Impact of sustainable entrepreneurial indicators on SMEs business success in South Africa.

Abstract

There is a rising scholarly interest in sustainable entrepreneurship globally and across Africa. However, there has been limited consideration of how ongoing debates about the characteristics of sustainable entrepreneurship play out in African environments. Furthermore, what component of SE determines the success of SMEs is a topic of much academic debate. This article explores the influence of Sustainable Entrepreneurship factors (SE) on Small and Medium-sized Enterprises (SMEs) in South Africa. A simple random sampling was used to estimate statistical measures proportional to the population size of 3000 SMEs. A total of 1590 questionnaires were distributed and 980 responses were received. Multiple regression technique was used in estimations. The results indicated that financial resources and government support influenced the success of SMEs in South Africa. Findings also show that social index and environmental index had no significant impacts on the success of SMEs. It is obvious that premium is not placed on social and environment issues by SME operators in South Africa. Policy makers and stakeholders must recognise that small businesses operate in specific sectors, and that sector-specific factors have impacts across the spectrum of the economy. The article recommends that opportunities that increase financial resources, entrepreneurship skills, social capital, environmental awareness and networks needs promotion to foster sustainable entrepreneurship. This will require the enhancement of the growth potential of SMEs through access to information, ICT, and good infrastructure.