Abstract

Louise van Scheers* and Simon Radipere

This research investigates whether lack of managerial skills of small business owners is the main cause of business failure in South Africa. It is evident from the conducted research that small business owners lack certain managerial skill such as financial management, marketing and human managerial skills to operate their businesses successfully. The research findings confirmed that entrepreneurs of MSEs are in need of support services. It is equally evident that entrepreneurs of MSEs are constrained not only by financial factors but also by non-financial factors such as lack of education, inadequate technical skills, poor access to markets, lack of information and unreliable infrastructure. The research conducted confirmed that there is relationship between problems experienced by MSEs entrepreneurs and the managerial skills they possess. The research established that the lack of managerial skills has a negative impact on the success and viability of small businesses. The research concluded that the challenge would be to increase the pool of capable small business owners in South Africa. Improving the managerial skills of small business owners is of crucial importance, as small business is considered to be the panacea for South Africa’s unemployment problems and a stagnating economy