South Africa SME's Experience of Enterprise

Abstract

The purpose of this research was to determine the challenges facing small businesses in South Africa and further determine the experiences of small businesses under enterprise development by large firms. These challenges were determined to be lack of skills for small business owners, lack of guaranteed markets, and lack of trade financing. The supports that small businesses receive from large businesses under enterprise development were determined to be training and preferred procurement. A sample of SMEs under support from large businesses was chosen to carry out this research. Questionnaires and telephonic interviews were administered to these sampled SMEs. These SMEs were from the previously disadvantaged communities who are targeted by most SMEs support interventions from large companies through the B-BBEE policy of enterprise development. From the interviews and questionnaires administered, analysis was conducted using the content analysis method to test the research propositions. The results were discussed and conclusions drawn from them. A framework was developed which will be useful in guiding interventions within the SME development arena where linkages with large businesses are undertaken