Purpose -The purpose of this paper is to examine factors that hinder the growth of small businesses in South African townships, to create awareness of these factors and to develop guidelines for small business owners to promote successful business enterprises. Design/methodology/approach -The study was exploratory, descriptive and qualitative in nature. Semi-structured interviews were used to gather data. A response rate of 93 per cent was obtained from a sample of 30 businesses. Findings -The slow growth rate can be attributed partly to the lack of support that small, medium and micro-enterprises receive from support institutions, and partly to their own internal weaknesses. The findings furthermore revealed that the most common causes impeding business growth are a lack of legal knowledge, a lack of funding and a general lack of business acumen.Research limitations/implications -The study was limited to the micro-, very small and small sectors of small businesses. Medium-sized businesses were not included in the sample. The research could be replicated in other similar townships to determine whether similar results could be obtained. Originality/value -The study adds to the knowledge of challenges that small businesses face in Black townships and how these challenges could be minimised. Strategies recommended for ensuring the growth of small businesses are that government intensify information campaigns of their support services and encourage business owners to affiliate with local business chambers for business support purposes. Business owners and their staff should also prioritise business training.

The increasing number of businesses closing down and the persistent slow growth of small and medium enterprises (SMEs) within the manufacturing sector is a serious concern globally, including in South Africa. The SMEs that are currently existing are operating below the required efficiency level. Physical and technological capital efficiency integrating manufacturing systematic planning, work study, standardisation and inventory management to improve the profit of SMEs in Gauteng South Africa is inadequate, which is a major concern. This study aimed to explore the physical and technological capital constraints affecting SMEs’ profit growth and develop the physical and technological capital efficiency adoption model merging manufacturing systematic planning, work study, standardisation and inventory management for SME profit growth in Gauteng. The study was qualitative, exploratory and descriptive in nature. Face-to-face interviews were conducted targeting 15 owners/managers amongst SMEs in Gauteng. The findings show the most common causes of slow profit growth, which involve poor material handling, unfavourable workplace layout, unscheduled machine maintenance, network challenges, failure to adhere to workplace standards, insufficient product and material recording systems and poor work methods and procedures. The study revealed major concerns for SMEs that required intervention for these enterprises to sustain their profit growth. Thus, the adoption of the model concerning the incorporation of physical and technological capital efficiency tools to advance manufacturing operations be considered as the contributing insight into the profit growth of SMEs in Gauteng. Thus, this study recommends that the government creates an enabling environment for the adoption of this model for SMEs.