Assessing the Comprehensiveness of Managerial Support for SMMEs in South Africa

Ellen Chenesai Rungani ()
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Ellen Chenesai Rungani: Business Management Department, School of Management Sciences, Faculty of Economics and Management Sciences, North West University Mahikeng Campus, Mahikeng 2790, South Africa

Administrative Sciences, 2025, vol. 15, issue 9, 1-24

Abstract: In South Africa, small enterprise development is at the top of the government agenda. However, a significant issue lies in the type of skills and support necessary to develop SMMEs through the various phases of the business cycle. This study addresses a knowledge gap regarding whether SMME support interventions comprehensively address all managerial functions as per the P-O-L-C model. Guided by the Resource-Based Theory (RBT), and the Human Capital Theory (HCT), data was collected from 350 SMMEs in the Eastern Cape province using a structured self-administered questionnaire. Multiple regression analyses revealed that non-financial support from both the public (R 2 = 0.089, p = 0.215) and private (R 2 = 0.161, p = 0.207) sectors was not significantly associated with SMME success. Furthermore, while private sector support explained 14.8% (R 2 = 0.148, p < 0.001) and public sector support 7.6% (R 2 = 0.076, p < 0.001) of the variation in meeting SMME needs, support in key functional areas remains fragmented and poorly targeted. These findings highlight a systemic disconnect between the supply and demand sides of the SMME support ecosystem. To address this, this study proposes an integrative support model that aligns RBT and HCT within the P-O-L-C managerial framework, ensuring phase-appropriate, function-specific support. This framework departs from prior applications by reconceptualizing managerial support not as a generic intervention, but as a strategically sequenced process aligned with the business lifecycle. The model contributes a new lens for theorizing support efficacy and offers practical guidance for more targeted intervention design. This framework offers both theoretical and practical contributions toward improving the design and implementation of business interventions in South Africa.

Keywords: business development; managerial function; SMMEs (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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