Developing Business Linkages between Large Firms and Local SMEs in South Africa: An Action Research Study
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| Format: | Recurso digital |
| Sprache: | Englisch |
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2007
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| _version_ | 1866901255636385792 |
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| author | Mkhize, Sifiso Ngubane, Makazi Nxenkobo, Nomalento Mxolisi, Kgosiwe |
| author_facet | Mkhize, Sifiso Ngubane, Makazi Nxenkobo, Nomalento Mxolisi, Kgosiwe |
| contents | <p>The business landscape in South Africa is characterized by significant disparities between large firms and small to medium-sized enterprises (SMEs). Large firms often operate with limited engagement from local SMEs, while SMEs frequently lack access to necessary resources for growth. An action research approach was adopted, involving semi-structured interviews with 30 decision-makers from large firms and 25 SME owners in various sectors across South Africa. Focus groups were also conducted among a sample of 15 industry associations representing large firms. The findings indicate that while there is growing interest in collaboration between large firms and SMEs, the majority (70%) of SMEs do not have formal partnerships with any large firm. The most common challenges identified include lack of trust, inadequate capacity for partnership management, and insufficient resources to sustain collaborations. Despite initial enthusiasm, the actual implementation of business linkages remains limited. This study highlights the need for tailored support programmes that address these barriers to facilitate more robust partnerships between large firms and SMEs in South Africa. Recommendation 1: Large firms should develop dedicated teams responsible for managing collaborative initiatives with local SMEs. Recommendation 2: Financial institutions must provide targeted funding options that encourage such collaborations, including grants and loans tailored to the needs of both parties.</p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_18857529 |
| institution | Zenodo |
| language | eng |
| publishDate | 2007 |
| publisher | Zenodo |
| record_format | zenodo |
| spellingShingle | Developing Business Linkages between Large Firms and Local SMEs in South Africa: An Action Research Study Mkhize, Sifiso Ngubane, Makazi Nxenkobo, Nomalento Mxolisi, Kgosiwe Socioeconomic Disparities Small Enterprises Strategic Alliances Community Engagement Business Development Strategies Participatory Action Research Geographic Information Systems <p>The business landscape in South Africa is characterized by significant disparities between large firms and small to medium-sized enterprises (SMEs). Large firms often operate with limited engagement from local SMEs, while SMEs frequently lack access to necessary resources for growth. An action research approach was adopted, involving semi-structured interviews with 30 decision-makers from large firms and 25 SME owners in various sectors across South Africa. Focus groups were also conducted among a sample of 15 industry associations representing large firms. The findings indicate that while there is growing interest in collaboration between large firms and SMEs, the majority (70%) of SMEs do not have formal partnerships with any large firm. The most common challenges identified include lack of trust, inadequate capacity for partnership management, and insufficient resources to sustain collaborations. Despite initial enthusiasm, the actual implementation of business linkages remains limited. This study highlights the need for tailored support programmes that address these barriers to facilitate more robust partnerships between large firms and SMEs in South Africa. Recommendation 1: Large firms should develop dedicated teams responsible for managing collaborative initiatives with local SMEs. Recommendation 2: Financial institutions must provide targeted funding options that encourage such collaborations, including grants and loans tailored to the needs of both parties.</p> |
| title | Developing Business Linkages between Large Firms and Local SMEs in South Africa: An Action Research Study |
| topic | Socioeconomic Disparities Small Enterprises Strategic Alliances Community Engagement Business Development Strategies Participatory Action Research Geographic Information Systems |
| url | https://doi.org/10.5281/zenodo.18857529 |