African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4194

Full Length Research Paper

Common causes of small businesses failure in the townships of West Rand district municipality in the Gauteng Province of South Africa

Solly Matshonisa Seeletse
Department of Statistics and Operations Research, University of Limpopo (Medunsa Campus), P.O. Box 107, Medunsa, 0207, Pretoria City, South Africa, solly.
Email: [email protected]

  •  Accepted: 17 October 2012
  •  Published: 07 November 2012

Abstract

 

The study examined the high failure rate of the small business in the West Rand region of the Gauteng Province, South Africa. The purpose was to investigate reasons for lack of sustainability of the small businesses of this region. The study was qualitative, characterised by exploratory and descriptive modes. Fifteen small businesses were interviewed using an interview guide (at Appendix). The reasons for their failure showed that these businesses mostly lacked in business understanding. They showed shortfalls in business and management. Recommendations covered suggestions for these businesses to improve understanding and practice of the modern business mechanisms, to approach local business colleges for working relationships and training, as well as to involve management consultants to revive them to start generating the needed revenue and minimum profits for survival.

 

Key words: Sustainability, business failure, small business, West Rand, township.