Managerial challenges within smes: The case of a developing region

SMEs form the backbone of many developed and developing economies. However, many of these businesses, especially smaller ones are faced with several challenges that may affect their day to day productivity. In light if this, the main purpose of this study was to analyse the perceptions of a group of SME business owners/mangers regarding the managerial challenges they faced within a developing region. The study followed a quantitative research approach with a descriptive cross sectional research design. Two non-probability sampling techniques (convenience and snowball) was used to collect the data from the identified sample. A total of 198 usable questionnaires were returned. The study made use of a descriptive analysis, cross tabulations and chi-square statistics and a multivariate linear regression. Results indicated that participants perceived most of the identified aspects (lack of networks, operational experience, market knowledge, skills, labour and training) as omnipresent in their environments. Amongst these however, participants showed significantly strong perceptions regarding the impact of a shortage of skilled labour, insufficient business training as well as the lack of networking opportunities. The implications of these findings point to the importance of the provision and ease of access to quality practical entrepreneurship training. Based on the findings, it is recommended that both private and public sector support be prioritized towards the development of SME sectors given their value.