IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v10y2021i7p16-26.html
   My bibliography  Save this article

Investigating the challenges for the development of independent retailers in South Africa

Author

Listed:
  • K Mercy Makhitha

    (Department of marketing and Retail Management, Unisa, South Africa)

  • Brian Soke

    (Department of marketing and Retail Management, Unisa, South Africa)

Abstract

Independent retailers face many challenges that influence their growth and development. Independent retailers are small businesses facing competition from major retailers in South Africa (SA) that have penetrated the townships and rural areas. The purpose of the study was to investigate the challenges that influence the development of independent retailers in SA. A survey was conducted among small independent retailers in SA. The convenience sampling method was adopted for the study due to the inaccessibility of a database on independent retailers in SA. Existing literature was used to design a questionnaire, targeted at small independent retailers, to investigate the challenges that influence their business performance. The findings of the study revealed that finance and marketing are the major challenges influencing the operations of small, independent retailers. Business-related challenges are the least challenging aspects for small independent retailers in SA. Independent retailers need to manage their businesses appropriately in order to survive and sustain their businesses. Independent retailers buy products from wholesalers while a few of them buy directly from manufacturers. Key Words:Informal independent retailers, challenges, SME operations, South Africa

Suggested Citation

  • K Mercy Makhitha & Brian Soke, 2021. "Investigating the challenges for the development of independent retailers in South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 16-26, October.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:7:p:16-26
    DOI: 10.20525/ijrbs.v10i7.1226
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/1226/1033
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v10i7.1226
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v10i7.1226?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Emiel L. Eijdenberg & Kathrin Borner, 2017. "The Performance Of Subsistence Entrepreneurs In Tanzania’S Informal Economy," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    2. Nathan Charles Craig & Nicole DeHoratius & Ananth Raman, 2010. "The Impact of Supplier Inventory Service Level on Retailer Demand," Harvard Business School Working Papers 11-034, Harvard Business School, revised Jan 2016.
    3. Marius Sorin CIUBOTARIU, 2013. "The Role Of Small And Medium Enterprises In The Modern Economy And The Importance Of Ifrs Application For Smes," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 13(1(17)), pages 201-210, June.
    4. KM Makhitha, 2019. "Supplier relationship marketing practices and small retailer performance in South Africa," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1672490-167, January.
    5. Pradeep Kumar Jena, 2010. "Indian Handicrafts in Globalization Times: An analysis of Global-Local Dynamics," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 8(2), pages 119-137.
    6. Reena das Nair & Shingie Chisoro-Dube, 2015. "The expansion of regional supermarket chains: Changing models of retailing and the implications for local supplier capabilities in South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2015-114, World Institute for Development Economic Research (UNU-WIDER).
    7. Beck, Thorsten & Demirguc-Kunt, Asli, 2006. "Small and medium-size enterprises: Access to finance as a growth constraint," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2931-2943, November.
    8. Watson Ladzani & Godfrey Netswera, 2009. "Support for rural small businesses in Limpopo Province, South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 26(2), pages 225-239.
    9. Edward Mutandwa & Nathan Kanuma Taremwa & Theoneste Tubanambazi, 2015. "Determinants Of Business Performance Of Small And Medium Size Enterprises In Rwanda," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-12.
    10. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    11. Nathan Craig & Nicole DeHoratius & Ananth Raman, 2016. "The Impact of Supplier Inventory Service Level on Retailer Demand," Manufacturing & Service Operations Management, INFORMS, vol. 18(4), pages 461-474, October.
