SMEs Death by Regulations: An Investigation into the Qualifications and Skills Required in the SME Financial Sector

Abstract

The financial services sector faced numerous challenges of a macro and market nature, even before the financial and economic downturn in 2008, which aggravated the competition among SMEs even further. The importance of possessing the correct skills for a business became increasingly important, placing a higher premium on the identifying and maintaining of proficient employees in SMEs. These required skills also became increasingly significant in the financial sector. The aim of this study is therefore to investigate the qualifications held and skills required by SMEs in the financial services sector of South Africa in order to address the various regulatory issues and requirements. A non-probability quota sampling approach was used, where 32 small business respondents in the financial services sector participated in the study. The study revealed that South African SMEs in the financial services sector lack the necessary qualifications and skills required to successfully grow and develop their businesses.