An assessment of entrepreneurial conditions within Swaziland's national SME policy and an evaluation of their impact on venture growth

Abstract

With a struggling economy characterised by high levels of poverty and unemployment, it makes sense that Swaziland should prioritise the growth of new ventures in a bid to foster economic growth through ensuring accelerated SME growth. However, the country’s SME policy notes significant problems which hinder venture growth, particularly pertaining to SMEs access to finance, markets, entrepreneurship education and training, as well as business support programmes, business regulation and contract enforcement. This study seeks to evaluate the impact these factors have on the growth of SMEs in a bid to ascertain the extent of this impact, and further to make recommendations on how the rhetoric and practice of entrepreneurship can be shaped to foster high growth entrepreneurship within this milieu. This is done based on an analysis of data collected through a quantitative survey conducted amongst SMEs incubated within the country’s only public incubator, SEDCO. The findings are drawn from a correlation and multiple regression analysis, with the latter aiming to ascertain causality between these conditions and venture growth. Through this, the study found that the variables of access to finance, markets, education and training, business support programmes, business regulation and contract enforcement are significant predictors of venture growth, thus more needs to be done to ensure that inefficiencies within these are addressed to bolster levels of SME growth. The study contributes theoretically to the entrepreneurial landscape in that it comes at a point where there is no current research assessing the enablers and inhibitors of venture growth within Swaziland. It is of further practical significance in that it broaches the subject of high growth entrepreneurship in an environment laden with necessity, survivalist entrepreneurs whilst it is the former that is perceived to have a significant impact on the economy.