    12. Reena das Nair & Shingie Chisoro, 2015. "The expansion of regional supermarket chains: Changing models of retailing and the implications for local supplier capabilities in South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series 114, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruomeng Cui & Dennis J. Zhang & Achal Bassamboo, 2019. "Learning from Inventory Availability Information: Evidence from Field Experiments on Amazon," Management Science, INFORMS, vol. 65(3), pages 1216-1235, March.
    2. Jamil Paolo Francisco & Tristan Canare & Jean Rebecca Labios, 2018. "Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains," Working Papers id:12905, eSocialSciences.
    3. Gel, Esma S. & Salman, F. Sibel, 2022. "Dynamic ordering decisions with approximate learning of supply yield uncertainty," International Journal of Production Economics, Elsevier, vol. 243(C).
    4. Wolday Amha & Tadele Ferede & Mulat Demeke, 2014. "The Impact of Financial Access on Firm Growth: evidence from Ethiopian Grain Traders and Millers," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 22(1), November.
    5. Pol Boada-Collado & Victor Martínez-de-Albéniz, 2020. "Estimating and Optimizing the Impact of Inventory on Consumer Choices in a Fashion Retail Setting," Manufacturing & Service Operations Management, INFORMS, vol. 22(3), pages 582-597, May.
    6. Reena das Nair & Namhla Landani, 2020. "Making agricultural value chains more inclusive through technology and innovation," WIDER Working Paper Series wp-2020-38, World Institute for Development Economic Research (UNU-WIDER).
    7. Martijn A. Boermans & Daan Willebrands, 2018. "Financial Constraints Matter: Empirical Evidence On Borrowing Behavior, Microfinance And Firm Productivity," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-24, June.
    8. Grace Nsomba & Thando Vilakazi, 2021. "Barriers to entry and the role of African multinational corporations: Entrants in intermediate industrial products (inputs into construction)," WIDER Working Paper Series wp-2021-143, World Institute for Development Economic Research (UNU-WIDER).
    9. Yue Dai & Tianjun Feng & Christopher S. Tang & Xiaole Wu & Fuqiang Zhang, 2020. "Twenty Years in the Making: The Evolution of the Journal of Manufacturing & Service Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 1-10, January.
    10. Anoosheh Rostamkalaei & Mark Freel, 2016. "The cost of growth: small firms and the pricing of bank loans," Small Business Economics, Springer, vol. 46(2), pages 255-272, February.
    11. Altenburg, Tilman & Kulke, Elmar & Reeg, Caroline & Peterskovsky, Lisa & Hampel-Milagrosa, Aimée, 2016. "Making retail modernisation in developing countries inclusive: a development policy perspective," IDOS Discussion Papers 2/2016, German Institute of Development and Sustainability (IDOS).
    12. Channing Arndt, 2018. "New Data, New Approaches and New Evidence: A Policy Synthesis," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 167-178, January.
    13. Christian Terwiesch & Marcelo Olivares & Bradley R. Staats & Vishal Gaur, 2020. "OM Forum—A Review of Empirical Operations Management over the Last Two Decades," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 656-668, July.
    14. Felipe Caro & A. Gürhan Kök & Victor Martínez-de-Albéniz, 2020. "The Future of Retail Operations," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 47-58, January.
    15. Rizwan Ullah Khan & Yashar Salamzadeh & Hiroko Kawamorita & Gabor Rethi, 2021. "Entrepreneurial Orientation and Small and Medium-sized Enterprises’ Performance; Does ‘Access to Finance’ Moderate the Relation in Emerging Economies?," Vision, , vol. 25(1), pages 88-102, March.
    16. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    17. Jiankun Sun & Dennis J. Zhang & Haoyuan Hu & Jan A. Van Mieghem, 2022. "Predicting Human Discretion to Adjust Algorithmic Prescription: A Large-Scale Field Experiment in Warehouse Operations," Management Science, INFORMS, vol. 68(2), pages 846-865, February.
    18. Reena das Nair & Shingie Chisoro, 2016. "The expansion of regional supermarket chains and implications for local suppliers: A comparison of findings from South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series 169, World Institute for Development Economic Research (UNU-WIDER).
    19. Teboho Bosiu & Thando Vilakazi, 2020. "Competition and inclusive regional economic growth in food production: Barriers to entry and the role of African multinational corporations," WIDER Working Paper Series wp-2020-88, World Institute for Development Economic Research (UNU-WIDER).
    20. Brian Chisanga & Olipa Zulu-Mbata, 2018. "The changing food expenditure patterns and trends in Zambia: implications for agricultural policies," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(3), pages 721-740, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:10:y:2021:i:7:p:16-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.