The study was supported by the research objectives which are in line with the research questions.
The qualitative data presentation of each research objective or question, is done in the following sections.
Research objective: To ascertain the existing supporting institutions meant to develop SMMEs.
Research question: What are the existing supporting institutions that have been put in place in developing SMMEs?
This objective has been reviewed and assessed in the literature review section of this thesis. Both Lesotho and SA have established public and private supporting institutions in the quest to develop the SMME sector. These governments even set aside budgets for the fiscal year specifically for this purpose. These institutions have different mandates but are working towards one goal of achieving economic growth. Lesotho and SA consider the development of SMMEs essential to assist in achieving this goal. However, some obstacles such as access to finance still exist in both countries. This impacts negatively on entrepreneurs, as they start businesses but such businesses are unable to grow sustainably. It is important to investigate the existing supporting institutions
75 in both countries, as it is perceived that some SMMEs might be closing down at an early stage because they are not aware of the available institutions meant to develop them.
Research objective: To determine the role of the supporting institutions on SMMEs’ start- up
Research question: What is the role of supporting institutions on SMMEs’ start-up?
Lesotho and SA have taken initiatives to develop the SMME sector which has been reviewed in the literature. For instance, both public and private supporting institutions have been established to assist in SMMEs’ development. However, despite the efforts these governments have taken, some SMMEs might still find the business environment not conducive to favour businesses, while others find it suitable. Therefore, it is necessary to assess the frequency, ease or difficulty of accessing services from the supporting institutions, which in turn will determine whether the role the supporting institutions play encourages or hinders SMMEs’ start-up.
Research objective: To determine the extent to which the supporting institutions influence sustainable growth of SMMEs
Research question: What is the role of supporting institutions on sustainable growth of SMMEs?
There are supporting institutions established to help SMMEs to grow sustainably, however, as it has been a point of interest in this study, it is perceived these institutions are unable to accomplish their goal. It is possible for micro enterprises to graduate to small enterprises and ultimately to medium enterprises, however, in some cases these enterprises do not even graduate to the next level, instead they close down at an early stage. Governments set small business policies to develop these enterprises, but as already mentioned it is not always the case. It is therefore, necessary to determine whether SMMEs only graduate from inception to survival, to growth, to expansion, or to maturity (Chetty, 2009:254).
Research objective: To assess if relevant training is given to SMMEs’-owners by the supporting institutions
Research question: Do the supporting institutions provide relevant training to SMMEs?
This objective has been reviewed and assessed in the literature review section of this thesis. As mentioned earlier governments even set aside budgets for the training of entrepreneurs. Business Development Service providers are expected to equip entrepreneurs with the necessary training.
76 It is perceived that a proper training needs analysis has to be done before training commences.
After the training, entrepreneurs are expected to be able to prepare business plans that would enable them to obtain start-up funding, and to have acquired business management skills that will assist them in running their businesses. Therefore, it is essential to assess if SMMEs’ owners are provided with the relevant training at different phases.
Research objective: To measure the ease of access to supporting institutions’ finances by SMMEs
Research question: How accessible are supporting institutions’ finances by SMMEs?
This objective was achieved through a detailed analysis of secondary data. It is perceived that finance contributes in the start-up, survival, growth, expansion and sustainable maturity of the business. Without sufficient funds SMMEs struggle to grow to the expected level. In an attempt to improve the overall economic environment in both economies, these governments have established financial institutions in an effort to develop the SMME sector. However, SMMEs’
owners still find accessibility to finance as a huge challenge. It is also perceived that high interest rates, collateral requirements and absence of a lease are barriers to funding. The inaccessibility of funds impacts negatively on SMMEs, as they close down early because they are unable to grow sustainably.
Research objective: To assess if SMMEs’ owners are satisfied with the services provided by supporting institutions
Research question: Are SMMEs’ owners satisfied with the services provided by supporting institutions?
This objective was achieved through a detailed analysis of primary and secondary data. There are existing supporting institutions which are perceived to be well established. They provide necessary services to SMMEs’ owners, however, their effort is frequently questioned. It is crucial to assess if SMMEs’ owners are satisfied with the services provided by supporting institutions, so that services are not just continually provided yet they are not meaningful to the recipients or beneficiaries. Amongst others, the satisfaction of the SMMEs’ owners can be measured by the demand for further service provision and paying back the borrowed money from the financial institutions on time.
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