Determinants of satisfactory entrepreneurial skills in retail businesses

Abstract

Braamfontein is part of the central business district of Johannesburg, South Africa. It is home to vibrant local and international footwear and textile business enterprises. The objective of the study was to assess and evaluate factors that affect entrepreneurial skills in footwear and textile businesses in Braamfontein. As part of the survey, data was gathered from a stratified random sample of size 586 retail business operators in the footwear and textile sector. The level of entrepreneurial skills of retail operators was measured by using a composite index developed by Worku (2021A) and Worku (2021B). Results obtained from factor analysis showed that the level of entrepreneurial skills of retailers was significantly influenced by profitability, the ability to produce a business plan in which a niche market is identified, and the ability to produce adequate collateral and fixed assets to support business loan applications submitted to money-lending institutions such as commercial banks and microfinance institutions.