Small, Medium, and Micro Enterprises (SMMEs) play a critical role in economic growth and socio-economic development. However, these enterprises frequently encounter significant challenges that impede their sustainability, particularly in under-resourced regions such as South Africa’s Northern Cape Province. This research utilized a convergent mixed-methods design and adopted a pragmatic research philosophy, integrating both quantitative and qualitative methods to achieve a comprehensive understanding of the research problem. The quantitative phase surveyed 207 SMMEs, while the qualitative phase involved interviews with 10 SMME support agencies. From these findings, the study developed a comprehensive framework for SMME support strategies, identifying eight key strategies: networking, collaboration, stakeholder relations, incubation, mentorship, corporate social responsibility (CSR), addressing barriers, and enhancing sustainability. These strategies aim to align support mechanisms with SMME needs, providing actionable insights for policymakers and support agencies to foster resilience and long-term growth.
References
[1]
Ahmad, S., Schroeder, R. G., & Sinha, K. K. (2019). ISO 26000 and Sustainability: A Study of Leading Organizations in South Africa. Journal of Cleaner Production, 12, 234-245.
[2]
Allgén, P., & Schreurs, G. (2021). Framework for Sustainable Innovation in Small Enterprises. Journal of Sustainable Business Practices, 15, 38-52.
[3]
Altnaa, O., Murakami, T., & Kanno, Y. (2021). Financing Challenges for SMEs in Developing Countries: Insights from Mongolia. Finance and Development Review, 30, 287-302.
[4]
Amaeshi, K. M., Adegbite, E., Ogbechie, C., Idemudia, U., Seny Kan, K. A., Issa, M., & Anakwue, O. I. J. (2016). Corporate Social Responsibility in SMEs: A Shift from Philanthropy to Institutional Works? Journal of Business Ethics, 138, 385-400. https://doi.org/10.1007/s10551-015-2633-1
[5]
Amoah, S., Dumevi, R., & Oppong, G. (2021). Sustainability Practices among Small Businesses in Sub-Saharan Africa: A Systematic Review. African Journal of Business Sustainability, 12, 42-57.
[6]
Aregbeshola, R. A. (2017). The Impact of Financial Literacy on SMME Performance in South Africa. Journal of Financial Management, 6, 82-94.
[7]
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99-120. https://doi.org/10.1177/014920639101700108
[8]
Bian, H., Zhang, Y., & Li, M. (2021). Leveraging Digital Technologies for Small Business Growth. Journal of Business Innovation, 10, 914-928.
[9]
Boshoff, C. (2020). Enhancing SMME Sustainability through Mentorship Programs. Small Enterprise Research, 27, 89-110.
[10]
Budiyanti, D., Suparman, S., & Kurniawan, R. (2021). The Role of Innovation in SME Survival during Economic Crises. Asian Journal of Management, 14, 390-408.
[11]
Bushe, B. (2019). Factors Affecting SMME Growth in Emerging Economies. African Journal of Entrepreneurship, 9, 23-36.
[12]
Camilleri, M. A. (2018). Corporate Sustainability and Responsibility: Creating Value for Business and Society. Sustainability Journal, 10, 34-45.
[13]
Chimucheka, T., & Mandipaka, F. (2015). Challenges Faced by Small, Medium, and Micro Enterprises in the Nkonkobe Municipality. International Business & Economics Research Journal, 14, 309-316. https://doi.org/10.19030/iber.v14i2.9114
[14]
Christianty, D., & Hidayati, M. (2020). SME Resilience during the COVID-19 Pandemic: Case Studies from Indonesia. Journal of Small Business Research, 9, 10-25.
[15]
Creswell, J. W., & Plano Clark, V. L. (2018). Designing and Conducting Mixed Methods Research (3rd ed.). Sage Publications.
[16]
Department of Economic Development and Tourism (DEDAT) (2016). Northern Cape Economic Growth and Development Strategy. DEDAT.
[17]
Department of Small Business Development (DSBD) (2020). Annual Report. DSBD.
[18]
Dlamini, T. (2020). Digital Transformation and Its Impact on SMMEs in Africa. African Journal of Digital Business, 11, 69-81.
[19]
Elfring, T., & Hulsink, W. (2019). Networking and Innovation in Small Firms: A Longitudinal Perspective. Journal of Small Business and Enterprise Development, 26, 158-172.
[20]
Erasmus, T. (2020). Capacity-Building Initiatives for Small Enterprises in South Africa. Enterprise Development Journal, 7, 25-38.
