Obstacles towards small business development in the Emfuleni district

Abstract

Small businesses are essential for stimulating growth and alleviating poverty. The main aim of this study is to gather information regarding obstacles that withhold the small business sector from further development. This implies that attention will be given to the role of the entrepreneur, the small business sector and the role that business planning plays, in order to identify, minimise and possibly overcome the identified obstacles. Although small business is not an absolute distinctly defined sector, it has a particular role to play in the sustainability of the economy. Whatever the past, present or future economical position and function of the small business sector, it is clear that entrepreneurship is one of the biggest driving forces in this sector. The contribution of the small business sector to the economy in terms of employment is of crucial importance (Timmons & Spinelli, 2004:54). Researchers agree that the establishment of small business in the community provides job creation and further contributes to the stimulation of the economy. Against the background of the relevant literature regarding the role that entrepreneurship plays in the development of the small business sector, the research questions driving this study were: * What are the major obstacles towards entering the small business sector in the Emfuleni district? * What initiatives should be followed to develop the small business sector in the Emfuleni district? A literature study in entrepreneurship, small business development, and business planning, pointed to a number of obstacles that are experienced during the start-up of a small business. The current situation pertaining to entrepreneurship indicates that training within this field would be beneficial. With a proactive entrepreneurial perspective, and the necessary government support, the small business sector will contribute to the sustainability of the economy in the Emfuleni district.