Factors Leading to the Failure of Small, Medium and Micro Enterprises in South Africa

Many have argued that small, medium and micro enterprises (SMMEs) are the main engines of any economy since they raise living standards, lower rates of poverty and create jobs. This study investigates the factors leading to the failure of SMMEs in South Africa. However, SMMEs face a variety of difficulties, such as how their businesses are run and managed, their business plan, external factors that may have an impact on their operations, how they use information communication technology and the Internet, their management skills and abilities, and how the owners define success. The results of the research demonstrate that the issues SMMEs in South Africa experience are distinct from those that SMMEs in other countries may encounter. The research findings showed which few key elements are thought to play a significant role in the success of SMMEs. The commercial success of SMMEs is facilitated by government policies that support SMMEs in their growth objectives and better communication channels between SMMEs and municipalities. To support this commercial engine of the economy, it is crucial to continue developing an SMME programme and build government policies. The conclusion of this study provides valuable insights that if SMMEs do not apply all seven success factors as specified in the questionnaire, it may lead to their failure as SMMEs in South Africa.