Running a small business is not for the faint of heart, as seen by the Mabopane business closures. Several businesses in that location have been in existence for over ten years, and they are now being forced to close due to a lack of support, whereas inhabitants in Mabopane support large brand retailers.
When we arrived, we discovered that the most popular shops had closed, colleges and internet cafés. Most of these businesses were popular from the 1990s until mid-2010 when they provided services to residents of Mabopane and Winterveldt, which were the only retail destinations.
The business Centre is located in Mabopane Unit E, M17 Highway, adjacent to the popular Central City Shopping Centre.
While there are some small businesses in a variety of industries that operate well and are consistently profitable, approximately 33% fail in the first two years, 50% fail after five years, and approximately 33% survive for ten years or more.
Like most entrepreneurs at Mabopane Business Centre, running a business is essentially dangerous. Successful entrepreneurs must be able to mitigate business-specific risks by marketing a product or service at a price that meets consumer demand.
Most small businesses fail within the first two years, 50% within five years, and 33% within ten years. Signs that a business is failing include low or lack of liquidity, inability to repay loans on time, inability to pay suppliers on time, late payments from customers, loss of customers, and unclear business strategy.
Signs that a business is failing include small levels or lack of cash, inability to pay back loans on time, inability to pay suppliers on time, customers that pay late, loss of clientele, and an unclear business strategy.
As they used to receive support from commuters from Mabopane Train station, the majority of the business owners in that area blame the lack of trains and the lack of government backing.
Some store owners attribute the demise of many local businesses to criminal activity. The “Druggies” rob their stores of items so they can resell it on the streets.
Local entrepreneurs in Mabopane claim it is very tough to compete with established enterprises and foreign nationals since they have the means of production.