Identifying and examining the nature and extent of external factors influencing growth and development of selected SMME's in Durban Kwa-Zulu Natal

Abstract

This study identified and examined the nature and extent of external factors influencing growth and development of selected SMMEs in Durban, KwaZulu-Natal. The importance of the research lies in the contribution of its findings and recommendations to ensure the survival of SMMEs. The target population was identified as 300 owners of SMMEs in Durban, KwaZulu­ Natal, with a sample of 169 selected on a convenience basis, to which a questionnaire was distributed.

Regardless of the problems experienced by SMMEs, it is vital to stimulate their growth and development, as this sector is likely to be the job creators of the future South Africa, as well as the providers of a continuation level of employment opportunities (Antonie, 2010). The rate at which SMMEs spring up is encouraging, considering that one of the cardinal goals of establishing SMMEs, is the eradication of unemployment and poverty.

It was found that, not all of the respondents understand the potential of SMMEs to gain a competitive advantage; however, the majority agreed that Durban is an accessible and convenient location to do business, and that Government should partner with SMMEs in job creation and poverty alleviation. In addition, more than 80 percent of the respondents believe SMMEs will thrive with more access to loans and financial support. More than half of the respondents indicated that they often need to bribe government officials in the process of obtaining a business license and/or registration, while the findings also show that, when the process is fair, open and transparent, respondents believe it facilitates SMME growth and development. Recommendations on how factors identified can be better managed, so as to support, rather than negate, SMMEs' quest for growth and development, include government facilitation of workshops, and more visible training.