An Investigation On The Factors Influencing The Development And Sustainability Of Small Medium And Micro Enterprises: A Case Of Polokwane City, Limpopo Province
Keywords:
Micro Enterprises, Economy, SMME, Market research, businessAbstract
Small, Medium and Micro Enterprises (SMMEs) in the world are established to improve the welfare of the economy and the people’s livelihood in a particular area. Recent changes in the new democratic South Africa (SA) have led many people to start their own small businesses in the country without clear knowledge about the factors that promote and hamper the growth and development in this sector. About 85% of SMMEs fail due to poor management practices of the owners yet “there are routes to take to ensure enterprise development and sustainability”. According to literature sustainability of the business is affected by the development of organisational management style and the culture that handles the challenges and opportunities that the industry encounters. This study focused on the factors that influence on the development and sustainability of SMMEs in Polokwane City, Limpopo Province. The aim of this study is to investigate the factors that influence the development and sustainability of SMMEs in Polokwane City. This is a quantitative type of research. Data was collected from eighty (80) participants using structured questionnaires. Findings: Most SMME owners have started their business due to lack of employment and interest in business. Market research was not conducted prior the start of the business. Other businesses survive by using strategies such as advertising, good customer relations and good management of debts.
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