Skills required for the management of Black-owned small enterprises in Soweto

Abstract

Orientation: This study sought to identify which business and management skills are present amongst Black small-business owners in Soweto, as small businesses are not always aware of the skills needed in order to be successful in business endeavours.

Research purpose: The purpose of the study was to identify the most pertinent business and management skills required for the management of small enterprises in Soweto.

Motivation for the study: Small-business creation is viewed as being a major contributor to economic growth. The motivation of the study was to foster understanding with regard to which business and management skills are essential to the longevity of a small business and to foster growth in small-business creation.

Research design, approach and method: A qualitative survey was conducted amongst 25 Black-owned small enterprises in Soweto. Data were gathered by means of semi-structured interviews. Content analysis, using literature as basis for common themes forthcoming from the interviews, was employed as the means of data analysis.

Main findings: The findings indicated that most enterprise owners lack management and business skills, that there is no single key success factor in managing small enterprises, that competitive advantage is seemingly overlooked and that small-enterprise owners seem to be driven by non-monetary rewards.

Practical/managerial implications: The study affirmed that a contextualised approach to management is crucial, irrespective of the scope of the business and that strategy is considered in a different light in a small business.

Contribution/value-add: Although the findings did not suggest anything contrary to the literature relating to skills, they did highlight the uniqueness of strategic management aspects in small enterprises and also alluded to the communal outlook of Black small-enterprise owners.