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Report of Activities

Visit of IRENE SEE Members, EGADE Business School and Universidad de los Andes to University of

Stellenbosch June 4th to 12th, 2013.

1. Introduction of IRENE SEE and objective of the visit

The visit is being organized as a part of the activities promoted by IRENE SEE (International

Research Network on Social Economic Empowerment). This research network is coordinated by

Zeppelin University and initiated by Siemens Stiftung.

IRENE SEE supports six doctoral students in 5 countries to work on the link between social

entrepreneurship and social economic empowerment. One of the mains objectives of this research

network is encourage the exchange between these students and their schools.

The participants in this visit were: Dr. Gerardo Lozano from EGADE Business School, Mario Dávila

doctoral student from EGADE Business School, Dr. Roberto Gutiérrez from Universidad de los Andes,

Julia Díaz doctoral student from Universidad de los Andes, Dr. Meshach Aziakpono from University

of Stellenbosch (USB), and Alfred Mbekezeli Mthimkhulu doctoral student from University of

Stellenbosch.

In the next sections we will present a summary of the activities realized in the University of

Stellenbosch, also we will share our experience with some interesting projects developed in Cape

Town, South Africa, and finally our reflections and next steps in the collaboration generated during

this visit.

2. Activities in University of Stellenbosch. IRENE SEE visit to USB: 4 to 7 June 2013 Agenda.

This was the agenda that was followed for the IRENE-SEE project participants during the visit:

Day Time Activity

Tuesday 08:30 – 09:00 Meet Alfred at Bellvista Lodge lobby

09:00 – 10:00 Meet Prof Aziakpono for a tour of USB

10:00 – 11:00 Meeting with Director of USB - Prof Eon Smit Venue: USB Leadership Boardroom

Wednesday 09:00 – 13:30 PhD Colloquium Venue: Room 280

13:30 – 15:00 Lunch as a group with Dr Heidi Raubenheimer, Head of USB PhD Programme Venue: Bellvista Lodge

15:00 – 18:30 19:00 – 21:00 21:00 – 22:00

Tour of University of Stellenbosch main campus Dinner: Tyger valley Mall General discussion at Alfred’s apartment

Thursday 08:00 – 10:30 10:30 – 11:00

Attend class with PhD students – Prof Roberto Gutiérrez Tea/coffee-chat

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Day Time Activity

11:00 – 13:00 13:00 – 13:30 13:30 – 15:30

Doctoral candidates consult Professors Lunch Prof Roberto Gutiérrez talks to MPhil Class

15:30 – 18:00 Table Mountain and Cape Town tour

Friday 08:00 – 13:00 13:00 – 18:00 – 21:00

Attend/participate in the MPhil research projects-in-progress presentations Check-out of Bellvista to Cape Town Barbecue at Prof Aziakpono’s place

USB Campus-based agenda

The aim of the USB campus-based activities were to

Familiarize with the business school,

Appraise the USB faculty of our on-going work in IRENE ǀ SEE,

Meet other graduate students to share research ideas, and

Motivate for possible collaboration in research projects going forward

We designed the program in such a way that we had not more than two core group activities per

day. That way, network members were left with a fair amount of time to consult each other, USB

faculty or to interact with other graduate students and USB staff members. The core group activities

were;

Meeting with USB Director, Prof Eon Smit

Participating in the special IRENE ǀ SEE PhD Colloquium with other USB students

Attending a lecture to MPhil and PhD students by Prof Roberto Gutiérrez

Brief description of core activities

After a tour for USB Business School with Professor Aziakpono, the participants met with

Professor Eon Smit to know more about visiting universities and the interests in common. The work

with social entrepreneurship and studies for development were the shared topic during the meeting.

In the PhD Colloquium there were six presentations of doctoral students, three from IRENE-SEE

project and three from the School of Business at Stellenbosch University. There were and active

participation of professors and students with questions and feedback about the dissertations

presented, which are in different stages of development, some of them in formulation stages and

others in final writing of results stages.

