SKILLS REQUIRED FOR THE MANAGEMENT OF SMALL ENTERPRISES IN THE RETAIL SECTOR IN SOWETO Ellen Nkosi and Dr Maria Bounds
Format of the presentation Recommendations Why the study Findings Introduction of the study
Introduction SME high failure rate Raises concerns Hence the study For owners and for Government
Introduction Population: Retailers from Soweto Sampling frame: 100 retailers With 5 years or more Sample: 25 retailers in Soweto with 5 years
Why the study? Overall purpose: identify the business and management skills required in the retail sector in Soweto. Primary objective: determine skills contributing to the survival of small enterprises with 5 years or more.
Importance of marketing skills To a small extent 1 234 To a great extent 5 Total Freq.08221325 %0328852100
Importance of financial skills To a small extent 1 234 To a great extent 5 Total Freq.01306625 %05252024 100
Importance of legal skills To a small extent 1 234 To a great extent 5 Total Freq.01733225 %06812 8100
Importance of conceptual skills To a small extent 1 234 To a great extent 5 Total Freq.0818825 %0324 100
Importance of interpersonal skills To a small extent 1 234 To a great extent 5 Total Freq.00851225 %00322048100
Importance of technical skills To a small extent 1 234 To a great extent 5 Total Freq.11103 25 %44401240100
Findings Assistance to a great extenta moderate extent a small extent Business skills Marketing skills60%8%32% Financial skills48%0%52% Legal skills20%12%68% Entrepreneurial skills 56%20%24% Management skills Conceptual skills 64%4%4%32% Interpersonal skills 68%32%0% Technical skills52%40%8%
Findings Most retailers lack business skills Most retailers benefit from management skills e.g. Financial 52% Legal 80% such as Conceptual 64% Interpersonal 68%
Findings No single skill can be isolated as a key factor Most regrets related to Financial issues Training contributes To skills required
Limitations The population could not be determined, there is no literature or database that states the exact number of small retailers in Soweto. The sample size of the study and that the study was conducted in Soweto only, limit the findings in terms of generalisation. The data was collected at one time only.
Recommendations Basic business skills such as financial skills and legal skills are important to manage a business. Foresight and passion are indispensable for management of small enterprises. Training for business skills should be intensified and mentorship provided to retailers.
Conclusion Though identified skills appear to be key factors, they are not the only key factors for business success. There is no conclusive list of skills. Skills needed for business existence and growth increase as the business grows.