Abstract
The study investigates the integration of government business support services (GBSS) on small-scale manufacturers of aluminium and steel products situated in the Gauteng City Region (GCR), focusing on the City of Tshwane, the City of Johannesburg (CoJ), Ekurhuleni and Sedibeng municipalities. The primary objective of this study was to determine the perceptions of small-scale manufacturers of aluminium and steel products regarding variables such as financial assistance, non-financial assistance, training for skills development, government support, business growth and local economic development (LED). Secondary objective 1 was to determine the relationship between the above-mentioned variables. Secondary objective 2 was to develop a framework to address the upgrade of GBSS to small-scale manufacturers of aluminium and steel products. This research contributes to the field of operations management by identifying the gaps that small-scale manufacturers tend to overlook due to their informality in the economic value chain. They barely consider the operations management structure due to the scarcity of resources that they could receive from GBSS via the stakeholder theory.
To gather data from a purposeful sample of 100 individuals, a quantitative research design was adopted, and a self-administered survey questionnaire was used. The data was collected using close-ended questionnaires consisting of six sections, namely, demographical details, training for skills development, financial assistance, non-financial assistance, government support, business growth and LED. The questionnaire's reliability and validity were determined through pilot testing. Frequencies and correlations were used to ascertain the relationship between the variables. Statistical Package for the Social Sciences (SPSS) v27 and Smart PLS 3.0 was used to evaluate the path, structural model, and coefficient of the path. Descriptive statistics were used to explain the findings.
The results revealed that most of the participants are not satisfied with the support they received from GBSS, especially regarding financial assistance. Most SMMEs owned by black people in townships receive little government assistance because most support services are located either in the provincial or national spheres of government. It is recommended that GBSS government officials should implement a follow-up strategy after providing a service to these small-scale manufacturers of aluminium and steel products. The follow-up strategy should be able to determine the effectiveness of the assistance provided and to identify further gaps in small business sustainability that may be there.
Keywords: Gauteng; government business support services; economy; operations management; small-scale manufacturing.