The topics of the presentations are shown in the annexure. We received comments from the core

IRENE ǀ SEE faculty and the USB faculty in attendance which included the Director Professor Eon

Smit, Head of PhD Programme Dr Heidi Raubenheimer, Head of Research and Publications Dr John

Morrison, and Dr Salome van Coller-Peter who manages the MPhil in Coaching programme.

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We also got peer feedback from the full class of PhD in Development Finance students who attended

the colloquium.

Doctoral Colloquium at USB School of Business

Doctoral Colloquium at USB School of Business.

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Participants in Doctoral Colloquium at USB School of Business.

The three students of the IRENE-SEE project, also had the opportunity to discuss in different

moments, about our dissertations and give us some feedback about methodological issues and next

stages. Additionally we discuss and plan some topics for commun future research.

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Professor Roberto Gutiérrez deliver a lecture to MPhil and PhD students, the USB students were very

engaged with the lecture and developed a very interesting discussion.

Professor Roberto Gutiérrez Lecture

Professors Aziapono, Lozano and Gutiérrez were engaged attending and giving advice during

MPhil students’ research proposals presentations. There were 13 presentations about the

projects of students covering at least seven African countries. The detail is shown in the

annex of program of these presentations.

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MPhil students’ research proposals presentations

We also visit the University of Stellenbosch main campus in Stellenbosch.

Visit to USB main campus

We had numerous other activities which blended academic and social interests. For example, we

went up and down Table Mountain, toured Cape Town and had a barbecue at Prof Aziakpono’s

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home. We annex the condensed programme agenda to this report for more detail on the group core

activities.

The group of IRENE-SEE project in South-South Exchange.

3. Visit to Social-Economic Empowerment Projects

Engineers without Borders (http://www.ewb-international.org)

Engineers Without Borders - International facilitates links and collaboration

among its member groups toward improving the quality of life of

disadvantaged communities worldwide through education and

implementation of sustainable engineering projects, while promoting new

dimensions of experience for engineers, engineering students, and similarly

motivated non-engineers.

We had a meeting with Michael Chikwava, who is representative of engineers without borders in

South Africa, we had explore the possibility of start some collaboration related with social

entrepreneurship and research, establishing contacts between the chapters in Universidad de los

Andes and ITESM.

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Meeting with Michael Chikwava (Engineers without borders)

Streetwires (http://streetwires.co.za/)

Streetwires is a Fair Trade organisation of many people who work together

to design, create and market the finest wire and bead craft art. All of their

craft is hand-made by over 60 permanently employed artists that work full

time from their studios in Cape Town, South Africa.

Streetwires recruits unemployed people and through formal training develops them as wire and

bead artists.Established in 2000, Streetwires began with the idea that for something as dynamic and

imaginative as wire art, there should be a supportive business structure to boost the craft.

Streetwires is audited by IFAT – the International Fair Trade Organisation -to verify that we adhere

to the social and operational regulations.

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Some Streetwires Products

Monkeybiz (http://www.monkeybiz.co.za)

Monkeybiz is an sustainable income generating non-profit organisation

that provide self-employment opportunities to bead artists and provides

them with skills training and support. All profits go back into the

communities through provision of community services which are partially

funded by donations and gifts.

Monkeybiz is unique in many ways. This inspirational project empowers more than 450

disadvantaged people by providing beads and beading material to them. They live in Cape Town

informal settlements like Khayelitsha, Philippi, Mandela Park and other areas and many of them are

HIV positive.These bead artists are producing exquisite hand beaded artworks - each a unique one-

off creation. The women are paid for each piece they produce.

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Visit of Monkeybiz Instalations

Life in Langa and Khayelitsha

As a recommendation of previous visit of another IRENE SEE members, we have visited two different

townships: Langa and Khayelitsha.

First in Langa township we visited the Guga Sthebe Arts & Culture Centre 15km - 20km from Cape

Town, is one of the highlights during a township tour. Guga Sthebe, housed in a brightly coloured

building, is dedicated to the empowerment of the people of Langa and improving their socio-

economical situation.

