Small Medium Enterprise (SME)’s Competitiveness within a volatile regulatory environment in South Africa
Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
SMEs have been established as the driving force for developing the South African economy and the main source of competitive advantage. They are recognized as agents of industrial change and innovation; they are also seen as an important vehicle for employment creation and economic development. On the other hand, we have a regulatory environment that is volatile and, as a result, poses challenges to the competitiveness of the SMEs in South Africa. This study is an attempt to determine the level of competitiveness of the SME within the emerging markets as well as how SMEs can monitor their external environment. In addition to that, this study establishes the coping mechanisms of the SMEs and suggests ways to enhance their competitiveness. A case study qualitative strategy was adopted for this study which allowed research to get in-depth understanding about the case. Semi-structured interviews were conducted in which 8 formal SMEs with more than 3 years in existence were targeted. The findings reveal that SMEs need to have research and development measures in place which will enable their organisation to know what is happening around them, which coupled with information technology, can enable them to plan for all anticipated changes. This, in consequence, will help them build their capabilities in a way that it will give them a competitive advantage. It is also of paramount importance for SME to have a Quality Management System consisting of policies and procedures in place that will guide the crafted strategies. Strategies coupled with information gathered from research and
development and relevant training initiatives can be put in place. Adaptation to change mechanisms can also be forged that will make the SME sustainable and perform better even under volatile environmental conditions. Lastly, governance within the SME plays a vital role in enhancing competitiveness. Good governance creates an organizational culture that keeps employees motivated, reduces workforce fluctuations and increases value for all the stakeholders, both internal and external.
Description
A research report presented in partial fulfillment for the degree of Master of Business Administration to the Faculty of Commerce, Law, and Management, University of the Witwatersrand, Johannesburg 2021
Keywords
SME, South Africa, Competitiveness and Regulatory Enviornment, UCTD
Citation
Shai, Gift. (2021). Small Medium Enterprise (SME)’s Competitiveness within a volatile regulatory environment in South Africa [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/41555