Survival strategies of micro business in the Pinetown area.

Abstract

There are numerous government and private sector initiatives aimed at supporting micro business in South Africa, yet there seems to be a lack of coercion, synergy and harmony in these endeavours to assist such businesses. A common perception about government is that all of its business programmes, have a string of protocols, red tape and intermediaries resulting in delays and inefficient support. Efforts to access this assistance is burdensome for micro-business. There is loss of time and resources in the process. This research paper sought to establish what business management strategies are employed by the micro-business owner in the Pinetown area, as a means to survive and grow. Business management strategies have been discussed in light of their strength to help the business survive and grow. The effectiveness and the efficiency of these management strategies is measured based on the classification of micro- business and the research methodology chosen. Questionnaires have been self administered to the micro-business owners to obtain their response on strategies practical for their survival. The area of study selected has been the Pinetown Area located within the Ethekwini Municipality, and part of the Province of KwaZulu- Natal. Findings from literature have highlighted constraints limiting micro business growth in South Africa. Findings have also highlighted major survival strategies viewed as the main motivating factor for micro-business owners to survive. Two key findings emerged from the study; firstly the need micro business owners to be financially prudent and to manage their business better. The second major finding was the existence of collaborative savings (stokvel), utilized as a traditional investment strategy. Recommendations based on these are the provision of financial management skills to micro business, through mentorship and financial assistance programmes by government agencies. This would benefit the micro-business owners realize their dreams of substantial and extensive business expansion.