This paper is part of the International Journal of Applied Research in Business and Management (ISSN: 2700-8983), Volume 5, Issue 2, published in 2024.
Authors
Sthembiso Eugine Rodney Nkwinika, Lawrence Obokoh
Abstract
Managerial competencies are lacking in micro businesses in South Africa; the shortage, mainly micro businesses, has severely hampered the SMME sector. Due to the deficiency, the SMME sector still operates in a volatile market, significantly impacting micro businesses’ competitiveness. South Africa’s high micro-business failure rate can be ascribed to a lack of corporate governance framework and managerial competency. This study aimed at the impact of corporate governance on the managerial competencies of micro-businesses. Phenomenological (qualitative) approaches were used to address the lack of managerial competency affecting micro businesses to understand how this lack of managerial competency affects their ability to compete. According to exploratory research, one of the negative factors limiting micro-business competitiveness in South Africa is a lack of managerial competencies. Semi-structured interviews were one of the data collection methods employed in the study. The results showed that a lack of managerial competencies is one of the main reasons South African micro businesses are not competitive. The study concludes that the corporate governance framework is critical to the survival of South African micro businesses. To eliminate gaps in managerial competencies that negatively impact business competitiveness, the study suggested that micro-businesses should put in place suitable governance structures.
Suggested Citation (APA 7th)
Nkwinika, S., Obokoh, L. (2024). Impact of Corporate Governance Toward Managerial Competencies of Micro Business in South Africa. International Journal of Applied Research in Business and Management, 5(2). https://doi.org/10.51137/ijarbm.2024.5.2.26
