Factors to decrease failures of Small and Medium Enterprises in Gauteng South

Abstract

The objective of this study was to investigate the factors to decrease the failures of Small and Medium Enterprises (SMEs) in Gauteng South Africa. The study was quantitative in nature and the study was conducted in the Gauteng region, targeting the SMEs that are currently registered on SEDA. A total number of 150 questionnaires were distributed electronically to the participants and all 150 questionnaires were returned. The study focused on the four major factors that can be used to decrease failures of SMEs in South Africa namely: Economic situations, political situations, managerial factors, and financial situations. Data was collected and captured on Excel sheet as a preparation for data analysis, SPSS was used to analyze and generate frequency tables and charts. The findings of the study suggested that political situations, managerial situations, economic situations and financial situations play a big role on SMEs stability. The study further provided insight on how these situations or factors can be implemented better to decrease SME failure in South Africa. Based on the findings it is clear that political situations, managerial situations, economic situations and financial situations have been affecting SMEs and if these factors are implemented and controlled differently, they can be good mechanisms towards the reduction of SMEs failure in South Africa