Government support and factors hindering small business survival in the Kroonstad area

Abstract

The study was undertaken in the Kroonstad area, Free State Province where a large number of people live below the poverty line and the unemployment rate is high (65%), compared to 30% in the Province as a whole. The article explores factors that hinder the survival of small businesses in the Kroonstad area in order to describe guidelines for government support that may enable those small businesses to be successful. The objectives of the study were threefold: firstly, to describe factors that influence the success of small businesses in this area; secondly, to identify education and training needs of entrepreneurs, and thirdly, to describe guidelines for government and other support that may enable these small businesses to succeed. A qualitative, explorative and contextual research design was used. Primary data was collected by means of phenomenological interviews. Secondary data included analysis of research work done in other similar areas. About 70% of the respondents did not know of government agencies that offer financial assistance, training and advice to entrepreneurs and small businesses. Only 30% of the respondents had business training, 70% had management training and only 10% had entrepreneurial training.

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