The Role and Nature of Government Support in the Establishment and Sustainability of SMMEs in the Biodiversity Economy

Abstract

South Africa’s biodiversity economy presents a unique opportunity to advance inclusive economic growth, rural development, and environmental sustainability. Small, medium and micro enterprises (SMMEs) operating within this space, particularly in wildlife and bioprospecting, are positioned to drive conservation-compatible livelihoods. However, the extent to which these enterprises are supported by coordinated, accessible, and enabling institutional frameworks remains underexplored. This study investigates the forms of government support available to biodiversity-based SMMEs and critically evaluates entrepreneurs’ experiences of the regulatory and institutional landscape. Guided by Institutional Theory and the Triple Bottom Line framework, the study adopts a qualitative case study design. Semi-structured interviews were conducted with nine biodiversity entrepreneurs across several provinces. Thematic analysis of the interview data was complemented by comparative document and policy analysis to assess alignment between the policy intent and lived entrepreneurial experience. The research foregrounds the voices of entrepreneurs to explore how institutional systems enable or constrain their business viability, growth and contribution to environmental goals. Findings revealed that while various government departments, such as the Department of Forestry, Fisheries and the Environment, the Department of Agriculture, Land Reform and Rural Development, and provincial conservation agencies, provide intermittent support in the form of grants, training, and infrastructure. This support is however fragmented, delayed or poorly aligned with business needs. Entrepreneurs reported difficulties accessing information, navigating overlapping mandates, and engaging with institutions whose actions were inconsistent across spheres of government. Institutional fragmentation, policy misalignment, and weak enforcement capacity were cited as key barriers. Despite these challenges, the study identified examples of successful institutional partnerships and highlighted entrepreneurship-driven recommendations for improving support eco-systems. These included calls for integrated funding, capacity-building, policy clarity, market facilitation and stronger interdepartmental coordination. The study concludes by recommending institutional reform, improved integrated government support strategies to better enable the growth of biodiversity-based SMMEs. To unlock the full potential of the biodiversity economy, reforms are required to strengthen governance, align support mechanisms and ensure that economic, social and environmental dimensions of sustainability are equally addressed.