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Small, Medium and Micro-Enterprises are non-subsidiary, independent organizations
which employ a small number of employees (Dr Tumi, 2019). Mainly known as one
of the drivers of job creation in South Africa, they also face multiple hurdles that
make it challenging for South African SMMEs to succeed (Lefa, 2015). This essay is
going to examine the challenges experienced by the SMMEs and entrepreneurs
throughout the different business industries in South Africa.
ACCESS TO FUNDING
A crucial obligation to start a business is getting capital. Entrepreneurs and SMMEs
should have capital for production, and to obtain apparatuses to get the businesses
flowing. Strict finance requirements create challenges to access funding, and with
the banks being the major foundation of funds, alternative sources are not directly
accessible to SMMEs. Insufficient monetary assistance from the government and
banks lead to the potential and current small businesses to be under pressure (Dr
Tumi, 2019). The expensive obligations set by banks, such the need for securities
and sponsors make it hard for SMME companies to even expand and in some cases
