manpower. This plays an important part in business growth.
4.3.8. Challenges being faced by the organisation
Figure 4.8 Organisation Challenges
The respondents were asked to cite challenges being faced by their company. They
listed the challenges as shown on figure 4.8 with the following frequencies:-
Lack of capital 45%, competition with imports, mostly from China 26%, scarce raw
material 15%, low turn over 8% and machinery problem 5%. These figures indicate
that most indigenous suppliers are facing capitalisation problem and are losing out to
importers of protective clothing when it comes to competition. This is in line with a
survey carried out in Canada by CCAB (www.ccab.com retrieved 13/11/12) which
revealed that the Canadian aborigines face a problem with capitalisation. The survey
showed that the Canadian aborigines rely more on personal savings rather than
bank loans.
0%
10%
20%
30%
40%
50%
No of people
57
This was also echoed by a survey carried out in UK (www.powerhomeby.com
retrieved 1/11/’12) which showed that access to capital was a challenge facing small
businesses. Bozbura (2007) in Turkey, discovered that Turkish SMEs do not like to
share knowledge even within the company. This is a challenge which was not
identified by respondents under review. It was supported by McAdam and Reid
(2001), Wong and Aspinwall (2005) who pointed out lack of financial support as a
major challenge to small business growth. Mambula (2002) found out that in Nigeria
72% of entrepreneurs considered lack of financial support as the number one
constraint in developing their business.
4.3.9 Causes of the organisation challenges.
Figure 4.9 Causes of the Organisation Challenges
Figure 4.9 shows causes of challenges facing the organisations as cited by workers
and are listed below in frequencies:-
Economic situation 54%, cheap Chinese products 26%, lack of qualified personnel
8%, government policy 3%, lack of collateral security 3% and political instability 8%.
The economic situation, foreign companies and financial discipline were some
causes of challenges facing organizations.
0%
10%
20%
30%
40%
50%
60%
No of people
58
4.3.10 Factors Hindering Growth of Indigenous Suppliers
Figure 4.10 Factors Hindering Growth of Indigenous Suppliers
Figure 4.10 shows factors hindering growth of indigenous suppliers. Below are the
factors expressed in frequencies:-
Failure to produce quality products 10%, lack of capital 26%, stiff competition with
imported protective clothing 26%, scarcity of fabric 10%, inefficiency 10%, lack of
modern machinery 10%, low demand of protective clothing 8%.
Most of the workers lack supervision because a number of owners are just providers
of capital but they lack the expert knowledge required in the industry. There is no
quality assurance hence the production of poor quality products. When it comes to
quality, the indigenous suppliers are out classed by imported products from BRICS
(Brazil, Russia, India, China and South Africa) which have flooded the market. The
production of poor quality products results in low demand of the protective clothing.
The low demand of the product is also caused by the customers, who are the users
of the products, who do not appreciate the importance of protective clothing.
The urban councils who have workers who use protective clothing are interested in
seeing their work being done without taking note of the safety risks which they
expose their workers to. If it were not for the Factory Act which makes it mandatory
for workers to put on safety clothing, most urban councils would not buy protective
clothing for their workers. For example in 2010, Chinhoyi municipal workers had to
0%
5%
10%
15%
20%
25%
30%
Failure to
produce
quality
products
Lack of capital Competition
with imports
Scarcity of
fabric
inefficiency Lack of
mordemn
machinery
Low demand
No of …
59
go on strike in order to force their employer to provide them with protective clothing
(The Sunday Mail, 2010).
Lack of capital is also contributed by high interest rates being charged by banks on
loans. Indigenous suppliers of protective clothing shun the route of bank loans
because of these interest rates. This is why most indigenous suppliers of protective
clothing are struggling to raise capital through personal savings. Those bold enough
to approach banks for loan face another brick wall of late payment of delivered
products. Urban councils have a bad reputation of late payment of debts, especially
to providers of goods and services which includes the suppliers of protective
clothing.
4.3.11 Solutions to the challenges
Figure 4.11 Solutions to the Challenges
The respondents were asked to cite solutions to the challenges. Figure 4.10 indicate
the solution through a bar graph and the figures are listed as follows:-
Regular maintenance of machinery 8%, government to improve on import policy
41%, banks to avail long term loans 26%, need for diversity 5%, training on financial
management 15%, and creation of employment 5%. Import policies should be
designed in such a way that they protect the indigenous suppliers of protective
clothing against the foreign goods.
Banks should review downwards the interest rates they charge on loans, especially
those given to the indigenous business people who are starting their business. On
the other hand the indigenous suppliers of protective clothing should be trained on
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Regular
maintenance
of machinery
Availability of
long term
loans
Favourable
import policy
Diversification Training Resuscitate
industry
No of people
60
good financial management systems which include the management of working
capital. If they lack this knowledge, even if they are given the loan at very low rates
they will still misuse or misdirect the funds. This is in line with literature by Wren and
Voich (1984) who said “the purpose of training and development is to round out the
technical, managerial, and conceptual capabilities necessary for effective
performance”
4.3.12 Business Growth Strategies
Figure 4.12 Business Growth Strategies
Respondents were asked to cite measures which their company can embark on in
order for it to grow and the following were suggested as shown on figure 4.12
above:-
Improve on marketing 31%, avoid giving credits 3%, to strive to produce quality
products 21%, to be competitive on price 21%, training of staff 8%, import fabric for
production 8%, good financial management 8%, recapitalize 3%. This is in line with a
study by Nieman (2003) which mentioned increase on core market share as one of
the major business growth strategy. He went on to say that this can be achieved
through economies of scale, command of technology and distribution. It can also be
achieved through the command of the means of gaining and managing customer
and customer confidence. Pettinger (1994) also came up with other strategies not
mentioned by the respondents. These are:-
0%
5%
10%
15%
20%
25%
30%
35%
No of people
61
(a) Lateral integration, which is done when a company wants to diversify to another
industry.
