Barriers to entrepreneurship in the Western Cape

Abstract

Research has shown that in first world countries, governments that have supported their SMMEs and entrepreneurs have grown and the economies have prospered. The contrary applies in countries that have imposed barriers and restrictions on the development of the SMMEs and entrepreneurs. There is a growing recognition of the importance of fostering SMMEs and entrepreneurial growth in South Africa. The small business sector has been identified as a very important sector and the government of the Western Cape has launched various strategies to improve the plight of the entrepreneur. This paper presents the results of a survey aimed at The target audience consisted of SMMEs within the technical maintenance, chemical cleaners and specialised lubricant products suppliers to the petro-chemical, marine, industrial and power-generating industry in the Western Cape area. The purpose of this research was to test the hypothesis. The acquisition of finances at the available financial institutions and the governmental ventures is a difficult and daunting task. The lack of management skills in small ventures is one of the key factors why these ventures fail, as well as the difficulty the businessperson has to contend with when it comes to handling of red tape with the starting up of the venture. These problems were seen to be the main contributing factors to failure of the SMMEs within the Westem Cape. Most of the sampled population supported the postulations that financial acquisition and management skills are barriers to entrepreneurship. The only factor that is contrary to the perception is the subject on red tape which was recommended for further study.