ABSTRACT

South Africa lags behind among other developing and emerging market economies on business start-ups. Businesses that fail in a year is averaging between 50% and 60%, a figure quite high for a country struggling with achieving sustainable economic growth to reduce unemployment, inequality and poverty. This study identifies issues hurting SMMEs that need attention from both businesses themselves as well as from policymakers. The objective of this study is to identify key business success determinants using cross-sectional data that was randomly collected from informal businesses in Johannesburg/Pretoria in South Africa from 390 informal SMMEs. Using assets ownership as a yardstick for success in an ordered logistic regression, the study finds education status, income, employment growth, centre of operation, financial inclusion, experience, financial literacy and advertising budget were significant in explaining assets ownership (success) in South Africa. This study recommends that the government through its various institutions that deal specifically with small businesses come up with radical business training programmes so as to improve the finance literacy among small business. Also, small business owners should budget to fund their advertising budgets since it is found that advertising has a positive impact of firm success.

摘要

南非在创业方面落后于其他发展中和新兴市场经济体。一年中失败的企业平均为50％至60％，对于一个为实现可持续的经济增长而努力以减少失业，不平等和贫困的国家而言，这个数字相当高。这项研究确定了损害SMME的问题，需要企业本身以及政策制定者的注意。这项研究的目的是使用横截面数据来确定关键的业务成功决定因素，这些数据是从南非约翰内斯堡/比勒陀利亚的非正式企业中从390个非正式SMME中随机收集的。该研究使用资产所有权作为成功进行有序Logistic回归的标准，可以找到教育状况，收入，就业增长，运营中心，财务包容性，经验，财务知识和广告预算对于解释南非的资产所有权（成功）非常重要。本研究建议政府通过专门处理小型企业的各种机构提出彻底的企业培训计划，以提高小型企业的财务知识。此外，由于发现广告对企业成功有积极影响，因此小企业主应该预算预算来为其广告预算提供资金。