Business Sustainability: Support Agencies' Perspectives on the Limitations SMMEs Face in the Northern Cape

2025

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DOI 10.51505/ijebmr.2025.9809
Data confidence 70 medium
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Abstract

Small, Medium, and Micro Enterprises (SMMEs) play a critical role in promoting economic growth and job creation, yet many face persistent sustainability challenges, especially in rural and under-resourced regions such as South Africa’s Northern Cape Province. This study investigates the perspectives of SMME support agencies on the key factors limiting business sustainability in the province. Guided by the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), the study explores how internal resource limitations and external environmental constraints affect SMME performance. A qualitative research design was adopted, involving semi-structured interviews with ten officials from various support agencies. The findings identify recurring challenges, including limited access to funding, inadequate training opportunities, poor market integration, low industry knowledge, and the adverse effects of geographic dispersion. The results also highlight a misalignment between national support mechanisms and local business realities. The study contributes to theory by extending RBV and DCT to a rural development context and offers practical insights for improving policy and programme design. It recommends localised support strategies, improved coordination among agencies, decentralised training, and tools to enhance market access and business adaptability.