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The development of Small, Medium and Micro-sized Enterprises, or SMME firms, is at the centre of the South African government’s policy and strategic priorities. The attention on SMMEs is not misplaced; they make up the largest share of private businesses in South Africa, employing over 61% of the nation’s workforce and contribute to up to 60% of So...
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The aim of this study is to determine the sticky cost behavior of publicly-traded companies in Brazil, Russia, India, China, South Africa and Turkey (BRICS+T) that are classified as developing economies during the period 2010-2019. In addition to the purpose, the firm characteristics that play a role in the sticky cost behavior of firms and the eff...
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... The assumption is that companies listed on the JSE could make use of secondary innovation to drive their performance, therefore creating value for their stakeholders. Although studies have assessed the impact of innovation on the South African economy (Machaka 2018;Marule 2022;Manzini 2015), very little attention has been given to the impact of secondary innovation on the performance of JSE listed firms. ...
... A growing body of literature confirm that Small and Medium Enterprises (SMEs) universally have the capacity to stimulate economic growth, alleviate poverty as well as develop new technologies (Machaka 2018;Gunjati and Adake 2020). SMEs achieve growth mainly because of their ability to produce innovative products and offer improved service (Colclough, Moen, Hovd and Chan 2019). ...
... The Schumpeterian concept of "creative destruction" demonstrates the ability of small firms to achieve economic growth and innovation. Schumpeter's foundational work shows that SMEs can challenge larger firms by introducing sustainable innovation strategies (Machaka 2018). ...
... Microenterprises have a level of turnover annually less than the value added tax (VAT) registration limit of R150 000 per year. These small firms typically consist of home industries, such as 'spaza shops' and commuter taxis and characteristically employ not more than five people (Machaka 2018). ...
... A growing body of literature confirms that Small and Medium Enterprises (SMEs) universally have the capacity to stimulate economic growth, alleviate poverty as well as develop new technologies (Machaka 2018;Gunjati & Adake 2020). SMEs achieve growth mainly because of their ability to produce innovative products and offer improved service (Colclough, et al., 2019). ...
... Schumpeter's foundational work shows that SMEs can challenge larger firms by introducing sustainable innovation strategies (Machaka, 2018). ...
... Therefore, an innovation strategy is regarded as important for small business survival, growth and successful performance. An innovation strategy involves decision making, idea sourcing and resource allocation aimed at achieving customer satisfaction (Muringani 2015;Machaka, 2018). A winning innovation strategy thus ensures growth, effectiveness and efficiency of small firms. ...
It is evident and generally agreed by scholars around the world that Small and Medium Enterprises (SMEs) are the backbone of any thriving economy. For the SME sector to fully support the economic activities of a country it needs to be absorbed in innovation activities that deliver products and services valued by customers. Studies have been conducted globally confirming a positive relationship between SMEs and their characteristic innovative nature. However, disparity still exists in the local context of South Africa, especially in Durban, on what influences SME innovation strategies. It was thus the aim of the current study to identify factors that influence SME innovation strategies in Durban. In addition, the study recognised the impact of Corona Virus 2019 (Covid-19) on SME innovation, while also delving into post Covid-19 innovation strategies by SMEs. The study made use of a quantitative research design and a structured questionnaire was distributed to respondents. The sample size of the study was 248 SME owners/ managers in Durban. With the closure of certain businesses, the impact of covid-19 forced a shift from probability to non-probability sampling, as well as changes to the data collection planned initially for the study. Therefore, the researcher had to resort to targeting SMEs in Durban that were allowed to operate. With the aid of a research assistant the questionnaire was distributed to and collected from respondents. Collected data was analysed using the Statistical Package for Social Sciences (SPSS) version 25.0 for Windows. The results emanating from the study were then presented in the form of bar graphs, pie charts and cross tabulations. The main findings of the research revealed that the majority of SMEs in Durban surveyed invest in technology equipment. Furthermore, the results showed agreement by a majority of the SMEs that the size of a firm influences innovation strategies. In addition, the majority of SME owners strongly agreed that the global pandemic, Covid-19, has significantly changed consumer buying patterns. The research project additionally highlighted some of the most critical factors that influence SME innovation strategies in Durban. Policy makers, academics and SME stakeholders will find the study informative.
