The success factors of SMME's in New Brighton, Port Elizabeth

The important role played by small, medium and micro enterprises (SMMEs) in economic development has long been recognised by government at various levels in South Africa. The passing of the National Small Business Act, 1996 (Act 102 of 1996), and more significantly its Amendment Act of 2004 (Act 29 of 2004) which called into existence the Small Enterprise Development Agency (SEDA), as well as a range of strategies headed by the current Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises of 2005 bear testimony to a commitment on the part of the nation to small enterprise growth. There is vast research pertaining challenges facing small medium and micro enterprises (SMMEs) as well as factors that have a positive impact on the growth and success of these enterprises. This primary objective of this study was to identify successful SMMEs in the New Brighton Township, Port Elizabeth and investigate factors that have enabled them to maintain their stability over the years. Also, this study will investigated causes of SMME failure with the aim of providing possible solutions to these challenges. After a comprehensive literature review on SMMEs, the following variables were identified as possibly having an influence on the growth and profitability of small enterprises. These are: Entrepreneurial orientation; Customer focus; Human resources; Record keeping; Access to funding; External support; Training and education; Access to markets. These variables were used to construct research hypotheses and a conceptual model which could be used to address challenges faced by SMMEs