Exploring entrepreneurial learning during formal business rescue processes: Insights from the South African experience

Roux, Anea Burke-le; Pretorius, Marius

doi:10.4102/sajhrm.v15i0.733

Cited by 3 publications

(3 citation statements)

References 40 publications

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“…Studies by Pretorius and Rosslyn-Smith (2014), Le Roux and Pretorius (2017) and Rajaram and Singh (2018) made observations on knowledge management variables such as company internal processes, qualification of the rescue practitioners, and creation of enabling environment during the rescue process.…”

Section: Knowledge Managementmentioning

confidence: 99%

Knowledge Management and Business Rescue in South Africa: A Systematic Literature Review

Tsebe¹

2022

IBR

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The business rescue law, in the South African Companies Act, No. 71 of 2008 was designed to alleviate the challenges facing distressed companies. The purpose of the paper is to provide a coherent synthesis of the systematic literature review on the incorporation of knowledge management into the business rescue practices in South Africa. Scholarly databases were searched to identify papers on knowledge management and business rescue in South Africa, which resulted in initial of 1961 papers. Exclusion criteria was applied, and it emerged that 12 papers were relevant for the study. Findings indicate the business rescue is a relatively new field in academic research and that there is a need to conduct further research on knowledge management pillars used in the business process by practitioners and the executives of distresses companies. The paper concludes that study findings can serve as guidance for improving practice notes and procedures in the industry.

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Section: Knowledge Managementmentioning

confidence: 99%

Knowledge Management and Business Rescue in South Africa: A Systematic Literature Review

Tsebe¹

2022

IBR

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“…Chapter 6 (Business Rescue and Compromise with Creditors) of the new Companies Act No. 71 of 2008 (the Act), which was introduced in April 2009 and became effective starting 1 May 2011 (Ismail, 2020;Burke-le Roux and Pretorius, 2017;Bezuidenhout 2012), offers reprieve to corporates in financial distress since it deals with appropriate business rescue requirements of the modern-day South African business landscape (Conradie and Lamprecht, 2018). Rajaram, Singh and Sewpersadh (2018) propounded that the Act considers two pre-insolvency procedures, i.e., section (s.) 129 (Business Rescue), and s. 155 (Compromise with Creditors), to give a financially distressed firm a chance to dodge liquidation and pursue firm reorganisation.…”

Section: Introductionmentioning

confidence: 99%

South African business rescue regime

Matenda

Sibanda

Nomlala

et al. 2023

IJRBS

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In South Africa, the devastating effects of the COVID-19 plague forced several corporates to resort to business rescue proceedings to guarantee the continuance of their operations. However, the low success rates associated with the current South African business rescue regime are a thing of concern among policymakers. In this article, we conduct a systematic literature review highlighting the shortcomings of the current South African business rescue mechanism and recommendations that can be adopted to improve its success rates. The study then proposes a broad agenda for future research. We discover that even though the South African business rescue mechanism is an economically significant, promising framework that gives companies time and space to find solutions for their problems, it is associated with numerous shortcomings that lessen its success rates. Also, the study results indicate that the regime can be improved in more than a few dimensions to augment its success rates. Further, the review divulges that implementing the current South African business rescue framework has some uncharted areas that need to be investigated. As a recommendation, policymakers should improve the business rescue regime to increase its success rates.

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“…Adopting from these developed economies, South Africa introduced the Companies Act No. 71 (2008) in April 2009; however, it only came into effect on 01 May 2011 (Burke-le Roux & Pretorius 2017). The business rescue provisions incorporated into Chapter 6 of the Companies Act (2008) (herein referred to as 'Chapter 6') led to a new regime of reform in South Africa, where business rescue was proposed Background: The low success rate of business rescue has prompted debate relating to the effectiveness and continued suitability of business rescue as a mechanism to rehabilitate financially distressed companies.…”

Section: Introductionmentioning

confidence: 99%

Business rescue: Adapt or die

Rajaram

Singh

Sewpersadh

2018

SAJEMS

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Background: The low success rate of business rescue has prompted debate relating to the effectiveness and continued suitability of business rescue as a mechanism to rehabilitate financially distressed companies. Although this legislation was implemented in May 2011, statistics indicate that the success rate for business rescues is only approximately 12%. A feature of the business rescue environment in South Africa is the lack of knowledge, necessitating more research in the field.Aim: This study focused on changes required to ensure the survival and increased success of the business rescue legislation.Setting: This research was undertaken in South Africa between 2015 and 2017.Methods: A mixed-methods research approach was utilised for the study. The approach entailed interviews with 7 of the top 10 business rescue practitioners to diagnose reasons for business rescue failure and establish factors that would contribute to successful business rescues. A survey was conducted with the membership of the Turnaround Management Association of Southern Africa.Results: The survey was mailed to 130 members and the response rate was 54%. This study found that the causes of business rescue failures are mainly attributable to the skills deficit of the business rescue practitioner or the practitioner’s abuse of legislation. There is also a negative impact of appointing a liquidator as a business rescue practitioner. Other factors contributing to the failure of business rescues are management’s delay in filing for business rescue, either due to the resistance of filing or their lack of awareness of their distressed status. This study also provided the ranking order for business rescue success factors with the accreditation of a business rescue practitioner being ranked as first.Conclusion: The study chiefly focused on diagnosing and understanding the reasons for business rescue failure. The original contribution of this study to knowledge is the ranking of an accreditation framework for practitioners as the most important factor that would contribute to a successful business rescue. This study not only explains the low success rate of business rescue but ways to improve and succeed in rescuing ailing businesses.

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Exploring entrepreneurial learning during formal business rescue processes: Insights from the South African experience

Cited by 3 publications

References 40 publications

Knowledge Management and Business Rescue in South Africa: A Systematic Literature Review

Knowledge Management and Business Rescue in South Africa: A Systematic Literature Review

South African business rescue regime

Business rescue: Adapt or die

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