Micro enterprise owner perspectives on performance: Insights from selected municipalities in Mpumalanga Province, South Africa

Abstract

Interest in the performance of small, medium and in particular Micro enterprises (MEs) continues to grow
around the globe including South Africa fuelled mainly by the notion, that small business development is a
critical ingredient for the creation of new employment and for addressing high un-employment rates. There
are a range of factors that have been associated with both successful and poor performance among small
enterprises in particular Micro enterprises (MEs). However few studies have actually directly consulted
with owner/managers about their views on what leads to successful and/or poor performance. This study
is instructive in that it utilizes an inductive approach involving mixed methods to identify the key factors
that are perceived to be influencing the performance of Micro enterprises (MEs) in South Africa’s
Mpumalanga province. Data were obtained via interviews from a purposive sample of 15 ME owners. The
effects of themes such as access to funding, white collar crime, government training and other
interventions were investigated. Findings show that owners were experiencing serious problems 1) where
access to funding was concerned, 2) in dealing with crime 3) due to lack of appropriate education and
training 4) as a result of lack of access to government funds and 5) due to stifling government regulations.
Overall, the findings point to a general mismatch between government intentions and practices where ME
support is concerned thus negatively affecting ME performance in general.