Abstract
Purpose: This study aims to investigate the benefits and challenges of small and medium enterprises (SMEs) in Mankweng Township (zone 1). SMEs continue to bring good benefits to township communities, without a doubt. These benefits include economic development, local investment, provision of citizens with skills development, local empowerment, and provision of local people with affordable goods and services, which SMEs continue to bless the township communities. However, SMEs in South Africa continue to face various challenges that reduce the benefits that SMEs can produce that help communities. Challenges such as lack of funds or capital, marketing skills, leadership, access to technology, and electricity cuts are dominating factors that reduce the capacity of SMEs.
Design/Methodology/Approach: This study adopted mixed concurrent mixed methods to achieve its objectives. Thematic analysis was also used to analyse qualitative data, and correlational analysis was used to analyse the quantitative data from the SME owners.
Findings: This study finds that if these challenges are not addressed through improved access to finance, reliable infrastructure, technological assistance, and business development initiatives, SMEs will have limited capacity to optimize their role in local economic growth, job creation, and poverty alleviation.
Implications/Originality/Value: This study suggests several strategies to empower SMESs as effective catalysts for transformation in townships.