The Impact of Research and Innovation on SMMEs in Gauteng Province South Africa

Abstract: Small, Micro and Medium Enterprises (SMMEs) have always played a key role in the economies of major industrial societies in both Gross Domestic Product (GDP) and employment levels. Their survival and growth depended mainly on extensive research and innovation. As we enter the 22nd century, globalisation has become an influential force in world trade. It is important to view SMMEs as instruments capable of responding to globalization. While it is true that globalization creates opportunities for SMMEs to be effectively involved in global markets, it also poses numerous challenges and problems. While their flexibility and adaptability promise their success in global trade, SMMEs can only achieve this through effective research and innovation, hence making them competitive in terms of price, quality of goods and their ability to meet delivery requirements. Research and innovation is particularly important especially in the developing countries such as South Africa where SMMEs are important contributors to the economy. They provide employment opportunities and create economic wealth resulting in poverty reduction and increased employment. In order to succeed and prosper, SMMEs need to establish continuous research and innovation strategies in-order to allow them to evolve and adapt to the global stature. This paper therefore seeks to reveal a deeper understanding of the strategies being used to encourage SMMEs in the Gauten