Open AccessTHE COMPLIANCE CHALLENGES OF SMALL, MEDIUM AND MICRO ENTERPRISES IN SOUTH AFRICA
Author(s) -
Jeremiah Madzimure
Publication year - 2020
Publication title -
eurasian journal of business and management
Language(s) - English
Resource type - Journals
ISSN - 2148-0206
DOI - 10.15604/ejbm.2020.08.03.002
Subject(s) - prosperity , business , compliance (psychology) , small business , government (linguistics) , thematic analysis , incentive , small and medium sized enterprises , competition (biology) , qualitative research , business development , legislation , economic growth , marketing , economics , market economy , finance , political science , psychology , law , social psychology , social science , linguistics , philosophy , ecology , sociology , biology
The Small, Medium and Micro Enterprises (SMMEs) play a crucial role in the development of South African economy through job creation and improving the standard of living. Despite their importance, majority of these SMMEs are facing compliance challenges. The study seeks to identify compliance challenges of SMMEs in terms of the company act and the impact on their ability to conduct business while remaining competitive and legal in South Africa. This study was conducted in Gauteng province of South Africa. The study applied a qualitative, interpretive approach. The thematic analysis through inductive process was used to analyze the interview responses collected from the participants. The main findings reveal that the uneven business environment has rendered the prosperity and growth of small business impossible. That impossibility is attributed to the lack of capacity and skill to comply with the burden of the company act, given the uneven ground of competition on which large enterprises are more experienced and resourceful. The value of this study is the proposed solution to the current compliance challenges which most SMMEs face and impede their growth. The study recommends that the government offer tax rebates and incentives for SMMEs.