Factors that hinder survival and growth of small businesses within Rustenburg

Abstract

This mini-dissertation is five-fold. Firstly, it explores the research problem paying particular attention to the widening gap between the rich and the poor, including the high rates of unemployment, misemployment, underdevelopment and marginalization. Secondly, the literature pertinent to this study is reviewed in terms of the raging debates and controversies pertaining to the factors that hinder the survival and growth of small, medium and macro enterprises (SMMEs) within Rustenburg in the North West Province, South Africa. Thirdly the primary data for this study was collected through the use of the research tools of personal interviews and the questionnaires. Fourthly, arising from the interviews and questionnaires the data collected was analysed to determine what it yielded in terms of the findings. Fifthly, the theoretical and empirical findings of this study are summerised by way of a conclusion. One of the key theoretical findings highlighted by this study, is that, poor information has detrimental impact on the survival of small, medium and macro enterprises. Against this background, this study further shows that SMMEs had better chances of survival and growth when owners are exposed to much higher levels of experience and expertise. One of the key empirical findings therefore is that, the majority the SMMEs are not able to calculate waste percentages. Furthermore, access to finance and markets was found to be significantly hindering the growth and survival of SMMEs. Overall this study addressed the factors that hinder survival and growth of SMMEs in a way that others have not appreciate The study focuses on factors that hinder survival and growth of small enterprises within the economy of Rustenburg, in the North West Province, South Africa. Although there is a consensus about the significance of SMME's from different spectrums, the response of financial institutions and investors when it comes to getting involved shows that there are some worrying factors for the survival or growth of these organizations. The thriving of SMME's can be a panacea to several political, social and economical ills of our communities, nations and the globe at large since it widens economic inclusion and reduces unemployment rates especially to previously disadvantaged groups. However despite all the benefits, interest and efforts there has been unprecedented high levels of failure to these SMME's. In the process it raises more questions than answers, paying particular attention to the nature of the problem and its location, whether is concerns the government, large corporations, and other economic sectors in light of evident failures, corruption and a whole range of issues that are identified in this research which seek to quantify the phenomenon and make informed recommendations