The South African government give credit to the importance of SMMEs, so much so that a new Ministry of Small Business Development was established in early 2014.
Smalland beta drivers#
This might be predominantly true given the major economic actions of the past few years (SEDA, 2018).Īccording to Bruwer ( 2020:148) South African SMEs are essential to the economy, because they contribute significantly towards the socio-economic objectives, and they can be key drivers of economic growth, innovation and job creation. The Small Enterprise Development Agency of South Africa (SEDA) indicated that as economies developed over the years and adapt to the new changes, it was also necessary for SMEs in the South African environment. It embraces an essential part in the worldwide economy through its contribution to the Gross Domestic Product (GDP) and improvement of the general population’s living standards. Zafar & Mustafa ( 2017) note that SMEs play a significant role in the economic, modern and social advancement of a nation. The worldwide contribution of the small and medium enterprise (SME) sector cannot be disregarded regardless of the current stage of economic development the country is experiencing (Oyelana & Smith, 2015).
Marketing capabilities, government support, as well as management commitment had an impact on business performance (turnover). The willingness of the business leader to participate in export-related activities largely correlate with management commitment as well as marketing capabilities, this correlation was also evident between management experience and government support as well as between management commitment and marketing capabilities and lastly between marketing capabilities and access to information. Management experience was identified as the most significant factor influencing export propensity. A quantitative, descriptive research design was implemented. The aim of this article was to examine the drivers influencing the export propensity of South African Small and Medium-sized enterprises. To make this a success, a thorough understanding of the factors that might influence their export propensity is necessary.
The South African government is putting policies, strategies and programmes in place with the intention of establishing an empowering environment for Small and Medium-sized Enterprises.
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