Open AccessCHALLENGES FACING SMALL TO MEDIUM ENTERPRISES IN METSIMAHOLO MUNICIPALITY, SOUTH AFRICA
Author(s) -
Jeremiah Madzimure,
Lebereko Phillip Tau
Publication year - 2021
Publication title -
eurasian journal of social sciences
Language(s) - English
Resource type - Journals
ISSN - 2148-0214
DOI - 10.15604/ejss.2021.09.01.002
Subject(s) - business , rivalry , small and medium sized enterprises , marketing , sustainability , unit (ring theory) , competition (biology) , order (exchange) , goods and services , control (management) , finance , economics , management , economy , ecology , mathematics education , mathematics , biology , macroeconomics
In South Africa, the failure rate of Small to Medium Enterprises (SMEs) amounts to 75% in an estimated interval of 42 months of operation. The purpose of this study is to determine the challenges facing SMEs in Metsimaholo municipality, Free State province of South Africa. Quantitative data was acquired from 102 Metsimaholo SME owners or their representatives, utilizing questionnaires which were completed, returned, and analyzed using Statistical Package for the Social Sciences (SPSS) version 26.0 software. It was then established that economic factors have realistic control on the sustainability of SMEs. In addition, further development of SMEs is restrained by competition from immigrant businesses, transportation of inventory, inadequate management skills, substandard marketing, miserable manipulation of financial activities and business, unreachable loans. Notwithstanding the afore-said outcome, SMEs must carefully look at obtaining business skills coaching and support, enlarge or vary the range of products, put back any profits made by a business into it in order to make it more successful. Cooperation amongst SMEs would be a strategy for them to challenge rivalry. Therefore, SMEs will bargain from transportation of goods bought in large quantities for a unit price that is lower than usual.