One of the focuses is unemployment. This is very important, as 60% of the adults are unemployed.

This does not mean that these jobless people don't work. Many work in the informal economy,

either by running a Spaza shop (a township shop ran from people's homes) or by street vending.

Nevertheless, only a minority in Langa has a contractual, structural job.

Guga Sthebe aims for change. Their services include accounting services for small entrepreneurs,

secretarial services, and other facilities that enable people to start a business and provide for

themselves.

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Empowered Women in Guga Sthebe Arts & Culture Centre

As a part of this tour we also takes the tour to Khayelitsha on the Cape Flats.

Khayelitsha (meaning “new home”) is one of Cape Town’s largest townships, and is situated some

30km from the Mother City. It consists of both formal accommodation (houses of bricks and mortar)

and informal settlements (makeshift shacks).

The township was created in the 1980s under then Prime Minister PW Botha, and for many years it

was a desperate place with few facilities and little infrastructure to house the large influx of people

living here.

In this township we visited the Masakheni Educare Centre, is a pre-school that recently received a

support to rebuild again, because in Junaury of 2007 this was razed in a fire. They now is an example

of overcoming. Most of the support received to rebuild this installations was thanks to the help of

the social tourism in this zone.

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4. Reflexions and next steps

Thank you to IRENE- SEE project on behalf of Siemens Stiftung and Zeppelin University, for this

opportunity of exchange. That was a really enrichment and learnable experience for us. We had

discover new opportunities for develop together research that can be agree with the realities of our

countries. And also discover the potential of working together considering the similarities between

our countries.

Our schools, by means of the discussions developed between the professors, had established new

links that we expect developed during the middle term. And also as students we are starting to

discuss concrete possibilities of conjoint research with comparative studies using cases and data of

our countries.

The authors

Alfred Mthimkhulu, Mario Dávila, Julia Díaz.

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Annex

MDevF Research Proposals. Presentatios Program

Presenter Topic Allotted time Discussant

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1 Claudia Ngassa Agrifinance as an important tool to improve agricultural productivity in Sub-Saharan Africa: case of smallholder cocoa farmers in Cameroun

08:05 to 08:25 Timothy Mutyavaviri

2 Linda Manda Smallholder tobacco contract farming models in Malawi: the case for the Integrated Production System

08:25 t0 08:45 Nkosinathi Ngcobo

3 Maropeng Raphela Assessment of the linkages between land reform and agricultural development with specific reference to commercial farming among black people in Limpopo

08:45 to 09:05 Grathel Motau

4 Rufaro Maunze Power infrastructure constraints and manufacturing SMEs in Harare, Zimbabwe 09:05 to 09:25 Imraan Bakhas

5 Uyoyoh Inifadhe Agricultural financing and performance in Nigeria: A case study of Agricultural Credit Guarantee Scheme

09:25 to 09:45 Jan Snyman

6 Imraan Bakhas Investment incentives and the extent to which they influence the investment and expansion decision of companies: evidence from the automotive component manufacturing sector

09:45 to 10:05 Mia Thom

Tea break

7 Timothy Mutyavaviri

An evaluation of the financial viability and performance of Co-operative Financial Institutions in South Africa

10:30 to 10:50 Isaac Njenge

8 Nkosinathi Ngcobo A critical evaluation of a loan guarantee scheme within the SMEs in KwaZulu Natal: A case study of Ithala Bank

10:50 to 11:05 Claudia Ngassa

9 Grathel Motau The determinants for unsecured credit extension: a case for South Africa 11:05 to 11:25 Richard Solomons

10 Richard Solomons The impact of debt collection rates on the sustainability of small medium enterprises in Cape Town: A perspective of British American Tobacco South Africa

11:25 to 11:45 Maropeng Raphela

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Presenter Topic Allotted time Discussant

11 Jan Snyman Enterprise development as a function of social and labour plans: the case of the Bapo Ba Mogale Mining Community

