| Summary: | The study was based on the evaluation of specific business–related factors concerning small
businesses in the formal sector.
The purpose of this study was to gain a clear understanding of the current education level of
employees in the small business industry. Income and business related costs applicable to
small businesses and formal business support was also evaluated in terms of its availability
to small businesses. By means of investigation it was possible to conclude to what extent
small businesses contribute towards economic growth in South Africa. The South African
government is definitely aware of the important role which small businesses play in economic
growth and poverty reduction.
Small businesses were analysed to determine the education level of both employees and
business owners. The contribution which business owners made to training and development
of their employees was also investigated. The income over a period of five years were
analysed to determine the financial sustainability of the businesses. The impact of business
related costs and the global economic recession were also investigated to determine the
future sustainability of small businesses. The empirical research was conducted at a financial
institution in Klerksdorp to assess the contribution which small businesses made towards
economic growth and development.
Small businesses' contribution towards education and training must be reconsidered as
limited opportunities exist within small business for training. Small business owners cannot
afford to send their employees away to obtain training and mainly make use of on–the–job
training. SETAS must focus more on small businesses when it comes to training and
alternative training methods must be reconsidered. The implementation of complex labour
legislation and the minimum wages law make unskilled labour very expensive for small
business owners. This must be reconsidered as small businesses cannot afford to employ
additional employees. Formal business support available to small business owners were
perceived not to be marketed very well although the lack of internet access may contribute to
the limited knowledge in this regard. The South African government must reconsider its
strategy to utilize small businesses to create jobs and to develop skills. === Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.
|
|---|
