Evaluating small and medium-sized enterprises’ resilience in South Africa

Abstract

Abstract Research background: Small and medium-sized enterprises (SMEs) face unique challenges that require a deeper understanding of the mechanisms that contribute to their resilience in a dynamic economic landscape. Purpose: This study investigates the factors that impact the resilience of SMEs, highlighting strategic partnerships, technological advancements, employee engagement, and customer relationships as pivotal elements. Research methodology: Employing Yamane’s formula and purposive sampling, the research involved the distribution of a closed-ended questionnaire via email, resulting in an 85% response rate from 153 SME owners and managers. Results: Utilizing a multiple linear regression analysis, the research findings revealed an adjusted R-squared of 94.50%, signifying a significant influence of the identified factors on SME resilience in South Africa. Notably, the statistical significance of strategic partners management, technology adoption, employee engagement, and customer relationship management (CRM) emphasizes their contributions to SME resilience. Novelty: Enhancing SME resilience involves actively cultivating strategic partnerships for effective disruption anticipation and response. Prioritizing the adoption of relevant technologies, supported by policymakers, can elevate efficiency and adaptability. Crucially, investment in a positive work culture through employee engagement, continuous training, and adaptive human resource strategies is vital. Moreover, businesses should prioritize customer-centric approaches, adopting effective CRM strategies to comprehend customer needs and fortify their market presence.