Small Business

Challenges faced by SME’s in South Africa

Table of contents

  *   Table of contents

  *   introduction:
- Problem Statement &  

  *   background

  *   Theoretical foundation

  1. Uppsala model
  2. Born global model

  *   Conceptualizations
  1. -What is an SME  
  2. -Economic growth
  3. -Sustainability/viability
  4. -GDP
  5. -Labour force

  *   Literature review
  1. The effects of SMEs on the South African economy and challenges
-they face (obstacles to growth of SMEs):  
-Financial constraints:
-Hostile Environment (inaccessibility of markets):

  2. SMME’s contribution and importance:
-Job creation:  
-Poverty alleviation:
-Economic growth and stability:
-Lack of training and education (skills shortage):
  * Conclusion
  * References


Problem statement:
SME’s are major contributors to GDP and employment in the South African economy, though they face a number of challenges in terms of the startup (creation), viability and sustainability of SME’s. SMEs are vital to the growth and prosperity of South African economy without these the economy risks stagnation.

  * the effects of SME’s on the South African economy
  * The affects of SME’s on unemployment/employment rates.
  * South Africa’s alternatives to SME’s
  * SME’s contribution and importance
  * Determination of SME’s overall contribution to labour force.
  * Contributing factors to high failure rates of SME’s in South Africa
  * Challenges of SMEs in South Africa
  * Ability of SMEs securing the funding they need
  * the dire skill shortage in South Africa, which makes it difficult to both attract and retain skilled talent


SMEs play a vital role to growth and success of economies (especially developing countries) across the world and in particular South Africa.   Though a pivotal component of the economy they are still faced with numerous...