Abstract:
Small and Medium Enterprises (SMEs) have an important role to play in the development of the country. The SME sector contributes immensely to the economy by reducing the level of unemployment, reduction in poverty levels, promoting of entrepreneurship activity and assisting in the prosperity of the nation. In addition to the above, SMEs are generally inexpensive to start and have the potential to generate economic growth in South Africa. This research study explored the experiences, perceptions, role and challenges of SME owners and managers in reducing unemployment in Durban. The study made use of an interpretivist qualitative methodology to gain an in-depth understanding of the role SMEs play in reducing unemployment in Durban, Kwa-Zulu Natal. Non-probability purposive sampling was the sampling method used which further made use of semi-structured interviews as the data collection tool for this study. The data analysis was performed using thematic content analysis and made use of the Five Stages of Business Growth to deduce and address the research questions. The significant findings of the study revealed that owners and managers within the SME sector in Durban experienced difficulties in their role due to the lack of access to financial resources, high operating costs and inadequate managerial skills and competencies were found to be the major challenges faced by SMEs. The findings also indicated that SMEs are not getting enough support from the government and other development agencies.
