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Factors deterring business expansion in South Africa.

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South Africa is a highly segmented semi-industrial country which is currently undergoing through a fundamental conflict that results to a vicious cycle of economic stagnation. It has become evident that to address its economic ills the country requires essential economical transformation, a process in which major economic problems should be addressed. This dissertation considered problems flowing from the aspirations of reducing an increasing unemployment rate. Such aspirations are related to the development of Small Medium and Micro Enterprises as a solution to create jobs against factors the impede such processes. There should be more focus on the implementation of adequate policies of growth such as the private business development. This dissertation examined the perceptions of the private enterprises CEOs and Owner/Managers regarding factors leading to slow levels of private business growth in the country. The study explicitly considered aspects that deter the growth of small, medium and micro enterprises (SMMEs) as well as large firms in South Africa. The focus of the research being on two different perspectives; external and internal factors that have an impact on the growth of Small and Medium Enterprises and large companies. This study was based on a sample survey consisting of thirty two (n =32) existing private business CEOs and Owner/ Managers from the Gauteng province using non-probability purpose sampling approach from a population size of 200 enterprises. The study followed a triangulation approach using two separate questionnaires of both quantitative and qualitative components. Empirical evidence shows that many entrepreneurs are encountering pitfalls when pursuing their business endeavors. The research reveals that there are a number of significant factors hampering the South African private business to grow. A descriptive analysis confirmed that SMMEs concurred on the factors which impede their advancement in business expansion. A ranking of constraints indicates that lack of business skills, access to finance, ineffective public policies, crime/corruption, late payments by customers are of top priority for policy intervention. There is a need for more research to determine policies and strategies that should adequately stimulate business growth. Business expansion strategies require constant evaluation and analysis of the emerging trends. Therefore the need for this study is to set out action plans for SMMEs to increase their efficiency, sustain themselves and guard against factors contributing to their failure.


[Durban, South Africa] : University of KwaZulu-Natal, 2013.


Business failures--South Africa., Success in business--South Africa., Business planning., Industrial management--South Africa., Small business--South Africa--Management., Entrepreneurship--South Africa--Problems, exercises, etc., Business enterprises--South Africa., Theses--Business administration.