Challenges facing small and medium enterprises in Manzini, Swaziland.
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Date
2012
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Abstract
The economic environment is rapidly changing worldwide. Large corporations are
downsizing and big enterprises are outsourcing. This has made the existence of
Small and medium enterprises (SMEs), to be of critical importance to many
nations. These enterprises play a vital role in the economic growth of their
communities through job creation, innovation, poverty reduction and improving the
general welfare of citizens.
Although SMEs play a crucial role, there are a number of challenges that hinder
them from performing up to their full potential. It is disturbing to note that a number
of small and medium businesses are struggling to survive and those that are not
struggling, are also not growing to become big well established enterprises. This
suggests that a better understanding of how to improve performance may be
necessary hence a review of the underlying factors affecting their development
and performance of SMEs is required.
This study was undertaken to explore the challenges facing SMEs in the Manzini
region of Swaziland. The main aim was to investigate factors that contribute to the
success or failure of these enterprises. The research was conducted in the
Manzini city centre and a sample of 25 SMEs was selected. The qualitative
approach was used for the collection of data because this study sought to gain
better understanding of small businesses from the participants’ point of view.
Semi-structured interviews were used to collect data and an interview schedule
was used to guide the interviews.
The findings of the study reveal that lack of access to financial resources,
competition and high operating costs were found to be the major challenges faced
by SMEs. The findings also indicate that the SMEs are not getting enough support
from the government and other development agencies.
It is believed that this study will benefit the policy makers, development agencies,
and service providers by information that will assist in identifying the challenges
facing SMEs in Manzini. It is recommended that the government play a leading
role in creating an enabling environment for the development of successful SMEs.
Description
Thesis (MBA)-University of KwaZulu-Natal, Durban, 2012.
Keywords
Small business., Theses--Business administration., Swaziland--Economic conditions.