ABSA Enterprise Development (ABSA ED), a division within Barclays Africa Group Limited (bank and finance sector), was established with the mandate to create an enabling environment that supports, advances funding and grants access to markets directed at small and micro enterprise (SME) growth and sustainability. The primary research objective was to determine the impact of the ABSA ED service on the development and growth of the SMEs that bank with ABSA and make use of ABSA ED. The secondary research objective was to identify and assess SMEs that are using the ABSA ED service and to determine their growth position by assessing business growth, competition, business strategy and business development. A quantitative research approach was adopted and included a survey in which 106 SMEs participated. Findings reveal that SMEs are positively impacted by ABSA ED interventions in business growth, strategy and development, but they lacked awareness of competition. SME strategy was significantly related to firm growth, and use of ABSA ED showed a strong positive relation of .8034, although a small effect correlation (.0149) on improving business sales/turnover. Business development indicated no significant correlation between the number of training opportunities the entrepreneur attended and the growth levels of the firm. The age of 55.2% of the businesses surveyed ranged between 1 and 5 years, indicating the relative start-up phase of the SMEs. SMEs confirmed the use of business skills acquired through ABSA ED training seminars. Although findings reflect positive impact on the growth of the SME, the Procurement Portal product reflects low growth impact. A link was found between business strategy and SME growth, where the use of ABSA ED had medium correlation, while business development correlated negatively to business growth.
T. A. Makhubele,
The Impact of Absa Enterprise Development on Small and Micro Enterprise Growth, Science Journal of Business and Management.
Vol. 4, No. 2,
2016, pp. 42-50.
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