TOWARDS ENSURING THE SUSTAINABILITY OF SOUTH AFRICAN SMALL AND MEDIUM ENTERPRISES IN THE FOURTH INDUSTRIAL REVOLUTION ERA

Abstract

The reality of the presence of disruptive technologies of the fourth industrial revolution (4IR) era has dawned on everyone. However, the narratives have centered on how these technologies will aid the production and delivery of goods and services in a more efficient and transparent manner based on increased data accumulation and analysis. The focus of these technologies has been on how large manufacturing and service organizations can automate the development of processes, products and services. The question is “how will the small and medium enterprises survive in the 4IR era?” This paper will attempt to answer this question by considering and examining how the South African small and medium enterprises can seize the opportunities provided by the technologies of the fourth industrial revolution era for their development and sustainability thereby contributing to the socio-economic development and growth of the South African nation. The findings show that in spite of the concerns with respect to perceived threats of loss of jobs, increase in inequality, unemployment and poverty in view of the emerging technologies of the 4IR, the development of a well-articulated policy directions and strategy on the fourth industrial revolution by government coupled with a positive response by the business community will afford the entrepreneurs the opportunity to participate in the newly created supply chains and markets. Furthermore, the new technologies of the 4IR will result in the expansion of labor demand through increased productivity thereby creating new jobs that will far outweigh the old jobs lost through digitalization.