11:45 to 12:05 Linda Manda

12 Mia Thom The impact of private pension funds on financial market development in South Africa: Investment regulation and pension reform policy implications

12:05 to 12:25 Rufaro Maunze

13 Isaac Njenge Building sustainable small businesses in South Africa: case of South African International Business Initiative (SAIBL)

12:25 to 12:45 Uyoyoh Inifadhe

Abstracts for 5 June IRENE ǀ SEE PhD Colloquium Alfred M. Mthimkhulu An integrated approach to SMEs development as a tool for socioeconomic empowerment in South Africa

Cross-country SME studies that are based on The World Bank Enterprise Surveys find access to finance to be the most serious growth constraint. The conclusion is drawn mainly from perceptions data. While that conclusion provides a universal explanation for the mediocre performance of SMEs and has influenced the reform agenda in the global south as intended, it discounts that enterprise growth is context-dependant. Generalising cross-country literature conclusions is for that reason contentious. This research subjects the cross-country studies’ conclusions to test at country level. Focusing on South Africa, it raises four suppositions for examination; that access to finance is the main constraint; that constraints faced by SMEs in South Africa are similar to other countries’; that constraints are homogenous within South Africa; and that perceptions of the severity of constraints reflect their reality. For constancy of argument and comparability of analysis to the motivating cross-country literature, Enterprise Survey data is used in examining the four suppositions. Preliminary observations will be shared in this colloquium. Julia Díaz Ramírez What Prompts SMEs to Collaborate with Non-Profit Organizations? Empirical Evidence from a Developing Country

This research study the factors that influence on the propensity of small and medium enterprises (SMEs) to collaborate with non-profit organizations (NPOs) in order to achieve their social impact objectives. The study will be conducted in the context of a developing country (Colombia) using a quantitative methodological approach is on the stage of design. Supported in elements of inter-organizational relationships and cross sector collaborations literatures, this investigation is based on the assumption that the collaborations are beneficial for both parties. This study argues that collaboration with social organizations might be determined by the nature of the enterprise and by the use that the SME gives to it in order to increase its visibility in the social arena. Although a comparative study is not proposed, I argue that those factors are typical for small and medium enterprises because SMEs are different in their essence (ownership, control, relationship with their context). Factors at SME (organizational) and at owner-manager (individual) level are proposed. Joe Kainja The Analysis of Equity Investment Styles: an empirical study of the characteristics of SA equity unit trusts

The research investigates the SA equity market through unit trusts to determine how an investor can make informed decision in selecting appropriate investment products. The investigation includes the analysis of performance rankings, analysis and (reclassification) of unit trust categories, characterisation of the unit trusts among other issues. At this colloquial we will present the analysis as well as the findings on Chapter 2 - Performance Rankings as a Tool to Select Funds. Mario César Dávila Development through Empowerment: Integration of the Low Income People in the Value Chain

Integrate the low income sector (LIS) in the value chain is a strategy that promises to increase the sustainability of social entrepreneurships. This strategy has been previously studied from the consumer’s perspective. However, little is known from the supplier perspective. 47 in-depth interviews were made to explore the patterns of the integration of LIS and generate an initial theoretical framework. Then I collected 204 surveys from two groups: 1) People that Belong to the sustainable initiative and 2) People that Belonged in the sustainable initiative. I focused in the performance generated through the empowerment and also how other variables like coping strategy, risk aversion and trust can moderate this relationship. I found evidence that both groups have a differences among the variables explored. I will test the hypothesis using the Partial Least Square Structural Equation Modeling (PLS SEM). Finally I will discuss the theoretical and practical implications of this study.