(b) Northern Integration, which is applied when a firm buys up those seeking to enter
the sector in order to prevent this from happening
(C) Southern Integration, in this case the firm buys up the means of production for
critical substitute products. Seldon and Calvin (2003) in Liabotics (2007) came up
with another growth strategy which is growth by segmenting customers which
suggests the strategy to improve on marketing
4.4 Sample Analysis: Managers
4.4.1.Demographic characteristics: Managers
4.4.2.1 Response Rate by Gender: Managers
Figure 4.13 Response Rate by Gender: Managers
Fig 4.13 shows that out of 30 respondents , 67% were males and 33% were females.
This shows that gender was biased torwards male managers, it also indicates that
there are more male managers in the sector than female managers. However this is
not in tandem with the recent national census results which indicated that there are
more females than males in Zimbabwe. By proportion we expect females to be more
than males in all levels especially now that equal rights is being preached and
Male
female
62
accepted by most female civil groups and pressure groups. However because of the
partriachal dominated society this will take some time before figures are adjusted.
4.4.1.2 Response Rate by Age: Managers
Figure 4.14 Response rate by age: Managers
Figure 4.14 shows response rate by age. It indicates 26% of respondents below 25
years, there is no one between 25-30 years, 31% of respondents are aged between
31-35 years, 20% are between 36-40 years, we have 13% of respondents who are
between 41-50 years and no respondent above 51 years. This indicates that the
majority of our managers are between 31-35 years. This is good for the sector as it is
still in its infancy , this enables the managers to grow with organisations. It is the
young blood which is eager to make their company grow. The contribution by this
group is very much accepted.
4.4.1.3 Response Rate by Level of Education: Managers
0%
5%
10%
15%
20%
25%
30%
35%
40%
Below
25yrs
25-30yrs 31-35 yrs 36-40yrs 41-50yrs 51 yrs +
No of people
63
Figure 4.15 Response Rate by Level of Education : Managers
Figure 4.15 shows response rate by level of education. The majority of the managers
are degreed and their contribution is acceptable as it is coming from those who are
educationally enlightened. The educational level of all the managers who responded
is encouraging. There is no hindrance of illiteracy from the organisation leaders. The
english language used in questionnares was well understood.
4.4.2 Types of Business
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
"0" level "A" Level Degree
No of people
64
Figure 4.16 Types of Business
Figure 4.16 shows that 57% of respondents are from manufacturing and 43% are
from traders. This is a good mixture of respondents as the contributions will be fairly
balanced. Both sides of the world were represented through the contributions of
these managers. The information revealed by these two groups will enable a holistic
approach to the whole sector. No piece meal solutions.
4.4.3 Response by Period of Service: Managers
Figure 4.17 Response by Period of Service : Managers
57%
43% Manucturing
Trader
0%
10%
20%
30%
40%
50%
60%
1-5 yrs 6-10yrs 11-15yrs
No of people
65
Figure 4.17 shows that 50% of the managers have work experience which span from
6 to 10 years. The contribution by managers with such experience is well accepted.
4.4.4. Urban Councils Supplied
Figure 4.18 Urban Councils Supplied
Figure 4.18 shows that 70% of the respondents supply Harare City Council and 30%
supply Chitungwiza. These are two big urban councils in Zimbabwe by any
standards. This is a true representation of other indigenous suppliers in other areas.
Challenges which are affecting this group in Harare may also be affecting those in
the other cities and towns.
4.4.5 Use of Computers
Hundred percent of the respondents use computers. The researcher can safely
conclude that these indigenous suppliers are technologically in step. However this is
contrary to revelations by other researchers who cited technological gap as a
hindrance to growth of the indigenous suppliers in Africa.
This is in line with literature by National Small Business Association (NSBA) (2010)
who discovered that 98% of the small business owners think it is important to keep
up with technology. However, despite the critical role played by computers,
Mansfield (2010) noted that small businesses sometimes neglect to factor IT into
company’s growth strategy.
30%
70%
0
Chitungwiza
Harare
other
66
4,4.6 Challenges in Organisations: Manager
s
Figure 4.19 Challenges in Organisations
Figure 4.19 shows a list of challenges being faced by companies as cited by the
managers who responded. Below is the list by percentages:-High interest rates by
bank 40%, Competition from imports 23%, shortage of raw material 23% and low
business activity 13%. The challenge of high interest rates by banks has the highest
percentage and this is in line with literature which has indicated that the issue is
currently being looked into by the Governor of the Reserve Bank of Zimbabwe
(Herald 13 November 2012). The Governor has engaged the banks for discussion,
however there is no final out come as yet.
4.4.7 Causes of Challenges: Managers
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
High interest
rates
Competition
from imports
Shortage of
raw material
Low business
activity
No of people
0%
10%
20%
30%
40%
50%
60%
State of the economy Limited barriers to
entry
Introduction of
dollarisation
No of people
67
Figure 4.20 Causes of Challenges
Figure 4.20 shows the causes of these challenges as cited by the managers who
responded to the questionnaires. The majority of the managers, 53% to be precise
cited the bad economic situation in Zimbabwe as a major cause of the challenges,
this is seconded by 30% who cited barrier to entry and 17% cited dollarisation as
another cause for the challenges. Most of the indigenous suppliers re-started at zero
after the introduction of dollarisation.
