PROGRAMME MANAGEMENT PLEASE READ THROUGH THE QUESTION, RESEARCH AND ANSWER ACCURATELY CASE STUDY You are an employee of Growing Futures Foundation (GFF), an organisation that aids small businesses and invests in the development of young entrepreneurs You have recently been nominated to head up a new South African small business development initiative within the company Many small businesses fail within three years of starting out Your first task is to investigate why this is the case, and find ways to mitigate this risk in new GFF assisted start ups Your team has gathered the following information for you to review when conducting your analysis In industrialised countries, SMEs provide and create many jobs, and do so at growing rates SMEs additionally tend to train young people and foster entrepreneurship and innovation, which has positive effects on economic growth and competitiveness As a result of these findings in developed countries, SME creation has been seen as a key avenue forincreasing employment and reducing poverty in developing countries Heavily resourced programmes have been built to achieve this (De Kok, Deijl Veldhuis Van Essen, 2013) However, developing countries face different constraints and often have different economic structures A literature review commissioned by the International Labour Organization and the Deutsche Gesellschaft fr Internationale Zusammenarbeit set out to examine the evidence from almost 50 studies about the role of SMEs in creating employment in developing countries The findings of this study illustrate that although there is great variation across countries, SMEs and micro enterprises generally do provide the greatest share of employment In developing countries, SMEs provide around two thirds of employment, while this may be up to 80 in lower income countries (De Kok, Deijl Veldhuis Van Essen, 2013) Most of this employment comes from the smallest businesses, with between 5 and 99 employees One identified source of the SME employment benefit is that they grow quickly and produce additional jobs and entrepreneurs Still, the quality of jobs available in SMEs is slightly lower, with lower wages and levels of job security on average (De Kok, Deijl Veldhuis Van Essen, 2013) Despite their contribution to the economy, SMEs face several constraints in comparison to large enterprises The biggest constraint is access to finance, with other substantial constraints including competition from the informal sector and taxation (Kumar, 2017) Operational costs therefore pose a significant challenge to SME survival SMEs are also less able to benefit from economies of scale or increase their return on investments in production and operations They may also lack capacity to produce and access information relating to their performance and possible market opportunities (Kumar, 2017) In countries with restrictive regulatory environments, SMEs may struggle to overcome regulative barriers to registration and operation (World Bank Group, 2020) A 2016 study by the International Labour Organization analysed the economic, social, political, and environmental factors affecting SME development in South Africa The study found a number of factors, in addition to those already mentioned, that impact SME development in South Africa Uncertainty and low economic growth High unemployment, low productivity, infrastructure disruptions such as electricity shortages, rating agency downgrades, market fluctuations, high crime and a lack of trust in police, and bureaucratic regulations pose barriers to SMEs starting and operating in this context A low ease of doing business South Africa's regulations and procedures may impede small businesses by posing challenges, such as long business registration times Government support Government programmes to support SMEs are generally inadequate and poorly communicated to the public Education system South Africa's education system does not generally teach or encourage entrepreneurship Due to the difficulties faced by SMEs and entrepreneurs, there is also a low rate of interest in entrepreneurship among South Africans Access to finance When start ups access finance, it is usually provided by friends and family rather than formal organisations Access to information It is difficult for South Africans to access information about entrepreneurship and business development Question 2 (350 WORDS) Complete the fifth step in the process by writing a narrative for the ToC you developed in your answer to Question 1 That is, a narrative which describes the programme context and summarises the first four steps of your ToC The first 4 steps are as follows Step 1 Describe the intervention The intervention proposed is a multifaceted small business support program specifically designed for South Africa, aiming to tackle the various challenges identified in the literature review and case study This program will adopt a holistic approach, integrating key components such as capacity building, access to finance, mentorship, and information dissemination Through this intervention, Growing Futures Foundation (GFF) intends to create an enabling environment for SMEs and aspiring entrepreneurs to thrive and contribute to economic growth and job creation in South Africa Step 2 Identify the long term impact The long term impact of this intervention is envisioned as a transformation of the small business landscape in South Africa By significantly reducing the