Addressing societal challenges through innovation in South African low income communities. A case study of 5 Selected Small, Micro to Medium Enterprises (SMMEs) in Ekurhuleni Metro
Date
2018
Authors
Chipango, Muodzi Misheck
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Abstract
ABSTRACT
This research report was a result of work undertaken by the researcher to establish the level of innovation in Small, Micro to Medium Enterprises SMMEs within the Ekurhuleni Metro, at the same time identifying gaps in terms of strategy, support gaps and proposing ways to bridge these. It also looked at the key facets of innovation, SMMEs – the key advantages and challenges that hinder full potential and realisation of these. It looked at the fundamental challenges that SMMEs face in acquiring appropriate knowledge and tools to tackle socio-economic challenges. It also highlighted the connection between innovations, and small businesses – usually postulated as a panacea for economic growth challenges in developing countries.
A qualitative analysis approach was utilised for data collection and processing. The data was collected by use of a semi-structured interview schedule and the interviews were carried out by the researcher. Non probabilistic sampling was used to select a sample of 5 SMMEs from within the Ekurhuleni Metro. Nvivo 10 was used for data coding and analysis.
The key findings were:
Innovation capability levels are quite low in SMMEs in this region.
Whilst the SMMEs acknowledge the importance of innovation they do not have a formal approach to innovation i.e. no policy, processes or frameworks to drive innovation
Most of the SMMEs are not aware of government driven innovation frameworks that they could utilise
Funding towards innovation is quite low.
The key hindrances to innovation in SMMEs include lack of resources (funds, time, and technology), availability of skills & training and government interventions.
This report further proffers some recommendations, some as stated by the SMMEs as to how they can harness innovation more, to ensure they are not only economically viable but they assist in eliminating social ills such as unemployment.
Description
MBA Thesis
Keywords
Small business, Success in business, Diffusion of innovations -- South Africa