Abstract
Small Medium and Micro Enterprises (SMMEs) are considered to be one of the main contributors to socio-economic development in South Africa. A large portion of the informal sector includes township SMMEs that are one of the critical role players in creating employment, thereby helping to alleviate poverty among township residents across South Africa. With the constant advancement of modern technology over the past decade, it has become evident how much the dominance of digital technology has caused global disruption across all business sectors, including township SMMEs. There is, thus, a need for all businesses to keep pace with disruptive digital innovations
in order to survive and contribute to the digital economy that has become the current driver of socio-economic growth.
However, the lack of evidence regarding the manner in which township SMMEs are responding to this current disruptive digital age is an area of serious concern. Research, therefore, is necessary to determine if digitalisation can be a potential tool that can be used to ensure that township SMMEs do not become vulnerable to any disruptive economic changes but are agile enough to stay competitive and build sustainable growth in the current digital era.
This study followed a mixed research approach, whereby self-administered questionnaires were used to collect quantitative data from customers of township SMMEs, and semi-structured interviews were used to collect qualitative data from owners of these SMMEs. Three townships were selected on the basis of geographical dispersion to ensure a strong sample for this study.
The research findings indicated that there is potential for township SMMEs to use digital technology through the adoption of digital practices that can be implemented through effective digital channels. The results also showed that such digital networks are already being used by both the business owners and their customers. However, gaps were identified in the way in which some of these digital channels are currently utilised by the business owners, compared to their customers. These gaps provide opportunities that business owners can take advantage of. The research findings also identified technological challenges that hinder effective digital transformation across the townships. These problems need to be addressed through the support of the government and other external stakeholders to ensure that township SMMEs are able to access digital technologies to enhance their competitive advantage.
A limitation of the study is that it was only conducted in the Gauteng province and focused on SMMEs in the product and service retail sectors.
Key words: agility, competitive advantage, digital channels, digitalisation, township SMMEs.