Probable measures to aid South African Small Medium and Micro Enterprises’ sustainability, post-COVID-19: A literature review Working paper BRS/2020/004 (original) (raw)

Towards Ensuring the Sustainability of South African Small and Medium Enterprises in the Fourth Industrial Revolution Era

EURASIAN JOURNAL OF BUSINESS AND MANAGEMENT, 2021

The reality of the presence of disruptive technologies of the fourth industrial revolution (4IR) era has dawned on everyone. However, the narratives have centered on how these technologies will aid the production and delivery of goods and services in a more efficient and transparent manner based on increased data accumulation and analysis. The focus of these technologies has been on how large manufacturing and service organizations can automate the development of processes, products and services. The question is “how will the small and medium enterprises survive in the 4IR era?” This paper will attempt to answer this question by considering and examining how the South African small and medium enterprises can seize the opportunities provided by the technologies of the fourth industrial revolution era for their development and sustainability thereby contributing to the socio-economic development and growth of the South African nation. The findings show that in spite of the concerns wi...

Addressing the Impact of Fourth Industrial Revolution on South African Manufacturing Small and Medium Enterprises (SMEs)

Sustainability

The fourth industrial revolution (4IR) may fundamentally alter, not only the way people work but also, how Small and Medium (SME) manufacturing businesses operate. In the manufacturing sector, the 4IR may change the design; manufacturing; operations; services, products, and production systems; connectivity; and the interaction among parts, machines, and people. While the 4IR technologies may have many benefits, owing to innovation and technological progress, the manufacturing SMEs require their challenges to be addressed before they may benefit from 4IR technologies. To the best of the knowledge of the researchers, there is no conceptual 4IR manufacturing framework, specifically for a developing economy, which is necessary for addressing these challenges and the opportunities promised by the new industry. This research, therefore, intends to fill this gap by developing a conceptual 4IR framework to assist South African manufacturing SMEs in addressing some of these challenges. Follo...

The Conduciveness of the South African Economic Environment and Small, Medium and Micro Enterprise Sustainability: A Literature Review

Since the early 1980s Small, Medium and Micro Enterprises (SMMEs) have been regarded as the driving forces of both developing and developed economies around the world. In a South African dispensation, SMMEs are responsible for adding imperative socio-economic value to the country, particularly in terms of eradicating poverty and diminishing unemployment levels. By doing so, these business entities are believed to contribute at least 50% to the national Gross Domestic Product. Albeit the aforementioned, previous research studies report that up to 75% of South African SMMEs fail after being in existence for only 42 months. Though the latter dispensation has been blamed on many economic factors, over the years the sustainability of South African SMMEs has not improved to a great extent. In order to provide insight on the latter dispensation, this literature review paper was conducted to ultimately formulate two hypotheses for further empirical testing.

Challenges Facing Smmes During Their First Two Years of Operation in South Africa

Corporate Ownership and Control, 2015

Unemployment is a serious problem that is facing South Africa (SA) and many countries across the globe. As a result, Small, Micro and Medium Enterprises (SMMEs) have been identified as some of the suitable entities for job creation in SA. However, not many of the SMMEs experience success to the point that they can significantly contribute to the alleviation of unemployment. The objective of this paper is therefore to investigate possible challenges that SMMEs experience. The findings generally point to a need for awareness campaigns as some of the concerns raised by the participants are not legitimate. Even though the investigation was conducted in SA in the province of KwaZulu-Natal the findings are considered relevant for the rest of the country and many other parts of the world experiencing similar challenges

Barriers to Effectively Leveraging Opportunities within the Fourth Industrial Revolution in South Africa

African Journal of Development Studies (AJDS), 2022

The world is undergoing the advent of the fourth industrial revolution (4IR), driven by technologies that create opportunities for businesses and society. The study investigated the barriers experienced in leveraging these opportunities within South Africa. Triangulation of round table discussion with 6 experts and 35 semi-structured interviews has identified eight barriers to effectively leveraging opportunities within the fourth industrial revolution. These include the prevailing prohibitive costs of data, low economic inclusion, poor digital culture, literacy and skills deficiency among the youth, the manual-automation job dilemma, high crime prevalence, low entrepreneurial intent as well as inadequate privacy and security within the technological and social media space. These barriers require urgent attention as they are likely to create another 'missed opportunity' for re-industrialisation in South Africa and other African countries, making it more difficult to win their fight for high economic growth and competitiveness.

