Assessing the potential impact of industry 4.0 in South Africa’s small and medium enterprises

Abstract: Small enterprises fulfil a major economic gap in the world and in South Africa, contributing 56% to private employment. The significance of small enterprises is vital as they provide over 60% of employment. Small, medium enterprises (SMEs) are common in developing countries as a result of the crucial role they play within the South African economy. Manufacturing SMEs have started to embrace the technological advances that are applicable to their processes. To intensify the contribution that SMEs are making, it is important that challenges and opportunities that SMEs have be explored. Small businesses, regardless of their relevance, still face multiple challenges that hinder their growth and endanger their existence. These challenges include the lack of finance, low market accessibility and more. The leading challenge was lack of finances as the greatest contributing challenge as it has a ripple effect. There are however, opportunities that Industry 4.0 provides to the manufacturing sector to improve their processes. These opportunities can mitigate some of the challenges, whilst improving their manufacturing and customer service processes. One of the possibilities that this technology can afford small manufacturing businesses, is greater efficiency, which may result in increased financial savings. Another opportunity that comes with Industry 4.0 is a smart economy, which can allow these businesses to participate in more markets...M.Phil. (Engineering Management