Abstract:
Unemployment is the biggest social challenge facing South Africa as a developing nation. In response to this challenge, ordinary young and old citizens have sought means to create their own jobs by starting small companies. However, many of the small companies have dismally failed during the initial stages of entrepreneurship. This has contributed to a high wastage of limited resources.
This study sought to understand the causes of small business failure by focussing particularly in the manufacturing industry because of its potential to create more jobs and contribute to economic growth. The study investigated the role played by different stakeholders in the development process of the manufacturing industry by conducting semi-structured interviews with both the entrepreneurs and the supporting stakeholders in the form of the development finance and the large manufacturing corporates. The analysis of the collected data was thematic and inductive in its approach with the intention to formulate and propose a business model framework that could be useful to the industry. The creation of the business model framework was informed by the data that indicated the required conditions that can assist to start-up, sustain and grow the manufacturing entrepreneurs.
