Challenges faced by many organisations supporting small businesses and cooperatives which cause a high failure rate of SMMEs and Cooperatives are:

  • Limited resources and access to finance.
  • Cumbersome bureaucratic procedures in setting up, operating and growing  a small business or cooperative in South Africa.          
  • Low levels of education and training among the Leadership who are Board members  or volunteers.  This results in a high failure rate of small businesses  and cooperatives.   
  • Lack of relevant experience and business skills in what they do.
  • Lack of training and on-going support.
  • Lack of knowledge and exposure in the industries  in which their members operate.
  • Lack of knowledge about procurement and funding requirements.
  • Few  business role models in our communities. 
  • Poor financial controls and Management Skills.
  • Lack of effective Management Support.
  • Lack of Local Business Coaches & Mentors.
  • Inability to communicate and negotiate good prices  from big suppliers.
  • Lack of access to business opportunities.
  • Late payment of small service providers by government departments.
  • Lack of proper infrastructure and training facilities to support their members.
  • Not cultivating strategic partnerships that could add value to their projects which can substantially increase sustainability.