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Revisiting the Economic Factors which Influence Fast Food South African Small, Medium and Micro Enterprise Sustainability

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  • Bruce MASAMA

    (Cape Peninsula University of Technology, Cape Town, South Africa)

  • Juan-Pierré BRUWER

    (Graduate Center of Management, Cape Peninsula University of Technology, Cape Town, South Africa)

Abstract

In order to stimulate both developing economies and developed economies around the globe policy makers have, over the years, focused their attention to Small, Medium and Micro Enterprises (SMMEs). These business entities are often regarded as the lifeblood of economies around the globe however SMMEs are reported to have high failure rates. For example, in a South African dispensation, the failure rate of SMMEs is considered to be among the worst in the world as approximately 75% fail within a period of 42 months after opening. Through research in the early-2000s, the cause of the excessive South African SMMEs failure rate has been pinned on a plethora of micro-economic factors and macro-economic factors. Over the years the list of economic factors which adversely influence the sustainability of South African SMMEs have not changed drastically, which may well probably explain the high failure rate of these business entities in more recent times. Thus, for this paper, empirical research was conducted to ascertain the extent to which 24 economic factors adversely influence the sustainability of South African SMMEs. Quantitative data were obtained from 116 members of management of South African SMMEs and stemming from the results, it was found that these economic factors still have a reasonable adverse influence on the sustainability of these business entities.

Suggested Citation

  • 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.
  • Handle: RePEc:exp:bsness:v:6:y:2018:i:1:p:19-28
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    References listed on IDEAS

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    1. Visvanathan NAICKER & Suzaan LE ROUX & Juan BRUWER & Juan-Pierré BRUWER, 2017. "Knowledge Sharing as a Value-Adding Initiative for South African SMME Sustainability: A Literature Review," Expert Journal of Business and Management, Sprint Investify, vol. 5(2), pages 51-60.
    2. Janine Kruger & Rootman Chantal & Shelley Saunders, 2015. "Macro-economic factors influence on South African SMME business performance," Proceedings of International Academic Conferences 2805126, International Institute of Social and Economic Sciences.
    3. Jo Beall & Owen Crankshaw & Susan Parnell, 2000. "The Causes of Unemployment in Post‐apartheid Johannesburg and the Livelihood Strategies of the Poor," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 91(4), pages 379-396, November.
    4. Clover, T.A. & Darroch, Mark A.G., 2005. "Owners' perceptions of factors that constrain the survival and growth of small, medium and micro agribusinesses in KwaZulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 1-26, June.
    5. Ahmed Imran Hunjra & Muhammad Irfan Chani & Sehrish Javed & Sana Naeem & Muhammad Shahzad Ijaz, 2014. "Impact of Micro Economic Variables on Firms Performance," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(2), pages 65-73, February.
    6. Christian Rogerson, 2005. "Unpacking tourism SMMEs in South Africa: structure, support needs and policy response," Development Southern Africa, Taylor & Francis Journals, vol. 22(5), pages 623-642.
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    Cited by:

    1. Mkateko Vivian Mabunda & Ricky Munyaradzi Mukonza & Lufuno Robert Mudzanani, 2023. "The effects of loadshedding on small and medium enterprises in the Collins Chabane local municipality," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-20, December.
    2. Juan-Pierré BRUWER & Mariaan LOMBARD & Yolandé SMIT & Ankit KATRODIA, 2019. "The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise," Expert Journal of Business and Management, Sprint Investify, vol. 7(1), pages 100-106.
    3. Ioanna Pavlidou & Nikolina Dragicevic & Eric Tsui, 2021. "A Multi-Dimensional Hybrid Learning Environment for Business Education: A Knowledge Dynamics Perspective," Sustainability, MDPI, vol. 13(7), pages 1-23, April.
    4. Syed Ali Fazal & Abdullah Al Mamun & Ali Saleh Alshebami & Rajennd Muniady & Mohd Helmi Ali & Sayed Samer Ali Al Shami & Salem Handhal Al Marri & Abdullah Hamoud Ali Seraj & Murad Thomran & Faiz Algob, 2022. "Entrepreneurial Motivation, Competency and Micro-Enterprise Sustainability Performance: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    5. Juan-Pierré Bruwer & Lindiwe Mabesele & Timeeka Brown & Courtney Charles & Ingrid Coulter & Edlin Williams & Nadine Witbooi, 2021. "The Feasibility of Plastic Bag Usage for Newly Established South African Small, Medium and Micro Enterprises Amidst Increases in Sin tax: An Online Desktop Study," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(4), pages 175-190, August.
    6. Juan-Pierré Bruwer & Lindiwe Mabesele & Vincentia Benting & Joël Cloete & Chante Jacobs & Jade Marais & Kgosi-e-tsile Rabolao & Marianne Spangenberg, 2021. "The Theoretical Link Between Cash Flow Statement Usage and Decision Making In South African Small, Medium and Micro Enterprises," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(4), pages 191-204, August.
    7. 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.
    8. Jeremiah Madzimure & Lebereko Phillip Tau, 2018. "Challenges Facing Small to Medium Enterprises in Metsimaholo Municipality, South Africa," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 9(1), pages 14-23.

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    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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