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Support from the government for SMEs in South Africa

Author

Listed:
  • Ntsieni Ramasimu

    (University of South Africa)

  • Morengwa Jacobeth Majadibodu

    (University of South Africa)

  • Watson Ladzani

    (University of South Africa)

Abstract

This study intended to investigate how the Lephalale Local Municipality's small and medium companies (SMEs) are hampered by a lack of government support. This study also aims to demonstrate how SMEs face difficulties in surviving as a result of problems in the business environment. Consequently, the government of South Africa has programs to assist SMEs. The growth of SMEs is important for advancing innovation, wealth distribution, and employment. The majority of SMEs launch and maintain their businesses with their own money. By using a qualitative research approach and semi-structured in-person, phone, and email interviews to collect data, the goals of this study were met. There were 318 registered SMEs in the area. Using purposive sampling methods, data from operational enterprises with a lifespan of 0 to 5 years were gathered. Atlas TI 8 was used to evaluate the data. The primary conclusions of this study show that (i) small and medium-sized enterprises (SMEs) find it difficult to maintain their operations because they lack access to capital and business equipment. This fails if SMEs are not given the proper support. Because they lack the resources to compete with big companies, SMEs find it challenging. (ii) Small and medium-sized enterprises (SMEs) should think about enrolling in bookkeeping training and sending their staff to business training in order to network for the survival of the company. In order to assist SMEs in fulfilling the requirements for maintaining their enterprises, this study advises the government to examine present standards. With the right assistance, SMEs can create business plans and maintain operations, which will result in the creation of jobs, particularly for local communities. The government ought to think about mentoring and overseeing sponsored SMEs. Key Words: Competition, Financial Resources, Government Regulations, SMEs, Government Support

Suggested Citation

  • Ntsieni Ramasimu & Morengwa Jacobeth Majadibodu & Watson Ladzani, 2023. "Support from the government for SMEs in South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(5), pages 381-394, July.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:5:p:381-394
    DOI: 10.20525/ijrbs.v12i5.2525
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    References listed on IDEAS

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    Cited by:

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