Proliferation of SMEs in South Africa: modelling the challenges and outcomes of selling-to-finish

Isaac Nkoana and Kgalema Abbyton Mashamaite
Additional contact information
Isaac Nkoana: University of Limpopo
Kgalema Abbyton Mashamaite: University of Limpopo

International Journal of Business Ecosystem & Strategy (2687-2293), 2025, vol. 7, issue 3, 69-78

Abstract: This paper aims to analyse the challenges and outcomes of “selling-to-finish†by small and medium enterprises (SMEs) in South Africa. “Selling-to-finish†is a global problem that threatens SMEs everywhere. It entails an unconventional business strategy that deviates from the main goal of most businesses, which is to make profit. In South Africa, “selling-to-finish†in SMEs has a detrimental effect on the country’s economic development, growth, and efforts to combat poverty. The misunderstanding of “selling-to-finish†hinders the growth of SMEs. This is because SME owenrs mistakenly believe that having more clients who buy products and service equates to selling for a profit without doing the necessary calculations. “Selling-to-finish†puts at risk not only the expansion and advancement of SMEs but also the achievement of Sustainable Development Goal (SDG) 1, which is to eradicate poverty and National Development Plan (NDP) vision 2030, which is to build a good economy and provides employment to all citizens. This chapter employed a desktop-based qualitative research. The paper argues that improper application of selling-to-finish causes major downfall of SMEs in South Africa. It found that the achievement of economic growth, development, and poverty reduction is seriously jeopardized by “selling-to-finish†in SMEs. As a result of “selling-to-finish†, SMEs face difficulties such as financial unsustainability, cash flow problems, decreased investment capacity, and competitive disadvantage. It recommends that SME owners should prepare well-informed monthly, quarterly, or annual cash flow statements. It goes on to advise SMEs to contract with outside firms to ensure that their cash flow figures are accurately prepared. Key Words:SMEs, poverty, poverty reduction, sustainable development goals (SDGs), selling-to-finish

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bussecon.com/ojs/index.php/ijbes/article/view/796/470 (application/pdf)
https://doi.org/10.36096/ijbes.v7i3.796 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adi:ijbess:v:7:y:2025:i:3:p:69-78

Access Statistics for this article

International Journal of Business Ecosystem & Strategy (2687-2293) is currently edited by Umit Hacioglu

More articles in International Journal of Business Ecosystem & Strategy (2687-2293) from Bussecon International Academy Bussecon International Academy, School of Business, IHU, Ordu cad. F-05 Blok No 3, 34480 Basaksehir, Istanbul, Turkey. Contact information at EDIRC.
Bibliographic data for series maintained by Umit Hacioglu ().