This was a toll order to the indigenous supplier of protective clothing who had no
other means to recapitalize. This is in line with Nkala (2012) who conceded that the
period 2000 to 2010 was the most difficult for the clothing industry in Zimbabwe. This
has seen a number of companies closing and a number of people employed by the
sector losing their jobs. A limited barrier to entry was also supported by the Harvard
Business Review, 2008.
4.4.8 Solutions to the Challenges: Managers
68
Figure 4.21 Solutions to the Challenges
Figure 4.21 shows a list of solutions to the challenges as suggested by the
managers. These are listed below in frequencies:-
Ban on imports 13%, banks to provide long term loans 13%, government to provide
subsidies 13%, improve on marketing 20%, price control on local protective clothing
13% and revival of the local clothing industry 27%. As can be seen, the majority of
the respondents are for the idea of reviving the local clothing industry which is
currently in the intensive care. Wallace (1999) has encouraged African countries to
take insinuation from the United States Small Business Administration. The SBA
provides financial aid, counseling and protection to entrepreneurs and small
business start-ups.
0%
5%
10%
15%
20%
25%
30%
Ban on
imports
Long term
loans
Government
subsidy
Improve
marketing
Price control
on material
Revive clothing
industry
No of people
69
4.4.9 Business Plan
Figure 4.22 Business Plan
Figure 4.22 indicate that 97% of the respondents have annual business plans. This
is contrary to findings from the Canadian Council for Aboriginal Business (CCAB)
who found that the indigenous businesses in Canada which include those in the
clothing industry are hampered from growth because most of them have no business
plans (www.ccab.com retrieved 13/11/12). Figure 4.25 shows that this is not a
hindrance for growth as most of the respondents have business plans.
4.4.10 Government Assistance
All respondents are not receiving any assistance from the government. According to
Wallace (1999) this is a weakness of most African countries. They pay lip service
when it comes to assisting the small businesses which include those in the clothing
sector. Wallace (1999) in his research also pointed out that USA through its agents
Small Business Administration provide the SMEs with financial support, counseling,
training and other forms of assistance, thus these small businesses grow fast. This
may be one of the factors hindering growth of indigenous suppliers of protective
clothing in Zimbabwe.
0%
20%
40%
60%
80%
100%
120%
Yes No
No of people
70
4.4.11 Factors Hindering Growth
Figure 4.23 Factors hindering growth
The respondents in figure 4.23 have cited a list of factors hindering growth. Lack of
capital and poor business management are the major factors. According to Mambula
(2002) this is also a major challenge in Nigeria where 72% of respondents in that
country have cited it as the number one constraint in developing a business. The
issue of poor business management can be solved through training of the owner-
managers.
4.5 Response from owners
4.5.1 Demographic characteristics: Owners
0%
5%
10%
15%
20%
25%
30%
35%
Lack of capitalCheap imports Economic
situation
Poor busines
management
Resistance to
change
No of people
71
4.5.1.1 Response by Gender: Owners
Figure 4.24 Response by Gender
Indications from figure 4.24 shows that 70% of respondents were males and 30%
were females. This means that the clothing industry for protective clothing in Harare
is dominated by males. Though the national census has revealed that females are
more than males, it appears males are more interested to venture into the business
of protective clothing. However so far there is no proof to indicate that this might be a
factor of non growth of most of the indigenous suppliers of protective clothing.
70%
30%Male
Female
72
4.5.1.2 Level of Education: Owners
Figure 4.25 Level of Education
Figure 4.25 above indicate that the majority(63%) of the owners are holders of ‘O’
level certificate and 23% are holders of degrees. This is an encouraging situation
and it shows that ignorance or lack of knowledge may not be a factor hindering
growth of indigenous suppliers of protective clothing. The owners of the businesses
are educated people by Zimbabwean standards.
4.5.2Type of Organisation
0
63%13%
23%Zjc
O' Level
"A" Level
Degree
67%
33%
Manufacturing
Just a trader
73
Figure 4.26 Type of Organisation
Figure 4.31 shows that 67% of respondents are into manufacturing and 33% are just
traders. Response from the sample is acceptable since the majority are in the
manufacturing sector, they know something about imports and the challenge of raw
material. They know all the challenges experienced at each stage of manufacturing
protective clothing and distribution.
4.5.3. Period of Service:Owners
Figure 4.27 Period of Service
The bar graph above indicate that there is no one below one year in business. Those
with 1-5years and more than 15years form the majority of the respondents which is
80% when put together. The contribution by the majority is acceptable since they are
not novices in business. They have gone through the ups and downs of business
and their contribution is blended with maturity and experience.
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
Less than
one year
1 to 5 years 6 to 10
years
11 to 15
years
More than
15 years
No of people
74
4.5.4 Source of Finance
Figure 4.28 Source of Finance
Figure 4.28 indicate that the majority of the owners (60%) started their business
using personal savings, 30% started business using retrenchment package and only
10% approached the bank for loan to start up their business. No one started
business from the assistance of friends and relatives. A research carried out in 2011
in Canada by CCAB (www.ccab.com retrieved 13/11/12) found out that the indigenous
providers of protective clothing are not growing because of financial challenges.
The financial challenges come about because the aborigins rely more on their
personal saving rather than bank loans. The personal savings are not enough to
successfully provide the capital required to start up their businesses. Small business
people are struggling with their personal savings because they are afraid to
approach the banks for loans because of high interest rates. Mambula (2002)
discovered similar finding in Nigeria , the process of securing business loans was
cumbersome and collateral security demanded was excessive.