[21]
Fanelli, D. (2021). Adapting to Uncertainty: Lessons for SMEs during Economic Crises. Journal of Resilient Business Strategies, 8, 45-60.
[22]
Faroque, A., Morrish, S., & Hughes, M. (2021). Entrepreneurship in Emerging Markets: Challenges and Opportunities. Entrepreneurship Theory and Practice, 45, 11-30.
[23]
Ferejo, F., Ngugi, I., & Ochieng, M. (2022). Sustainable Practices in African SMMEs: Insights from Kenya. Journal of Business Ethics, 29, 1528-1542.
[24]
Ferrero-Ferrero, I., Fernández-Izquierdo, M. Á., & Muñoz-Torres, M. J. (2018). Integrating Sustainability into SME Strategies. Sustainability Journal, 10, 24-38.
[25]
Ford, D., Kor, Y., & Kim, J. (2017). Leadership and SME Innovation. Journal of Management Studies, 28, 28-50.
[26]
Forsgren, M. (2016). A Note on the Revisited Uppsala Internationalization Process Model—The Implications of Business Networks and Entrepreneurship. Journal of International Business Studies, 47, 1135-1144. https://doi.org/10.1057/s41267-016-0014-3
[27]
Fourberg, P., Hernandez, L., & Krueger, R. (2021). SME Performance and Government Support in Europe. European Management Journal, 39, 37-55.
[28]
Gomes-Casseres, B. (2019). Remix Strategy: The Three Laws of Business Combinations. Harvard Business Review Press.
[29]
Hagin, J., & Caesar, T. (2021). Financial Inclusion and SMME Growth in Africa. Journal of Economic Policy Studies, 18, 95-112.
[30]
He, Z. L., Xie, J., & Zhang, Y. (2020). The Impact of Networking on Entrepreneurial Performance. Entrepreneurship Theory and Practice, 44, 1015-1038.
[31]
Hewitt, S., & Janse van Rensburg, R. (2020). The Role of Education in Fostering Entrepreneurship. Journal of Entrepreneurship Education, 15, 12-34.
[32]
Independent Online (IOL) (2024). SMMEs Had a Tough 2023 Fighting off Many Challenges but Can Look Ahead on a Positive Note for the New Year. https://www.iol.co.za/business-report/entrepreneurs/smmes-had-a-tough-2023-fighting-off-many-challenges-but-can-look-ahead-on-a-positive-note-for-the-new-year-87d4e3e9-0473-45b9-b6e2-3792f251fd24
Isaksson, R., & Mitra, G. (2019). Measuring the Performance of Small Enterprises: The Role of Sustainability Metrics. Business Horizons, 34, 45-63.
[35]
Ismanu, S., Wardani, M., & Saputra, R. (2021). Financial Management Practices in Rural SMEs. Asia-Pacific Journal of Business, 16, 45-59.
[36]
ISO26000 (2018). Guidelines on Social Responsibility. International Organization for Standardization.
[37]
Istifadah, M., & Tjaraka, H. (2021). The Impact of Mentorship on Small Business Success. Journal of Applied Management, 20, 88-100.
[38]
Jedynak, P. (2015). Risk Management in Small Enterprises: A European Perspective. Journal of Risk and Management, 12, 108-120.
[39]
Jeganathan, S., Sundram, V., & Ong, W. (2021). The Mediating Role of Innovation in SME Performance. Journal of Small Business Development, 35, 77-95.
[40]
Kahloul, L., Bensaid, A., & Mohamed, S. (2022). Strategies for Financing SMEs in North Africa. Journal of Financial Strategies, 40, 312-320.
[41]
Khan, M. (2022). Exploring the Impact of Digital Tools on Small Business Growth in Rural Areas. Journal of Digital Business, 14, 38-52.
[42]
Klonaridis, K., & Meyer, L. (2022). The Role of Innovation Hubs in Enhancing SME Performance. Innovation and Enterprise Journal, 27, 813-827.
[43]
Kulkarni, M. (2020). Resilience Strategies for Small and Medium Enterprises: Lessons from COVID-19. Journal of Business Research, 123, 183-194.
[44]
Kunaka, C., & Moos, M. (2019). Entrepreneurship Education and Mentorship for Small Business Success. Journal of Entrepreneurship Education, 22, 1-12.
[45]
Leboea, S. T. (2017). The Factors Influencing SME Failure in South Africa. South African Journal of Business Management, 48, 3-11.
[46]
López‐Concepción, A., Rodríguez‐Escudero, A. I., & Ruiz‐Ortega, M. J. (2022). Small Business Innovation and Market Adaptation. European Journal of Innovation Management, 25, 29-45.
