It has been widely acknowledged that Small, Medium and Micro enterprises (SMMEs) possess certain attributes akin to entrepreneurship that make them indispensable tools for economic growth and development. These small businesses, however, face a variety of challenges especially at their start-up and growth phases. Several factors account for these challenges faced by small businesses. Among these factors is the regulatory environment which comprises a variety of factors. Coming in the form of high taxes, bureaucracy, labor laws and corruption (which stems from the other factors), the regulatory environment has a significant effect on the growth of the small business sector. Although the importance of regulation cannot be denied, it is critical to examine how the regulatory environment may act as a hindrance to the growth of this sector and their ability to stay in business. This study was carried out in Polokwane, Capricorn District Municipality, Limpopo Province, South Africa. The study used the quantitative research method and the descriptive research design. The stratified and convenience sampling techniques were utilized. Thus, a sample size of 121 participants was selected. Questionnaires were utilized as the data collection tool and the collected data were analyzed using SPSS version 25. Descriptive statistics, cluster analysis and Kruskal Wallis were also used to analyze the collected data. Results indicate that to a certain extent, the regulatory environment influences the small business sector negatively. On the other hand, the efforts and skills of the business owner influence their success and ability to remain in business and by extension the growth of the sector. As the lack of skills and managerial capacity is also a major impeding factor, training institutions should come up with better ways of training business owners to ensure not only a growing SMMEs sector, but a profitable, sustainable one.
| Published in | International Journal of Business and Economics Research (Volume 11, Issue 4) |
| DOI | 10.11648/j.ijber.20221104.15 |
| Page(s) | 228-249 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2022. Published by Science Publishing Group |
Entrepreneurship, SMMEs, Regulatory Environment, Small Business Growth and Development
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APA Style
Tambe Kelly, Livhuwani Gladys Nkondo, Stanislous Zindiye. (2022). The Impact of the Regulatory Environment on Small Business Growth in Polokwane Township. International Journal of Business and Economics Research, 11(4), 228-249. https://doi.org/10.11648/j.ijber.20221104.15
ACS Style
Tambe Kelly; Livhuwani Gladys Nkondo; Stanislous Zindiye. The Impact of the Regulatory Environment on Small Business Growth in Polokwane Township. Int. J. Bus. Econ. Res. 2022, 11(4), 228-249. doi: 10.11648/j.ijber.20221104.15
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Download@article{10.11648/j.ijber.20221104.15,
author = {Tambe Kelly and Livhuwani Gladys Nkondo and Stanislous Zindiye},
title = {The Impact of the Regulatory Environment on Small Business Growth in Polokwane Township},
journal = {International Journal of Business and Economics Research},
volume = {11},
number = {4},
pages = {228-249},
doi = {10.11648/j.ijber.20221104.15},
url = {https://doi.org/10.11648/j.ijber.20221104.15},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221104.15},
abstract = {It has been widely acknowledged that Small, Medium and Micro enterprises (SMMEs) possess certain attributes akin to entrepreneurship that make them indispensable tools for economic growth and development. These small businesses, however, face a variety of challenges especially at their start-up and growth phases. Several factors account for these challenges faced by small businesses. Among these factors is the regulatory environment which comprises a variety of factors. Coming in the form of high taxes, bureaucracy, labor laws and corruption (which stems from the other factors), the regulatory environment has a significant effect on the growth of the small business sector. Although the importance of regulation cannot be denied, it is critical to examine how the regulatory environment may act as a hindrance to the growth of this sector and their ability to stay in business. This study was carried out in Polokwane, Capricorn District Municipality, Limpopo Province, South Africa. The study used the quantitative research method and the descriptive research design. The stratified and convenience sampling techniques were utilized. Thus, a sample size of 121 participants was selected. Questionnaires were utilized as the data collection tool and the collected data were analyzed using SPSS version 25. Descriptive statistics, cluster analysis and Kruskal Wallis were also used to analyze the collected data. Results indicate that to a certain extent, the regulatory environment influences the small business sector negatively. On the other hand, the efforts and skills of the business owner influence their success and ability to remain in business and by extension the growth of the sector. As the lack of skills and managerial capacity is also a major impeding factor, training institutions should come up with better ways of training business owners to ensure not only a growing SMMEs sector, but a profitable, sustainable one.},
year = {2022}
}
TY - JOUR T1 - The Impact of the Regulatory Environment on Small Business Growth in Polokwane Township AU - Tambe Kelly AU - Livhuwani Gladys Nkondo AU - Stanislous Zindiye Y1 - 2022/08/31 PY - 2022 N1 - https://doi.org/10.11648/j.ijber.20221104.15 DO - 10.11648/j.ijber.20221104.15 T2 - International Journal of Business and Economics Research JF - International Journal of Business and Economics Research JO - International Journal of Business and Economics Research SP - 228 EP - 249 PB - Science Publishing Group SN - 2328-756X UR - https://doi.org/10.11648/j.ijber.20221104.15 AB - It has been widely acknowledged that Small, Medium and Micro enterprises (SMMEs) possess certain attributes akin to entrepreneurship that make them indispensable tools for economic growth and development. These small businesses, however, face a variety of challenges especially at their start-up and growth phases. Several factors account for these challenges faced by small businesses. Among these factors is the regulatory environment which comprises a variety of factors. Coming in the form of high taxes, bureaucracy, labor laws and corruption (which stems from the other factors), the regulatory environment has a significant effect on the growth of the small business sector. Although the importance of regulation cannot be denied, it is critical to examine how the regulatory environment may act as a hindrance to the growth of this sector and their ability to stay in business. This study was carried out in Polokwane, Capricorn District Municipality, Limpopo Province, South Africa. The study used the quantitative research method and the descriptive research design. The stratified and convenience sampling techniques were utilized. Thus, a sample size of 121 participants was selected. Questionnaires were utilized as the data collection tool and the collected data were analyzed using SPSS version 25. Descriptive statistics, cluster analysis and Kruskal Wallis were also used to analyze the collected data. Results indicate that to a certain extent, the regulatory environment influences the small business sector negatively. On the other hand, the efforts and skills of the business owner influence their success and ability to remain in business and by extension the growth of the sector. As the lack of skills and managerial capacity is also a major impeding factor, training institutions should come up with better ways of training business owners to ensure not only a growing SMMEs sector, but a profitable, sustainable one. VL - 11 IS - 4 ER -
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