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Selected Key External Factors Influencing the Success of Rural Small and Medium Enterprises in South Africa

Author

Listed:
  • Lawrence M. Lekhanya

    (Department of Public Management and Economics, Durban University of Technology, South Africa)

  • Roger B. Mason

    (Department of Marketing and Retail Management, Durban University of Technology, South Africa)

Abstract

Small businesses are critical to improving economic development in rural areas of South Africa. However, rural entrepreneurs are still faced with challenges and problems which make the success of small businesses, especially in rural areas, uncertain. This paper investigates business environmental, financial and infrastructural factors that influence the success or otherwise of Small and Medium Enterprises (SMEs) in rural areas. Primary data was collected in five rural areas of KwaZulu-Natal (KZN) from a sample of 374 business owners/managers, with respondents completing a questionnaire. Access to finance and skills shortages were the factors that most significantly differentiated between more successful and less successful rural businesses in KZN. The majority of respondents indicated that poor roads/transport and access to electricity were major problems.

Suggested Citation

  • Lawrence M. Lekhanya & Roger B. Mason, 2014. "Selected Key External Factors Influencing the Success of Rural Small and Medium Enterprises in South Africa," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 331-348.
    • Handle: RePEc:wsi:jecxxx:v:22:y:2014:i:03:n:s0218495814500149
    DOI: 10.1142/S0218495814500149
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    References listed on IDEAS

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    1. Ishengoma, Esther K. & Kappel, Robert, 2008. "Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," GIGA Working Papers 78, GIGA German Institute of Global and Area Studies.
    2. Antonio Fuster Olivares & Jose Miguel Giner Perez & Mª Carmen Tolosa Bailen, 2004. "The new economy in Spain: a regional analysis," ERSA conference papers ersa04p284, European Regional Science Association.
    3. Perret, Sylvain R., 2004. "Matching Policies On Rural Development And Local Governance In South Africa: Recent History, Principles, And Current Challenges," Working Papers 18055, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
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    Cited by:

    1. Kanayo K. Ogujiuba & Maria Eggink & Ebenezer Olamide, 2023. "Impact of Elements of Finance and Business Support on the SME Business Ecosystem in South Africa: An Econometric Analysis," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    2. Kanayo K. Ogujiuba & Maria Eggink & Ebenezer Olamide, 2023. "Interaction and Main Effects of Finance Support and Other Business Support Services on the Entrepreneurial Ecosystem: A Case Study of the Mpumalanga Province, South Africa," Economies, MDPI, vol. 11(6), pages 1-23, May.
    3. Patient Rambe, 2017. "Private Financing and Human Resource Practices of Small Local and Foreign-Owned Cosmetological Businesses," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 143-160.
    4. Stone, Billy, 2017. "Exploring the Success and Failure of Small Business in Beckley, West Virginia," OSF Preprints 8xmt6, Center for Open Science.
    5. 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.
    6. Lawrence Mpele LEKHANYA, 2015. "The Role of Integrated Marketing Communications in Enhancement of SMEs Growth in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 7(2), pages 139-144.
    7. Celestin Mayombe, 2016. "Entrepreneurial Training for Unemployed Adults: Challenges and Opportunities in Accessing Financial Services in South Africa," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 453-480, December.

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