4.5.5 Computer Use: Owners
All respondents confirmed that they use computers for typing, record keeping and
internet services. The questionnaire has proved that indigenous suppliers of
0%
10%
20%
30%
40%
50%
60%
70%
Bank Loan Personal
Saving
Friends and
relatives
Retrenchment
Packages
No of people
75
protective clothing are also computer literate and technologically advanced. This
may not be a factor which hinder their growth.
This is in line with Nkala (2011) who quoted the UNDP report that in 2002 Zimbabwe
was recorded among the top 11 countries with substantial internet usage with more
than 35000 dial up internet subscribers. He went on to report that the computer
industry in Zimbabwe was characterized by huge growth in the past 10 years. There
were only 10 companies in 1990 and today there are 200 fully pledged ICT
companies (www.internet.worldstats.com).
4.5.6 Workers Started with when the Company was Formed
Figure 4.29 Workers Started with
Figure 4.29 shows that the majority (50%) started their busines with between 1-5
workers. This is an acceptable number for all business start ups struggling with
capital from personal savings.
0%
10%
20%
30%
40%
50%
60%
1-5 people 6-10 people 11-15
people
16-20
people
No of people
76
4.5.7 Current Manning Level
Figure 4.30 Current manning levels
Figure 4.30 shows that 50% have 1-25 workers now, 17 have 26-50 workers, 0 for
those between 51-75, 0 for those between 76-100, 17% for those between 101-100
workers, 0 126-150 workers and 17%for those between 151-175 workers. As can be
seen, the majority are in the bracket between 1-25 workers which is not encouraging
and a sign that most indigenous suppliers of protective clothing are having growth
challenges.
4.5.8 Challenges being faced by the organisation:Owners
Figure 4. 31 Challenges being faced by the Organisation
Figure 4.31 show the challenges as they appear below in figures:-
0%
10%
20%
30%
40%
50%
60%
001-25 26-50 51-75 76-100 101-125 126-150 151-175
No of people
0%5%
10%15%20%25%30%35%40%45%
No of people
77
Stiff competition with imported products 23%, shortage of raw materials 13%,
debtors failing to pay supplied goods in time 10%, working capital 40%, staff
turnover of tailors 7% and poor policies on imported second hand clothes(mazitye)
7%. As can be seen the major factors pointed out by respondents who are owners
are that of working capital and competition with imported products.
Figure 4.31 shows that among the major factors are the working capital with 40%
and stiff competition with imported products with 23%. These factors have been
repeated by the workers and the managers. Same comments also apply for the
owners. Stiff competition with imported products- This was also echoed in the
findings of a survey carried out by Zimtrade (Nkala, 2012). The other factor of
working capital was supported by Mambula (2002) who reported that 72% of
entrepreneurs studied in Nigeria considered lack of financial support as the number
one constraint in developing their business
78
4.5.9 Causes of these Challenges: Owners
Figure 4.32 Causes of the challenges
As shown on figure 4.32 the challenges are being caused by the state of the
economy which is bad, high material prices which are currently not viable and cheap
imported products which have flooded the market. These are the major causes of the
stated challenges in figure 4.32.
4.5.10 Solution to the Challenges : Owners
0%
5%
10%
15%
20%
25%
30%
35%
High material
prices
Cash no
circulating
Cheap
imports
Economic
situation
Political
instability
No of people
79
Figure 4. 33 Solution to the Challenges
The respondents who are owners of the businesses suggested the following as
solution to the challenges:-
Government to assist with funding to revive the industry 37%, banning of Chinese
protective clothing 33%, political stability 20%, put strict measures on company
vehicles to reduce expenses 10%. Government funding was also mentioned in the
Literature review by Wallace (1999), he pointed out that most African countries were
weak and inadequate in the area of financial assistance.
He gave an example of Nigeria which established its own Small and Medium Scale
Industrial Development Agency (SMEDAN) to represent and assist the Small
Businesses. However the agency is limited in size. He encouraged African countries
to emulate SBA of United States which was providing financial assistance, training
protection and counseling to small businesses.
4.5.11 Annual Business Plan: Owners
All respondents revealed that they have business plans. This is contrary to the
Canadian indigenous suppliers of protective clothing who are not growing because
of lack of annual business plan. The information which came out from this research
0%
5%
10%
15%
20%
25%
30%
35%
40%
Government
support
Ban chinese
imports
Political stability Practice good
financial
management
No of people
80
indicate that the Zimbabwean indigenous businesses are not affected by lack of
annual business plan.
4.5.12 Succession Plan: Owners
Figure 4.34 Succession Plan
The majority which is 83% of the respondents confirmed that they have a succession
plan and 17% said they do not have a succession plan. Forest (1994) and
Wild(1997) as quoted by Maphosa (1999) discovered that the greatest challenge
facing indigenous suppliers of protective clothing is that the business dies with its
founders. However findings from this research as shown in figure 4.34 has proved
that the indigenous businesses in Zimbabwe are now enlightened and most of them
have now a succession plan. Succession plan is no longer a hindrance to growth.
83%
17%
Yes
No
81
4.5.13 Business Outlook in five years time
Figure 4.35 Business Outlook in Five years Time
The respondents as shown in figure 4.35 has cited the following in percentages as
they wish their business will look like in five years time:-
Leading supplier of protective clothing 50%, make drastic changes 17%, very
competitive on market 13%, having own offices not rented 10%, annual turn over of
$2 000 000 7%, have own production department 3%.
