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Hair salons provide a partial solution to South Africa’s high unemployment, poverty and inequality problems because they are labour intensive and have low start-up costs making them affordable even to the poor and the marginalised. Dr. Ruth Segomotsi Mompati District Municipality in South Africa is a socioeconomically depressed area that largely depends on hair salons for employment. The prosperity of hair salons is therefore critical to the economic well-being of the inhabitants of the area. The proliferation of hair salon business since South Africa’s 1994 democracy has led to fierce competition among these businesses in the region. There is a consensus that in the current information economy, effective records management allows for quick access to reliable information which is key for business success. In addition, the resource-based view (RBV) of the firm suggests that quick access to reliable information allows firms such as hair salons to gain sustainable competitive advantage. This study assessed the relationship between the quality of records keeping and the economic performance of hair salons. From a total of 752 hair salons, a sample of 195 salons was surveyed using cluster sampling. It was found that hair salons that engage in quality records keeping outperform those that do not
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