Barriers to Start-Up and Sustainable Growth of Smmes : A Comparative Study between South Africa and Lesotho

Barriers to Start-Up and Sustainable Growth of Smmes : A Comparative Study between South Africa and Lesotho

Author: 
Khoase, Refiloe Gladys
Publisher: 
Adonis & Abbey
Date published: 
2020
Record type: 
Responsibility: 
Derera, Evelyn, jt. author
McArthur, Brian, jt. author
Ndayizigamiye, Patrick, jt. author
Journal Title: 
African Journal of Business and Economic Research (AJBER)
Source: 
African Journal of Business and Economic Research, Vol. 15, No. 2, 2020, pp. 135 - 155
Abstract: 

In the African context, Small, Medium and Micro Enterprises (SMMEs) still face challenges that hinder their start-up and growth. This paper used a quantitative approach to identify commonalities and differences pertaining to impediments to SMMEs start-up and growth in South Africa and Lesotho. The findings reveal that although there are common barriers to SMMEs start-up and growth in both countries, these barriers are more pronounced in South Africa than in Lesotho. The Mann Whitney U test showed that the perception that access to finance, high interest rates and income tax are barriers to start a business is statistically significantly higher in South Africa than in Lesotho. In addition, statistically, high interest rates, income tax and high rental charges are significantly highly perceived as barriers to business growth in South Africa than in Lesotho. Thus, this paper advocates for tailor-made solutions to deal with these impediments.

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CITATION: Khoase, Refiloe Gladys. Barriers to Start-Up and Sustainable Growth of Smmes : A Comparative Study between South Africa and Lesotho . : Adonis & Abbey , 2020. African Journal of Business and Economic Research, Vol. 15, No. 2, 2020, pp. 135 - 155 - Available at: http://library.au.int/barriers-start-and-sustainable-growth-smmes-comparative-study-between-south-africa-and-lesotho