Evaluating Small and Medium-Sized Enterprises’ Resilience in South Africa

Msomi Thabiso Sthembiso () and Olarewaju Odunayo Magret ()
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Msomi Thabiso Sthembiso: Department of Management Accounting Durban University of Technology South Africa
Olarewaju Odunayo Magret: Crown College, St. Bonifacius, Minnesota, USA

Folia Oeconomica Stetinensia, 2024, vol. 24, issue 2, 162-181

Abstract: Research background Small and medium-sized enterprises (SMEs) face unique challenges that require a deeper understanding of the mechanisms that contribute to their resilience in a dynamic economic landscape. Purpose This study investigates the factors that impact the resilience of SMEs, highlighting strategic partnerships, technological advancements, employee engagement, and customer relationships as pivotal elements. Research methodology Employing Yamane’s formula and purposive sampling, the research involved the distribution of a closed-ended questionnaire via email, resulting in an 85% response rate from 153 SME owners and managers. Results Utilizing a multiple linear regression analysis, the research findings revealed an adjusted R-squared of 94.50%, signifying a significant influence of the identified factors on SME resilience in South Africa. Notably, the statistical significance of strategic partners management, technology adoption, employee engagement, and customer relationship management (CRM) emphasizes their contributions to SME resilience. Novelty Enhancing SME resilience involves actively cultivating strategic partnerships for effective disruption anticipation and response. Prioritizing the adoption of relevant technologies, supported by policymakers, can elevate efficiency and adaptability. Crucially, investment in a positive work culture through employee engagement, continuous training, and adaptive human resource strategies is vital. Moreover, businesses should prioritize customer-centric approaches, adopting effective CRM strategies to comprehend customer needs and fortify their market presence.

Keywords: SME Resilience; Strategic Partnerships; Technological Advancements; Employee Engagement; Customer Relationships (search for similar items in EconPapers)
JEL-codes: L25 M12 O32 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:foeste:v:24:y:2024:i:2:p:162-181:n:1009

DOI: 10.2478/foli-2024-0021

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