Pre-fourth industrial revolution : challenges for small, medium and micro enterprises in a transforming economy

Abstract

The emergence of the fourth industrial revolution is perceived to have profound effects on many spheres of society. Such effects within the business environment are anticipated to be radical digitalised changes in the production process posing challenges for enterprises. Given the contribution of Small, Medium and Micro Enterprises (SMMEs) to the nation's development, these institutions are engulfed in challenges detrimental to their growth. Specifically, for a transforming economy such as South Africa, the article provides insight into the growth determinants, and various internal and external challenges facing SMMEs in readiness for the fourth industrial revolution (4IR). The article is a descriptive study and adopted a quantitative research approach. A sample of 155 was drawn from a target population of 264 using a disproportional-stratified sampling technique. The results of the study suggest varying degrees of effects of internal and external factors to the business environment with factors pointing at market share, investment in technology, high taxes, and high competition. The article concludes by suggesting shared business strengths for the growth of SMMEs. It provides insightful information on the state of SMMEs in South Africa and proposes a framework for policy makers aimed at repositioning SMMEs to tackle the anticipated challenges with the advent of the 4IR.