The study was done between October and November 2006 to identify factors that
influence the performance of small business enterprises in Botswana. Two hundred and
seven small business enterprises comprising 48 in Gaborone, 51 in Molopolole, 43 in
Mochudi, 37 in Ramotswa and 28 in Tlokweng were selected for the study using the
method of random sampling. A small business in this study was defined as “a business
which is independently owned and personally managed by its owner and which employs
less than 30 regular employees”. The small businesses that were studied were in the
manufacturing/production, trade and services sub-sectors. A descriptive analysis of the
data was done using the Statistical Package for the Social Sciences (SPSS) to identify
various characteristics of small business enterprises in the study sites. In addition, a
regression model was used to analyse the primary data collected to determine the factors
that influenced the performance (total revenue) of the business enterprises in Gaborone
and environs. The results of the regression analyses showed that start-up funds and total
costs incurred in the business were significant in having a positive influence on the
performance of the business. Recommendations emanating from the study include the
monitoring and evaluation of start-up funds, especially those emanating from the
Government, to ensure their effective utilization in the business, prudent use of funds that
make up total costs, training of the work force and entrepreneurs to ensure efficient
operation and management of the business enterprises; assistance to entrepreneurs to
obtain loans at affordable interest rates and monitoring of proper use of such loans; and
factory shells or stalls need to be provided to small businesses in conducive environments
to counter the problem of inadequate premises.