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

Lawrence M. Lekhanya () and Roger B. Mason
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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

Journal of Enterprising Culture (JEC), 2014, vol. 22, issue 03, 331-348

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.

Keywords: Finance; infrastructure; business environment; small business; rural; South Africa; SME; KZN (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (8)

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DOI: 10.1142/S0218495814500149

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