Evaluating managerial competence of small, medium and micro entrepreneurs to ensure sustainable economic development in eThekwini Municipal area

Abstract

This study was premised on the knowledge that the democratic government of South Africa has availed a lot of funding for SMMEs to start or develop their ventures. This is because it is an accepted fact that this sector has the ability to grow the country’s economy. The study then aimed to ascertain the extent to which the competence of Small, Medium and Micro Entrepreneurs (SMMEs) can impact sustainable economic development in eThekwini Municipal Area of South Africa. The study scrutinized the ability of the SMME managers and operators on how they can utilize available resources effectively and efficiently to ensure that their enterprises contribute to sustainable economic growth. Also, the factors that militate the growth and performances of SMMEs in eThekwini Municipal Area were examined. The basis through which this study was undertaken was that of human behaviour of SMME managers, operators and business owners as to how they can contribute to the economic development and survive in the competitive market.

Using simple random sampling, data was collected from various SMMEs in the eThekwini Municipal Area. A total of 229 entrepreneurs responded to the questionnaire, which made the sample of the study. This data was captured and analyzed on SPSS (version 24) and yielded both descriptive and inferential statistics.

The key findings of the study were that the entrepreneurs alluded to the fact that knowledge, skills, value judgments, behavioural characteristics and social networks were all very important in establishing and running a successful business. A challenge that emerged from the respondents was that they were not well equipped to identify business opportunities. They were, however, taking good care of their environments and were using their businesses to employ community members. Some of them did contribute to community development programmes.

The main recommendation that is made here is that potential entrepreneurs must be assisted with tools on how to identify business opportunities. This could also be an avenue for further research.