Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa

  • Released On
    Monday, 13 June 2016
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ppm.14(2-2).2016.03
  • Article Info
    Volume 14 2016, Issue #2 (cont. 2), pp. 277-288
  • TO CITE
  • Cited by
    3 articles
  • 677 Views
  • 3246 Downloads

Small and medium enterprises (SMEs) have an important role to play in the development of the country. A strong SME sector contributes highly to the economy, contributing to the gross domestic product, by reducing the level of unemployment, reduction in poverty levels and promotion of entrepreneurship activity. In South Africa (SA), the growth of SMEs and prevalence of SMEs is significantly low. Therefore, the aim of the study is to identify the internal and external factors affecting the performance of SMEs in KwaZulu-Natal, SA. This was a cross-sectional study conducted among 74 SMEs owners/managers who were members of the Durban Chamber of Commerce via online using anonymous questionnaire. The results revealed technological advancement would improve the performance of the business. With regards to challenge, the majority of the respondents viewed competition as a major challenge. Almost all the respondent indicated that crime and corruption affecting business performance. Competition was the only factor amongst the studied internal and external factors that revealed a significant association with the performance of SMEs in KwaZulu-Natal (p = 0.011). SMEs need to recognize they must prepare for both domestic

view full abstract hide full abstract
  • References
    0
  • Tables
    0
  • Figures
    0