African Leadership Studies (Business/Social/Psychology crossover) | 27 December 2003
Developing Business Linkages between Large Firms and Local SMEs in South Africa: A Comparative Study
N, o, m, s, o, M, a, t, h, e, ,, N, o, n, t, s, i, k, i, Z, u, l, u, ,, F, i, k, i, l, e, M, h, l, a, n, g, u, ,, S, i, p, h, o, M, t, h, e, t, h, w, a
Abstract
South Africa's economy is characterized by a significant disparity between large firms and small and medium-sized enterprises (SMEs). While large firms often benefit from economies of scale, SMEs face challenges in accessing markets and resources. The study employs a mixed-method approach, combining qualitative interviews with quantitative data analysis from case studies of six large firms and ten SMEs across various sectors. A key finding is that collaborative initiatives aimed at skill development for SME employees led to a 30% increase in the number of successful partnerships formed between large firms and SMEs over three years. The comparative analysis reveals that structured training programmes significantly enhance business collaboration, which in turn accelerates growth opportunities for both large firms and SMEs. Policy makers are encouraged to support development initiatives that promote skill sharing and collaborative learning environments among large firms and local SMEs.