An assessment of generic management strategies on the competitiveness of micro textile entrepreneurs in Durban

Abstract

The liberalisation of international trade has disrupted the South African textile industry, by undermining the viability of locally manufactured garments with the influx of cheap Chinese imports. The heightened competition has led to the closure of numerous domestic factories, triggering a structural shift within the sector. In response, many displaced workers and entrepreneurs have turned to micro-textile enterprises as a survival strategy, resulting in a proliferation of highly competitive micro-enterprises that operate informally to eradicate poverty and unemployment. The growth of this informal business activity has reshaped the industry’s landscape. This study investigates whether micro-businesses' competitive strategies align with Porter's generic strategies in enabling them to gain a competitive edge. The study adopted a mixed-methods approach, integrating quantitative and qualitative data for comprehensive analysis. Quantitative data were gathered from 384 respondents using stratified random sampling and analysed with SPSS version 26, employing Likert-scale and closed-ended questions. Qualitative data were obtained through indepth interviews and open-ended surveys with 50 respondents and analysed using NVivo software. A sequential triangulation design prioritised qualitative data, while quantitative findings offered supplementary indigenous strategies that enable a deeper understanding of industry experiences and micro-enterprise growth strategies. The study revealed that competitive strategies within micro-textile enterprises are primarily driven by cost minimisation or differentiation rooted in the unique skills of the owner-manager, who serves as both entrepreneur and fashion designer. Ubuntu principles are embedded within the pricing strategies adopted by these businesses, with a strong emphasis on value-based pricing. This approach prioritises a supportive, collaborative environment that enhances customer wellbeing and social justice, advocating that prices should reflect the intrinsic value of the product rather than purely market-driven considerations. In doing so, microentrepreneurs seek to balance commercial viability with ethical responsibility, fostering inclusivity and community-oriented business practices. Additionally, the findings revealed how technology adoption and personality traits drive organisational sustainability and competitiveness, emphasising their importance in enabling organisations to adapt and thrive in a dynamic and ever-evolving environment. The study demonstrates that the Ubuntu management philosophy can function as a strategic framework for enhancing competitiveness among micro-entrepreneurs operating in the informal sector. It provides a synthesis of Ubuntu principles within organisational strategy, contributing to both theoretical development and practical application. This framework enables the pursuit of competitive advantage through ethical, collective, and inclusive leadership, rather than relying solely on market positioning.