Privacy Policy

WHY SMALL BUSINESSES FAIL

P Sola BAP(SA) GTP(SA)

According to a study by The Small Enterprise Development Agency (SEDA: 2007), a subsidiary of The DTI, South Africa has one of the highest failure rates of new SMEs in the world, at an estimated 75%.

Five out of seven(5/7) new small businesses started in South Africa failed within the first year. Based on the number of SMEs registered in South Africa, those SMEs could be generating over 10 million jobs. However this is not the case at the current moment.

The question is why do these SMEs fail? In the coming days I will expore each factor in detail maybe a few SMEs can be saved and extra jobs be generated.

Ready to get an Accountant?

We help you with the financial aspects while you focus on the running of your business