THE ROLE OF MARKETING SKILLS IN MITIGATING BUSINESS FAILURE AMONG ETHNIC SME OWNERS

Abstract

Abstract: Small and Medium Enterprises (SMEs) play a crucial role in the African economy, contributing significantly to employment and GDP. However, the high failure rates among SMEs pose a significant challenge, with research indicating substantial failure rates within the first few years of operation. This study focuses on ethnic SME owners in South Africa, aiming to investigate the correlation between their marketing skills and business failure rates. Using a sample of 2000 SME owners across nine provinces in South Africa, the research underscores the importance of enhancing managerial training, particularly in areas of administration, financial management, and marketing. Such skills are crucial for equipping SME owners with the ability to navigate challenges and make informed decisions, thereby improving business sustainability and economic growth. The findings highlight the critical need for targeted training interventions that go beyond basic skills, addressing specific business-focused competencies to foster SME resilience and success.