The development of Small, Medium and Micro Enterprises in Ngaka Modiri Molema District Municipality

Abstract

SMMEs have been faced with numerous problems which retards the speedy development of the sector in the South African context. The purpose of this study is to examine the challenges facing the development of SMMEs in Ngaka Modiri Molema District Municipality. The financial gap theory and the dependency theory form the theoretical foundations of this study. A descriptive quantitative research design was adopted for the study. The population of the study consisted of all the SMMEs in the district municipality, N=3607 while the sample size was n=167. The Statistical Package for Social Sciences (SPSS) was used for data analysis. The findings indicate that the majority of the respondents agreed that financial challenges, inability by the government to grant credit easily, an inadequate business plan by the entrepreneur, ignorance of the available government grants (CSBP), and the inability to make transparent rules and regulations are the main variables that impede the growth of the SMMEs. The study therefore recommends that the government should provide start-up capital, make simple and transparent rules for the operations of the SMMEs, and create awareness of the available financial assistance, while the SMMEs should make potential strategic business plans and improve their line of business to encourage growth in their sector. The study also recommends a number of measures which would help to address the challenges facing the SMMEs in the Ngaka Modiri Molema District Municipality.