The Impact of Enterprise and Supplier Development Programmes on the Growth of SMMEs in Gauteng, South Africa

Abstract

While various studies have investigated the challenges that Small Medium and Micro Enterprises (SMMEs) face and many of them outline the support that is required by SMMEs, there have been limited studies that look into the effectiveness of government support interventions that are implemented through the public and private sectors. The effectiveness of Broad-Based Black Economic Empowerment Commission (B-BBEE) and Enterprise and Supply Development (ESD) support programmes and their impact on SMME growth have not been extensively interrogated through research. This knowledge is particularly important to investigate because SMMEs play a significant role in improving economic growth and reducing unemployment and equality levels. As such, this study sought to assess the impact of B-BBEE ESD programme support on the growth of SMMEs. The study employed qualitative methods and thematic analysis was used to analyse data. The sample size included 10 beneficiaries of B-BBEE ESD in Gauteng province, obtaining their views on participation experience. The findings suggest that ESD initiatives assist SMMEs in both financial and nonfinancial ways. However, participants usually believed that the benefits were limited and that partnerships may provide more value. Further, findings from the study highlighted the presence of constraints that impede ESD's capacity to provide an optimal service offering to SMMEs, resulting in restricted visibility for small enterprises. Some internal and external difficulties in delivering services to SMMEs were outlined based on the experience of beneficiaries. As such, it was recommended that enterprise and supplier development programs should avoid attempting to be all things to all people. The emphasis should be on an area in which they excel and on providing that service to SMMEs. This allows them to impart their specialized knowledge to small enterprises. To be effective, this focus should be sector or industry specific