[47]
Lose, T., & Khuzwayo, N. (2021). Assessing the Role of Training in SME Performance. African Journal of Entrepreneurship, 15, 1-15.
[48]
Luo, Y., & Xu, M. (2018). Leveraging Networks for SME Growth. Journal of Business and Economic Development, 18, 258-274.
[49]
Meng, X. (2021). The Impact of Policy Interventions on SME Sustainability in Asia. Journal of Policy Analysis, 9, 47-62.
[50]
Menne, K., Svenson, L., & Jakobsen, J. (2022). Comparative Analysis of SME Success Factors across Europe. International Business Review, 45, 55-78.
[51]
Mlotshwa, M., & Msimango-Galawe, J. (2020). SME Resilience in South Africa: Lessons from Crisis Management. African Journal of Business Management, 14, 23-39.
[52]
Mok, K., Trunina, T., & Ashourizadeh, S. (2017). Stakeholder Engagement in SMEs: A European Study. Small Business Economics, 49, 1-19.
[53]
Mugo, R., Karanja, J., & Chege, S. (2019). Digital Transformation in Kenyan SMEs: Challenges and Opportunities. African Journal of Business and Technology, 13, 146-158.
[54]
Munyanyi, T., & Pooe, R. I. D. (2019). Enhancing SME Resilience through Tailored Policy Interventions. Development Southern Africa, 36, 481-496.
[55]
Muthusamy, A. (2022). The Role of Innovation in SME Growth in Emerging Markets. Asian Journal of Business and Entrepreneurship, 15, 33-50.
[56]
Ndlela, D. (2019). Financing Challenges for SMEs in South Africa: A Focus on Rural Areas. Journal of Development Studies, 8, 25-39.
[57]
Novotna, S. (2021). Sustainable Practices in European SMEs: A Cross-Sectoral Analysis. Journal of Business Sustainability, 19, 2-16.
[58]
Okechukwu, K. (2023). South Africa Needs around 3.21 Million New SMMEs by 2030 to Achieve NDP Targets. https://www.22onsloane.co/south-africa-needs-around-3-point-21-million-new-smmes-by-2030-to-achieve-ndp-targets/
[59]
Onyeiwu, S., & Nkoyo, P. (2020). Resource Allocation in Nigerian SMEs: A Case Study Approach. Journal of African Business Studies, 12, 15-28.
[60]
Oosthuizen, A., van Vuuren, J., & Botha, M. (2020). Compliance or Management: The Benefits That Small Business Owners Gain from Frequently Sourcing Accounting Services. The Southern African Journal of Entrepreneurship and Small Business Management, 12, a330. https://doi.org/10.4102/sajesbm.v12i1.330
[61]
Ophelia, L., Thabang, R., & Moyo, K. (2021). Digital Finance Solutions for SME Development in Africa. Journal of African Digital Innovation, 17, 44-62.
[62]
Organisation for Economic Co-Operation and Development (OECD) (2021). The Role of SMEs in Global Value Chains. Organisation for Economic Co-Operation and Development.
[63]
Owusu, P., Boahen, K., & Mensah, E. (2021). The Impact of Stakeholder Relationships on SME Sustainability in Ghana. African Journal of Business, 18, 23-45.
[64]
Pilotti, L., Rossi, M., & Albertini, F. (2021). Sustainability Transitions in Small Firms: Lessons from Italy. Sustainable Development Journal, 30, 78-92.
[65]
Pusceddu, M., Caruso, L., & Grassi, M. (2022). SME Strategies in Resource-Constrained Environments. International Journal of Entrepreneurship, 45, 76-91.
[66]
Rosyadi, S., Rahmawati, R., & Suhendar, D. (2020). Analyzing SME Sustainability through Innovation Strategies. Asia-Pacific Journal of Business, 22, 44-59.
[67]
Saunders, M., Lewis, P., & Thornhill, A. (2019). Research Methods for Business Students (8th ed.). Pearson Education.
[68]
Schutte, D., & Chauke, C. (2021a). The Role and Effectiveness of Business Incubators in Growing Small Businesses: A Focus on the Manufacturing Industry. Academy of Entrepreneurship Journal, 27, 1-12. https://repository.up.ac.za/bitstream/handle/2263/81808/Schutte_Role_2021.pdf?sequence=1
[69]
Schutte, D., & Chauke, C. (2021b). Incubation as a Growth Strategy for SMEs in South Africa. African Journal of Business Management, 15, 234-250.