failure rate of SMEs within the critical initial three years of operation, the intervention aims to foster a sustainable ecosystem conducive to entrepreneurship This sustained support is expected to lead to increased economic stability, higher rates of job creation, and ultimately contribute to poverty reduction By nurturing successful SMEs, the program seeks to generate a ripple effect, positively influencing various sectors of the economy and empowering communities across South Africa Step 3 Identify short term outcomes 1 Increased awareness and understanding of entrepreneurship Conducting targeted awareness campaigns and workshops in schools, communities, and through digital platforms to promote entrepreneurship as a viable career path 2 Improved access to finance options Establishing partnerships with financial institutions to develop and implement SME friendly financing schemes, including micro loans, venture capital, and crowdfunding platforms 3 Enhanced business management skills Providing comprehensive training workshops and mentorship programs covering essential topics such as business planning, financial management, marketing strategies, and legal compliance 4 Strengthened networks and partnerships Facilitating networking events, industry forums, and business matchmaking sessions to connect SMEs with potential clients, suppliers, investors, and other stakeholders Identify medium term outcomes 1 Higher survival rates of SMEs beyond the initial three years Implementing targeted support programs focusing on early stage SMEs to address common challenges and improve their chances of sustainability 2 Growth and expansion of existing SMEs Providing ongoing mentorship, access to market opportunities, and technical assistance to enable SMEs to scale their operations and penetrate new markets 3 Increased formalization and compliance Assisting SMEs in navigating regulatory requirements, facilitating business registration processes, and promoting adherence to legal and tax obligations 4 Greater participation in value chains Creating platforms and initiatives to link SMEs with larger enterprises, government procurement opportunities, and international trade networks Identify outputs 1 Development and dissemination of educational materials Creating user friendly guides, toolkits, and online resources on entrepreneurship, business management, and accessing finance 2 Establishment of formalized financing mechanisms Launching dedicated financial products tailored to the needs of SMEs, accompanied by streamlined application processes and transparent terms 3 Delivery of training workshops and mentorship programs Organizing interactive training sessions, one on one coaching sessions, and peer to peer learning exchanges facilitated by experienced entrepreneurs and industry experts 4 Creation of online platforms for information sharing Developing digital platforms, mobile applications, and online communities to provide SMEs with access to market intelligence, business support services, and networking opportunities Identify activities 1 Conducting entrepreneurship awareness campaigns Organizing seminars, webinars, and workshops in collaboration with schools, universities, and community organizations to promote entrepreneurship culture and mindset 2 Collaborating with financial institutions Negotiating partnerships with banks, microfinance institutions, and impact investors to design and deliver tailored financial products and services for SMEs 3 Organizing training sessions on business management Coordinating workshops, masterclasses, and capacity building programs covering various aspects of business operations, including financial planning, marketing strategies, and human resource management 4 Facilitating networking events and trade fairs Hosting industry specific events, business expos, and matchmaking sessions to foster collaboration, exchange ideas, and facilitate business connections among SMEs and stakeholders Identify inputs 1 Financial resources Allocating funding for program implementation, including staff salaries, operational expenses, training materials, and grants for SMEs 2 Human resources Recruiting skilled staff, trainers, mentors, and consultants with expertise in entrepreneurship, finance, marketing, and business development 3 Partnerships and collaborations Forming strategic alliances with government agencies, financial institutions, industry associations, and non profit organizations to leverage resources, expertise, and networks 4 Information and communication technology infrastructure Investing in digital platforms, software applications, and online tools to facilitate communication, knowledge sharing, and access to resources for SMEs Step 4 Identify assumptions 1 Assumption SMEs and entrepreneurs are receptive to the support and services offered by the program Management Strategy Implementing targeted outreach and engagement strategies to identify and address the specific needs and preferences of SMEs and entrepreneurs, fostering trust and collaboration through transparent communication channels 2 Assumption Political stability and conducive policy environment prevail in South Africa to support SME development initiatives Management Strategy Monitoring political and regulatory developments closely, advocating for pro business policies, and building alliances with government stakeholders to influence policy reforms conducive to SME growth and sustainability

