Owners’ perceptions of factors that constrain the survival and growth of small, medium and micro chemical manufacturing businesses in KwaZulu Natal, South Africa.

Abstract

The Small Medium-Sized Enterprises (SMME) sector in South Africa is viewed as critical in improving the current dire economic conditions the country is facing. This perception of an SMME sector that actively contributes to the economy of the country is not unique to South Africa, hence entrepreneurship support programmes have been adopted internationally as policy intervention towards economic development. This research study also points out that a healthy SMME sector, characterised by a growing and sustainable enterprises requires active and focused support from SMME-supporting agencies. The study objective was to establish factors that owners of chemical manufacturing SMMEs in KZN perceive as constraints towards the growth, survival and sustainability of their small businesses. It also recommends solutions on how SMME support agencies can address these constraints thereby empowering SMMEs to contribute towards economic growth, job creation and minimizing societal inequalities. The study used a mixed methods approach as a research methodology technique and used simple random sampling as a tool for the collection of quantitative data and purposive sampling for the collection of qualitative data. The factors that constrain chemical manufacturing SMMEs growth, survival and sustainability were categorised as those that relate to resource limitations (financial, human in particular skills shortages), market factors (those that relate to globalisation and access to markets) and regulatory and compliance factors. Furthermore one understands how South African SMMEs are also faced with insurmountable business challenges that prevent growth in business and growth in our economy. Therefore, the study investigated the factors implicated in the entrepreneurial debacle faced by SMMEs in South Africa.