Abstract:
This study will investigate the influence of dynamic capabilities on small and medium-sized
enterprises funding readiness among SMEs in Pretoria, Gauteng Province. This study
explored the main elements of dynamic capabilities, how SMEs apply dynamic capabilities to
respond to changes in their business environments, and challenges facing them in accessing
funding. The research method adopted in the study was qualitative, with the adoption of
interpretivist philosophical approach that assisted the researcher to interpret the findings from
the subjective experiences of the participants. Participants were selected through a purposive
sampling method, with the use of face-to-face semi-structured interviews. The analysis of data
was done through thematic analysis. The emergent themes are representative of the findings
of the study. These findings suggest that the dynamic capabilities significantly improve the
funding readiness of SMEs, although it highlighted that SMEs also face challenges in
accessing funding such as limited access to funding, lack of knowledge of SME operations by
funders, market competition, compliance and regulatory processes, non-standardisation of
funding application processes and other socio-economic factors. Based on these findings,
recommendations are made to managers of SMEs as well as to policymakers with a view to
promoting dynamic capabilities and, ultimately, increasing the access to finance by SMEs.
These findings have implications for managerial practice, funding institutions and policymakers
in the SME sector.