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PROGRAMME MANAGEMENT PLEASE READ THROUGH THE QUESTION, RESEARCH AND ANSWER ACCURATELY CASE STUDY You are an employee of Growing Futures Foundation (GFF), an organisation that

PROGRAMME MANAGEMENT

PLEASE READ THROUGH THE QUESTION, RESEARCH AND ANSWER ACCURATELY

CASE STUDY

You are an employee of Growing Futures Foundation (GFF), an organisation that aids small businesses and invests in the development of young entrepreneurs. You have recently been nominated to head up a new South African small business development initiative within the company. Many small businesses fail within three years of starting out. Your first task is to investigate why this is the case, and find ways to mitigate this risk in new GFF-assisted start-ups. Your team has gathered the following information for you to review when conducting your analysis.

***

In industrialised countries, SMEs provide and create many jobs, and do so at growing rates. SMEs additionally tend to train young people and foster entrepreneurship and innovation, which has positive effects on economic growth and competitiveness. As a result of these findings in developed countries, SME creation has been seen as a key avenue forincreasing employment and reducing poverty in developing countries. Heavily-resourced programmes have been built to achieve this (De Kok, Deijl & Veldhuis-Van Essen, 2013).

However, developing countries face different constraints and often have different economic structures. A literature review commissioned by the International Labour Organization and the Deutsche Gesellschaft fr Internationale Zusammenarbeit set out to examine the evidence from almost 50 studies about the role of SMEs in creating employment in developing countries.

The findings of this study illustrate that although there is great variation across countries, SMEs and micro enterprises generally do provide the greatest share of employment. In developing countries, SMEs provide around two-thirds of employment, while this may be up to 80% in lower-income countries (De Kok, Deijl & Veldhuis-Van Essen, 2013).

Most of this employment comes from the smallest businesses, with between 5 and 99 employees. One identified source of the SME employment benefit is that they grow quickly and produce additional jobs and entrepreneurs. Still, the quality of jobs available in SMEs is slightly lower, with lower wages and levels of job security on average (De Kok, Deijl & Veldhuis-Van Essen, 2013).

Despite their contribution to the economy, SMEs face several constraints in comparison to large enterprises. The biggest constraint is access to finance, with other substantial constraints including competition from the informal sector and taxation (Kumar, 2017). Operational costs therefore pose a significant challenge to SME survival.

SMEs are also less able to benefit from economies of scale or increase their return on investments in production and operations. They may also lack capacity to produce and access information relating to their performance and possible market opportunities (Kumar, 2017). In countries with restrictive regulatory environments, SMEs may struggle to overcome regulative barriers to registration and operation (World Bank Group, 2020).

A 2016 study by the International Labour Organization analysed the economic, social, political, and environmental factors affecting SME development in South Africa. The study found a number of factors, in addition to those already mentioned, that impact SME development in South Africa:

Uncertainty and low economic growth: High unemployment, low productivity, infrastructure disruptions such as electricity shortages, rating agency downgrades, market fluctuations, high crime and a lack of trust in police, and bureaucratic regulations pose barriers to SMEs starting and operating in this context.

A low ease of doing business: South Africa's regulations and procedures may impede small businesses by posing challenges, such as long business registration times.

Government support: Government programmes to support SMEs are generally inadequate and poorly communicated to the public.

Education system: South Africa's education system does not generally teach or encourage entrepreneurship. Due to the difficulties faced by SMEs and entrepreneurs, there is also a low rate of interest in entrepreneurship among South Africans.

Access to finance: When start-ups access finance, it is usually provided by friends and family rather than formal organisations.

Access to information: It is difficult for South Africans to access information about entrepreneurship and business development.

Question 2 (350 WORDS)

Complete the fifth step in the process by writing a narrative for the ToC you developed in your answer to Question 1. That is, a narrative which describes the programme context and summarises the first four steps of your ToC.

The first 4 steps are as follows:

