Examining profitability and sustainability of South African SMMEs in the telecommunications transmission network rollouts

Abstract

Small, Medium and Micro Enterprises (SMMEs) play a crucial role in the South African economy, particularly in the telecommunications sector. The study focuses on examining the profitability and sustainability of SMMEs involved in the rollout of the telecommunications transmission network. A qualitative research approach was used to collect data through interviews with key stakeholders and analysed using NVivo software to identify recurring themes and challenges. The findings highlighted that while SMMEs contributed significantly to infrastructure expansion, they face major hurdles such as financial constraints, regulatory compliance issues and competition from larger companies. Limited access to funding and high operational costs were identified as key barriers to profitability. Additionally, sustainability concerns stem from the slow adoption of advanced technologies and a shortage of skilled labour. However, the study also identifies opportunities for growth, including expansion into underserved markets, technological innovation and strategic industry collaborations. To enhance SMME profitability and sustainability, this research recommends targeted government support, streamlined regulatory frameworks, improved financial accessibility and investment in skills development. The study concludes that fostering a more inclusive and supportive business environment will enable SMMEs to thrive and contribute more effectively to South Africa’s telecommunications sector.