Financial institution support and SMMEs performance in emerging ecosystems:Â Qualitative evidence from Vhembe district, South Africa

Small and medium-sized businesses, or SMMEs, are vital to the global economy because they foster innovation, job creation, and economic expansion. Their success and performance depend largely on external support from other organizations, including financial institutions. The objective of this research was to investigate the extent to which financial assistance affects SMMEs' overall performance. Officials from financial institutions and SMMEs in the Vhembe District Municipality comprised the study population. 16 research participants were chosen for the sample using stratified random sampling. An interview guide was used to gather data from the participants. Data was analysed using Atlas.ti. The results indicate that the effect of the financial support leads to business sustainability, business/ local economic growth, and relationship building. By encouraging SMMEs' sustainability and local economic growth in Vhembe District, where outside investment from financial institutions serves as a crucial enabler for innovation and job creation, this study emphasizes the importance of financial support in bolstering entrepreneurial ecosystems. It highlights the stakeholder links between financial officials and SMMEs, encouraging cooperative solutions that improve regional development plans and business performance. Key Words: Business growth, Financial institution, Financial support, Relationship building, Small, micro, and medium enterprise (SMMEs)