Investigating the Characteristics and Challenges of SMMEs in the Ethekwini Metropolitan Municipality

Karodia, Anis Mahomed; Cowden, Richard G.; Soni, Paresh

doi:10.12816/0017683

Cited by 6 publications

(6 citation statements)

References 33 publications

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“…To thrive in the 4IR era, it is essential to address these challenges to enhance productivity and efficiency. Soni et al (2015) suggest that incorporating technologies like laptops, computers, and smartphones can be a valuable business strategy, especially in the 21 st century. By adopting these technologies, businesses can improve their efficiency, effectively reach their target markets, and reduce operating costs.…”

Section: Discussionmentioning

confidence: 99%

Implications of the Fourth Industrial Revolution on Small and Micro Enterprises’ Productivity in Mankweng Township

Selelo,

Khwela

2023

JBSEE

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Purpose: The hegemony of SMEs in Mankweng Township has sparked the interest of researchers who aim to align them with the 4IR. The purpose of this study is to examine and provide constructive criticism on how the 4IR affects the productivity of SMEs. The argument is that SMEs in Mankweng Township are technologically lagging, resulting in low productivity. The research encompasses both positive and negative impacts of the 4IR on SMEs' productivity. The prevalence of SMEs in the area can be attributed to growth centres like the University of Limpopo, Mankweng Hospital, and Paledi Mall. These institutions attract students and employees, sustaining the local economy. Nonetheless, most SMEs in the Township are traditional and lack sophisticated technology. They are mainly located in South Africa's townships and rural regions, where they are easily accessible to the local communities. The growth of the 4IR has compelled these SMEs to adapt their conventional business practices to align with the rapidly changing technology. Design/Methodology/Approach: This study employed a quantitative approach to accomplish its objectives. Findings: The research findings demonstrate that some SMEs are currently underperforming, experiencing a decline in customers due to limited financial resources, human resources and a lack of advanced technology amongst others. Implications/Originality/Value: To address this issue, the study suggests that various stakeholders, including individuals, the private sector, and the government, should actively collaborate and provide concerted efforts and resources to support the growth and development of SMEs.

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Section: Discussionmentioning

confidence: 99%

Implications of the Fourth Industrial Revolution on Small and Micro Enterprises’ Productivity in Mankweng Township

Selelo,

Khwela

2023

JBSEE

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“…Respondent, (2018) Revealing a struggle with basic internet and connectivity. Soni et al (2015) 's findings show that only 36% of the surveyed SMMEs use computers for their business activities. One business owner emphasised that "He needs assistance with my company's digital presence"- (Respondent, 2018).…”

Section: Technological Advancement As a Key Challenge For Manufacturimentioning

confidence: 99%

Is South African Manufacturing SMMEs Ready for the Fourth Industrial Revolution?

Mabotja¹

2019

JEVR

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The fourth industrial revolution is unquestionably resulting in significant changes in the workforce landscape, technological advancements, industry relations and it affects all aspects of society and the economy. This research paper is based on results from an earlier study focused on the challenges faced by small, medium and micro enterprises (SMMEs), sharing results from survey data and in-depth interview analyses conducted. A sample of 66 SMMEs was selected purposefully from the Small Enterprise Development Agency (SEDA)â€™s database where manufacturing SMMEs alluded to some of the critical challenges they are facing. A key finding from the research was that technological advancement and digital manufacturing are significant challenges for manufacturing SMMEs in South Africa. Small businesses are critical to South Africaâ€™s ability to participate profitably in the fourth industrial revolution. The research shows that there are significant challenges for manufacturing SMMEs and that should be urgently addressed if South Africa is to participate advantageously in the fourth industrial revolution. This study recommends embedding technology into education and embracing new advancements and machinery within the education system. A change in the education system will help create a supply for future skills needed in the manufacturing sector. Manufacturing SMMEs contribute to a stronger economy and should embrace automation and artificial intelligence; this requires determined and collaborative efforts from government, its agencies and private sector through broader information sharing, planning for future skills and a dedicated fund for technology and modern machinery funding across various industries, particularly manufacturing.

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“…Schirmer and Visser (2021) list the causes as poor management, the inability to access markets and low funding. The average SME in South Africa is characterised by family ownership because the enterprises were created as a source of personal income (Soni et al, 2015). Financially, there is no formal structure for determining the selling price of their products, so they adopt a cost leadership strategy -gaining a competitive advantage by delivering a service or commodity at the lowest cost (Hit et al, 2016).…”

Section: Small and Medium-sized Enterprisesmentioning

confidence: 99%

“…Mapila et al (2014) suggest that these SMEs adopt a focused differentiation strategy -delivering a unique service or product that suits the needs of a niche market. However, this needs efficient market research to understand customer requirements better (Soni et al, 2015). As a result, the strategies adopted by these SMEs are ill-informed, causing the enterprises to fail.…”

Section: Small and Medium-sized Enterprisesmentioning

confidence: 99%

Mbse-Lite: A Framework for Adopting Model-Based Systems Engineering in Small and Medium-Sized Enterprises in South Africa

Nanfuka,

Oosthuizen

2023

Business, Management and Economics Engineering

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Purpose – This research aims to characterise the landscape and factors for successfully implementing Systems Engineering (SE) and Model-Based Systems Engineering (MBSE) in the enterprise. Research methodology – The study investigated the factors across different industries that affect the success of MBSE in an enterprise using a survey questionnaire. The research focussed on the uptake and implementation of MBSE in Small and Medium-sized enterprises (SMEs) in South Africa. More than 100 industry professionals participated in the study. Findings – The survey revealed that SMEs have trouble adopting and implementing MBSE because they are unaware of its applicability and lack economic justification and support from upper management. Quantitative data analysis assessed how factors such as MBSE training, existing SE processes in the enterprise, and how long the company has been using MBSE contribute to the success of MBSE adoption in SMEs. Research limitations – The population size limited the study reached and the time available to conduct the research. However, it does not reduce the results’ strength and validity. Practical implications – The analysis showed that training and an existing SE structure are highly significant, while the age of MBSE in the enterprise does not correlate with its success. Therefore, these results proposed an adoption framework for SMEs in South Africa to aid MBSE adoption by incorporating training and a clear uptake and implementation process. Originality/Value – This research builds on the growing body of literature about implementing MBSE and enterprises. The conclusions provide valuable insights and guidelines for implementing MBSE in SMEs.

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Investigating the Characteristics and Challenges of SMMEs in the Ethekwini Metropolitan Municipality

Cited by 6 publications

References 33 publications

Implications of the Fourth Industrial Revolution on Small and Micro Enterprises’ Productivity in Mankweng Township

Implications of the Fourth Industrial Revolution on Small and Micro Enterprises’ Productivity in Mankweng Township

Is South African Manufacturing SMMEs Ready for the Fourth Industrial Revolution?

Mbse-Lite: A Framework for Adopting Model-Based Systems Engineering in Small and Medium-Sized Enterprises in South Africa

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