An exploration into the dimensions of measuring MSME success in Durban central
DOI:
https://doi.org/10.20525/ijrbs.v14i6.4072Keywords:
Success dimensions, Performance, Financial metrics, Non-financial Metrics, MSMEsAbstract
The aim of this study is to explore the dimensions used to measure the success of MSMEs in Durban Central. Despite the vital role MSMEs play in the area's economic landscape, there is a lack of research on the specific success dimensions used by these businesses. A cross-sectional and descriptive research design was employed for this study, utilising a quantitative approach. 217 MSMEs in the retail sector of Durban Central received structured questionnaires. Statistical analysis, including descriptive and inferential statistics, was conducted using SPSS version 29. The findings suggest that MSMEs in Durban Central predominantly rely on financial metrics, such as turnover/sales and net profit, to measure their success. While financial indicators offer valuable insights into economic viability and financial health, there is a growing recognition of the importance of integrating non-financial metrics, such as customer referrals and product/service innovation, into performance assessment systems. This study contributes to the literature by shedding light on the dimensions used to measure the success of MSMEs in Durban Central, an area where research in this domain is scarce. Through a thorough examination of both financial and non-financial metrics, the study offers a comprehensive understanding of MSME performance evaluation practices in the region. The study recommends the significance of integrating non-financial dimensions into performance assessment systems and provide practical insights for enhancing MSME competitiveness and sustainability in the dynamic business environment of Durban Central.
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