Die Praktisering van Sosiale Verantwoordelikheid deur die Kleinsakeonderneming

Abstract

The main aim of this research is to gather information regarding the sma11 business. This implies that attention will be given to guidelines for applying social responsibility, education and characteristics of the small businessman. Furthermore, the position and standing of the sma11 businessman in the economy will be dealt with, as wen as encouragement from the authorities. Although small business is not an absolute distinctly defined sector, it has a particular role to play in social and political spheres. Whatever the past, present of future position and function of small business in a country's economy, it is the manifestation of the free market system. On the other hand, entrepreneurship is also a profound, powerfully penetrating human process with important possibilities in terms of independence, creativity and personnel development. The contribution the small business makes to the community in the form of social services, education and provision of employment is of crucial importance and the aim of this study is thus to set guidelines for the implementation of social responsibility by the small business sector. Social responsibility is a relatively unknown and new concept in the business world of South Africa. In order to comply with and expand social responsibility, it should receive constant attention by both the authorities and the small business sector. The small business is starting to broaden its view from the narrow economic tunnel in which it presently finds itself. It is becoming part of the environment and starting to include social values in its philosophy. The present day entrepreneur should not only have expert knowledge of his business and its internal organization but should also have the ability to see his business as part of the community. The expectation of the community has changed in totality and mutual understanding is essential. In the present economic climate it is imperative that the small business . takes note of social needs. The social needs of the community must not and cannot be ignored by the small business. Today the public increasingly claim that the sma11 business be socially involved, but the small business is blinded by the methods that should be applied to implement this responsibility. It is precisely this aspect that will be clarified for the small businessman through this study. Awareness of the need for social responsibility should be part of the system of values of the manager of such a small business. To ascertain social responsibility in the R.S.A., comparable small businesses were involved in the study. The names of small businesses were obtained from the address list of the magazine Emrepreneur which is published monthly in the Republic. To achieve the aims and guidelines as described before, a uestionnaire was used. The questionnaire will contained questions from which certain useable information was obtained. For greater clarity various concepts were defined and explained. Various writers have defined the term entrepreneur, and different views have been expounded. Small business as a concept is no easy task. The definition of a sma~l business as given by experts from different countries shows definite grade differences. Not only is there confusion between different countries, but also within the same country a small business is interpreted differently. From a managerial viewpoint the small business is independent and part of the small business sector. From various definitions it is evident that both economical and statistical aspects should be taken into consideration when defining a small business. To stress the objectives of this research even further, attention was given to the historical perspective of the small business. With a tradition that stretches through the ages, it is important to look at the development through the years, to determine why small businesses maintain and promote the typical philosophy of life. From this information the conduct of the enterprise can be tracoo for further reference in this chapter. To a high degree the entrepreneur identifies with his small business, in other words, the small business forms an inseparable alliance with the person of the small businessman. The term entrepreneur is proverbial at the present time in a democratic world and especially locally, is a popular current topic. There are three fundamental components for starting and running a small business. Firstly there should be an able person with the physical abilities and required characteristics. Secondly there should be a feasible business concept. Thirdly there should be ample starting capital. Literature concerning entrepreneurship recognizes individuals as the key element for the start of a new enterprise. To reach the ultimate objective and to determine the reason for the entrepreneurial phenomenon, it was necessary to take a closer look at the entrepreneur's background 2~d profile. There are diverse ideas about the concept entrepreneur. The entrepreneur is described as a unique person and typical characteristics are given. It is maintained that entrepreneurs are.objective in their choice of employees for specific tasks and prefer to appoint person who can do the work rather than to appoint a friend. Entrepreneurs display greater ability to organize with regard to their trade as well as their business. The urge to succeed is an important mcentive in small business. Some writers point out that the perfect entrepreneur does not exist, but refer to the ideal entrepreneur. A look is also taken at the female entrepreneur and there are differing opinions of the woman as entrepreneur. From research it is clear that there is a constant connection between the social position and the choice of profession. The socio-economic status of the family influences the choice of profession more that anything else, although intelligence also contributes to special differences. The entrepreneur has no lack of self-confidence and has an endless need to achieve. When planning, successful entrepreneurs have extensive outlines of the complete situation. They appear realistic in there behaviour and have a special conceptional ability. The entrepreneur finds satisfaction in the success of the enterprise and does not pursue status. The entrepreneur is objective in his view of interaction between people. Entrepreneurs have great deal of self-control and can handle pressure in a business situation. Writers agree that the establishment of small businesses in the community provides job creation and in so doing stimulates the environment. It is believed that the free market system has earned its place in the economy as fighter against communism. Economic growth requires people with initiative, leadership and experience. Undeniably the small business has an important role to play in the world economy. The contribution of small business in the informal sector is not easily determinable, partially because of insufficient information and because it is difficult to define a small business. The promotion of and interest in small businesses, especially in South Africa, has increased dramatically since 1900. This interest has led to the establishment of several programs of assistance for promotion of small businesses. Several organizations have been establishe<! in South Africa, inter alia the Small Business Development Corporation (SBDC), which was an outflow of the Good Hope conference, as well as the Council for the Promotion of Small Business. In 1987 the Council for Small Business, which plays a part in the promotion of small business, was founded. The small business has a particular function and role to play in the present economic system. According to certain writers, government can stimulate the development of private initiatives by laying down a policy. Thus unambiguous acceptance of policy by the government is a primary requirement for promotion and maintenance of small businesses. This policy should be aimed at the · t 168 place, position and future of small business in the country concerned. As discussed in chapter 