Abstract
small business sector, which includes small, medium, and micro-enterprises (SMME), is critical for job creation, economic development, and poverty alleviation in the South African economy. In South Africa, micro-enterprises, particularly those trading in fast-foods, are prevalent in low-income communities, such as urban townships and informal settlements. However, these micro-enterprises fail at a high rate; estimated at more than 70%, due to their poor management including that of the supply chain and other challenges. Large to medium-sized enterprises are reported to incur positive gains from the application of supply chain management practices (SCMPs). Micro-enterprises could also adopt SCMPs to improve their performance. There are numerous studies focused on the supply chains of large to medium-sized enterprises, however, there are few studies on the supply chains of micro-enterprises. The main objective of this study was to investigate the effects of SCMPs on the performance of fast-food micro-enterprises operating in the township of Alexandra. A descriptive survey research design with a quantitative method was followed. To achieve the research objectives, to collect the data self-administered surveys were distributed to the respondents. Data were collected from a sample of 144 fast-food micro-enterprises. The data were subjected to exploratory factor analysis from which three factors were extracted, namely supply chain integration and information, supplier relations, and customer relations. Multi-regression analysis and subsequently hierarchical regression analysis were performed to test the relationship between SCMPs and enterprise performance. The findings revealed that supply chain integration and information factors positively affect enterprise performance. As per the findings, it is recommended that micro-enterprise owners and operators should focus on how to integrate the various supply chain activities to improve performance. To achieve this goal micro-enterprise owners and operators should acquire relevant skills and knowledge in managing a small business. The government, through its agencies and large enterprises in the private sector, should assist these businesses by providing information about available training and mentorship support programmes tailored to the needs of micro-enterprises.