Determining the business success factors of the second-hand vehicle industry in the Vaal Region

Abstract

The primary objective of the study was to determine the business success factors for the second-hand motor vehicle industry in the Vaal Triangle. This kind of study has never been conducted before within the Vaal Triangle and it is therefore intended to contribute to the body of knowledge within the field of entrepreneurship. A questionnaire was designed and distributed to dealerships within the Vaal Triangle region, and it was administered by the researcher. There are one hundred and twenty three (123) dealerships in the Vaal Triangle and fifty eight (58) participated in the study. The demographics of the study revealed that males dominate car dealerships as compared to females, and also that Whites and Indians are the dominating races. Most participants are relatively young, i.e. less than 35 years and also the majority of dealerships are less than 15 years old. Furthermore, the study found that participants preferred starting a business from their pockets rather than going to the bank or government institutions such as IDC or NEF for funding. There was no significant difference in opinion between males and females. There were, however, medium to large differences in opinion between owner, manager and sales executive on some of the entrepreneurial constructs, for example, customer services and SME characteristics. The study concluded that business success factors for the second-hand car industry in the Vaal Triangle region are (ranked from highest to lowest): Entrepreneurial competences, Marketing of the dealership, Dealership location, Product and Customer services, Characteristics of the Small Medium Enterprise and lastly, Resources and funding of the business. Based on the results of the analysis and discussions, practical recommendations are made which will assist in improving the knowledge in the field of entrepreneurship within the car industry.