Factors contributing to high growth in SMMEs in Gauteng

Abstract: South Africa is in desperate need to grow the population of high growth SMMEs, as these businesses are key to job creation, innovation efforts, poverty alleviation, promoting economic growth and contributing meaningfully to the South African tax base. This study aims to identify the factors contributing to the high growth of SMMEs in the Gauteng province in South Africa. The study further aimed to determine how the high-growth SMME sector could be nurtured, from the perspective of existing high-growth SMME owners who have experienced more than 20% growth in the past three years. The study was qualitative in nature and made use of semi-structured interviews with sixteen SMME owners based at Incubation Hubs in Gauteng. Data were analysed by means of thematic content analysis. This study concludes that this particular sector plays a significant role within South Africa’s economy. However, for this sector to continue growing, SMMEs need to equip themselves with managerial and industry skills, have a good financing model in place and be provided with government support through policies and development finance. The study is of value to existing SMMEs struggling who can use the identified factors to promote growth internally, as well as to policymakers to structure interventions to promote high growth in existing SMMEs