African Family Business Review (Business/Social crossover) | 10 March 2008
Linking Giants to Mites: An Ethnographic Study on Business Dynamics Between Large Firms and Small-Sized Enterprises in South Africa
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Abstract
In South Africa, large firms often face challenges in integrating with small-sized enterprises (SMEs), leading to a fragmented business ecosystem. The study employed semi-structured interviews and participant observation in various sectors across South Africa to understand these relationships from multiple perspectives. A key finding is that approximately 30% of small businesses reported significant improvements in market access through partnerships with large firms, indicating a positive impact on SME growth. The study highlights the importance of fostering strategic collaborations between large firms and local SMEs to enhance mutual benefits and stimulate economic development. Policy-makers should encourage more structured support programmes for both large firms and SMEs to facilitate greater business linkages, thereby promoting inclusive economic growth.