Key performance drivers of small enterprises in the manufacturing sector in KwaZulu Natal province, South Africa

Abstract

This paper sought to establish key performance drivers for small, medium and micro enterprises (SMMEs) in the manufacturing sector in KwaZulu Natal (KZN) province, South Africa. A quantitative approach was adopted, utilising three-year panel data of manufacturing small enterprises. The results utilising Fixed Effects panel data modelling technique, revealed that productivity, permanent and temporary workers have a positive effect, whilst company age and unemployment have a negative effect on SMMEs sales performance. Based on these results, it was recommended that SMMEs should leverage their human resources to drive sustainable performance. It is also important that key interventions targeting the SMME sector should not only focus on internal but external environment drivers like unemployment which have a significant impact on the performance and thus long-term survival.