Assessing Marketplaces' Role in Economic Sustainability of South African SMMEs

Abstract

ORIENTATION: Research on marketplaces and their role in the economic sustainability of small, medium and micro enterprises (SMMEs) remains sparse and the researchers need to establish the qualities necessary to support SMME viability. RESEARCH PURPOSE: This empirical study proposed, designed and employed a cataloguing field methodology instrument to effectively assess the physical qualities and attributes of informal and formal marketplaces in South Africa. Motivation for the study: Marketplaces are vital drivers of poverty alleviation and job creation, which inspired this study. RESEARCH DESIGN, APPROACH AND METHOD: A total of 34 marketplaces in Gauteng, South Africa, were randomly selected and catalogued, based on availability, using the same field-ranking form for both formal and informal marketplaces for comparison purposes. This study could inform what is needed to make marketplaces more economically sustainable for their SMMEs and achieve a comprehensive national directory of marketplaces in South Africa to ensure the economic sustainability of SMMEs in the country. MAIN FINDINGS: A new methodology was developed to catalogue marketplaces and SMMEs in Gauteng. PRACTICAL/MANAGERIAL IMPLICATIONS: The functional characteristics of marketplaces are important to owners and operators, and knowledge of these preferences is vital to policy makers and managers. CONTRIBUTION/VALUE ADD: This novel method will effectively assist relevant bodies such as municipal, provincial and national government to effectively capture and catalogue physical marketplaces by their valuable qualities and characteristics.