Faculty of Commerce, Law and Management (ETDs)

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Subject: search.filters.subject.Small and Medium Enterprises (SMEs)

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Now showing 1 - 4 of 4
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    Barriers to the use of digital marketing by Small and Medium Enterprise in Soweto
    (University of the Witwatersrand, Johannesburg, 2023) Mazibuko, Nkululeko; Chalomba, Nakuze
    Soweto is one of the largest townships in South Africa, predominantly inhabited by black people; it holds promise for economic growth and development in South Africa. Small and Medium Enterprises (SMEs) in Soweto are vital to this growth and development. Digital marketing represents a crucial avenue for success for these SMEs, given its potential to reach a widespread audience, increase brand awareness, and boost sales. However, limited resources, financial constraints, and skills gaps present substantial barriers to SMEs' adoption of digital marketing strategies in Soweto. This study seeks to investigate the limitations faced by SMEs in Soweto in the realm of digital marketing, utilizing a qualitative interview approach involving 12 SME owners or managers in Soweto. Despite the potential for growth and development in Soweto, SMEs encounter hurdles in leveraging digital marketing for brand awareness and sales. The study addresses the limitations SMEs face in Soweto when adopting digital marketing, particularly concerning reaching the right audience, security concerns, resource and financial constraints, market relevance, operational limitations, and skills gaps. The paper highlights the significance of digital marketing for SMEs in Soweto, emphasizing its potential benefits such as broader audience reach, business growth, and adaptation to new marketing methods. Additionally, it underscores the need for targeted interventions such as improving digital skills, providing infrastructure support, and overcoming financial constraints to enhance SMEs' ability in digital marketing. Key findings reveal several obstacles inhibiting SMEs' effective engagement in digital marketing activities, including resource and financial constraints, market relevance, operational limitations, and skills gaps. Many respondents are receptive to outsourcing digital marketing activities due to a perceived lack of expertise and cost considerations. iii The findings stress the importance of addressing the lack of awareness and understanding of digital marketing's potential, suggesting an informed strategy that could help SMEs overcome barriers and maximize digital marketing benefits for business growth. This research illuminates the varied levels of awareness about the effectiveness of digital marketing tools and platforms among SMEs in Soweto, emphasizing the need for education, training, and support to bridge the gap in understanding and utilizing digital marketing. By adopting a comprehensive digital marketing strategy, SMEs can enhance their competitiveness and long-term success.
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    The factors affecting the growth of SMEs in the Polokwane municipality
    (University of the Witwatersrand, Johannesburg, 2024) Letsoalo, Maite Evelyn; Mosenogi, Marumo
    Small and medium-sized businesses are an essential component of the national economy, as they have been regarded as the sector that determines the country's economic growth rate and contributes significantly to the structure of the gross national product. Small and Medium Enterprises (SMEs) play a critical role in driving economic growth, particularly in regions like Polokwane Municipality, located in the Limpopo Province of South Africa. The study began by outlining the backdrop of SMEs in the national and global economy, emphasising their pivotal role in job creation and GDP contribution. Despite their importance, SMEs faced various challenges hindering their growth and sustainability, particularly in South Africa. The research problem addressed the stagnation and decline of SMEs in South Africa, contrasting with the growth observed in other African nations. This study aimed to fill the gap in understanding the specific impact of SMEs on the South African economy, particularly within Polokwane Municipality. Through a series of research questions, the study aimed to identify key drivers of SMEs, analyse their impact on local economic development, assess the effectiveness of support mechanisms, and explore the influence of digital technologies on SME growth. The research adopted a qualitative approach, utilising interpretivism as the paradigm to understand the phenomena within the context of the local economy. An exploratory research design was employed to delve into the complexities of SME growth in Polokwane Municipality. The population of the study comprised managers and owners of SMEs within the municipality. Through data collection and analysis, the study provided insights into the diverse landscape of SMEs in the region, highlighting their contributions to job creation, economic resilience, and cultural preservation. The findings underscored the indispensable role of SMEs in driving inclusive and sustainable development. Despite facing challenges such as financial constraints and regulatory complexities, SMEs remained vital agents of change, shaping socio-economic landscapes and fostering resilient, inclusive communities. Overall, this research contributed to a deeper understanding of the impact of SMEs on local economic development, offering valuable insights for policymakers, stakeholders, and the academic community.
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    Organisational Ambidexterity, Dynamic Capabilities and the sustainability of South African Fintech platforms
    (University of the Witwatersrand, Johannesburg, 2023) Mogari, Komane Dorothy; Ochara, Nixon
    Purpose and objective: This study aimed to examine Organisational Ambidexterity and Dynamic Capabilities on developing sustainable digital platforms (specifically Fintechs) in the South African context. Problem investigated: The concept of organisational ambidexterity ultimately aims to attain the desired objective. In the contemporary landscape, businesses increasingly rely on their ability to function efficiently while demonstrating adaptability within a dynamic and challenging business milieu. The existing body of literature on strategy and innovation management highlights the growing importance of integrating exploitative or incremental innovations and explorative or radical innovations to sustain high levels of organisational performance. Design/methodology/approach: The research employed a qualitative methodology. The collection of data was conducted through the utilisation of semi-structured interviews, which were employed to acquire pertinent information from participants. The data gathered during the study was transcribed into written text and presented in a narrative format. The data was systematically arranged and presented in a structured fashion, employing diverse formats, including sequences, narratives, and tables. The primary objective of this arrangement was to enhance the process of comprehension and analysis. Findings: The analysis revealed several themes, each being distinguished by its propositions; these included; early stages, outsourced capabilities, operational efficiency, effectiveness and efficacy, training, upskilling and reskilling, product development and new markets, and emerging technologies. It became evident that to ensure the success and sustainability of South African digital platforms; Fintechs should balance exploitative and explorative innovation through optimal use of dynamic capabilities.
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    The effectiveness of development finance institutions in South Africa in relation to Small and Medium Enterprises (SMEs)
    (2022) Xaba, Nonkosi
    With dire economic challenges in South Africa and understanding that Small and Medium Enterprises (SMEs) can play a role in fostering economic growth, there was a need to understand the effectiveness of state-owned Development Finance Institutions (DFIs). This was due to DFIs being mandated to assist SMEs access finance, since they tend to be excluded from traditional financiers. The main objective of this research was to uncover facts around the effectiveness of DFIs in relation to their mandate to support Small and Medium Enterprises. The study adopted a qualitative research methodology to achieve these objectives, using interviews as a data collection method and thematic analysis for data analysis. It was found that there were challenges with the process of accessing finance where DFIs were stringent and lengthy with their internal processes, which prioritized ensuring that SMEs were able to service the debt facility. Although DFIs provided business support to aid SMEs, the level of support was perceived to be misaligned with the specific needs of the SME. These findings led to the conclusion that state-owned DFIs in South Africa are moderately effective in relation to SMEs and only support SMEs to a limited extent. It was recommended that, to balance out the sustainability of DFIs without abandoning the development objectives; DFIs together with the government, can agree on a specific capital adequacy ratio (CAR). This allows for some flexibility within the DFIs internal processes so that they are not long or stringent because the focus is on being profitable