Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Integrating SMEs into value chains: an accelerated growth plan for South Africa
South Africa is listed among the world's top ten countries with the highest unemployment levels (World Bank, 2018). The National Development Plan (2013) envisioned that by 2030, 90% of new jobs in the country will be created by small and growing enterprises. Worryingly however, South Africa lags in...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
Graduate School of Business (GSB)
2021
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613198696316928 |
|---|---|
| access_status_str | Open Access |
| author | Gongxeka, Ncebazimi |
| author2 | Alhassan, Abdul Latif |
| author_browse | Alhassan, Abdul Latif Gongxeka, Ncebazimi |
| author_facet | Alhassan, Abdul Latif Gongxeka, Ncebazimi |
| author_sort | Gongxeka, Ncebazimi |
| collection | Thesis |
| description | South Africa is listed among the world's top ten countries with the highest unemployment levels (World Bank, 2018). The National Development Plan (2013) envisioned that by 2030, 90% of new jobs in the country will be created by small and growing enterprises. Worryingly however, South Africa lags in meeting its target for job creation as set out in the National Development Plan despite some effort made by the government to promote and grow small businesses. Globally small and medium enterprises have been acknowledged for their key role in driving economic growth, job creation and poverty alleviation. Despite this important role, South Africa still has one of the highest small and medium enterprise (SME) failure rates in the world (Global Entrepreneurship Monitor, 2014). To circumvent this challenge, the South African government established development strategies including the notable Broad-Based Black Economic Empowerment (BBBEE) to drive the growth and expansion of small and medium enterprises (SMEs). BBBEE is intended to drive enterprise and supplier development (ESD) and improve the development and long-term growth of SMEs. Notably, large private corporations in South Africa have made significant investments in ESD; however many SMEs fail to survive past three years. This study therefore investigates the extent to which integration into a large corporate value chain promotes the sustainability of a SME. The study also examines the impediments that inhibit the growth of SMEs that are integrated in large corporate value chains. The research was conducted using an explanatory qualitative methodology. Five SME owners and six large corporate managers were interviewed to assess their perspectives and opinions on the SME-Corporate relationship. The research results concluded that corporate initiatives on ESD are of a significant benefit to SME growth, however challenges such as negative corporate perception and access to external funding remain a hindrance to SME growth. The study proposed recommendations to improve the successful integration of SMEs into corporate value chains. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/32702 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:20.328Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/32702 Integrating SMEs into value chains: an accelerated growth plan for South Africa Gongxeka, Ncebazimi Alhassan, Abdul Latif Makoni, Patricia Broad-Based Black Economic Empowerment Small and Medium Enterprise Value Chain South Africa is listed among the world's top ten countries with the highest unemployment levels (World Bank, 2018). The National Development Plan (2013) envisioned that by 2030, 90% of new jobs in the country will be created by small and growing enterprises. Worryingly however, South Africa lags in meeting its target for job creation as set out in the National Development Plan despite some effort made by the government to promote and grow small businesses. Globally small and medium enterprises have been acknowledged for their key role in driving economic growth, job creation and poverty alleviation. Despite this important role, South Africa still has one of the highest small and medium enterprise (SME) failure rates in the world (Global Entrepreneurship Monitor, 2014). To circumvent this challenge, the South African government established development strategies including the notable Broad-Based Black Economic Empowerment (BBBEE) to drive the growth and expansion of small and medium enterprises (SMEs). BBBEE is intended to drive enterprise and supplier development (ESD) and improve the development and long-term growth of SMEs. Notably, large private corporations in South Africa have made significant investments in ESD; however many SMEs fail to survive past three years. This study therefore investigates the extent to which integration into a large corporate value chain promotes the sustainability of a SME. The study also examines the impediments that inhibit the growth of SMEs that are integrated in large corporate value chains. The research was conducted using an explanatory qualitative methodology. Five SME owners and six large corporate managers were interviewed to assess their perspectives and opinions on the SME-Corporate relationship. The research results concluded that corporate initiatives on ESD are of a significant benefit to SME growth, however challenges such as negative corporate perception and access to external funding remain a hindrance to SME growth. The study proposed recommendations to improve the successful integration of SMEs into corporate value chains. 2021-01-27T06:52:01Z 2021-01-27T06:52:01Z 2020 2021-01-26T17:45:45Z Master Thesis Masters MCom http://hdl.handle.net/11427/32702 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | Broad-Based Black Economic Empowerment Small and Medium Enterprise Value Chain Gongxeka, Ncebazimi Integrating SMEs into value chains: an accelerated growth plan for South Africa |
| thesis_degree_str | Master's |
| title | Integrating SMEs into value chains: an accelerated growth plan for South Africa |
| title_full | Integrating SMEs into value chains: an accelerated growth plan for South Africa |
| title_fullStr | Integrating SMEs into value chains: an accelerated growth plan for South Africa |
| title_full_unstemmed | Integrating SMEs into value chains: an accelerated growth plan for South Africa |
| title_short | Integrating SMEs into value chains: an accelerated growth plan for South Africa |
| title_sort | integrating smes into value chains an accelerated growth plan for south africa |
| topic | Broad-Based Black Economic Empowerment Small and Medium Enterprise Value Chain |
| url | http://hdl.handle.net/11427/32702 |
| work_keys_str_mv | AT gongxekancebazimi integratingsmesintovaluechainsanacceleratedgrowthplanforsouthafrica |