Exploring black owned small businesses in the Matlosana Municipality

Abstract

Black entrepreneurship and SMME's are very vital in the contribution of the country's economy, and yet today there is still little research conducted on this concept of black entrepreneurship. Entrepreneurship and SMME's are playing an important role to combat unemployment and this should not be underestimated, especially in a country such as South Africa where the unemployment rate is very high. According to Statistics South Africa, using the restricted definition of unemployment, the country recorded an unemployment rate of 27.7% during the third quarter of 2017 and it slightly decreased to 26.7% in the first quarter of 2018. Black entrepreneurs and SMME's can significantly contribute to the economic development of South Africa. The objective of this study is to explore black owned small businesses in the Matlosana Municipality with the aims of identifying the challenges faced by the black entrepreneur during the starting phase of the business and during the management of the business and to identify the specific training needs required. This qualitative study interviewed a total number of 6 small black business owners around the Matlosana Municipality previously known as the City Council of Klerksdorp. Various future research opportunities were also suggested, such the effectiveness of government initiatives to support black owned small business, the development of an entrepreneurial spirit amongst the black population and the difficulties experienced by black entrepreneurs in obtaining training and assistance from Seda. The participating small black business owners identified the following training and support needs: financial skills and support, strategies on how to networking with other business owners, presentation skills and marketing skills and also support and training on how to deal and handle regulatory and compliance issues. The most important recommendation of this study is that there should be a forum established in the Matlosana region with the main focus on small black business owners, they can use this forum as a platform for various objectives. Black entrepreneurs should develop their own network skills and also develop their own business networks within the internal and external business environment in and outside the borders of the Matlosana region.