Abstract
The survival of Micro, Small and Medium Enterprises (MSMEs) depends on their ability to effectively manage the factors that affect their performance. The study identifies through literature review, the various factors that may be critical to the success of MSMEs in the retail sector, and therefore enhance their survival. Identification of Critical Success Factors (CSFs) is important in that it may bring to the attention of MSMEs those CSFs which need to be focused on in order to operate in a profitable and sustainable manner. Owner/manager commitment, employee commitment, business planning, innovation, management of costs, customers, suppliers, information, revenue, competitors, sources of finance, enterprise’s pool of resources and conformance to regulations were identified as some of the CSFs which influence the success and survival of MSMEs. The study is informed and guided by the stakeholder theory. The research lays a foundation for future study on performance measurement framework for MSMEs in the retail sector.
Highlights
Micro, Small and Medium Enterprises play a pivotal role in the economic development of any country
A review of extant literature suggests that the critical success factors for the performance of retail MSMEs are commitment of the owner/manager, employee commitment, business planning, management of information, management of revenue, management of costs, innovation, management of customers, management of suppliers, management of competitors, the enterprise’s pool of resources, conformance to regulations and management of sources of finance
There is an argument for a shift in focus from challenges related to lack of financial resources to viability of the business, entrepreneurial abilities of the owner/managers and use of modern management techniques to enhance performance and survival of MSMEs (Ramukumba, 2014:20)
Summary
Small and Medium Enterprises play a pivotal role in the economic development of any country. Very few studies have been carried out in the last two decades to discover the key factors that can prevent MSMEs from continual failure (Wild, 2010; Collett, Pandit & Saarikko, 2014; Lampadarios, 2016) and there is confusion about the factors and actions likely to facilitate their success (Liou & Smith, 2006; Laitinen, 2011). It appears there is no extant study which conclusively provide the meaning of success to MSMEs entrepreneurs, despite the fact that previous studies spell out the importance of having valid measures of success (Ahmad, Wilson & Kummerow, 2011).
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