Barriers to viability in small businesses in the footwear and textile industry of Tshwane, South Africa
The South African Small Enterprises Development Agency (SEDA) provides financial and non-financial assistance to small, micro and medium-sized enterprises (SMMEs) in various economic sectors as a means of reducing the failure rate among SMMEs. The study is based on the 5-yearlong study (2007 to 2012) of 512 small, micro and medium-sized enterprises (SMMEs) that conduct business in the Tshwane region of South Africa conducted by Marivate (2014). In accordance with the definition of viability provided by Blank (2013), the study defines viable businesses as businesses that could operate without a loss for at least 3 years after start-up. The sample consists of 187 businesses that utilized financial services provided by the South African Government and 325 businesses that utilized non-financial services. The results show that long-term viability in the businesses that were selected for the study is significantly influenced by utilization of financial services, degree of entrepreneurial skills, and the ability to order large volumes of stock in bulk, in a decreasing order of strength. Utilization of financial services is significantly influenced by the degree of entrepreneurial skills, the ability to order large volumes of stock in bulk, and access to training opportunities on entrepreneurial or vocational skills. Utilization of non-financial services is significantly influenced by the age of business, past history of bankruptcy, and the practice of selling on credit.