Özet:

Small and micro-enterprises are significant contributors to the economy of a country with regard to growth, employment and poverty alleviation. However, small and micro-enterprises in South Africa are faced with prevalent threats to their survival and growth. A lack of access to finance and the basic skills and knowledge to manage these enterprises create several challenges. This study analysed the motivations behind start-up and the most prevalent needs, especially regarding financial literacy, of small and micro-enterprise owners with the aim to assist these owners in overcoming the challenges. In total 50 small and microenterprise owners from a selected suburb took part in the study. Purposeful sampling was used. Data was gathered using a newly developed survey and analysed using SPSS. The study established that a significant number of enterprises were started out of necessity, with the majority of initial funding coming from personal capital. The findings further revealed a great need for financial literacy among the owners; however, funds to grow their enterprises seemed the greatest need. In addition to contributing to the limited corpus of data on small and micro-enterprises in South Africa, this study provides valuable insight into start-up motivation and financial literacy and support needs of small and micro-enterprises. This should be useful in establishing interventions to spur on enterprise start-ups and addressing the need for financial literacy. Relevant government departments should consider implementing an advisory programme for prospective enterprise owners before funding is granted, as well as a financial literacy mentorship tier programme for small and micro-enterprises. Furthermore, an opportunity exists for the Unemployment Insurance Fund to contribute in this regard by implementing an entrepreneurship training programme.

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