Mysteries of success for small and medium enterprises in Ga-Rankuwa Township of Pretoria in Gauteng Province, South Africa

  • 519 Views
  • 130 Downloads

The small and medium enterprises (SMEs) are important to the South African economy and social development. This paper discusses the case of Ga-Rankuwa Township SMEs, causes of their proven failure and the methods used by the SMEs owned by people who came from foreign countries and operating in this township. These foreign SMEs did not have access to loans for business. On the other hand the local ones could apply for the loans but many did not know how and where. The locals then forfeited the opportunity, but still refused to partner with foreign ones who could assist them. The foreign ones were more successful in using business skills and knowledge to nurture their SMEs. They also contributed to the township’s economy by employing local people. Recommendations include that local SMEs should partner with foreign ones to develop synergies, and that the SME agency, Small Enterprise Development Agency (SEDA) should design policies for foreign SME access to business loan funds by ensuring and enforcing local empowerment as part of their loan access package

view full abstract hide full abstract