In your opinion and according to your research or experience, how successful are Small to Medium Enterprises in South Africa?

The total number of small and medium enterprises (SMEs) in South Africa has been increased.

Despite this growth in the number of SMEs, the successful rate of SMEs is less. Though they are contributing to the growth and employment in South Africa, many of them fail to succeed. The statistics by the Department of Small Business Development (DSBD) many of the SMEs say about 70% to 80% fail in the first year itself and only about half of the survivors function for at least next five years.

There are many factors both internal and external that contribute towards the failure of SMEs. The financial support for SMEs is very less in South Africa. SMEs require some financial aid for their growth and sustainability. Poor credit conditions for SMEs in South Africa, especially on the banking side, is the another external factor for failure. Other external factors are poor logistics management, competition, rising business costs etc. Apart from these, some internal factors also hinder the success. They are poor management, failure to meet customer needs, lack of efficient human resources etc.