Gift Donga

The study investigated the perceived barriers to the development of small, medium and microenterprises (SMMEs) operating in the South African small business sector. A quantitative orientation was used in carrying out the study through self-administered questionnaires and a descriptive quantitative method of analysis was applied. The research population consisted of entrepreneurs within the Thulamela Municipality in the Limpopo Province of South Africa. A purposive sample of seventy-five SMME owners and managers participated in this study (males = 73%, n = 55; females = 27%, n = 20 and, age range 18-55 years). The study seeks to add on the narrow body of literature concerning barriers faced by small, medium and microenterprises within the small business sector by revealing how SMMEs in South Africa are stalled from developing into successful enterprises as a result of some major barriers affecting the small business sector. The study revealed that, indeed, SMMEs in Thulamela Municipality in the Limpopo Province of South Africa are faced with various barriers affecting their development. Five significant barriers were identified, namely, lack of finance, access to market, out-dated equipment and technology, poor infrastructure and lack of training. The study recommends on the action plan that is required for SMMEs to increase their efficiency and sustaining themselves against possible barriers thereby helping entrepreneurs to exploit the full potential of the SMME sector.

Keywords: barriers, development, SMMEs, entrepreneurs, Thulamela municipality, South Africa.
JEL Classification: L26, P2

Franchising plays a pivotal role in sustainable economic development through employment creation, improving the standards of living and increasing the growth of entrepreneurship worldwide. However, the volatile business environment in Zimbabwe has a negative impact on the growth of franchising in the fast food industry. The aim of the study was to uncover the challenges of franchising in a volatile business environment in Zimbabwe. The study focused on an under studied area of franchising in the fast food industry of Zimbabwe. The study is important, as franchising can be used as a tool for economic growth and the study breaks a new ground, as no similar studies have been conducted to identify the challenges faced by franchise entrepreneurs in a volatile business environment. Ten qualitative interviews were successfully conducted with franchise entrepreneurs using face to face semi structured interviews as data collection method and thematic coding was used to analyze the collected data. The findings of the study indicate that franchise entrepreneurs face difficulties in obtaining operating licences from the Harare’s City Municipal Authorities and registering their businesses. Electricity power cuts severely affect the operations of fast food businesses. The majority of the entrepreneurs do not have adequate capital to expand and grow their businesses and they fail to meet lending requirements from the financial institutions, top-most among them being the provision of collateral security accompanied by rigid application procedures for funding. Recommendations made include that the government must play an active role in promoting franchising by setting up a vibrant franchise board and speeding up the business registration process.