Information from the study shows that 50% of the respondents have a big dream of
being leading supplier of protective clothing. This means they all want to grow.
Business growth is the wish of every indigenous supplier of protective clothing.
0%
10%
20%
30%
40%
50%
60%
Leading
supplier
Annual turn
over
Having own
offices
Market
competitiness
Own
production
department
Make drastic
changes
No of people
82
4.5.14 Government Assistance: Owners
Figure 4.44 Government Assistance
Figure 4.44 shows that 87% of respondents were not receiving any assistance from
the government and 13% are receiving assistance in the form of order preference.
This is in contrary to Statutory Instrument 160/12 as cited in literature which indicates
that government support is a very important factor and contributor to the growth of an
indigenous business. Canada assist this group through the CCAB, USA through
SBA, Nigeria through SMEDAN and Zimbabwe tries to offer assistance through
SEDCO, and the two ministries; Ministry of Small to Medium Enterprise and the
Ministry of Youth Development ,Indigenization and Empowerment.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
No assistance Government assistance
No of people
83
4.5.15 Hindrance to Growth : Owners
Figure 4.37 Factors Hindering Growth
As indicated in figure 4.37 the respondents cited the following factors in percentage form:-
Fierce competition from imports 30%, lack of funding 20%, production of poor quality
products 20%, tax is too high 14%, banking rates too high 10% and high
manufacturing costs 6%.
Most of the factors cited by the respondents are a repetition of what was cited by the
workers and the managers. It seems these owners know the factors hindering their
growth and what they need is assistance from some where to over come their
impediment.
The sector needs to look at some of the recommendations from respondents and
take action. A survey done on the SB Week in Washington DC also supports the
results revealed by questionnaires and interviews. Individuals revealed that access
to capital was their major hindrance, (Berens, 2012).
0%
5%
10%
15%
20%
25%
30%
35%
Poor quality
products
Lack of funding High interest
rates
Competition
with imports
High taxation High production
costs
No of people
84
4.6 Interview Results
An interview was carried out on four public officers who were considered to have
expert information which needed probing and discussion. These were Procurement
manager at Harare City Council, Procurement officer at Chitungwiza Town Council,
Director of Indigenisation at the Ministry of Youth Development,Indigenisation and
Empowerment and an officer from SEDCO. McMillan and Schumacher (1989) says
interviews are vocal questions to respondents and they encompass direct interaction
between the researcher and respondents.This definition was further strengthened by
Cohen, Manion and Morrison (2000) who explained that the interview is not simply
concerned with collecting data about life, but it is part of life itself, its human
embeddedness is inescapable. This means an interview is not just a scratch on the
surface but it goes deeper into the life of the interviewee. The following are the
findings from the interview:-
4.6.1 Challenges facing indigenous suppliers of protective clothing
Figure 4.38 Challenges facing indigenous suppliers of protective clothing
Figure 4.38 above shows the response from the interview about the challenges
being experienced by the indigenous suppliers of protective clothing. They all
acknowledged lack of capital as a major challenge which faces these indigenous
suppliers. At times they are given very big orders by an urban council running into
33%
25%
25%
17%
Lack of capital
Lack of skills
Lack of professionalism
Lack of intergrity
85
thousands of dollars which they fail to deliver because of lack of funding. Most of the
indigenous suppliers lack the expertise required in the industry.
They just employ a tailor but they can not practically show him what to do because
they know nothing about tailoring. They are not examplary. Three out of four have
mentioned the issue of professionalism. They fail to meet deadlines, instead of
apologising they lie, giving flimsy reasons.Some go to the extend of switching off
their cell phones. The issue of Capital was very topical Mambula (2002) repeated it
when he carried out a study in Nigeria.
4.6.2 Causes of the Challenges
Figure 4.39 Causes of challenges
Indigenous suppliers lack financial discipline. They can not differentiate between
money for seed and money for bread. Working capital and financial discipline are
inseparable twins. The issue of dishonest is prevalent among this group. They do not
practise corporate governance principles.
They have a culture of being dishonest. This may be due to upbringing and
exposure; the environment which they were brought up and how far they were
exposed to business activities. This s in line with the background report given
chapter one by CZI manufacturing survey (2008) when an explanation of Zimbabwe
economy was being given.
0%
5%
10%
15%
20%
25%
Lack of finacial
discipline
Lack of
comittment
Lack of talent Poor
corporate
governance
Extended
family
Lack of
equipment
Poor financial
management
Lack of
knowledge
frequency
86
4.6.3 Solutions to the Challenges
The interviewees cited the following as suggested solutions to these challenges:-
Banks to assist with funding, training in business management, should have
knowledge and practise corporate governance principles, government should set up
business counselling centres, indigenous suppliers should change their attitude and
culture towards business principle and kaizen. Japanese approach of continous
improvement will bring results. Wallace (1999) echoed the same sentiments when he
urged the country of Nigeria, which is home to SMEDAN to a take hint from of United
States which offers assistance to small businesses in various ways.
4.6.4 Hindrance to Growth
Figure 4.40 Hindrance to growth
The interviewees have cited the above as factors that are hindering the growth of
indigenous suppliers of protective clothing. The barriers of entry are low, and there
are too many players in the sector resulting in stiff competition. Some of the players
are chancers and some are just using the sector as a point of entry into the business
world. The issue of lack of education by owner, manager and the top hierarchy is
contrary to the results from the questionnaires .
An average of 48% of owners and managers who responded to the questionnaires
are ‘O’ level holders and 32% are degreed, the remainder are ‘A’ level holders.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Stiff competition Lack of education Lack of kaizen principle
frequency
87
However this might apply to professional qualification which was not covered by the
questionnaires. As supported by Mambula (2002) when he carried out a study in
Nigeria.
