Strategic decision-making processes in South African SMEs amidst economic turbulence

Abstract

The study investigates how financial crises impact the strategic decision-making processes of South African small and medium-sized enterprises (SMEs). Empirical evidence suggests that SMEs are essential to the economic growth and job creation of South Africa. This study seeks to assess the internal and external variables that shape their strategic responses in periods of uncertainty. A purposive sampling technique was adopted where in-depth semi-structured interviews were conducted with SME owners and managers from different industries. Through thematic analysis, the following themes emerged: resilience, partnerships, digital transformation, and short-term survival vs long-term growth. The findings elucidate the range of adaptive approaches SMEs pursue, such as joining business networks, optimising resources, and innovating. All these strategies are important to reduce risks and guarantee sustainability in turbulent economies. The study adds to the growing literature on the themes of resilience and strategic decision-making while also providing SME practitioners and policymakers insights on how to build operational resilience. Recommended areas for future research include exploring differences between sectoral structures and the relationship between government policies and SME performances.