An analysis of business–related factors on small businesses

[摘要] The study was based on the evaluation of specific business–related factors concerning smallbusinesses in the formal sector.The purpose of this study was to gain a clear understanding of the current education level ofemployees in the small business industry. Income and business related costs applicable tosmall businesses and formal business support was also evaluated in terms of its availabilityto small businesses. By means of investigation it was possible to conclude to what extentsmall businesses contribute towards economic growth in South Africa. The South Africangovernment is definitely aware of the important role which small businesses play in economicgrowth and poverty reduction.Small businesses were analysed to determine the education level of both employees andbusiness owners. The contribution which business owners made to training and developmentof their employees was also investigated. The income over a period of five years wereanalysed to determine the financial sustainability of the businesses. The impact of businessrelated costs and the global economic recession were also investigated to determine thefuture sustainability of small businesses. The empirical research was conducted at a financialinstitution in Klerksdorp to assess the contribution which small businesses made towardseconomic growth and development.Small businesses' contribution towards education and training must be reconsidered aslimited opportunities exist within small business for training. Small business owners cannotafford to send their employees away to obtain training and mainly make use of on–the–jobtraining. SETAS must focus more on small businesses when it comes to training andalternative training methods must be reconsidered. The implementation of complex labourlegislation and the minimum wages law make unskilled labour very expensive for smallbusiness owners. This must be reconsidered as small businesses cannot afford to employadditional employees. Formal business support available to small business owners wereperceived not to be marketed very well although the lack of internet access may contribute tothe limited knowledge in this regard. The South African government must reconsider itsstrategy to utilize small businesses to create jobs and to develop skills.

[发布机构] North-West University