[70]
Schutte, F. & Barbeau, N. (2022). The Influence of Business Incubators on the Post-Incubation Success of Small Businesses. International Journal of Entrepreneurship, 26, 1-16.
[71]
Small Business Council (SBC) (2019). Annual Review of Small Business in South Africa. Small Business Council.
[72]
Small Enterprise Development Agency (SEDA) & Department of Small Business Development (DSBD) (2019). Small Enterprise Development Strategy: Fostering SME Resilience in South Africa. SEDA and DSBD.
[73]
Small Enterprise Development Agency (SEDA) (2023). Annual Review of Small Business in South Africa. SEDA.
[74]
Small Enterprise Development Agency (SEDA) (2024). The National Integrated Small Enterprise Development Strategic Framework: Key Aspects and Implications for SMMEs. https://www.seda.org.za/Pages/The-National-Integrated-Small-Enterprise-Development-Strategic-Framework-Key-aspects-and-implications-for-SMMEs.aspx
[75]
SME South Africa (2024). South African SMMEs and Co-Operatives Funding Policy. https://smesouthafrica.co.za/sme-guides/south-african-smmes-and-co-operatives-funding-policy/
[76]
Smolander, S. (2021). SMEs and Green Technology Adoption: Barriers and Solutions. European Journal of Green Business, 8, 15-30.
[77]
Sommer, D. (2017). Leadership and Innovation in Small Businesses. Journal of Management Studies, 28, 48-62.
[78]
Soriano, R. (2021). Global Perspectives on Small Business Innovation. Journal of International Business, 40, 55-72.
[79]
Szabó, M., Kovács, G., & Tóth, A. (2023). Resilience in European SMEs: Lessons from the Pandemic. European Journal of Business and Management, 19, 15-30.
[80]
Tajeddini, K., & Ratten, V. (2020). The Impact of Innovation on SME Sustainability. International Journal of Entrepreneurial Behavior & Research, 26, 21-41.
[81]
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18, 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
[82]
Tiwasing, P. (2021). Enhancing Small Business Performance through Collaborative Networks and Digital Transformation. Small Business Economics, 56, 423-439.
[83]
Trunina, T., & Ashourizadeh, S. (2021). Stakeholder Management in Small Enterprises: Insights from Scandinavia. Journal of Business Ethics, 14, 45-60.
[84]
Turunen, P. (2020). SME Sustainability in the Circular Economy. Sustainability Journal, 15, 12-28.
[85]
Udimal, T., Essel, S., & Danso, S. (2021). Financing Rural SMEs: Evidence from West Africa. Journal of African Business, 19, 88-102.
[86]
Uko, J., Saunila, M., Nasiri, M., & Rantala, T. (2021). The Importance of Sustainability Engagement in Small Businesses Supplier Collaboration. Sustainable Development, 30, 1-9. https://doi.org/10.1002/sd.2224
[87]
Van Coller-Peter, S., & Cronjé, J. (2020). Mentorship Programs for South African Entrepreneurs. African Journal of Business Development, 12, 24-38.
[88]
Van der Spuy, R. (2019). The Role of Regulatory Frameworks in SME Performance. Journal of African Law and Policy, 18, 33-46.
[89]
Veers Group (2024). Sustainable Business Practices for SMEs. https://veersgroup.com
[90]
Weilbach, N. (2023). A Framework to Develop Support Strategies for SMMEs in the Northern Cape Province, South Africa. https://uir.unisa.ac.za/handle/10500/31321
[91]
Weilbach, N. (2024). Access to Finance and Markets: Barriers and Strategies to Small, Medium and Micro Enterprises in the Northern Cape, South Africa. African Journal of Innovation and Entrepreneurship, 3, 489-512. https://doi.org/10.31920/2753-314X/2024/v3n3a21
[92]
Wicks, A. C., & Harrison, J. S. (2019). Strategic Stakeholder Management in Small Enterprises. Journal of Business Strategy, 34, 4-15.
[93]
Willemse, J. (2018). SME Failure Rates in South Africa: Causes and Remedies. Journal of Development Studies, 14, 94-106.
[94]
Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2021). A Typology of Social Entrepreneurs: Motives, Search Processes, and Ethical Challenges. Journal of Business Venturing, 24, 519-532. https://doi.org/10.1016/j.jbusvent.2008.04.007
[95]
Zarefar, A., & Sawarjuwono, T. (2021). The Role of Digital Tools in SME Financial Management. Journal of Digital Finance, 20, 103-118.
[96]
Zhou, M., & Zondo, R. (2023). Incubation Strategies for Small Business Growth in South Africa. Journal of Entrepreneurship Research, 15, 12-25.