The Influence of Government Support Interventions on the Growth of African Foreign-Owned SMMEs in South Africa

Abstract

Foreign-owned SMMEs contribute positively to national economic growth. Foreign-owned SMMEs are sources of direct foreign investment and create employment opportunities for local citizens. Although the South African government has instituted several interventions to promote SMMEs growth, very little research has investigated the impact of such interventions on the growth of foreign-owned SMMEs. This study is an attempt to address this gap by investigating government-related support interventions that have an influence on the growth of African foreign-owned SMMEs. Using quantitative research methods and a sample of 60 African foreign SMMEs owners conveniently sampled from the Pietermaritzburg city, findings reveal that training support from the government is the only single intervention that significantly influences the growth of African foreign-owned SMMEs. Thus, this chapter proposes a regression model that depicts how receiving training support from the government influences the growth of African foreign-owned SMMEs in the South African context.