A Study on Small and Medium Enterprises in South Africa: An Approach to Gaining Competitive Advantages

Isaac Nkoana and Kgalema Abbyton Mashamaite

Sustainable Business and Society in Emerging Economies, 2025, vol. 7, issue 2, 347-354

Abstract: Purpose: This paper aims to investigate ways in which small and medium enterprises (SMEs) can have advantages over large enterprises in South Africa. The objective of this paper is to discover the methods in which SMEs can have advantages over large enterprises in South Africa. The initial question is as follows: What strategies or characteristics enable SMEs to gain competitive advantages over large enterprises despite their resource limitations? Large enterprises are known for their vast resources, including significant capital reserves, access to global talent, and cutting-edge technology. However, SMEs still have to find a way to survive despite the tough competition from large enterprises. Necessarily because SMEs are the oxygen of the local economy, ensure poverty reduction through the creation of employment opportunities, and offer local people skills.Design/Methodology/Approach: This paper uses an analytical research design to achieve its objective. Through thematic analysis, the researcher examined, interpreted and presented data acquired from the chosen database sources.Findings: The results reveal that despite SMEs having limited resources, it can still have advantages over large enterprises through the good utilisation of flexibility and agility, personal relationship with customers, innovation and creativity, niche market focus, less bureaucracy, and local community connection.Implications/Originality/Value: This paper recommends that SMEs should be able to identify the weaknesses of large enterprises and take advantage of them.

Keywords: Small and medium enterprises; Large enterprises; Advantages; Competitive; South Africa (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:sbseec:v:7:y:2025:i:2:p:347-354

DOI: 10.26710/sbsee.v7i2.3397

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