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ERIC Number: EJ879567
Record Type: Journal
Publication Date: 2010-Feb
Pages: 7
Abstractor: As Provided
Reference Count: 37
ISSN: ISSN-0950-4222
SME Performance--Results from a Longitudinal Study
Isaacs, Eslyn; Friedrich, Christian
Industry and Higher Education, v24 n1 p63-69 Feb 2010
Small and medium-sized enterprises (SMEs) have become the backbone of industrialized economies. This trend is also evident in South Africa, where, however, there are more closures than expansions: it is believed that only around 1% of the micro-enterprises started with fewer than five employees grow to employ up to 10 people. Consequently, these businesses contribute little to the taxation base of the economy, thus depriving the country of potential and much needed tax revenue. The rhetoric about the importance of SMEs in relation to the sustainability of jobs and poverty alleviation is current in South Africa, as elsewhere. Yet no studies have been conducted in the country to confirm that SMEs do have the desired effects. This study was therefore undertaken to ascertain whether SMEs do indeed contribute to and/or are able to sustain jobs over time. Performance data on SMEs were collected over a three-year period. During this period, a very small number of businesses closed due to failure; others simply disappeared or ceased business operations without formally de-registering the business. (Contains 4 tables and 4 figures.)
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Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: South Africa