The Causes of the Failure of New Small and Medium Enterprises in South Africa

By O. Fatoki. 2014

222 citations recorded by the source corpus.

New small and medium enterprises (SMEs) are an important vehicle to address the challenges of job creation, sustainable economic growth, equitable distribution of income and the overall stimulation of economic development. New SMEs suffer from a high failure rate in South Africa. The high failure rate of new SME paints a bleak picture of the SME sector’s potential to contribute meaningfully to job creation, economic growth and poverty reduction. The primary objective of this study was to determine the causes of the failure of new SMEs. The review of the literature revealed that the causes of the failure of new SMEs are both internal and external. Internal factors include lack of management experience, lack of functional skills and poor staff training and development and poor attitudes towards customers. External factors include non-availability of a logistics chain and a high cost of distribution, competition, rising costs of doing business, lack of finance and crime. DOI: 10.5901/mjss.2014.v5n20p922

Subfields: Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/4f2133fc3efb6fcd87875c8ccce80be496970399

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In Management of Technology and Innovation

1. Jianmu Ye
2. K. Kulathunga

Citations in the corpus

• How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective (2019, background): “Many studies have attempted to determine how important financial literacy is to various aspects of the performance of SMEs and particularly to their sustainability [35,63].”