Abstract

Edward M. Rankhumise1* and Robert O. Rugimbana2

Interest in the performance of small, medium and in particular Micro enterprises (MEs) continues to grow around the globe including South Africa fuelled mainly by the notion, that small business development is a critical ingredient for the creation of new employment and for addressing high un-employment rates. There are a range of factors that have been associated with both successful and poor performance among small enterprises in particular Micro enterprises (MEs). However few studies have actually directly consulted with owner/managers about their views on what leads to successful and/or poor performance. This study is instructive in that it utilizes an inductive approach involving mixed methods to identify the key factors that are perceived to be influencing the performance of Micro enterprises (MEs) in South Africa’s Mpumalanga province. Data were obtained via interviews from a purposive sample of 15 ME owners. The effects of themes such as access to funding, white collar crime, government training and other interventions were investigated. Findings show that owners were experiencing serious problems 1) where access to funding was concerned, 2) in dealing with crime 3) due to lack of appropriate education and training 4) as a result of lack of access to government funds and 5) due to stifling government regulations. Overall, the findings point to a general mismatch between government intentions and practices where ME support is concerned thus negatively affecting ME performance in general.