Why do some government support structures fail to aid the growth of SMEs in the Gauteng Province of South Africa?

Abstract

This study focuses on understanding the reasons why the support programmes initiated to enhance the success of black-owned small and medium-sized enterprises (SMEs) have not shown the successes that were envisaged. Some government agencies are in charge of these programmes. The sampling frame consisted of previously assisted SMEs by the support agencies. SMEs were represented by high-ranking officials as study participants. There were signs that the support programmes were not effective in improving the SMEs. The responses indicated that the programmes’ weakness can be attributed to the aid not being customized to the needs of the SMEs. There were training initiatives in some instances. According to the responses, the training was not based on the training needs of the SMEs. The SME practitioners, therefore, did not improve on their weaknesses. Finances that were given out as aid, according to the respondents, were dictated by the donor and did not allow flexibility according to the purchasing needs of the SMEs. Apparently, aid was in one form for all the SMEs. These supports ended up not helping to improve the SME. The paper recommended the customization of the aid to the needs of the SME.