ADVANCING SMALL, MEDIUM AND MICRO ENTERPRISE GROWTH THROUGH DIGITALISED ENTERPRISE AND SUPPLIER DEVELOPMENT IN SOUTH AFRICA

Abstract

Enterprise and Supplier Development (ESD) has been positioned as a key driver of inclusive economic growth in South Africa, particularly in enhancing the participation of Small, Medium, and Micro Enterprises (SMMEs) in corporate supply chains. While digitalisation has emerged as a transformative force for market access, operational efficiency, and competitiveness, its integration into ESD frameworks remains inconsistent, limiting its potential to address persistent barriers faced by SMMEs. Therefore, this study examined the current state of ESD in South Africa; investigated the role of digitalisation in enhancing ESD; identified the challenges and opportunities in digitalising ESD; and provided recommendations for policymakers, corporates, and SMMEs. A qualitative secondary data approach was employed, drawing on thematic analysis of existing literature, reports, and industry initiatives. The findings indicated that ESD adoption remains limited; digitalisation significantly enhances market access and supplier diversity; infrastructure and skills gaps persist; and strategic digital integration can unlock growth opportunities for SMMEs. Based on these findings, the study recommended increased investment in digital infrastructure, skills development, and market platforms, the digitisation of procurement systems, and targeted policy interventions to bridge the digital divide and promote sustainable SMME participation in the economy.