The Role of Branding in SME Start-Ups Based in KwaZulu-Natal

Abstract

In the study of branding and the success of Small and Medium Enterprises (hereafter: SMEs), there exists limited research that considers the relationship between the two concepts. This is particularly in regard to South African research. Carvalho’s (2007) seminal article has shown that branding plays an important role in the success of SMEs. For this research, the qualifying criteria for participation was narrowed down to those entrepreneurs from KwaZulu-Natal. This quantitative research investigated the degree to which SMEs use branding and how it has impacted their businesses. This research went on to analyse the role that branding has when determining the level of success of an SME start-up based in KwaZulu-Natal. The importance of this research is on account of the fact that SMEs are a major contributor to South Africa’s economic development. The research examined whether branding does have an impact on the success of SME start-ups in KwaZulu-Natal, based on the responses from entrepreneurs who participated in the research. This research adopted a quantitative approach and the data was collected by means of the distribution of email questionnaires. This questionnaire contained demographic list questions and Likert scale questions so as to extract data that was of relevance. Thereafter, the data underwent a descriptive analysis in the form of frequency distribution for the purpose of uncovering trends that arose in the participants’ responses. The findings ultimately determined that branding does hold a large role in the success of an SME start-up. This research aimed to contribute to the success and development of SME start-ups by triggering South African entrepreneurs, particularly those operating in KwaZulu-Natal, to evaluate and improve their branding for the benefit of their SME start-up’s performance.