This research investigates percieved barriers faced by Small, Medium and Micro Enterprises operating in the South African motor body repair sector. Despite various support strategies spearheaded by both Government and private sector for the development of these small businesses, not much has been achieved in this particular sector due to lack of research.
An exploratory survey was carried out to ascertain barriers to enterprise development needs of auto body repairers. Funding opportunities are still scarce, causing a negative impact on equipment acquisitions, infrastructure development and access to market.
There is need for proper multiskilling training on motor body repairs. Support measures for enterprise development for auto body repairers include the need to set up dedicated lines of credit, acquisition of appropriate repair equipment from Original Equipment Suppliers, certified training from Original Equipment Manufacturers’, specific sector focus from various small business funded programmes, procurement of proper infrastructure and employment of better marketing strategies to remove poor business perception from the public. Unless measures are taken to address these problems the disadvantaged communities will forever lumber in poverty.
The major enterprise development need of the small businesses operating in the auto body repair industry is finance. During the interviews it was established that most small businesses are operating on shoe-string budgets, and this is severely affecting their cash management and growth opportunities. Most of the respondents indicated that they do not have state of the art equipment that is required to maintain modern vehicles. Khula Enterprise, which is dedicated to improving access of finance to small businesses, should set up dedicated lines of credit specifically meant for the motor body repair industry. This can be achieved through partnership with other government departments and the private sector.
In-order for the incubation process, which is managed by the Retail Motor Industry, to be successful, there is need to set up strategies for skills training and adequacy of infrastructure procurement for SMMEs in the auto body repair industry. This in turn will make it possible for the SMMEs to get registered under the panel system. If majority of these SMMEs gets registered on the panel system. Registration on the panel system assures that the small businesses can also access work from the insurance industry. There is need for local Further Education Training colleges to develop appropriate short courses that cover auto body repair sector. The short courses might as well include the concept of multiskilling, where one worker can carry out various activities such as spray painting and body work. The short courses must also include new vehicle maintenance technology, which was indicated as a major deficiency suffered by small businesses in the auto body repair sector.
These strategies if implemented, will reduce operating costs for small business in the auto body repair sector, thus enhancing both their profitability and sustainability. There is need to develop a supply chain framework for after-market demands similar to Motor Industry Development Plan (MIDP) that caters for both original equipment manufacturers and component manufacturers. A supply chain framework ensures a stable and less costly accessibility of both spares and repair equipment. The framework will come with supply chain metrics that can be used to monitor bottlenecks as well as International Conference on Law, Entrepreneurship and Industrial Engineering (ICLEIE’2013) April 15-16, 2013 Johannesburg (South Africa) 247 costs associated with the distribution of motor body repair sector needs. The supply chain framework will address the more important acquisition of repair equipment which is badly needed by the small businesses in the auto body repair sector.
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By: Goodwell Muyengwa, Karabo Mukhuba, Dr. Kim Battle, and C. Mbohwa, International Conference on Law, Entrepreneurship and Industrial Engineering (ICLEIE’2013) April 15-16, 2013 Johannesburg (South Africa)