Developing Business Linkages between Large Firms and Local SMEs in South Africa: A Survey Study

The landscape of South Africa's business ecosystem is characterized by a significant disparity between large firms and local small and medium-sized enterprises (SMEs). Large firms often find it challenging to effectively engage with SMEs, which can hinder the growth and development of both sectors. The research employs a mixed-method approach, combining quantitative survey data from large firms and qualitative interviews with SME representatives. Data were collected through an online questionnaire distributed across various industries in South Africa. The findings indicate that while approximately 65% of large firms have established some form of business partnership with local SMEs, the majority face significant hurdles such as lack of trust and inadequate communication channels. There is a notable trend towards digitalization in their engagement strategies. This study underscores the importance of fostering mutual understanding and effective communication to enhance business linkages between large firms and local SMEs in South Africa. Recommendations include establishing industry-specific platforms for collaboration, enhancing training programmes on cross-sectoral business practices, and promoting digital infrastructure to support more seamless interactions.