ANALYSING THE NEEDS OF SMALL AND MICRO-ENTERPRISE OWNERS: A SOUTH AFRICAN SUBURB CASE STUDY

Yıl 2018, Cilt: 10 Sayı: 2, 0 - 0, 31.12.2018

Erica Derbyshire Jaco Fouché

Öz

Small and micro-enterprises are significant contributors to the economy of a
country with regard to growth, employment and poverty alleviation. However,
small and micro-enterprises in South Africa are faced with prevalent threats to
their survival and growth. A lack of access to finance and the basic skills and
knowledge to manage these enterprises create several challenges. This study
analysed the motivations behind start-up and the most prevalent needs, especially
regarding financial literacy, of small and micro-enterprise owners with the aim to
assist these owners in overcoming the challenges. In total 50 small and microenterprise owners from a selected suburb took part in the study. Purposeful
sampling was used. Data was gathered using a newly developed survey and
analysed using SPSS. The study established that a significant number of
enterprises were started out of necessity, with the majority of initial funding
coming from personal capital. The findings further revealed a great need for
financial literacy among the owners; however, funds to grow their enterprises
seemed the greatest need. In addition to contributing to the limited corpus of data
on small and micro-enterprises in South Africa, this study provides valuable
insight into start-up motivation and financial literacy and support needs of small
and micro-enterprises. This should be useful in establishing interventions to spur
on enterprise start-ups and addressing the need for financial literacy. Relevant
government departments should consider implementing an advisory programme
for prospective enterprise owners before funding is granted, as well as a financial
literacy mentorship tier programme for small and micro-enterprises. Furthermore,
an opportunity exists for the Unemployment Insurance Fund to contribute in this
regard by implementing an entrepreneurship training programme.

Anahtar Kelimeler

Small and micro-enterprise, enterprise start-up, needs, financial literacy

Kaynakça

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