Vol. 2006 No. 1 (2006)

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Developing Business Linkages between Large Firms and Local SMEs in South Africa: A Survey Study

Nokuthula Lekota, Department of Advanced Studies, University of the Western Cape Issac Mngqibiso, University of the Western Cape Nomonde Khumalo, Department of Research, University of the Western Cape Mpho Tsholofelo, Department of Interdisciplinary Studies, North-West University
DOI: 10.5281/zenodo.18840138
Published: January 28, 2006

Abstract

South Africa's economy relies heavily on the interaction between large firms and small to medium-sized enterprises (SMEs). However, limited research exists that specifically examines the development of business linkages in this sector. A structured survey was conducted among a sample of large firms and SMEs across various sectors in South Africa. Data were collected through online questionnaires designed based on literature review and expert consultation. The analysis revealed that over 60% of surveyed SMEs reported facing challenges such as inadequate information sharing, while approximately 45% identified procurement opportunities as a significant driver for partnerships with large firms. While the majority of SMEs are keen on forming business linkages, they face significant hurdles. Large firms also recognise the potential benefits but lack clear mechanisms to facilitate these connections effectively. To overcome existing barriers, both large and small firms should collaborate in developing tailored training programmes for SMEs, while establishing dedicated procurement channels can enhance market access.

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How to Cite

Nokuthula Lekota, Issac Mngqibiso, Nomonde Khumalo, Mpho Tsholofelo (2006). Developing Business Linkages between Large Firms and Local SMEs in South Africa: A Survey Study. African Public Finance Management (Public, Vol. 2006 No. 1 (2006). https://doi.org/10.5281/zenodo.18840138

Keywords

Sub-Saharaninterfirm networksrelational governanceresource dependence theorystrategic alliancescollaborative relationshipssmall businesses

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Vol. 2006 No. 1 (2006)
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African Public Finance Management (Public

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