Society-Oriented Responsibility A Compass To Sustainable Growth: Case Of Kwazulu Natal Smes

Author: 
Dr. Bobo Chazireni

In the South African economy, SMEs have been identified as productive drivers of inclusive economic growth and development around the world. SMEs makeup 91 per cent of formalised businesses, provide employment to about 60 per cent of the labour force and total economic output accounts for roughly 34 per cent of Gross Domestic Product of the country. Given the critical socio-economic role played by SMEs, it is vital that they grow and succeed. While several studies have acknowledged access to finance as a key success factor, similar studies carried out around the world also highlighted the role of social responsibility on the success of business. This means that a business which voluntarily participates in local community activities, such as providing the community with donations, assisting them with projects and sharing some of its profit with the community, is more likely to become competitive in the long run. Therefore, the study aimed at exploring SR to sustainable growth of SMEs in KwaZulu Natal province. Results were attained through assessing SMEs perception of SR towards sustainable growth of the business; assessing impact of SR on the SME business; assessing SR as a sustainable growth strategy for SME businesses. A Qualitative approach was adopted where data was obtained through face to face interviews. Results showed that majority of the respondents had an adverse view of SR towards sustainable growth of SME business. SME business does not acknowledge the impact of SR on SME business. SMEs undermine the practice of SR as a strategy for sustainable growth of their businesses. The study contributed to new knowledge through a model framework driven by the Stakeholder Theory entitled, “SR, compass to SME business sustainable growth”. The model was proposed to motivate SME businesses to positively embrace SR. The study recommended chamber of commerce, local municipalities and business leaders to proactively support SMEs to adopt SR as a sustainable growth strategy through training leading to SME business alignment with SR strategy.

Paper No: 
2729