BARRIERS TO THE DEVELOPMENT OF ENTREPRENEURIAL ACTIVITIES IN NEWLY ESTABLISHED SMALL, MICRO AND MEDIUM SIZED ENTERPRISES IN TSHWANE

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Abstract

The purpose of the study was to identify and quantify differential factors that are known to adversely affect sustained growth and development in newly established Small, Micro and Medium Sized Enterprises (SMMEs) conducting business in and around Tshwane in South Africa. The study is based on a 5-year follow-up study (2007 to 2012) of a random sample of 349 small business enterprises that operate in and around the City of Pretoria in South Africa. Data was gathered from each of the businesses on socioeconomic factors that are known to affect the long-term survival of small businesses. The objective of the study was to identify and quantify key predictors of viability and long term survival. The study found that 188 of the 349 businesses that took part in the study (54%) were not viable, and that the long-term survival and viability of small businesses was adversely affected by lack of entrepreneurial skills, lack of supervisory support to newly established businesses, and inability to operators running newly established businesses to acquire relevant vocational skills.

Keywords: Small Businesses, Entrepreneurial Skills, Vocational Skills, Odds Ratio, Hazard ratio

How to cite this paper: Worku, Z. (2015). Barriers to the development of entrepreneurial activities in newly established small, micro and medium sized enterprises in Tshwane. Corporate Ownership & Control, 12(3-3), 317-331. https://doi.org/10.22495/cocv12i3c3p4