Identifying obstacles to evaluating business intelligence in Micro-Small Apparel Enterprises: a case study in Durban, South Africa

Abstract

The escalating financial burdens faced by the Small Medium and Micro Enterprise (SMME) sector necessitate a perpetual pursuit of enhanced managerial efficacy. For enhanced financial management, client relationship management and inventory control, it is necessary for businesses to utilise various technologies and methodologies. One approach involves the utilisation of business analytical technologies, such as Business Intelligence (BI). Business Intelligence (BI) serves as a valuable tool for enterprises, aiding in the examination and interpretation of data to facilitate informed decision-making processes aimed at enhancing overall business efficacy. The eThekwini region encompasses a significant presence of micro-small enterprises within the apparel manufacturing and retail sector. The primary aim of this research was to identify and analyse the many issues that hinder the evaluation of business intelligence (BI) in micro-small apparel enterprises located in Durban, a city in Kwa-Zulu Natal, South Africa. A cross-sectional quantitative study was undertaken to examine a cohort of 161 small apparel business owners. The participants were chosen through the utilisation of a judgemental sampling technique. The data was gathered through the utilisation of anonymous questionnaires. The data was analysed by utilising multiple linear regression analysis to determine the characteristics that hinder the evaluation of business intelligence (BI) in the small apparel industry. The study employs the Technology-Organisation-Environment (TOE) framework as its conceptual framework. The researcher identified several obstacles that hinder the evaluation of business intelligence in micro-small textile enterprises in South Africa. These factors include perceived relative advantage, cost, organisational data environment, organizational decision-making culture, and external support. However, there are numerous governmental institutions that are intended to provide support for micro-small companies. Therefore, it is recommended that these institutions establish training initiatives aimed at educating apparel SMMEs on BI. The implementation of target-driven training has the potential to significantly contribute to the achievement of vision 2030 for fostering the growth of small, medium, and micro enterprises (SMMEs) to enhance the South African economy.