A Framework of Key Growth Factors for Small Enterprises Operating at the Base of the Pyramid

• Main Authors: Michael D. van der Merwe, Sara S. Grobbelaar, Isabel A. Meyer, Cornelius L. Schutte, Konrad H. von Leipzig
• Format: Article
• Language: English
• Published: MDPI AG 2020-11-01
• Series: Sustainability
• Subjects: SMMEs; growth; evaluation tool; framework; base of the pyramid; sustainable enterprise growth
• Online Access: https://www.mdpi.com/2071-1050/12/22/9327

Enterprises operating at the Base of the Pyramid (BoP) find it difficult to simultaneously achieve economic (profitable growth) and social (poverty alleviation) outcomes. This study builds on a previously published systematic literature review that identified the key growth-promoting factors of the Small, Medium, and Micro Enterprises (SMMEs) operating in this space. A Grounded Theory Approach was followed to identify six core focus areas, which form the basis of a practical framework to evaluate SMMEs at the BoP, namely: Business modelling; business strategy; innovation; marketing; strategic alliances; and sustainable development. Expert screening interviews were conducted to evaluate the framework for credibility and confirmability. Thereafter, 57 for-profit South African enterprises were surveyed to empirically explore how SMMEs view and implement these framework components. The outcome of the study is a validated high growth-promoting BoP portfolio framework against which SMME owners can evaluate their enterprises to identify areas of growth and development.