Reimagining institutional mechanism's role and resource support nexus in creating and expediting small, medium and micro enterprises' prosperity

Abstract

Background: South Africa, has been confronted with the challenges of persistent low Total Entrepreneurial Activation (TEA) and the regressing innovation and competitiveness due to the lack of SMMEs’ institutional support mechanisms and the concomitant resource accessibility. Purpose of the Study: The research seeks to examine institutional architects and cognate resources that systemically continue to hinder the SMMEs’ reinvigoration in their endeavours to attain the full performance potential of their enterprises. The review of literature focused on scholarly contribution pertaining to the literature repertoire that could be described as being of entrepreneurial significance within the SMME’s institutional framework and strategic resources that could propel SMMEs’ growth trajectory. Design/Methodology/Approach: The study implemented a descriptive data collection analysis utilizing quantitative methodology from a sample 260 respondent SMME owners. Results/Findings: The findings revealed a tangible and conspicuous resource access gap on the part of policymakers and authorities as a critical institutional deficit on behalf of the SMMEs. Further, the findings revealed an ever-present constraining access to institutional and associated business resources as a structural factor. Recommendations: Based on the study findings, policymakers should institute a pragmatic and holistic approach in supporting and strengthening the SMMEs’ access to the resources so desperately needed by entrepreneurs to compete optimally in the marketplace. Managerial Implications: Prioritizing accountable management by authorities from an institutional intervention and resource access perspective should be closely evaluated, monitored and reinforced in mitigating SMMEs’ inability to optimally compete and sustain their entities.