Attitudes of Small Business Owners towards Counterfeit Merchandise: Ethics or Survival?

Abstract

Counterfeiting of products is an industry that affects many countries worldwide and it is an industry that has grown exponentially in the 21st century, due to the value associated with branded products. It is the demand from individuals that fuels this trade and what will keep the trade growing for years to come. It therefore becomes essential that research be conducted to investigate the attitudes held towards the trade in order to gain a better understanding of the current counterfeit environment. This article aimed to investigate the attitudes that South African small business owners have with regard to counterfeit merchandise. Quantitative research was undertaken by means of a self-administered web-based questionnaire that was e-mailed to individuals that either have an active SME (Small, Medium Enterprise) or individuals that are seeking to start their SME, who reside in the provinces of the Mpumalanga and the Western Cape. The data obtained was then analysed by means of SAS JMP version 11 whereby attitudes held towards counterfeit merchandise were established. The main conclusions emanating from the research, was that South African SMEs generally have a negative attitude towards purchasing counterfeit fashion branded merchandise.