Governments all over the world cannot downplay the economic role of small businesses. It is accepted world-wide that this sector of the economy alleviates unemployment, creates wealth, encourages innovation and the entrepreneurial spirit. Various factors, both internal and external, make it difficult for small businesses to reach their true potential or realise their objectives. Internal factors would refer to areas such as lack of financial acumen, operational management expertise and marketing skills. External factors such as the business environment, competition, legislation, commercial institutions, amongst others, also contribute to the downfall of small businesses. The support that small businesses require is vital at the start-up phase of the business as it lays a solid base from which to proceed. The research emanates from a high failure of Small Black Businesses in the country, with the focus being on the Buffalo City Municipality (BCM). This section of the business community has a vital role to play in the well-being of this region. According to the South African Cities Network, BCM has a high rate of unemployment. The success of Small Black businesses in the area could offer many opportunities for productive people who would otherwise be condemned to unemployment. The literature review revealed a plethora of factors that hinder the success and development of small businesses. It has therefore become important to research these factors and come up with recommendations that are going to assist small businesses and society at large. There is an outcry against insufficient government support in assisting small businesses. Due to the research being qualitative in nature, date collection was by means of a structured questionnaire. The questionnaire was designed in such a manner as to provide responses that would assist in addressing the challenges faced by small businesses. Data analysis entailed its transcription in order to allow the researcher to make notes. The next step was to do a preliminary data analysis in order to highlight emerging issues, identify relevant data and to give direction for seeking more data. A summary all the issues was subsequently prepared for interpretation. The study revealed that the problems experienced by small businesses are both internally and externally influenced. Small businesses have it within themselves to manage and control the internally influenced problems, contrary to the externally influenced factors. The study recommends additional governmental support in terms of providing skills development, financial support, removal of red tape, eradication of corruption and so on. Commercial financial institutions also have a vital role to play by removing some of the requirements that make it difficult for small businesses to access funding.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8887 |
| Date | January 2013 |
| Creators | Didi, Mzikhaya Welcome |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | 11, 102 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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