A systemic exploration of the external risk factors impacting SMEs survival in South Africa

Simple item page
dc.contributor.advisorBowen, Paul
dc.contributor.authorChimenya, Tinashe
dc.date.accessioned2025-11-06T10:47:23Z
dc.date.available2025-11-06T10:47:23Z
dc.date.issued2025
dc.date.updated2025-11-06T10:44:18Z
dc.description.abstractSmall and Medium Enterprises (SMEs) in developing countries have a high failure rate, and South Africa is no exception with most SMEs failing within their early years of commencement. Notwithstanding efforts to support SMEs in South Africa, the failure rate has remained high, and despite ongoing research, most SMEs are likely to fail. While research has been conducted in South Africa, few studies have identified the risk factors affecting SMEs, with none focusing on the interrelations of these factors. As a result, this research aimed to explore the key risk factors affecting the survival of SMEs in South Africa and to determine their interrelations using Interpretive Structural Modelling. This objective was addressed through the following research questions. a) What are the key risk factors affecting the survival of SMEs in South Africa? b) What is the relationship between the identified key risk factors? c) What is the root cause of the identified key risk factors? Interactive Management (IM), a systems thinking methodology, was used in the study. This approach was most suitable because of its applicability in addressing complex issues in a pluralistic environment. The IM methodology introduced a collaborative learning framework that enhanced research on the risks faced by SMEs in South Africa. This approach acknowledges the intricate and often chaotic nature of the SME business environment, characterized by rapid changes and unpredictability. By fostering collaboration among stakeholders, the IM methodology enhanced deeper insights for more effective strategies to be formulated for SMEs to thrive amidst the threatening presence of risks. The research was conducted through the four IM stages, namely, idea generation, idea clarification, idea structuring, and model interpretation. A total of 15 risk factors were selected for idea structuring by participants through voting for the most critical risk factors. The 15 risk factors were structured through a pairwise comparison activity to produce a digraph that shows the interrelations of the risk factors. Amongst these risk factors, skills shortages and natural disasters proved to be the core risk factors affecting SME survival in South Africa and, consequently, these two risk factors aggravate the other risk factors in the model.
dc.identifier.apacitationChimenya, T. (2025). <i>A systemic exploration of the external risk factors impacting SMEs survival in South Africa</i>. (). University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management. Retrieved from http://hdl.handle.net/11427/42126en_ZA
dc.identifier.chicagocitationChimenya, Tinashe. <i>"A systemic exploration of the external risk factors impacting SMEs survival in South Africa."</i> ., University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management, 2025. http://hdl.handle.net/11427/42126en_ZA
dc.identifier.citationChimenya, T. 2025. A systemic exploration of the external risk factors impacting SMEs survival in South Africa. . University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management. http://hdl.handle.net/11427/42126en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Chimenya, Tinashe AB - Small and Medium Enterprises (SMEs) in developing countries have a high failure rate, and South Africa is no exception with most SMEs failing within their early years of commencement. Notwithstanding efforts to support SMEs in South Africa, the failure rate has remained high, and despite ongoing research, most SMEs are likely to fail. While research has been conducted in South Africa, few studies have identified the risk factors affecting SMEs, with none focusing on the interrelations of these factors. As a result, this research aimed to explore the key risk factors affecting the survival of SMEs in South Africa and to determine their interrelations using Interpretive Structural Modelling. This objective was addressed through the following research questions. a) What are the key risk factors affecting the survival of SMEs in South Africa? b) What is the relationship between the identified key risk factors? c) What is the root cause of the identified key risk factors? Interactive Management (IM), a systems thinking methodology, was used in the study. This approach was most suitable because of its applicability in addressing complex issues in a pluralistic environment. The IM methodology introduced a collaborative learning framework that enhanced research on the risks faced by SMEs in South Africa. This approach acknowledges the intricate and often chaotic nature of the SME business environment, characterized by rapid changes and unpredictability. By fostering collaboration among stakeholders, the IM methodology enhanced deeper insights for more effective strategies to be formulated for SMEs to thrive amidst the threatening presence of risks. The research was conducted through the four IM stages, namely, idea generation, idea clarification, idea structuring, and model interpretation. A total of 15 risk factors were selected for idea structuring by participants through voting for the most critical risk factors. The 15 risk factors were structured through a pairwise comparison activity to produce a digraph that shows the interrelations of the risk factors. Amongst these risk factors, skills shortages and natural disasters proved to be the core risk factors affecting SME survival in South Africa and, consequently, these two risk factors aggravate the other risk factors in the model. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - Project Management KW - Small and Medium Enterprises KW - South Africa LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - A systemic exploration of the external risk factors impacting SMEs survival in South Africa TI - A systemic exploration of the external risk factors impacting SMEs survival in South Africa UR - http://hdl.handle.net/11427/42126 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42126
dc.identifier.vancouvercitationChimenya T. A systemic exploration of the external risk factors impacting SMEs survival in South Africa. []. University of Cape Town ,Faculty of Engineering and the Built Environment ,Department of Construction Economics and Management, 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42126en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Construction Economics and Management
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.subjectProject Management
dc.subjectSmall and Medium Enterprises
dc.subjectSouth Africa
dc.titleA systemic exploration of the external risk factors impacting SMEs survival in South Africa
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMSc
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
thesis_ebe_2025_chimenya tinashe.pdf
Size:
2.36 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.72 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Masters