Education Levels and Managerial Skills as Challenges of Entrepreneurship at eDumbe Local Municipality in the Northern KwaZulu-Natal Province of South Africa

While entrepreneurs living in poverty face absence of institutions and resources, in South Africa, few
studies have been undertaken on entrepreneurial development in rural areas. Entrepreneurship is
considered as one of the vehicles, to take people out of unemployment. This paper sought to identify
the dearth of managerial skills and level of education among the SME owners and managers. A
quantitative approach using a questionnaire and purposive sampling method was used for data
collection from small and medium enterprises in both the informal and formal sector. SPSS software
package was employed for the analysis and presentation of data. The findings revealed that bulk of
small businesses started by entrepreneurs with little or no education struggle to make it past the startup
phase. The outcome of the study will help in understanding the scale of the problem and with
sanctioning targeted actions aimed at assisting affected SMMEs in the area. It is also envisaged that
the insight obtained from the study will not only assist with policy-making but also with the
implementation of skills development programmes targeting SMEs growth and sustainability. For any
interventions to be effective they should be brought to the level of the intended recipients, hence the
importance of knowing education levels. By knowing the managerial and education levels of SMME
owners and managers, the responsible authorities can adapt their policy interventions accordingly to
maximise the impact.