4.6.5 Urban Councils assistance
The interviewees suggested that the urban councils should pay an upfront deposit on
all big orders in order to cushion the working capital of the indigenous supplier. The
councils should also try to settle their debt early. At the moment they are taking upto
three months before they pay for the delivered products. At times they take
advantage of the small players in industry knowing well that they do not have enough
muscles to challenge them.
4.6.6 Government Assistance
The interviewees have suggested that the government through the Ministry of Youth
Development and Indigenization and Empowerment should speed up the loan
application processes which are involving CABS and CBZ financial institutions. At
the moment its taking 6 to 12 months to be given a loan. By the time the loan is out
the qoutations will have changed and the economic environment of the proposed
project will have changed also.
The government through the Reserve Bank of Zimbabwe should look at the issue of
high interest rates currently being charged on loans by the banks.
Instead of a collateral security by the indigenous supplier, the government should be
guarantors since most of the indigenous suppliers do not have a collateral security to
provide to the banks.
The government should provide SEDCO with the loan money as soon as the
National budget is announced. At the moment its taking more than 6 months and at
times very little is actually given to SEDCO, far below the figures announced in the
national budget. Canada is offering assistance through CCAB (www.ccab.com
retrieved 13/11/12), USA through SBA (Berens, 2012), Nigeria through SMEDAN
(Wallace, 1999), Zimbabwe through the Indigenization and Economic Empowerment
Act of 2007 (chapter 14:33).
88
4.7 Chapter summary
In summary of this chapter, the key findings were that the indigenous suppliers of
protective clothing are not growing because of the harsh economic conditions, lack
of financial assistance and stiff competition from imported products from the eastern
countries like China and India. In some instances, literature reviewed was also used
to explain findings. The next chapter to follow will detail conclusions and
recommendations from the study.
.
89
CHAPTER FIVE
5.0 CONCLUSION AND RECOMMENDATION
5.1 Introduction
This chapter provides the conclusions drawn from the research and
recommendations to the study. The study sought to investigate factors restricting the
growth of indigenous suppliers of protective clothing in Harare. Relevant reference
will be made to sections of this document in support of the conclusion.
Recommendations will also be given by the researcher based on the findings for the
sector as well as suggest areas of further research.
5.2 Conclusion
5.2.1 Factors Restricting the Growth of Indigenous Suppliers of Protective Clothing
This research conclude that the major challenges which stick out were; lack of
capital and competition from outside. The researcher concludes that the factors have
to be addressed by the government with the assistance of the indigenous business
people themselves and other stake holders like the urban councils. Equally important
training of the indigenous suppliers on financial management systems has to be
critically looked at as a priority.
5.2.2 Causes of the Challenges
The researcher concludes that causes of the organisational challenges of the
indigenous suppliers of protective clothing are of a macro economic nature therefore
a holistic approach needs to address and iron out these challenges. Major causes
which came out from the study are the economic situation in the country and stiff
competition with imports from BRICS countries. These causes are beyond the
powers of the indigenous suppliers as a sector.
5.2.3 Solutions to the Challenges
The researcher has come up to a conclusion that there are several ways in which
these challenges can be solved. Chief among them is for the government to come up
with some restrictions on the importation of protective clothing in order to protect the
local market. Another major solution is for the banks to provide long term loans at
90
low interest rates to the indigenous suppliers. The training of the indigenous
suppliers in several spheres of business has to be done.
5.2.4 Research Proposition
The research proposition for this research was :-
Indigenous suppliers of protective clothing are restricted from growth by lack of
capital and poor management.
The study partially confirms the proposition because the majority of the respondents
cited lack of capital as a major hindrance to the growth of the indigenous supplier of
protective clothing. Both questionnaires and interviews have come up with this factor
as a major hindrance. However, the issue of poor management did not come out
clearly therefore cannot be taken on board.
5.3 Recommendations
On review of the findings and literature, the following is recommended from the
research:
5.3.1 Training and Development
There is a critical need for the indigenous suppliers to be trained on financial
management systems and marketing. Without training, even if they are provided with
the capital, they will either misuse it or misdirect it. They should be taught the
difference between bread and seed. Indigenous suppliers of protective clothing
should have a good appreciation of marketing. Marketing is the back bone of the
industry. In order for a business to grow the products have to be marketed. The
marketing aspect should be in tandem with the current modern marketing methods
which include the use of advanced technology.
5.3.2 Funding
The government should assist the indigenous suppliers of protective clothing with
adequate funding for those starting up their businesses and for those in need of
recapitalization. At the moment very little is being provided through SEDCO. SEDCO
is being under-funded resulting in it failing to adequately fund its customers.
91
Funding which is restricted to those under the age of 35 years through the Ministry of
Youth Development, Indigenization and Empowerment to be improved on the
process. At the moment it is taking up to six months for the money to be released
through Central Africa Building Society (CABS) and Commercial Bank of Zimbabwe
(CBZ).
5.3.3 Banking Sector
Banking sector to reduce the high interest rates being charged on long term loans
given to the indigenous suppliers of protective clothing. It should also review the
process and collateral security which they require from the applicants.
The banking sector should strive to make the environment conducive for banking in
order for the financial circle to be complete. At the moment, money is not circulating,
people are afraid to bank their money because of the high bank charges.
5.3.4 Urban Councils
The urban councils’ payment process should be improved. At the moment it is taking
three months and at times six months for the indigenous supplier to get his/her
payment after delivering the product and early payment to be encouraged.
