<p>Small to medium enterprises (SMEs) plays a vital role in the growth and development of a country. It is therefore critical for any country, especially developing countries, to support and enhance the development of SMEs. Although the external support t is critical; SME's needs to create and build its own loyal customer base for growth and sustainability. Loyal occurs when customers choose to use a particular store rather than others. A well maintained customer base can affect the SME's

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... ability in a positive manner.</p><p> </p><p>Quantitative research was undertaken by means of a self-administered questionnaire to establish the perception of South African SME owners regarding loyalty. The study revealed that the main drive for creating loyal customers is good products and services as well as competitive prices. It is hoped that this information will help SMEs to attract and keep loyal customers as it is more cost effective to retain loyal customers than it is to obtain new customers.</p>