Opportunities and barriers to organic growth of 'family-owned' SMMEs in the metals manufacturing industry in Gauteng .
Date
2016
Authors
Raposo, Antonio
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Abstract
SMMEs in South Africa - primarily SMMEs in the start-up phase, have in
recent years seen some of the highest failure rates in the world with many of
them unable to grow beyond the start-up phase. The issue is made more
distressing by the fact that SMMEs in South Africa make up more than 50% of
the private sector’s employment constructs. One of the industries hardest hit
by the high SMME failure rate has been the metals and metals manufacturing
industry. A phenomenon encountered during the research saw many of the
SMMEs in the metals manufacturing industry operating as family-owned
enterprises. The research surrounding the factors contributing to SMME
failure and success has been well documented, however this research has
not specifically included that of family-owned SMMEs in Gauteng operating in
the metals manufacturing industry i.e. what specific factors have contributed
to their successes or lack thereof. The research interviews conducted with
several family-owned SMMEs in the metals manufacturing industry operating
mainly out of Gauteng saw several main themes appear surrounding
opportunities and challenges to organic growth for these SMMEs. The main
opportunity identified for these family-owned SMMEs was the ability to draw
off national resources and small business policies to assist in growing their
businesses. One of the main challenges identified by these businesses was
the perceived general instability of the labour-market shortages, government
policy, union interference and the decline in economic stability. The lack of
awareness surrounding government incentive programmes available to
SMMEs came up as a theme throughout most of the interviews. The study
results suggest that business owners are not aware or are ignorant of
government legislation and incentives established to provide support.
Therefore, government needs to engage, inform, and advise these SMMEs to
the available support structures in order to increase their opportunities for success.
Description
MBA
Keywords
Small business -- South Africa. Family-owned business enterprises -- South Africa.Manufacturing industries -- South Africa.