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Conceptualizing the role of entrepreneurship and SME in fostering South Africa's local economic development

Author

Listed:
  • Andrew Enaifoghe

    (Research fellow, Department of Public Administration, University of Zululand, South Africa)

  • Makhosazana Faith Vezi-Magigaba

    (Professor, Department of Business Management, University of Zululand, South Africa)

Abstract

The purpose of the study was to investigate the roles of entrepreneurship and small and medium-sized businesses in fostering local economic development. Based on this assumption, this conceptual study attempts to investigate the function of small and medium-sized firms in LED. According to studies, the entrepreneurial spirit of the SME owner is a significant determinant of a SME's ability to surmount survival challenges and achieve sustainable growth. The article also attempts to locate and establish the purpose of the study by identifying the barriers that small and medium-sized businesses encounter in their efforts to contribute to economic growth and offering potential solutions to these barriers. Due to inadequate infrastructure development and a lack of the fundamental capabilities to control and influence local economic growth, the study concludes that exceptional measures are necessary to overcome obstacles such as finance and service. The purpose of this study is to answer the research question of whether the emphasis should be placed on creating competent entrepreneurs, particularly among previously disadvantaged individuals, if the government's goal to leverage the SMME sector is to have any significant success. It was noted that the LED is essential but has not been utilized frequently. Using a qualitative thematic analysis approach, the study accessed data on both private and public spaces primarily through secondary sources. The qualitative investigation accessed the foundational literature via a sophisticated search. According to the study, small and medium-sized enterprises play a crucial role in the promotion of LED. The study concluded, among other things, that the local level of governance in South African municipalities is incapable of providing basic services and the necessary infrastructure. Key Words: Business Management, Entrepreneurship, Economic Development

Suggested Citation

  • Andrew Enaifoghe & Makhosazana Faith Vezi-Magigaba, 2023. "Conceptualizing the role of entrepreneurship and SME in fostering South Africa's local economic development," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(4), pages 96-105, June.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:4:p:96-105
    DOI: 10.20525/ijrbs.v12i4.2444
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    References listed on IDEAS

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    1. Anos Chitamba & Yearwood Verna & Swanepoel Matthys Swanepoel Matthys & Myeza Gabriel & Sizwe Mbona, 2025. "Entrepreneurship as an alternative career path for management accounting graduates in South Africa: Opportunities in consulting, financial advisory and beyond," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(5), pages 576-587, July.
    2. Arsalan Ahmed & Sara Rashid & Norizan Mat Saad & Muhammad Waqas Rana & Ikhtiar Ahmed Khoso & Zeshan Ahmed, 2025. "The tech advantage: exploring technological determinants of social media marketing adoption in Pakistani small and medium startups," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-20, December.
    3. Khamusi Ramudingane & Livhuwani Gladys Nkondo, 2024. "Challenges encountered by SMMEs in accessing bank credit: a case of Vhembe District Municipality," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(5), pages 503-512, July.
    4. Njabulo Xulu, 2025. "Challenges facing uMsunduzi local municipality in supporting SMMEs in Pietermaritzburg, South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(1), pages 136-143, January.
    5. Ellen Chenesai Rungani, 2025. "Assessing the Comprehensiveness of Managerial Support for SMMEs in South Africa," Administrative Sciences, MDPI, vol. 15(9), pages 1-24, August.

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