IMPACT OF SELECTED DEMOGRAPHIC VARIABLES ON THE SUSTAINABILITY OF THE SMALL, MEDIUM AND MICRO ENTERPRISES (SMMEs) IN SELECTED COMMUNITIES OF MATJHABENG IN WELKOM

Abstract

The study was prompted by the dwindling economic activities in the Goldfields area. Given this situation, the researcher decided to investigate the impact of the selected demographic variables on the sustainability of SMMEs in selected communities of the Matjhabeng municipality in Welkom. SMMEs are the main drivers of any vibrant economic activity. The selected demographics included the owner/manager's education qualifications, age, and previous work/business experience including their consumers' household income as well as their consumers’ mobility. A research survey questionnaire was used to gather data from the SMMEs' owners/managers who were involved in the daily running of these businesses. The findings from the current study were extrapolated to the province and the entire country as conditions that pertain to the Matjhabeng area, a small, rural area of the Free State province, are not expected to vary much from what happens currently in the country in general. Data for this research was then analysed using statistical methods. In terms of the demographic factors leading to business success, the education level of the owner/manager showed no relationship with business success. The majority of respondents had matriculated, a few had post-schooling and none possessed post-graduate qualifications. A relationship between the age of owner/manager and business success was found important in the majority of respondents who were between 35 and 39, suggesting maturity is needed to operate a business successfully. Regarding previous business experience of owner/manager, the research revealed that the majority of respondents had previous experience, confirming association of this variable with SMME success. The consumer’s household income was considered an important variable but was shown in the research to be less significant than the literature suggested; the majority of the participants' customers are in the low income level. On consumer mobility, the research showed that the majority of respondents indicated that although there was an increase of consumers in their areas of operation this did not translate into positive business success, notably due to the closure of mines in this area. In terms of recommendations from the findings of this research owners/managers should improve their qualifications to be more effective. They should also do market research to position their SMMEs advantageously in the market.