Impact of digital technologies on small and medium enterprises in emerging towns: A case study of Vhembe District Municipality

Abstract

The importance of digital technologies on the growth and sustainability of small, micro and medium-sized enterprises (SMMEs) across the world need not be reemphasised. SMMEs plays a paramount role in the growth of economies, Gross Domestic Product (GDP) and the general socio-wellbeing of citizens; hence they are the driving force for employment creation. However, their efforts in adopting digital technologies to achieve their targets and growth, is not without challenges. This study establishes the impact of digital technologies on SMMEs in emerging towns in South Africa, with a focus on the Vhembe District Municipality in Limpopo Province. Guided by the Technology Organisation Environment (TOE) framework as a theoretical approach, this study proposed and tested a framework to predict factors that are impacting SMMEs. Data for testing the proposed framework was collected from 100 SMMEs owners and workers using a survey questionnaire across the Vhembe District Municipality. IBM SPSS was used to analyse the collected data using descriptive statistics and regression analysis. This study found that SMMEs with access to digital technologies have more access to information, markets, reduce operational costs while increasing the productivity and revenue. Management support regarding the use of digital technologies significantly improves the overall performance of SMMEs. This study recommend that government should provide an enabling environment through supportive policies and resources to ensure effective fusion and adoption of digital technologies by SMMEs.