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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

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  • 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
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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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