Critical success factors of successful Indian entrepreneurs in the Tshwane metropolitan area

Abstract

This work seeks to explore the critical success factors that influence the success of Indian small business owners in the Tshwane area. To achieve this, the objective of the study is to confirm whether there are significant differences between a successful and less successful group of business owners in terms of general management skills, personal characteristics and entrepreneurial orientation and financing of the business. Through an analysis of theoretical information and empirical results it is possible to facilitate a better understanding of how Indian entrepreneurs operating in small and medium enterprises sustain success, thus enabling learnings that contribute to the body of knowledge relating to entrepreneurship development in South Africa. From the literature it became clear that cultural dimensions have an impact on the entrepreneurial process. The arrival of Indians to South Africa has also contributed to the Indian culture. The characteristics that describe ethnic entrepreneurs and success factors attributed to their success is described. Small and medium enterprises (SMEs) are crucial for the development of any country as they offer benefits of economic growth and employment generation. The success factors to sustain SMEs are also described. Data was collected from respondents by means of a convenience sample using a structured questionnaire consisting of 28 questions. A total of 106 useable questionnaires were returned, which were then classified into a successful and less successful group, based on the criteria of annual turnover and employment growth. The classification process resulted in the successful group containing 38 respondents while the less successful group contained 49 respondents. The findings of the study indicate that there are no significant differences between the comparable groups in relation to management skills and finance factors. There are, however, significant differences relating to personal factors, such as the level of education, family support and experience. Finally, an important learning is that the Indian entrepreneurs in this study are similar to ethnic entrepreneurs reviewed in literature. Copyright