Determining the challenges of SMEs in the Klerksdorp-Orkney-Stilfontein-Hartebeesfontein area

Abstract

Small and medium enterprises (SMEs) are very unique in nature and contribute immensely to the growth of the economy of any country in the world. Hence SMEs can be considered to be the greatest source of growth of the economy. Regardless of these contributions, SMEs seem to be faced with an infinite number of problems and challenges. Although it is quite challenging for all businesses (from micro to large) to sustain and maintain a successful enterprise, SMEs face even more difficult challenges because of their unique small and medium sizes. The majority of which are caused by the Government (through restrictive regulations and a lack of SME focused policies), while some are internal, caused by the owners and/or managers. The fundamental objective of this study was to explore and investigate the challenges and problems faced by SMEs and provide some recommendations to overcome these challenges especially within Klerksdorp Orkney Stilfontein Hartebeesfontein (KOSH) area. A study consisting of 195 SMEs was conducted. Each SME faces its own unique challenges, such as lacking the management skills needed to run the business and difficulty accessing markets. Recommendations are suggested to both the Government and SMEs to help overcome these challenges and problems and to help sustain and grow these businesses successfully