An analysis of the factors that lead to SMME failure.
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Date
2011
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Abstract
The purpose of this research was to investigate and analyse the factors that lead to the failure
of SMMEs, especially the businesses owned by previously disadvantaged individuals in
Durban. The study was motivated by the fact that SMMEs are not growing but instead there
seems to be an increase in the failure rate of SMMEs.
A range of literature was reviewed that included past research papers and journals on the
subject of SMMEs, government papers and acts, information from NGOs, financial
institutions and government agencies to help understand the role players in the SMME sector.
Primary data was collected in the form of a questionnaire which was given to SMME owners
to complete in order to get their views on the sector.
The findings show that SMMEs owned by previously disadvantaged individuals are dealing
with issues such as lack of finance, insufficient government support and lack of information
on services available to them from government and NGOs, which if left unattended, can
cause their businesses to fail. Among other things, it was recommended that business owners
be mentored and trained in both financial and business management in order to be able to
take advantage of the services available to them. It was also recommended that government
assess its position on SMME policies in order to be readily available to the SMME sector.
Description
Thesis (MBA)-University of KwaZulu-Natal, Westville, 2011.
Keywords
Small business--KwaZulu-Natal--Durban., Business enterprises--KwaZulu-Natal--Durban., Business failures., Theses--Business administration.