n Management Dynamics : Journal of the Southern African Institute for Management Scientists - A comparative study of selected problems encountered by small businesses in the Nelson Mandela, Cape Town and Egoli metropoles

Volume 12, Issue 3
  • ISSN : 1019-567X



It is estimated that the failure rate of small, medium, and micro enterprises (SMMEs) in South Africa is between70% and 80%. As a result, millions of Rands are being loston business ventures because of essentially avoidable mistakes and problems. Difficulties encountered by small businesses can be described as environmental, marketing,financial, or managerial in nature.

The primary objective of this study was to establish to what extent small businesses, in three major South African metropolitan regions, experience the problems typically associated with small businesses. Further to this, the aim is to investigate whether relationships exist between the identified problems, success, and selected demographic variables. Judgmental sampling was used to solicit the responses of 1 038 small businesses in the Nelson Mandela, Cape Town, and Egoli metropoles.
Problems that influence the success of the small businesses participating in the survey were numerous. Those of a macro-environmental nature were regarded as the most influential, followed by problems in the functional area of marketing.

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