Step 1	Describe the intervention	The intervention proposed is a multifaceted small business support program specifically designed for South Africa, aiming to tackle the various challenges identified in the literature review and case study. This program will adopt a holistic approach, integrating key components such as capacity building, access to finance, mentorship, and information dissemination. Through this intervention, Growing Futures Foundation (GFF) intends to create an enabling environment for SMEs and aspiring entrepreneurs to thrive and contribute to economic growth and job creation in South Africa.
Step 2	Identify the long-term impact	The long-term impact of this intervention is envisioned as a transformation of the small business landscape in South Africa. By significantly reducing the failure rate of SMEs within the critical initial three years of operation, the intervention aims to foster a sustainable ecosystem conducive to entrepreneurship. This sustained support is expected to lead to increased economic stability, higher rates of job creation, and ultimately contribute to poverty reduction. By nurturing successful SMEs, the program seeks to generate a ripple effect, positively influencing various sectors of the economy and empowering communities across South Africa.
Step 3	Identify short-term outcomes	1. Increased awareness and understanding of entrepreneurship: Conducting targeted awareness campaigns and workshops in schools, communities, and through digital platforms to promote entrepreneurship as a viable career path. 2. Improved access to finance options: Establishing partnerships with financial institutions to develop and implement SME-friendly financing schemes, including micro-loans, venture capital, and crowdfunding platforms. 3. Enhanced business management skills: Providing comprehensive training workshops and mentorship programs covering essential topics such as business planning, financial management, marketing strategies, and legal compliance. 4. Strengthened networks and partnerships: Facilitating networking events, industry forums, and business matchmaking sessions to connect SMEs with potential clients, suppliers, investors, and other stakeholders.
	Identify medium-term outcomes	1. Higher survival rates of SMEs beyond the initial three years: Implementing targeted support programs focusing on early-stage SMEs to address common challenges and improve their chances of sustainability. 2. Growth and expansion of existing SMEs: Providing ongoing mentorship, access to market opportunities, and technical assistance to enable SMEs to scale their operations and penetrate new markets. 3. Increased formalization and compliance: Assisting SMEs in navigating regulatory requirements, facilitating business registration processes, and promoting adherence to legal and tax obligations. 4. Greater participation in value chains: Creating platforms and initiatives to link SMEs with larger enterprises, government procurement opportunities, and international trade networks.
	Identify outputs	1. Development and dissemination of educational materials: Creating user-friendly guides, toolkits, and online resources on entrepreneurship, business management, and accessing finance. 2. Establishment of formalized financing mechanisms: Launching dedicated financial products tailored to the needs of SMEs, accompanied by streamlined application processes and transparent terms. 3. Delivery of training workshops and mentorship programs: Organizing interactive training sessions, one-on-one coaching sessions, and peer-to-peer learning exchanges facilitated by experienced entrepreneurs and industry experts. 4. Creation of online platforms for information sharing: Developing digital platforms, mobile applications, and online communities to provide SMEs with access to market intelligence, business support services, and networking opportunities.
	Identify activities	1. Conducting entrepreneurship awareness campaigns: Organizing seminars, webinars, and workshops in collaboration with schools, universities, and community organizations to promote entrepreneurship culture and mindset. 2. Collaborating with financial institutions: Negotiating partnerships with banks, microfinance institutions, and impact investors to design and deliver tailored financial products and services for SMEs. 3. Organizing training sessions on business management: Coordinating workshops, masterclasses, and capacity-building programs covering various aspects of business operations, including financial planning, marketing strategies, and human resource management. 4. Facilitating networking events and trade fairs: Hosting industry-specific events, business expos, and matchmaking sessions to foster collaboration, exchange ideas, and facilitate business connections among SMEs and stakeholders.
	Identify inputs	1. Financial resources: Allocating funding for program implementation, including staff salaries, operational expenses, training materials, and grants for SMEs. 2. Human resources: Recruiting skilled staff, trainers, mentors, and consultants with expertise in entrepreneurship, finance, marketing, and business development. 3. Partnerships and collaborations: Forming strategic alliances with government agencies, financial institutions, industry associations, and non-profit organizations to leverage resources, expertise, and networks. 4. Information and communication technology infrastructure: Investing in digital platforms, software applications, and online tools to facilitate communication, knowledge sharing, and access to resources for SMEs.
Step 4	Identify assumptions	1. Assumption: SMEs and entrepreneurs are receptive to the support and services offered by the program. Management Strategy: Implementing targeted outreach and engagement strategies to identify and address the specific needs and preferences of SMEs and entrepreneurs, fostering trust and collaboration through transparent communication channels. 2. Assumption: Political stability and conducive policy environment prevail in South Africa to support SME development initiatives. Management Strategy: Monitoring political and regulatory developments closely, advocating for pro-business policies, and building alliances with government stakeholders to influence policy reforms conducive to SME growth and sustainability.