Abstract
The primary purpose of this rural study was to compare the challenges that impede successful operations of entrepreneurial activities and small businesses. Through quantitative design, a seven-point Likert-scale questionnaire was utilized to gather primary data. Two sampling techniques, namely simple random and purposive, were applied to select the research participants. Based on a Likert spectrum, 267 questionnaires were administered to SME owners by the researcher, assisted by two research trainees. These questionnaires were ranked from (1) strongly disagree to (7) strongly agree. Two main questions, which provided guidance to this study, were certified reliable by the Cronbach alpha coefficient of 0.768 and 0.976. Data analysis was possible through the descriptive and inferential tools supported by the independent t-test, Pearson’s chi-square test, and cross-tabulation. The final outcomes demonstrate higher levels of challenges in the Frances Baard (FB) District than in the John Taolo Gaetsewe (JTG) District. This implies that owner-managers of small businesses in the FB District experienced more challenges in operating their businesses. The study recommends SME Policy Framework (SPF) training and intensifying the existing processes of monitoring after training to justify the owner-managers’ moral commitments.
Highlights
Academic literature suggests strong and positive association between entrepreneurial activities and economic fortunes (Acs, Desai and Hessels 2008; Bosma and Levie 2010)
The results showed that SME owners in the Frances Baard (FB) District experienced more Personal Challenges (PCs) in comparison to SME owners in the John Taolo Gaetsewe (JTG) District
Having conducted thorough analyses to explore the entrepreneurial challenges between the two rural districts of JTG and FB, it is significant to provide an in-depth discussion on the empirical outcomes by means of different statistical tools
Summary
Academic literature suggests strong and positive association between entrepreneurial activities and economic fortunes (Acs, Desai and Hessels 2008; Bosma and Levie 2010). The South African government has provided assistance over the years, especially to SMEs in rural areas (Fatoki and Smit 2011). SMEs in South Africa lack the potential to expand their operations from the survival stage to become large entities (Fatoki 2014). Across the country, the SME sector was unable to proceed from the stage of survival to the status of maturity (Fatoki and Garwe 2010). Several researchers were of the view that in South Africa up to 75% of newly established SMEs were unable to grow into operational businesses of sustained substance (Fatoki and Garwe 2010). The inability of SMEs in South Africa to attain the level of maturity has reached alarming proportions; a major concern for all spheres of government
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