Measuring Creative Problem-Solving in South African SME Owners: Implications for Business Longevity

South Africa has one of the highest failure rates of new SMEs in the world, as many prospective entrepreneurs want to start a new business but do not focus on acquiring the essential basic business skills to ensure long-term success and sustainability. As survival challenges arise, small and medium enterprises (SMEs) would need business skills to build and grow their enterprises. One of the skills that could be of help is creative problem-solving (CPS). CPS could enable SME owners to take on any challenge and quickly find a solution without disrupting business operations. CPS is therefore one of the managerial cognitive abilities that help navigate the complexities of running a successful establishment. SMEs need to have a good understanding of how to manage and run a business effectively. Managerial cognitive competencies become vital in handling, managing, and running a business effectively. Creative problem-solving is an important cognitive competency that impacts the expansion and survival of SMEs. Very few studies in South Africa investigated the longevity of SME where creative problem-solving skill was considered a factor. Therefore, the study aimed to assess the level of creative problem skill among SME owners in South Africa's construction and manufacturing industries and explore its impact on SME longevity. This was a descriptive quantitative study among 204 SME owners who were selected using quota sampling from the construction and manufacturing sectors. Data were collected using a self-administered, anonymous online questionnaire. Data was collected through an anonymous online questionnaire, which assessed the participants' levels of creative problem-solving skills. The analysis, conducted using Python 3.12.4 software, aimed to determine the prevalence of CPS skill and their implications for the longevity of SMEs. The results indicated that SME owners in both the construction and manufacturing sectors exhibited moderate levels of creative problem-solving skill. This suggests that while creative problem solving is present, there is potential for further development to enhance SMEs' competitive edge and long-term viability. The study found that the overall creative problem-solving skill of SME owners was moderate in both the manufacturing and construction sectors in South Africa. Therefore, the study recommends that for SMEs to optimize their competitive advantage and sustainability, they should employ their creative problem-solving skills. SME owners, therefore, need to embed creative problem-solving skill in their management skills to address complex problems.