Conceptualizing the role of entrepreneurship and SME in fostering South Africa's local economic development

Abstract

The purpose of the study was to investigate the roles of entrepreneurship and small and medium-sized businesses in fostering local economic development. Based on this assumption, this conceptual study attempts to investigate the function of small and medium-sized firms in LED. According to studies, the entrepreneurial spirit of the SME owner is a significant determinant of a SME's ability to surmount survival challenges and achieve sustainable growth. The article also attempts to locate and establish the purpose of the study by identifying the barriers that small and medium-sized businesses encounter in their efforts to contribute to economic growth and offering potential solutions to these barriers. Due to inadequate infrastructure development and a lack of the fundamental capabilities to control and influence local economic growth, the study concludes that exceptional measures are necessary to overcome obstacles such as finance and service. The purpose of this study is to answer the research question of whether the emphasis should be placed on creating competent entrepreneurs, particularly among previously disadvantaged individuals, if the government's goal to leverage the SMME sector is to have any significant success. It was noted that the LED is essential but has not been utilized frequently. Using a qualitative thematic analysis approach, the study accessed data on both private and public spaces primarily through secondary sources. The qualitative investigation accessed the foundational literature via a sophisticated search. According to the study, small and medium-sized enterprises play a crucial role in the promotion of LED. The study concluded, among other things, that the local level of governance in South African municipalities is incapable of providing basic services and the necessary infrastructure.

Assessing the role of entrepreneurship industry and SMEs to economic growth in South Africa

“…These constructs were used as the foundation for this study and as search criteria to uncover pertinent secondary sources that supported the findings, as will be explored in more detail below. A different body of research, however, asserts that SMMEs are at the vanguard of job creation and poverty reduction (Enaifoghe & Vezi-Magigaba, 2023;Real Economy Bulletin, 2017;Kongolo, 2010;Cant, Erdis & Sephapo 2014;Dzansi, 2004). According to Mitchell (2013:27), attention in South Africa is now concentrated on entrepreneurship to address this dilemma as a result of the failure of big industry and the state sector to produce jobs.…”

Enhancing the Role and Contributions of Small and Medium Enterprises (SMEs) in a Globalized and Innovative Economy: Challenges and Opportunities

“…The goal of this study is to synthesize what is currently known about small and medium-sized businesses (SMEs) and their benefits to the digitalized economy and social society. It outlines the many traits of SMEs as well as the opportunities and difficulties they encounter in a globalized and digital economy (Enaifoghe & Vezi-Magigaba, 2022). Additionally, it points out areas that require additional research and where there are knowledge or data gaps.…”

“…The study also indicated that SMEs aim to improve policy synergies and address potential tradeoffs. Governments may help SMEs compete on an even playing field and improve their contributions to inclusive growth by developing and implementing an OECD strategy in the future (Enaifoghe & Vezi-Magigaba, 2022). This would happen in various economic and social circumstances.…”