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Sustainable Livelihoods of Township Small, Medium and Micro Enterprises towards Growth and Development

Author

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  • Stella Bvuma

    (College of Business and Economics, Department of Applied Information Systems, University of Johannesburg, Johannesburg 2006, South Africa)

  • Carl Marnewick

    (College of Business and Economics, Department of Applied Information Systems, University of Johannesburg, Johannesburg 2006, South Africa)

Abstract

In South Africa, small, medium, and micro enterprises (SMMEs) have been recognized as the critical driving force to alleviate some economic challenges that the country faces. The challenges, such as the alleviation of poverty and the unemployment rate, can be addressed by policies that encourage SMME developments and sustainability. The historical background of SMMEs in South Africa has left them operating in various locations, such as cities and townships. There is a growing concern of the lack of information and communications technology (ICT) adoption by SMMEs, in particular those operating in townships. The aim of this study was to develop an ICT adoption framework using the sustainability livelihood framework (SLF) to encourage ICT adoption and improve the livelihood of township SMMEs. This study used the sustainable livelihood framework (SLF) to explore the broader socio-economic contents of the township SMMEs on human, social, financial, and physical and natural resource-based assets that enable the poor to enhance their capabilities and reduce their vulnerabilities. This study deployed a qualitative exploratory research. A sample of 21 SMME owners/managers operating in Soweto was used, and data were collected using in-depth interviews and observations. The study revealed township SMMEs are complex and dynamic and need various interventions in order for them to be sustainable. The SLF for township SMMEs can be used as a guideline for SMME owners/managers and policy makers when formulating ICT adoption policy.

Suggested Citation

  • Stella Bvuma & Carl Marnewick, 2020. "Sustainable Livelihoods of Township Small, Medium and Micro Enterprises towards Growth and Development," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3149-:d:345283
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    References listed on IDEAS

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    Cited by:

    1. Mago, Stephen & Sewela Modiba, Florah, 2022. "Does informal finance matter for micro and small businesses in Africa?," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 6(1), pages 415-415, March.
    2. Maribel Paredes-Torres & Ana del Rocío Cando-Zumba & José Varela-Aldás, 2022. "Income Tax for Microenterprises in the COVID-19 Pandemic: A Case Study on Ecuador," Sustainability, MDPI, vol. 14(5), pages 1-20, February.
    3. Boysana Lephoi Mbonyane & Charles Mbohwa & Jan Harm Christiaan Pretorius, 2023. "Physical and Technological Capital Efficiency for Profit Growth in Small and Medium Enterprises in Gauteng, South Africa: A Descriptive Qualitative Study," Sustainability, MDPI, vol. 15(8), pages 1-23, April.

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