The Key Triggers for the Transitioning of Informal SMMEs to Formal SMMEs: A Baseline Survey of the Gauteng Province—South Africa

Journal of Psychology Research, 2019

This paper presents the views of 623 informal and formal small, medium, and micro enterprises (SMMEs) operating in the Gauteng Province of South Africa. The objective of the study was to identify challenges and benefits that are experienced by SMMEs during and after the registration process leading to the transition from informal to formal business, the level of awareness by the SMMEs of the registration information, and the procedures in addition to the potential factors that inspire or discourage informal and prospective business registration. The reason for including both informal and formal SMMEs in the survey was to compare the perceptions of these groups of businesses regarding the triggers and/or barriers to register as a formal business. The results show that for both informal and formal businesses, the liability of paying taxes was a major challenge while improved workers' health and safety accrued as a major benefit. Own research emerged as the main source of access to business registration information and procedure. The costs involved in registration were highlighted as one of the major factors discouraging registration but the prospects of expanding the customer base and the ability to achieve a higher turnover as some of the main inspiring factors. The study recommends the development of policies that provide an enabling environment for sustainable enterprises but also to implement measures that improve productivity through access to finance, skills, infrastructure, markets, and technology transfers.

Challenges, barriers and policy development for South African SMMEs – does size matter?

Development Southern Africa, 2021

This article provides an overview of the main initiatives undertaken by the South African government through policy development to assist small, micro and medium enterprises (SMMEs). The article considers SMME awareness and perceptions of these initiatives. Furthermore, SMME perceptions of the challenges, barriers and reasons for failure are analysed. Data obtained from the 2016 SAICA SMME study was used as a basis for the analysis of the SMME perceptions to establish if an entity's size has any bearing on these. The findings indicated the size of the SMME does statistically affect their challenges, barriers and perceptions of the government.

Management for Industrial Development in South Africa: Implications for The Fourth Industrial Revolution

2021

Despite South Africa's strong interest in making sure it takes a global position as a contributor to the implementation of the fourth industrial revolution, literature shows that very little has been done to examine South Africa's readiness. The present study critically explores the opportunities for South Africa to promote technology and economic activities in the context of the fourth industrial revolution. It weighs South Africa's readiness by examining the quality and quantity of the knowledge from both the demand and supply sides. Hence, science, technology & innovation (STI) as the main driver of the fourth industrial revolution was explored by analyzing South Africa’s S&T Policy, Innovation System, Knowledge Systems, and Industrial Policy. The study concludes that despite South Africa's numerous challenges, it can significantly contribute to the fourth industrial revolution. However, this will require strong synergy/coordination among its financial, human, nat...

Taking on the challenge: small, micro and medium enterprises (SMMEs) and socioeconomic development in South Africa

African Journal of Hospitality, Tourism and Leisure , 2019

This theoretical study investigated small, micro and medium enterprises (SMMEs) impact on development in South Africa. The aim of the study was to assess the current role of small micro and medium enterprises (SMMEs) in spearheading economic growth and addressing social problems in an environment where large business and government are seemingly doing very little. Thus the study analyses SMME roles towards addressing challenges of unemployment and chronic social ills of poverty, inequality and social exclusion in the country. This study followed a desktop literature review research design to gather data on negative actions by government and large business that accentuate social problems faced by communities and retard socioeconomic development, as well as the individual roles SMMEs fulfil to meet socioeconomic development objectives. Research findings show SMMEs are at the forefront of job creation and building the social and political equity in the country among other development outcomes. As a theoretical study, this paper provides no empirical evidence to validate the conclusions and observations, thus future empirical research that account and assess the value of SMMEs contributions to the creation of economic, social and political equity in the country are recommended.