A support framework of enhancing business performance of ruaral SMME's in the Limpopo Province, South Africa

Abstract

South Africa's aspiration for inclusive growth and development acknowledges the pivotal role of small, medium, and micro enterprises (SMMEs) given the country's pervasive unemployment and poverty rates, particularly in rural regions. Since the inception of democracy in 1994 with the Reconstruction and Development Programme (RDP) to the present National Development Plan: Vision 2030, the focal point of South Africa's developmental endeavours has been the alleviation of poverty and inequality. This study aimed to devise a support framework to enhance the performance of SMMEs in the rural expanse of Limpopo Province, South Africa, while also fostering entrepreneurship expansion. Its primary objectives encompassed identifying the determinants affecting rural SMME performance, crafting a conceptual framework to bolster it, utilizing empirical research outcomes to formulate recommendations, and drawing conclusions to augment SMMEs' performance in Limpopo. Additionally, the study proffered actionable insights for stakeholders, including policymakers and entrepreneurs, to ensure the sustained viability of SMMEs in rural South Africa. Employing a quantitative research design aligned with the educational positivist paradigm, the study collected data from 377 entrepreneurs through questionnaires. A Convenience Sampling method was employed. Validity and reliability were ensured through exploratory factor analysis and Cronbach alpha coefficients determination. Pearson's correlation coefficient tests were employed to discern relationships among independent variables. The resultant path model addressed prevalent challenges confronting rural small businesses, proposing a roadmap for enhancing their operational performance.