A Framework of Key Growth Factors for Small Enterprises Operating at the Base of the Pyramid

Michael D. van der Merwe, Sara S. Grobbelaar, Isabel A. Meyer, Cornelius S.L. Schutte and Konrad H. von Leipzig
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Michael D. van der Merwe: Department of Industrial Engineering, Stellenbosch University, Stellenbosch 7600, South Africa
Sara S. Grobbelaar: Department of Industrial Engineering, Stellenbosch University AND DST-NRF Centre of Excellence in Scientometrics and Science, Technology and Innovation Policy (SciSTIP), Stellenbosch 7600, South Africa
Isabel A. Meyer: Department of Industrial Engineering, Stellenbosch University AND CSIR Smart Mobility, Pretoria 0001, South Africa
Cornelius S.L. Schutte: Department of Industrial Engineering, Stellenbosch University, Stellenbosch 7600, South Africa
Konrad H. von Leipzig: Department of Industrial Engineering, Stellenbosch University, Stellenbosch 7600, South Africa

Sustainability, 2020, vol. 12, issue 22, 1-33

Abstract: Enterprises operating at the Base of the Pyramid (BoP) find it difficult to simultaneously achieve economic (profitable growth) and social (poverty alleviation) outcomes. This study builds on a previously published systematic literature review that identified the key growth-promoting factors of the Small, Medium, and Micro Enterprises (SMMEs) operating in this space. A Grounded Theory Approach was followed to identify six core focus areas, which form the basis of a practical framework to evaluate SMMEs at the BoP, namely: Business modelling; business strategy; innovation; marketing; strategic alliances; and sustainable development. Expert screening interviews were conducted to evaluate the framework for credibility and confirmability. Thereafter, 57 for-profit South African enterprises were surveyed to empirically explore how SMMEs view and implement these framework components. The outcome of the study is a validated high growth-promoting BoP portfolio framework against which SMME owners can evaluate their enterprises to identify areas of growth and development.

Keywords: SMMEs; growth; evaluation tool; framework; base of the pyramid; sustainable enterprise growth (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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