Revisiting the Economic Factors which Influence Fast Food South African Small, Medium and Micro Enterprise Sustainability

Abstract

In order to stimulate both developing economies and developed economies around the globe policy makers have, over the years, focused their attention to Small, Medium and Micro Enterprises (SMMEs). These business entities are often regarded as the lifeblood of economies around the globe however SMMEs are reported to have high failure rates. For example, in a South African dispensation, the failure rate of SMMEs is considered to be among the worst in the world as approximately 75% fail within a period of 42 months after opening. Through research in the early-2000s, the cause of the excessive South African SMMEs failure rate has been pinned on a plethora of micro-economic factors and macro-economic factors. Over the years the list of economic factors which adversely influence the sustainability of South African SMMEs have not changed drastically, which may well probably explain the high failure rate of these business entities in more recent times. Thus, for this paper, empirical research was conducted to ascertain the extent to which 24 economic factors adversely influence the sustainability of South African SMMEs. Quantitative data were obtained from 116 members of management of South African SMMEs and stemming from the results, it was found that these economic factors still have a reasonable adverse influence on the sustainability of these business entities.

Keywords

• Small Medium and Micro Enterprises
• SMMEs
• South Africa
• Economic factors
• Sustainability