Indonesian Journal of Business and Entrepreneurship (IJBE)
Vol. 9 No. 3 (2023): IJBE, Vol. 9 No. 3, September 2023

Modelling Key Obstacles Hindering The Business Performance of Small and Medium Enterprises Within The Mangaung Metropolitan Area in South Africa

Kareli, Bennedict Motsamai (Unknown)
Maziriri, Eugine Tafadzwa (Unknown)
Chuchu, Tinashe (Unknown)



Article Info

Publish Date
13 Sep 2023

Abstract

SMEs play a crucial role in South Africa's economic growth, contributing to production capacity and job creation. This study focused on understanding the obstacles hindering SMEs and specifically examined the impact of financial, management, corruption, and infrastructure obstacles on SME performance in the Mangaung metropolitan area. Data was collected through an online survey from 240 SME owners/managers using a non-probability convenience sampling method. The results, analyzed using SPSS and SmartPLS, revealed that financial, management, corruption, and infrastructure obstacles have a negative effect on SME performance in the Mangaung metropolitan area. The findings have theoretical implications for entrepreneurship research and provide insights for SME managers to improve their entrepreneurial endeavors. The study also has policy implications, suggesting the need for revised credit access policies with lower interest rates for SMEs. Overall, this research contributes new knowledge to the entrepreneurship and small business management literature in the African context, which has been under-researched in academia. Keywords: job creation, corruption, infrastructure obstacles, business performance, SMEs

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Journal Info

Abbrev

ijbe

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Indonesian Journal of Business and Entrepreneurship (IJBE) publishes information of empirical research and reviews in business and entrepreneurship. IJBE is published by School of Business, Bogor Agricultural University (SB-IPB) associated with Indonesian Alliance of Magister Management Program ...