Rasaki Stephen Dauda HIV/AIDS and Human Capital Development in West Africa: A Dynamic Panel Data Investigation

This study investigates the impact of HIV/AIDS on human capital development in West Africa using panel data analysis, covering 1990 to 2011. The result indicates that the disease has negative and significant impact on human capital. Policies to combat the scourge of the pandemic are recommended as follows: i) free and full coverage of treatment for affected persons to extend their life span since only 30% of infected persons requiring antiretroviral drugs are covered in the sub-region; ii) training of more health personnel to fill shortages; iii) asides more campaigns; peer education, voluntary counseling, etc. information on the disease should be included as an important aspect of sex education in school curriculum; and iv) individual empowerment through better resource redistribution to improve living standard and more access to education and health services. Nyankomo Marwa Technical and Scale Efficiency of Saving and Credit Cooperatives: Empirical Evidence from Tanzania

Microfinance institutions (MFIs) play a significant role in offering financial services in the bottom of the pyramid which constitutes about 80% of the population in Tanzania. Promisingly the growth in saving and credit cooperatives (SACCOs) which is one of the variants of MFI has been unprecedented. To be specific, in the past decade they grew 565%, 585% and 1781% in numbers, memberships and savings volume respectively. Despite such impressive growth rate, these institutions operate in a relatively high risk environment with low potential for cost and loan recovery. The recorded aggressive growth despite the odds warrants a rigorous scrutiny of their performance. Surprisingly, there is no study which has been done on the topic in Tanzania and there is systematic literature dearth on topic in Sub-Saharan Africa. To address the existing knowledge gap, this study uses data envelopment analysis (DEA) in estimating the technical and scale efficiency in SACCOs. The results from this study provides a better understanding of the status quo in terms of technical and scale efficiency and provide evidence-based inputs for informed policy dialogue and decision making in microfinance sectors. Furthermore, the findings provide further insights into the development of long term policy and management strategy for SACCOs in the country.

International Research Network on Social Economic Empowerment

IRENE ǀ SEE Presentation of PhD projects in progress

5 June, 2013, Room 280 (next to the Library) Time Presenter/Institution Working topic

09:00 to 09:05 Dr Heidi Raubenheimer Head: PhD Programme - USB Welcome to USB

09:05 to 09:10 Prof Meshach Aziakpono Host Overview of IRENE ǀ SEE1

09:10 to 09:45 Alfred Mthimkhulu University of Stellenbosch Business School, Supervisor: Prof Meshach Aziakpono

An integrated approach to small enterprise development as a tool for social economic empowerment

09:45 to 10:20 Julia Díaz Universidad de los Andes, Bogotá, Colombia Supervisor: Prof Roberto Gutiérrez

What prompts SMEs to collaborate with Non-Profit Organizations? Empirical evidence from a developing country

10:20 to 10:55 Joe Kainja University of Stellenbosch Business School Supervisor: Prof Eon Smit

The Analysis of Equity Investment Styles: an empirical study of the characteristics of SA equity unit trusts

10:55 to 11:10 Tea and coffee

11:10 to 11:45 Mario Dávila EGADE Business School, Monterrey, Mexico Supervisor: Prof Gerardo Lozano

Development through Empowerment: Integration of the Low Income Sector in the Value Chain

11:45 to 12:20 Stephen Dauda Redeemer's University, World Bank RSM Fellow, Nigeria Supervisor: Prof Meshach Aziakpono

HIV/AIDS and Human Capital Development in West Africa: A Dynamic Panel Data Investigation

12:20 to 12:55 Marwa Nyankomo University of Stellenbosch Business School Supervisor: Prof Meshach Aziakpono

Efficiency and sustainability of Savings and Credit Cooperatives in Tanzania: Empirical evidence from semi-parametric analysis

12:55 to 13:00 Prof Aziakpono University of Stellenbosch Business School

Contact: Alfred M. Mthimkhulu Cell: +27 72 386 7632 alfredmbe@gmail.com

1 The research alliance IRENE | SEE is financed by the Siemens Stiftung and coordinated by Zeppelin University’s Civil Society Centre. The research partners are Adama University in Ethiopia, Universidad de los Andes in Colombia, EGADE Business School in Mexico, and the University of Stellenbosch Business School in South Africa.