Performance determinants of small, medium and micro-enterprises in Gauteng.
Small Businesses contribute considerably to employment figures in most economies, including developing economies. There is a similar expectation that SMMEs should increase their contribution to employment creation in South Africa. Statistics show that the formal non-agricultural sector contributes more than 72% of the employment. This figure excludes employment created by SMMEs. The figure contributed by SMMEs is more than 50% in most developing economies, it is therefore necessary to understand the factors that lead to the performance and growth of small businesses so that they are able to create employment in line with global trends. The purpose of this research is to therefore identify the factors that influence the performance of Small, Medium and Micro-Enterprises in Gauteng so that those with the responsibility to assist and promote small businesses and those who are responsible for policy and strategy formulation that affects this sector may use the understanding provided by this study in carrying this out. Performance in this context, refers to the sustainability of a small business, the growth in turnover, the growth in assets held and the growth in the number of people employed by very small and micro-enterprises. The study is qualitative by nature and as such, relied on interviews conducted on 15 small business owners drawn from the database of the Gauteng Enterprise Propeller, an SMME development agency of the Gauteng Provincial Government. The study has shown that the two most important determinants of Micro and Very Small Enterprises performance in Gauteng are the aspects of Human Capital, which includes the level of education, skills and knowledge possessed by the entrepreneur as well as the aspect of Access to Markets. This study has demonstrated that contrary to perception, the access to finance is not such a significant factor affecting the performance of Micro and Very Small Enterprises in Gauteng, this message needs to be driven through so that aspirant entrepreneurs are not discouraged by this seemingly major barrier.
Small business -- South Africa. Business enterprises -- South Africa. Entrepreneurship -- South Africa.