The Nexus Between Entrepreneurship and Government: A Panacea to Support and Enhance Small and Medium Enterprises in South Africa
DOI:
https://doi.org/10.51137/wrp.ijarbm.355Keywords:
Nexus, Small and Medium Enterprises, Entrepreneurship, Financial Performance, GovernmentAbstract
Government policies significantly influence small and medium-sized enterprises (SMEs) in South Africa, and the relationship between entrepreneurship and the government is complex and reciprocal. A strong SME sector is vital for the country's economic growth. However, SME development faces challenges such as limited access to funding, a lack of information, and the need for digital adoption, despite government programs aimed at supporting them through funding, mentorship, and regulatory frameworks. An effective solution requires a focused and coordinated government effort. In South Africa, government support is essential for the survival and growth of small businesses, with initiatives like funding opportunities, skill-building programs, and the Small Enterprise Development Finance Agency (SEDFA). Nevertheless, many SMEs still struggle to access government assistance, contributing to a high failure rate. This study aims to explore how the relationship between government and entrepreneurship affects SME performance. It also examines the link between SMEs' financial performance in South Africa and their critical success factors (CSFs). The research primarily used secondary data in a desktop approach. The resource-based view theory underpins this investigation. The study concludes by providing an in-depth analysis of how the small, medium, and micro-enterprise policy framework impacts business performance.
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