The challenges and government support for SMEs at Sol Plaatje Municipality in the Northern Cape Province of South Africa

Abstract

Small and Medium Enterprises (SMEs) are essential catalysts for economic expansion and employment generation in local communities. Nonetheless, their elevated failure rate presents a considerable risk to economic sustainability. This study examines the fundamental difficulties leading to SME failures in the Sol Plaatje Local Municipality (SPLM) in the Northern Cape, South Africa, and analyses viable ways to improve their sustainability and growth. Data were gathered using a qualitative research approach through semi-structured interviews with 15 SME owners recruited via non-probability sampling. Thematic study, utilising ATLAS.ti software, identified multiple persistent challenges encountered by SMEs in the region. These encompass restricted access to technology, deficient infrastructure, financial limitations, poor training, elevated unemployment, constrained market access, and safety issues. Factors like delayed payments, political meddling, unfair competition, the repercussions of the Covid-19 outbreak, and insufficient mentorship further impede SME development. The study assessed current government support channels, highlighting their benefits and deficiencies. The findings highlight the necessity for focused policy interventions, capacity-building measures, and enhanced support structures to bolster the resilience and long-term sustainability of SMEs in SPLM.

Keywords: {'name': 'Sol Plaatje Municipality, SME Challenges, Government Intervention, Failure rate, Sustainability.'}

Authors & affiliations

Dikeledi Betty Nkoe
Affiliation not supplied

Ntsieni Fitzgerald Ramasimu
Affiliation not supplied

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