Abstract
One of the most serious challenges that South Africa faces is the high unemployment level. The small business sector is globally recognised as a driver for job creation. However, low knowledge and skills levels in the South African population remain a serious problem and the lack of managerial knowledge and skills are often cited as the reason for the failure of small businesses. In addition, previous research confirmed that the education and skills level of an entrepreneur and the success of their business are related. One of the best ways to address unemployment is to leverage the employment creation potential of small businesses and to promote small business development through improving the competencies of the owners/managers of small businesses. The purpose of this study was to identify and prioritise the specific knowledge and skills that the owners’/managers’ of small businesses need in order to succeed. A self-administered survey questionnaire was used to collect data from 88 small business owners/managers in Johannesburg. Descriptive, as well as inferential statistical analysis, were performed. Based on the results of the factor analysis, a conceptual competency framework for the owners/managers’ of small businesses in South Africa was designed. The results of the study indicated that training needed in the areas of risk management, financial management, industry awareness and project management were significant. The four main competencies, as well as the ten underlying competencies are represented in the framework. Key words: Small businesses, entrepreneurship, competencies, training needs, owners’/managers of small businesses.
Highlights
Unemployment has again been highlighted in South Africa with recent events such as the 62 km “Economic liberation” march by thousands of young people, between Johannesburg and Pretoria (Timeslive, 2011)
This study addresses the improvement of skills and competencies of entrepreneurs, in the hope that this will create jobs and have a positive effect on creating opportunities for employment in South Africa (BankSeta, 2012)
In attempting to identify priority training needs in the small business in Johannesburg, the empirical results revealed that financial management, risk management, industry awareness and project management are the priority training needs
Summary
Unemployment has again been highlighted in South Africa with recent events such as the 62 km “Economic liberation” march by thousands of young people, between Johannesburg and Pretoria (Timeslive, 2011). South Africa is a developing country within the third world, with an estimated population of over 50.5 million people (SouthAfrica.info, 2011). Provide different estimations, for example the CIA World Fact book (2011) estimates the unemployment rate of the South African youth, aged between 15 and 24 years, at a total of 48.15%. According to Roos (2011) South Africa’s latest unemployment figures make the country the one with the highest official unemployment statistics among 61 surveyed by Bloomberg. Another 100 000 private-sector jobs were lost during the first few months of 2011
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