Export Propensities and Intensities of Small and Medium Manufacturing Enterprises in South Africa

V. Gimede ()

Small Business Economics, 2004, vol. 22, issue 5, 379-389

Abstract: The basic premise of this study is that enterprise linkages, export marketing, and sunk costs significantly affect the propensities to export and intensities of exporting of small and medium manufacturing enterprises in South Africa. The hypothesis tested was that small and medium manufacturing enterprises break through into foreign markets with relative ease when involved in linkages because they facilitate information flows, thereby easing the international marketing burden on the shoulders of individual enterprise units. A theoretical perspective adopted by this study was that small- and medium-sized enterprises involved in enterprise linkages that have intermediaries are in a better position to enter and exit international markets. Empirical testing using survey data confirms this. This study, therefore, recommends that export promotion initiatives should take these factors into account. There are many possibilities discussed in this study. The important point is that there is now clarity about the main hindrances to probabilities of exporting and export intensities of small and medium manufacturing enterprises in South Africa. By implication, export market intelligence should be prioritized.

Date: 2004
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