African Public Management (Business aspects) | 14 November 2000
Developing Business Linkages between Large Firms and Local SMEs in South Africa: A Survey Study
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Abstract
The South African economy is characterized by a substantial presence of large firms and a vibrant ecosystem of small and medium-sized enterprises (SMEs). However, limited research exists on how these two sectors can collaborate more effectively. A mixed-method approach was used, including a quantitative survey of 300 SME owners and managers, complemented by qualitative interviews with representatives from large firms. Data were analysed using statistical software and thematic coding. Findings indicate that while approximately two-thirds of SMEs have at least one business relationship with a large firm, only about half report significant benefits from these partnerships. Key themes include inadequate funding support and limited market access for SMEs. Despite some existing collaborations, the effectiveness is suboptimal, necessitating targeted interventions to enhance mutual benefits and drive economic growth. Policymakers should prioritise initiatives that address funding gaps and improve market visibility for SMEs. Large firms are encouraged to adopt more inclusive business practices.