An assessment of the determinants of IT entrepreneurs' level of awareness of the most common causes of start-ups failures in Johannesburg, South Africa
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
In South Africa, more than 70% to 80% of small to medium-sized businesses (SMMEs) fail within the first three years. In order to gain insight into the level of awareness of IT start-up entrepreneurs regarding the causes of SMME failure, this study conducted an empirical review of the literature and developed a hypothetical framework, the study builds on the work done by Justino Vicente on the factors influencing the failure of small enterprises in order to achieve its objective. It then makes recommendations for future research on the topic. In the aftermath of several economic adversities, prominent among them unemployment, poverty, and HIV and AIDS, SMME failure and success are key among national strategic concerns in the Republic of South Africa, where this study is
being conducted in the Johannesburg region. The research employed a quantitative research methodology and the main instruments for gathering data was a survey/ questionnaire, and the snowball sampling method was used. 100 ICT start-ups owners and managers received surveys. The statistical package for the social sciences (SPSS) program was employed to analyse the quantitative data collected. Tables, pie charts, and bar charts were used to display the statistically descriptive results. Due to the many different reasons why SMMEs fail, this study focused its conclusions on the following factors: determinants of IT entrepreneurs' level of awareness of the most common causes of start-ups failures in Johannesburg, South Africa, determinants of accessibility to information of the most common causes of start-up failures and the willingness of entrepreneurs to consume information related to start-up failures were also presented. Among the results of failure include unemployment, societal ills, poverty, and loss of revenue. The study concludes by recommending various interventions to improve the level of awareness
Description
A research report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2023
Keywords
Entrepreneurship, Information technology, Small and Medium Enterprises (SMMEs), Start-up failures, Johannesburg, UCTD
Citation
Mkhavele, Nhlamulo. (2023). An assessment of the determinants of IT entrepreneurs' level of awareness of the most common causes of start-ups failures in Johannesburg, South Africa [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.