Abstract
This paper examines customer’s perception towards product quality of automotive SMEs operating in the Durban metropolitan areas and identifies how small and medium enterprises (SMEs) in South Africa (SA) contribute significantly to job creation, wealth, social stability, economic growth and reduction of poverty. Product quality of automotive SMEs requires serious attention, as it can have ecological environmental impact leading to the negative economic growth contributed by the industry. The study is aimed to understand the factors affecting automotive SMEs in order to help entrepreneurs to improve product quality and examining the customer’s perception towards product quality. The study was conducted in Durban metropolitan areas using the survey method. The sample size of the study was 120 SMEs selected using convenience sampling with respondents completing the questionnaire. A combined method of both quantitative and qualitative techniques was employed, while the analysis of data was done using the Statistics Package for Social Scientists (SPSS) version 23.0. The findings of the study revealed that lack of managerial skills and development negatively compromises product quality of the automotive sector. Also the results revealed that the absence of financial support from financial institutions delays the improvement of stock in the business, as this is an obstacle resulting in the unsustainability of the SMEs. Further research with larger samples and the consideration of other cities is recommended.
Highlights
Small and medium enterprises are the engine of any country’s economic development and they play a vital role for providing employment opportunities (Marnewick, 2014, p. 1)
This paper examines customer’s perception towards product quality of automotive SMEs operating in the Durban metropolitan areas and identifies how small and medium enterprises (SMEs) in South Africa (SA) contribute significantly to job creation, wealth, social stability, economic growth and reduction of poverty
Product quality of automotive SMEs requires serious attention, as it can have ecological environmental impact leading to the negative economic growth contributed by the industry
Summary
Small and medium enterprises are the engine of any country’s economic development and they play a vital role for providing employment opportunities (Marnewick, 2014, p. 1). Small and medium enterprises are the engine of any country’s economic development and they play a vital role for providing employment opportunities The Republic of South Africa and Ghana are the most successful countries in Africa, which play a significant role in economic growth development in the SMEs Lawrence Mpele Lekhanya, Henry Lucky Dlamini, 2017. Lawrence Mpele Lekhanya, Department of Public management & Economics, Durban University of Technology, South Africa. Henry Lucky Dlamini, Department of Entrepreneurial Studies and Management, Durban University of Technology, South Africa
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