Challenges facing small, micro and medium enterprises (SMMEs) in the Mafikeng and Mmabatho area of the North West Province
MetadataShow full item record
This research study investigates some of the problems or challenges faced by SMMEs in the Mafikeng and Mmabatho area of the North West province. It strives to find out the extent as to which these problems occur and the impact they have on these businesses. The research focuses on two major problems considered to be hindering the growth of SMMEs in this area, namely the lack of entrepreneurial management and financial skills. The lack of these skills in the running of small businesses results into poor business management, poor quality products or services. lack of demand for produce, lack of access to credit as well as poor marketing techniques. The absence of entrepreneurial education or sensitizing young people in a way that could encourage them to enter businesses and acquire a culture of entrepreneurship is one of the causes of the lack of these skills. A stratified random sampling method was employed, with stratifying variables being area and size of the business. Primary data were sought for this study, and gathered through structured questionnaires which were distributed to owners and managers of the sampled businesses. The descriptive statistics method of analysis was employed using a computer aided statistical analysis, the SPSS programme. Some of the significant findings of this research study are; that majority of entrepreneurs in the area do not have the necessary entrepreneurial, management and financial skills to run their businesses; that the educational and training levels of the members of top management of small businesses are relatively low; and many businesses do not have access to credit. The lack of entrepreneurial, management and financial skills can hamper the performance and growth of SMMEs in the area, which can cause many businesses' failure or closure. Education plays an important role in the overall running of a business enterprise in terms of revenues. Many entrepreneurs are unable to finance their own businesses. yet there is little support from financial institutions and government bodies. SMMEs in the Mafikeng and Mmabatho area need to be assisted in every way in order to enhance their performance, growth and sustainability. In order to achieve this. government needs to take the initiative to form collaborations with these business enterprises, in order to identify areas of need such as training and funding. This endeavour will impact positively to the economic growth, in tem1s of job creation to the entire province.