Abstract
Many have argued that small, medium and micro enterprises (SMMEs) are the main engines of any economy since they raise living standards, lower rates of poverty, and create jobs. This study investigates the factors leading to the failure of SMMEs in Gauteng. However, SMMEs face a variety of difficulties, such as how their businesses are run and managed, their business plan, external factors that may have an impact on their operations, how they use Information Communications Technologies (ICTs) and the internet, their management skills and abilities, and how the owners define success.
Respondents’ information was gathered through a questionnaire. A straightforward convenience sampling method was applied. Descriptive statistics were used for data analysis. There are six identified constructs that could directly affect SMMEs ability to succeed as a business which include entrepreneur and SMMEs characteristics, management knowledge and abilities, the way of conducting business and cooperation, business strategy, external environment, and the application of ICTs and Internet usage. 250 hardcopy and softcopy questionnaires were sent throughout Gauteng Province in order to measure the link between these constructs and the commercial success of SMMEs. 157 were completed and returned. The result shows the response rate of 63 percent, which is suitable for the study survey.
The results of the research demonstrate that the issues SMMEs in Gauteng Province experience are distinct from those that SMMEs in other countries may encounter. The research findings showed which few key elements are thought to play a significant role in the success of SMMEs. The commercial success of SMMEs is facilitated by government policies that support SMMEs in their growth objectives and better communication channels between SMMEs and municipalities. To support this commercial engine of the economy, it is crucial to continue developing a SMME program and to build government policies.
The conclusion of this study provides valuable insights that if SMMEs do not apply the six factors as specified in the questionnaire, it may lead to their failure as SMMEs in Gauteng, South Africa.