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Critical Innovation Skills Required of Sole Trader Small, Medium and Micro Enterprise (SMME) Management and Its Influence on Perceived Business Profitability: A South African Perspective

Author

Listed:
  • Juan-Pierré BRUWER

    (Business Re-Solution, South Africa)

  • Judith SMITH

    (Cape Peninsula University of Technology, South Africa)

  • Suzaan LE ROUX

    (School of Accounting Sciences, Cape Peninsula University of Technology, South Africa)

Abstract

Small, Medium and Micro Enterprises (SMMEs) play a significant role in the stimulation of economies around the globe. In South Africa, though SMMEs add significant socio-economic value to the national economy, approximately 75 per cent of these business entities fail after being in existence for less than four years. Among the economic factors which have been highlighted to adversely affect the sustainability of these business entities is the lack of scarce skills – in particular, that of critical innovation skills. The objective of this study was to ascertain whether critical innovation skills had any statistically significant influence on the perceived profitability of South African SMMEs. Empirical research, exploratory research, and survey research were conducted in this quantitative research study whereby 387 responses were received from South African SMME management who had to adhere to relevant delineation criteria. Based on the results, the critical innovation skills of management of sampled South African SMMEs did not have any statistically significant influence on the perceived profitability of their respective business entities.

Suggested Citation

  • Juan-Pierré BRUWER & Judith SMITH & Suzaan LE ROUX, 2019. "Critical Innovation Skills Required of Sole Trader Small, Medium and Micro Enterprise (SMME) Management and Its Influence on Perceived Business Profitability: A South African Perspective," Expert Journal of Business and Management, Sprint Investify, vol. 7(2), pages 256-262.
  • Handle: RePEc:exp:bsness:v:7:y:2019:i:2:p:256-262
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    References listed on IDEAS

    as
    1. Aaron Cohen & Gabriel Sayag, 2010. "The Effectiveness of Internal Auditing: An Empirical Examination of its Determinants in Israeli Organisations," Australian Accounting Review, CPA Australia, vol. 20(3), pages 296-307, September.
    2. Michael C. Cant & Cindy Erdis & Catherine M. Sephapo, 2014. "Business Survival: The Constraints Experienced by South African SMEs in the Financial Sector," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 565-579, October.
    3. Joe Tidd & John Bessant, 2018. "Innovation Management Challenges: From Fads To Fundamentals," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(05), pages 1-13, June.
    4. Coase, R H, 1988. "The Nature of the Firm: Influence," Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 33-47, Spring.
    5. Alper, Deger & Anbar, Adem, 2011. "Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 2(2), pages 139-139, April.
    6. Juan-Pierrà Bruwer, 2018. "Do Internal Control Activities Adversely Influence the Profitability and Solvency of South African SMMEs?," Journal of Economics and Behavioral Studies, AMH International, vol. 10(1), pages 49-58.
    7. Bruce MASAMA & Juan-Pierré BRUWER, 2018. "Revisiting the Economic Factors which Influence Fast Food South African Small, Medium and Micro Enterprise Sustainability," Expert Journal of Business and Management, Sprint Investify, vol. 6(1), pages 19-28.
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    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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