JOHANNESBURG – It is widely accepted that small business owners and entrepreneurs need a network of support to stack the odds of success in their favour, and this is all the more important in difficult economic conditions.
Intuit QuickBooks, a leading accounting and business software provider, believes that small and medium enterprises (SMEs) are the engine of the economy and has launched an online community to support small business owners - which can be found at quickbooks.co.za under the support tab.
QuickBooks’s view on small businesses is echoed in academic literature. In a study called “The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities’ published in May 2019 in MDPI, the authors write: “In the prevailing competitive and challenging international economic situation, a viable and dynamic small and medium enterprises (SMEs) sector is essential to the economic progress of the respective country.
“Similarly, small and medium firms are considered as the engine of growth and play a significant part in creating economic development… Unfortunately, small businesses face a high rate of failure worldwide. Previous literature indicated that almost 40% of firms face failure during the first two years of their business start-ups in various countries worldwide.”
South Africa is going through a difficult period as the nation experiences record unemployment and a stuttering economy. Such conditions require a vibrant and strong SME sector to drive economic growth, and networking and community are vital to the success and prosperity of small businesses across the country.