3, small businesses have important advantages over large enterprises due to certain characteristics. In order to better understand and illustrate the concept of social responsibility it was widely investigated. Entrepreneurship is a method . to self-realization. There is a strong correlation between the entrepreneur's success and his social advancement in the community. The entrepreneur is an innovator and risktaker combined with foresight with regard to success and abi1ities. For many years social responsibility was only seen as charity. Although it was generally accepted that social involvement took place on a voluntary basis, it was admitted to a lesser degree that social involvement is an investment which will improve business in the long term. Emphasis is given to this aspect of "investment in the community" in this study. In a broad sense, attention is given as to what this investment should look like and what form it should take. The conclusion drawn from the research is that generally, social responsibility is only seen in monetary terms. Other possibilities are seen as non-social responsibility. The extent of social responsibility lies in enjoyment of freedom and it should not be necessary to encroach on others way of life. There should be acted in such a way that other people are taken into account. Social responsibility is a philosophy which shows that, when taking a decision, a manager will know his environment and his people and he will be willing to bear the consequences. The social responsibility of a business is seen as an attitude which creates prosperity, offers progress to its employees, does not exploit the community or the employees nor take complete possession of them, and makes a contribution to stability in the community. Small businesses are exposed to the many problems, fluctuations and uncertainties of the economic sector as a whole. Social responsibility is neglected largely because of several internal problems as well as external factors. Some of the problems are beyond the control and power of the small business manage·ment, but sometimes the internal problems are due to management's lack of expertise. Not only is the small business confronted by internal problems, but the external environment is also a source of uncertainties. Demographic change constitutes a special problem for the small business. The standard of education, political and statutory environment, and general economic climate today have a great influence on the survival of small business. A policy and action which stimulates, develops and promotes entrepreneurship as wen as being sympathetic towards small business can contribute to growth in this sector of the economy. There are various reasons why small business should be involved in taking decisions on social responsibility: Business plays a significant role i~ bringing forth problems which have a wide social n:~ing to the employee, client and public. There are short and long term advantages for the small business in social responsibility. Humanity is important for the effective implementation of social responsibility and the implications are of cardinal importance for both community and enterprise. It is maintained that managers can be devided into three groups with relation to their basic approaches to social responsibility. Firstly one finds the traditional approach, secondly the 169 corporative approach and finally the corporative social approach. The implementation of social responsibility is confronted by several aspects. To satisfy those involved is no easy task. The effect of a decision has to be supported, especially if the result 1s not know beforehand. If the business does not evaluate the change of attitude and needs in the community, it wi11 soon be felt as profits will decline. The social responsibility of the enterprise is derived from how much social power it has. Responsibility and power go together and this idea is as old as man. The small business exists within a certain community and all services, products and money coming from the business, influence the environment. In spite of the problems that identifying a responsibility decision creates, it is important that the manager, when making a decision, bears in mind the effect it will have on profits. The idea of "profi, only" has changed in order for social responsibility to be explained and carried out. Business managers do not exist alone in a world with a cold economy. The managers also feels pressure within themselves to be part of the community. Today a critical view of social responsibility is much more important due to a changing economy and should therefor receive pertinent attention from the modern day manager. Differing arguments by various writers with regard to social responsibility - whether positive or negative - have been quoted. Some of the arguments for social responsibility centre around the potential advantage it has for both community and business. By reaction to the community's needs, the enterprise can create a favourable climate in which business can be continued satisfactorily in the long term. One of the most common arguments in favour of social responsibility, is that public expectations of the small business have ch~ged. It is maintained that the small business exists only for the convenience of the community. If the small business wishes to survive in the long term, it is essential to serve the community and take notice of its needs. Public expectations are fundamental, far reaching and important, and will remain prominent until satisfied. Further arguments for the strengthening of the concept social responsibility are helpfulness of the community, a better business environment and an improved image of the small business. The social responsibility of small businesses should not only be measured by their power. it is known that small business are in a position of power with regard to their social responsibility. Should the small business withdraw from social responsibility it will soon find itself under strong social pressure and demand for its products and services will decrease. On the other hand, the acceptance of social responsibility will produce more opportunities to make a profit. During the practice of social responsibility, management will discover profitable opportunities which can be used to the advantage of shareholders. Writers are also of the opinion that social responsibility has a negative side and motivate this with certain facts. It is maintained that in the business world of small and large enterprises, social responsibility is criticized because of the energy crises, accelerated inflation and the deterioration of economy. Because small businesses, in some cases, cannot offer employes long term security, it is difficult to motivate employees to take social action in the community. The argument is stated that involvement in social aims will lead to a decline in emphasis on economic productivity and divided attention of the manager. It is maintained that the small business is confronted with several problems regarding responsibilit)'. Social responsibility is a long term process of education. If the concept is not wholly supported. by the nterprise, it is doomed. The overwhelming opinion is that small businesses do live up to social responsibility in spite of the existing shortcomings. The small business is a good source as a job provider, a view which agrees with findings of other related studies. 170 That sma11 businesses can be developed, and that the small business corps of a country must be expanded, is emphasized in this research and cannot be questioned in economic terms. Today the small businessman makes a definite contribution to the economy, but he has certain priorities, such as social environment which he has to develop in order to enlarge his contribution. In the context of the R.S.A the social responsibility of the small business is just as important as job creation, providing a service and making a profit. The small businessman must include this important responsibility into his strategy, and live it to the full, to create a positive and happier community for the future.