Abstract:
In this study, researchers sought to evaluate the influence of four variables (access to
procurement contracts, access to funding, regulatory frameworks, and access to market
information) that are important for the market expansion of Small and Medium Enterprises
(SMEs) in both their local and international markets.
The Resource-Based View (RBV) and institutional theories were used as theoretical
underpinnings of the study based on the knowledge that SMEs are limited in internal resources
and SMEs’ successes depend on institutions. Researchers used a survey method with a structured
questionnaire administered through a web-based platform.
A total of 178 questionnaires were obtained and after data screening and cleaning, the
sample size was reduced to 119. A multiple linear regression test was conducted, and the results
suggested that SMEs are experiencing challenges in gaining access to funding, access to market
information, and an unfavourable regulatory environment.
The study recommended that the South African government must design and implement a
policy aimed at facilitating the creation of business networks between SMEs and large private
corporates to ensure that SMEs have access to enough private funding and market information.
Also, favourable regulatory environment is essential to drive SME expansions and successes.
