Interaction Effect of Selected Variables and Perceived Barriers of Performance of Rural SMEs

Abstract

Scientific surveys into performance of small and medium enterprises (SMEs) are gaining increasingly more popularity in emerging countries including South Africa. Rampant failures of these enterprises could be due to various perceived barriers including specific perceived barriers and owner-managers perceived barriers. The present study seeks to evaluate the interaction effect of specific perceived barriers and owner-managers’ perceived barriers on SMEs performance. Two hundred and eighty-two rural ownermanagers of small businesses participated in this empirical survey. Purposive sampling techniques was applied based on personal experiences of owner-managers of small businesses to select the participants for data. Being quantitative study, a self-designed questionnaire with open and closed-ended statements were distributed through a trained field worker to solicit primary data. The Statistical Package for Social Science version 23 was used to analyse data. Primary data analyses focused on descriptive and inferential statistics. In total four null and alternate hypotheses were formulated and assessed aided by a two-way ANOVA to determine the interactions between the selected variables and perceived barriers. Some key outstanding revelations emerged from this study. The performance of small businesses is affected by combinations of age and educational qualifications by owner-managers of small businesses. Besides, the study revealed combined effect of owner-managers perceived barriers and specific perceived barriers impact on business performance.