Vol. 2011 No. 1 (2011)
Linking Giants and Mites: Policy Directions for Enhancing Business Collaboration between Large Firms and Small to Medium Enterprises in South Africa
Abstract
In South Africa, a significant gap exists between large firms and small to medium enterprises (SMEs), impeding optimal resource allocation and economic growth. A qualitative approach was employed to conduct semi-structured interviews with key stakeholders including large firm executives and SME owners, supplemented by secondary data analysis of government reports and industry surveys. The findings highlight the critical role of financial intermediaries in facilitating access to capital for SMEs, suggesting a need for regulatory frameworks that support these institutions' growth. Policy recommendations include incentivizing financial intermediaries to offer tailored products for SMEs, promoting collaboration through industry consortia, and enhancing digital infrastructure to bridge technological gaps. Develop policies aimed at increasing access to finance, fostering market integration, and improving technological connectivity between large firms and local SMEs in South Africa.
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