African Rural Economics (Economics/Agri/Geography crossover) | 24 October 2005
The Dynamics of Business Linkage Framework Between Large Firms and Small Medium Enterprises in South Africa: A Theoretical Exploration
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Abstract
The South African economy relies heavily on large firms for job creation and economic growth, but small medium enterprises (SMEs) play a crucial role in providing essential inputs and services to these firms. The study employs a qualitative approach to analyse existing literature and expert opinions on business linkages in South Africa, emphasising theoretical exploration over empirical data collection. The framework highlights the need for policy interventions that encourage larger firms to establish more stable and equitable business relationships with local SMEs, thereby fostering a sustainable economic ecosystem. Policy makers should promote sector-specific training programmes for SMEs to enhance their competitiveness and value proposition. Additionally, regular dialogue forums between large firms and SMEs can facilitate smoother supply chains and mutual trust building.