Financial challenges faced by smmes in gauteng South Africa

Agwa Ejon John, Charles Mbohwa

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

10 Citations (Scopus)

Abstract

Small, medium and micro enterprises (SMMEs) are not spared from the global economic and financial turmoil which periodically occurs worldwide and therefore they must adjust their financial needs to accommodate such dynamic phenomena. This is particularly relevant in developing countries such as South Africa. It is important to note that SMMEs are major contributors to the economy, as they provide employment opportunities and create economic wealth resulting in the reduction in poverty and increased employment. In order to succeed and prosper, SMMEs need to establish a sound financial management function, and therefore it is vital to investigate the financial challenges these firms are experiencing. This paper reveals a better and deeper understanding of the issues surrounding the financial difficulties encountered by SMMEs in the Gauteng Metropolitan area. The data used in the study was gathered by administering structured questionnaires to businesses within Gauteng, selected randomly through a probability sampling method. The analysis of the results was based on descriptive statistics arrived at through SPSS tools. The results indicated that most SMMEs in the Gauteng Metropolitan are not supported adequately especially in the areas of financial management skills and expertise. Recommendations were made for firm owners to have workshops and proper training on the financial matters. A one stop shop centre for SMMEs to have access to financial information and support as well as remedial action on policy matters was also recommended.

Original languageEnglish
Title of host publicationIAMOT 2015 - 24th International Association for Management of Technology Conference
Subtitle of host publicationTechnology, Innovation and Management for Sustainable Growth, Proceedings
EditorsGeorge Alex Thopil, Leon Pretorius
PublisherGraduate School of Technology Management, University of Pretoria
Pages520-532
Number of pages13
ISBN (Electronic)9781775921110
Publication statusPublished - 2015
Event24th International Association for Management of Technology Conference: Technology, Innovation and Management for Sustainable Growth, IAMOT 2015 - Cape Town, South Africa
Duration: 8 Jun 201511 Jun 2015

Publication series

NameIAMOT 2015 - 24th International Association for Management of Technology Conference: Technology, Innovation and Management for Sustainable Growth, Proceedings

Conference

Conference24th International Association for Management of Technology Conference: Technology, Innovation and Management for Sustainable Growth, IAMOT 2015
Country/TerritorySouth Africa
CityCape Town
Period8/06/1511/06/15

Keywords

  • Benefits
  • SMMEs financial challenge enterprise and economic

ASJC Scopus subject areas

  • Management of Technology and Innovation

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