Predictors of Grant Success for Small and Medium Enterprises in South Africa

This chapter argues that the internal systems governing grant approval may predict the future success of small firms, especially regarding revenue generation. Additionally, a correlation exists between the allocation of grant funds to small enterprises and their long-term operational sustainability within South Africa’s post-apartheid economy. While existing scholarship often underemphasises the various determinants of business success beyond direct financial grants, empirical evidence indicates that government support initiatives for entrepreneurial ventures can enhance overall economic growth. The strategic framework of small company grant schemes, especially their capacity to tackle essential socio-economic issues in South Africa, represents a critical intersection of political mandates and policy formulation. This chapter uses stakeholder theory to examine the various elements of government financial support programmes. This approach analyses whether the primary objectives of such funds are to inform or fulfil political aims or if they are fundamentally focused on advancing developmental outcomes. A review of the literature and empirical studies on the impact of government support since 1994 reveals data that present seemingly contradictory insights, highlighting the necessity of enhancing the business ecosystem through evidence-based policy interventions.