Strategies for Enhancing the Effectiveness of Government Support Programs for South African Black-Owned SMMEs in Gauteng Province
DOI:
https://doi.org/10.51137/wrp.ijarbm.430Keywords:
Black-Owned SMMEs, Financial Assistance, Government Support Programs, Mentorship, Program EffectivenessAbstract
The poor performance and high failure rate of SMMEs in South Africa is concerning, particularly in black communities where poverty persists due to the legacy of apartheid. There have also not been notable improvements of these SMMEs in the democratic era. This study explores strategies to optimize government support programs for South African black-owned Small, Medium, and Micro Enterprises (BOSMMEs) in Gauteng Province. Drawing on qualitative insights from seven (7) BOSMME representatives, the study identifies key factors including adaptive programme design, financial support, stronger government engagement, mentorship from experienced entrepreneurs, and transparent programme implementation. These strategies aim to enhance the relevance, accessibility, and impact of support initiatives, ultimately fostering sustainable growth and development for black-owned SMMEs. These findings show that while government support structures exist, bureaucratic inefficiencies, weak communication, funding challenges, and limited tailored mentorship persist. It also emerged that adaptive program design with reflection of contextual realities, greater coordination between different government agencies and the SMMEs themselves, and enhanced accountability of the management of the support initiatives become an urgent requirement. Key findings mentioned include improving access to financial resources, increasing mentorship possibilities through collaborations with experienced entrepreneurs, and ensuring that support programs are clear, efficient, and inclusively implemented. The study suggests that maximizing these dimensions could considerably improve the relevance, accessibility, and impact of government initiatives, hence helping to the long-term expansion of BOSMMEs and broader socioeconomic transformation in South Africa.
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Copyright (c) 2026 Gosiame E. Molope, Solly M. Seeletse, Watson M. Ladzani (Author)
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