5.3.5 Corporate Governance
Good corporate governance should be practiced among the indigenous suppliers of
protective clothing. It is very essential for the sector to appreciate good corporate
governance at this early stage because these are the big corporations of tomorrow.
5.4 Areas of Further Research
On conclusion of the research, the researcher recommends a further study to be
carried out on challenges facing indigenous suppliers of protective clothing in other
urban centres within the Sub Saharan Region.
92
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100
APPENDICES
APPENDIX A-SURVEY INTRODUCTORY LETTER
SURVEY INTRODUCTORY LETTER
Dear Respondent
Re: RESEARCH QUSTIONNAIRE
I am an MBA student at the Graduate School of Management, University of
Zimbabwe. As part of the requirements of the course I am required to submit a
research project. The attached questionnaire is meant to gather empirical evidence
on an MBA research topic entitled: AN INVESTIGATION INTO THE CHALLENGES
INHIBITING THE GROWTH OF INDIGENOUS SUPPLIERS OF PROTECTIVE
CLOTHING TO URBAN COUNCILS: A CASE OF INDIGENOUS SUPPLIERS IN
HARARE(JANUARY 2009 TO DECEMBER2012)
Kindly assist by answering the questions that are on the attached questionnaire.
Your identity shall remain anonymous and all information collected for this study will
be used for academic purposes only.
I wish to thank you in advance for your cooperation and contribution to the
successful completion of my programme of study. If you need clarification on the
questionnaire, please feel free to contact me on email: [email protected] or
mobile numbers 0775357430/0733880621
The questionnaire should be returned not later than 20 January 2013. It will be
greatly appreciated if you can return it at an earlier date.
Yours faithfully
…………………………….
Phillip Pemhiwa
APPENDIX B- QUESTIONNAIRE FOR WORKERS
THE RESEARCH QUESTIONNAIRE FOR WORKERS
101
SECTION A
PERSONAL DETAILS
1. Gender
a) Male b) Female
2. Age
a) Below 25years
b) 25 to 30 years
c) 31 to 35 years
d) 36 to 40 years
e) 41 to 50 years
f) 51 and above
3. Level of education
a) ZJC
b) “O” Level
c) “A” level
4. Is your organization into manufacturing or just a trader in protective clothing?
a) Manufacturing
b) Just a trader
5. How long have you been in this organization?
a) Less than one year
b) 1 to 5 years
c) 6 to 10 Years
d) 11 to 15 Years
e) More than 15 years
6. Which urban council do you supply?
102
a) Chitungwiza
b) Harare
c) Other
SECTION B
Details of the Research
7. Do you use any computer at your work place?
a) Yes b) No
If Yes, state purpose
i) Typing
ii) Keeping Records
iii) Internet
If no, state reasons
i)………………………………………………………………………………………………………………………………..
ii)……………………………………………………………………………………………………………………………….
iii)………………………………………………………………………………………………………………………………
8. What are the challenges which you are facing as an indigenous supplier of protective
clothing?
a)………………………………………………………………………………………………………………………………..
b)………………………………………………………………………………………………………………………………..
c)………………………………………………………………………………………………………………………………..
d)………………………………………………………………………………………………………………………………..
9. What are the causes of these challenges?
a)………………………………………………………………………………………………………………………………..
b)………………………………………………………………………………………………………………………………..
c)………………………………………………………………………………………………………………………………..
d)………………………………………………………………………………………………………………………………..
10. What are the causes of these challenges?
a) …………………………………………………………………………………………………………………………………..
b) ……………………………………………………………………………………………………………………………………
103
c) ……………………………………………………………………………………………………………………………………
d) ……………………………………………………………………………………………………………………………………
11. How can these challenges be solved/ overcome?
a)…………………………………………………………………………………………………………………………………….
b)……………………………………………………………………………………………………………………………………
c)……………………………………………………………………………………………………………………………………
d)…………………………………………………………………………………………………………………………………..
12. What do you think is hindering growth of most indigenous suppliers of protective
clothing?
a)…………………………………………………………………………………………………………………………………..
b)………………………………………………………………………………………………………………………………….
c)………………………………………………………………………………………………………………………………….
13. What are measures which your company can take to make your business grow?
a)…………………………………………………………………………………………………………………………………..
b)…………………………………………………………………………………………………………………………………..
c)…………………………………………………………………………………………………………………………………..
d)………………………………………………………………………………………………………………………………….
THANK YOU
APPENDIX C-QUESTIONNAIRE FOR MANAGERS
THE RESEARCH QUESTIONNAIRE FOR MANAGERS
SECTION A
104
PERSONAL DETAILS
11. Gender
a)Male b) Female
12. Age
a)Below 25years
b)25 to 30 years
c)31 to 35 years
d)36 to 40 years
e)41 to 50 years
f)51 and above
13. Level of education
d) “O” Level
e) “A” level
f) Degree
14. Is your organization into manufacturing or just a trader in protective clothing?
c) Manufacturing
d) Just a trader
15. When did you join the company?
f) Less than one year
g) 1 to 5 years
h) 6 to 10 Years
i) 11 to 15 Years
j) More than 15 years
16. Which urban council do you supply?
d) Chitungwiza
e) Harare
105
f) Other
SECTION B
Details of the Research
17. Do you use any computer at your work place?
b) Yes b) No
If Yes, state purpose
iii) Typing
iv) Keeping Records
iii) Internet
If no, state reasons
i)………………………………………………………………………………………………………………………………..
ii)……………………………………………………………………………………………………………………………….
iii)………………………………………………………………………………………………………………………………
18. How many workers do you have at the moment? …………………………………………………..
19. What are the challenges which your company is facing as an indigenous supplier of
protective clothing?
a)………………………………………………………………………………………………………………………………..
b)………………………………………………………………………………………………………………………………..
c)………………………………………………………………………………………………………………………………..
d)………………………………………………………………………………………………………………………………..
