A Review of Critical Success Factors Which Drives the Performance of Micro, Small and Medium Enterprises

The survival of Micro, Small and Medium Enterprises (MSMEs) depends on their ability to effectively manage the factors that affect their performance. The study identifies through literature review, the various factors that may be critical to the success of MSMEs in the retail sector, and therefore enhance their survival. Identification of Critical Success Factors (CSFs) is important in that it may bring to the attention of MSMEs those CSFs which need to be focused on in order to operate in a profitable and sustainable manner. Owner/manager commitment, employee commitment, business planning, innovation, management of costs, customers, suppliers, information, revenue, competitors, sources of finance, enterprise’s pool of resources and conformance to regulations were identified as some of the CSFs which influence the success and survival of MSMEs. The study is informed and guided by the stakeholder theory. The research lays a foundation for future study on performance measurement framework for MSMEs in the retail sector.