Practising Customer Service by Trial and Error: An Investigation into the Extent and Nature of Customer Service Training/Education Received by Owners of Small Business Enterprises in Central Johannesburg

George Mavunga

doi:10.5901/mjss.2014.v5n20p1475

Abstract

This paper looks at the extent and nature of customer service training received by owners of small business enterprises operating in central Johannesburg. Areas of the city covered in the study included Doornfontern, Jourbert Park and Hillbrow. The sample of small business owners who took part in the study consisted mainly of entrepreneurs in the retail of groceries, fast food, clothing and electrical gadgets. The survey method, using the questionnaire as a data gathering tool was used to collect the data. Semi-structured interviews were also used to follow-up on some of the issues that emerged from the responses to the questionnaire. It was established that most of the entrepreneurs had not received any formal training in such aspects of customer service as communication, hiring, training and retaining the best talent, creation of customer retention strategies, analysis of the business environment, creation of customer value and careful selection of pricing strategies, most of which are employed by established businesses. The entrepreneurs therefore gained some of these critical business skills by trial and error, from fellow entrepreneurs or in some cases, from family members such as parents. It was, however, also established that some of the entrepreneurs had received some form of formal training in some aspects of customer service through their own initiatives, those of the business associations that they belong to or those of government agencies under whose patronage they fall. All the entrepreneurs who took part in the study, however, still felt that more could still be done in terms of providing them with the training in customer service as it is critical for business success. Amongst other suggestions, the paper recommends the institutionalisation of training in customer service and other aspects of business such as finance, strategic planning and human resources management for entrepreneurs in central Johannesburg in a bid to improve the chances of their businesses’ success in the face of stiff competition from the big and well-established competitors. DOI: 10.5901/mjss.2014.v5n20p1475

Highlights

Business organisations on the South African economic landscape vary greatly in size from the multi-billion multinational companies in sectors such as mining and manufacturing to the very small sole traders operated from street corners or home backyards
This study focused on selected entrepreneurs running their businesses in Central Johannesburg
The second section of the business focused on the nature and extent of training in several aspects of customer service possibly received by the entrepreneur

Summary

Introduction

Business organisations on the South African economic landscape vary greatly in size from the multi-billion multinational companies in sectors such as mining and manufacturing to the very small sole traders operated from street corners or home backyards. This is in keeping with Brink et al’s (2003:4) view that while the causes of small business failure can either be external or internal, “...deficiencies in the internal environment are the major cause of SME failures, and revolve around management skills, financial knowledge, lack of expertise in functional areas such as marketing and human resource management.” This is confirmed by Pelser’s (2011) on the findings of a research by Njiro of the University of Johannesburg’s Centre for Small Business Development involving SMES in the Johannesburg townships of Soweto, Alexandra Tembisa and Sebokeng in which she concluded that what separates successful, small townshipbased businesses from failed enterprises is not much different from anywhere else in South Africa. This, she concluded, includes good customer service (32%), competitive prices (20%), quality offerings (16%), good community relations and support (14%), satisfied clients (14%) and commitment or dedication to the business (10%)

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Discussion

Conclusion