20. What are the causes of these challenges?
e) …………………………………………………………………………………………………………………………………..
f) ……………………………………………………………………………………………………………………………………
g) ……………………………………………………………………………………………………………………………………
h) ……………………………………………………………………………………………………………………………………
21. How can these challenges be solved/ overcome?
a)……………………………………………………………………………………………………………………………………………
b)……………………………………………………………………………………………………………………………………………
c)……………………………………………………………………………………………………………………………………………
106
d)……………………………………………………………………………………………………………………………………………
22. Do you have any annual business plan in your company?
a) Yes b) No
23. What do you thing your organization will look like in five years from now?
a)…………………………………………………………………………………………………………………………………………
b)…………………………………………………………………………………………………………………………………………
c)………………………………………………………………………………………………………………………………………….
24. What form of assistance are you receiving from the government which will assist your
organization to grow?
a)………………………………………………………………………………………………………………………………………….
b)…………………………………………………………………………………………………………………………………………
c)………………………………………………………………………………………………………………………………………….
25. What do you think is hindering growth of most indigenous suppliers of protective
clothing?
a)……………………………………………………………………………………………………………………………………………
b)……………………………………………………………………………………………………………………………………………
c)…………………………………………………………………………………………………………………………………………….
THANK YOU
107
APPENDIX D- QUESTIONNAIRE FOR OWNERS
THE RESEARCH QUESTIONNAIRE FOR OWNERS
SECTION A
PERSONAL DETAILS
1 Gender
b) Male b) Female
2 Age
a) Below 25years
b) 25 to 30 years
c) 31 to 35 years
d) 36 to 40 years
e) 41 to 50 years
f) 51 and above
3 Level of education
a)ZJC
b)“O” Level
c)“A” level
d)Degree
4 Is your organization into manufacturing or just a trader in protective clothing?
a) Manufacturing
c) Just a trader
5 When was the company formed
a) Less than 0ne year
b) 1 to 5 years
c) 6 to 10 Years
d) 11 to 15 Years
e) More than 15 years
6 Which urban council do you supply
a) Chitungwiza
108
b) Harare
c) Other
SECTION B
Details of the Research
7. When you started your business, what was the source of finance?
a) Bank loan
b) Personal Saving
c) Friends and Relatives
d) Retrenchment Package
8. Do you use any computer at your work place?
a) Yes b) No
If Yes, state purpose
i)Typing
ii) Keeping Records
iii) Internet
If no, state reasons
i)………………………………………………………………………………………………………………………………..
ii)……………………………………………………………………………………………………………………………….
iii)………………………………………………………………………………………………………………………………
9. How many workers did you start the business with? ...............................................
10. How many workers do you have at the moment? …………………………………………..
11. What are the challenges which you are facing as an indigenous supplier of protective
clothing?
a)………………………………………………………………………………………………………………………………..
b)………………………………………………………………………………………………………………………………..
c)………………………………………………………………………………………………………………………………..
d)………………………………………………………………………………………………………………………………..
12. In your opinion, what are the causes of these challenges?
a)………………………………………………………………………………………………………………………………..
b)……………………………………………………………………………………………………………………………………
109
c)……………………………………………………………………………………………………………………………………
d)……………………………………………………………………………………………………………………………………
13. How can these challenges be solved?
a)……………………………………………………………………………………………………………………………………………
b)……………………………………………………………………………………………………………………………………………
c)……………………………………………………………………………………………………………………………………………
d)……………………………………………………………………………………………………………………………………………
14. In your organization, do you have any annual business plan?
a) Yes b) No
15. In case of death, retirement, resignation or discharge of any of the senior management,
do you have any succession plan in your organization?
a) Yes b) No
16. What do you thing your organization will look like in five years from now?
a)…………………………………………………………………………………………………………………………………………
b)…………………………………………………………………………………………………………………………………………
c)………………………………………………………………………………………………………………………………………….
17. What form of assistance are you receiving from the government which will assist your
organization to grow?
a)………………………………………………………………………………………………………………………………………….
b)…………………………………………………………………………………………………………………………………………
c)………………………………………………………………………………………………………………………………………….
18. What do you think is hindering growth of most indigenous suppliers of protective
clothing?
a)……………………………………………………………………………………………………………………………………………
b)……………………………………………………………………………………………………………………………………………
c)…………………………………………………………………………………………………………………………………………….
THANK YOU
110
APPENDIX E- INTERVIEW GUIDE
INTERVIEW GUIDE FORM
Research Topic: An investigation into the challenges inhibiting growth of
indigenous suppliers of protective clothing to urban councils: A case of
indigenous suppliers in Harare.
1. What are the challenges facing indigenous suppliers of protective clothing?
2. What are the causes of these challenges?
3. How can these challenges be overcome?
4. What is hampering or hindering this growth?
5. How can the urban councils assist the grow of indigenous suppliers of
protective clothing?
6. What can the government do, which it is not doing now, in order to assist
these indigenous suppliers grow?
7. Do you have any other information which you think can assist these
indigenous suppliers of protective clothing to grow?
111
APPENDIX F- LETTER OF APPROVAL FROM HARARE CITY COUNCIL