AN EXPLORATORY QUALITATIVE STUDY OF COMPETITIVE STRATEGIES USED BY SMALL AND MEDIUM-SIZED ENTERPRISES IN BOTSWANA
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Krishna K Govender(1*)
Graduate School of Business and Leadership, University of KwaZulu Natal
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Micheline Naude(2)
School of Management, IT & Governance, University of KwaZulu Natal
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Tadios Munodawafa(3)
School of Management, IT & Governance, University of KwaZulu Natal
(*) Corresponding Author
Keywords:
SMEs, Manufacturing Enterprises, Sustained Competitive Advantage, Developing Economies
Abstract
The study explored factors impacting the sustainable competitive advantage of small and medium-sized manufacturing enterprises (SMEs) in Botswana. Through face-to-face interviews, primary data were collected from a purposively selected sample of seven key government informants. Thematic analysis was used to analyze the data. The main findings revealed that manufacturing enterprises in Botswana are affected by high rentals and high costs of land (space), equipment, and product quality. SMEs that export their products face additional challenges of traceability issues and mileage charges in the countries where they export their products. The study recommends that funding organizations should continue to review collateral issues to increase access to finance for SMEs. The Botswana government and tribal authorities issuing land should remove bottlenecks related to the application for land, especially for business purposes. Access to water should also be reviewed to simplify the application process for water rights, especially for youth-funded ventures. The government should continue to promote joint ventures between multinational corporations because such efforts result in the transfer of funds, technology, and skills. Government subsidies should be offered for SMEs which incur significant mileage costs when they export their products to foreign markets. Manufacturing SMEs should also consider SME equity funding as an alternative to funding, and offer less risk compared to commercial banks and existing government-sponsored funding agencies. The findings of the study contribute towards the development of a sustainable theoretical framework that can be used by manufacturing SMEs to identify and utilize their internal resources and capabilities to increase their competitiveness and survive. The findings may also help to identify additional intervention strategies for manufacturing SMEs by the Botswana government and other stakeholders from both the public and private sectors.
Keywords: SMEs; Manufacturing Enterprises; Sustained Competitive Advantage; Developing Economies
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References
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Ding, X. & Murinde, V., (2010). Simultaneous financial decision-making: evidence from UK firms. Strategic Change, 19(1-2), pp.45-56.
Domeher, D., Abdulai, R., & Yeboah, E. (2019). Secure property right as a determinant of SMEs access to formal credit in Ghana: dynamics between Micro-finance institutions and universal banks, Journal of Property Research, 33(2), pp. 162-188. DOI: https://doi.org/10.1080/09599916.2016.1160948
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Mashavira, N., Guvuriro, S. & Chipunza, C., (2022). Driving SMEs’ Performance in South Africa: Investigating the Role of Performance Appraisal Practices and Managerial Competencies. Journal of Risk and Financial Management, 15(7), p. 283. DOI: http://dx.doi.org/10.3390/jrfm15070283
Matsongoni, H. & Mutambara, E., (2021). Assessing the role of informal manufacturing SMEs and the effectiveness of government economic programmes to enhance their performance in Zimbabwe. International Journal of Entrepreneurship, 25, pp.1-12.
Maziriri, E.T. & Chivandi, A., (2020). Modelling key predictors that stimulate the entrepreneurial performance of small and medium-sized enterprises (SMEs) and poverty reduction: Perspectives from SME managers in an emerging economy. ActaCommercii, 20(1), pp.1-15.
Mbogo, M., & David, C. (2021). Effect of budgeting practices on financial performance of manufacturing small and medium enterprises in Nairobi County, Kenya. Journal of Language, Technology & Entrepreneurship in Africa, 12(1), pp. 84-110. https://doi.org/10.4314/JOLTE.V12I1
Mokwana, R. M. (2021). Exploring the sustainability of SMEs in the textile and clothing industry to create employment in South Africa (Doctoral dissertation, North-West University, South Africa).
Molefe, G. (2020). Factors hindering export performance in Botswana: a focus on SMMEs, pp. 1-155. (Doctoral dissertation University of Witwatersrand, Johannesburg, South Africa).
Molefi, B. M. (2021). Barriers of establishing profitable and sustainable pharmaceutical manufacturing firms in Botswana (Doctoral dissertation, University of Botswana).
Monyake, J.M. & Kuruba, G. (2020). Challenges of Managing Growing Small & Medium Businesses (SMES) In Botswana, International Journal of Innovative Science, Engineering & Technology, 8(2), pp. 12 - 30.
Monyake, J.M., Kuruba, G., Setibi, G., Mmereki, R., Boy, R. & Ditshweu, T., (2020). Entrepreneurship development as a strategic tool for poverty alleviation: Lessons for Botswana. International Journal of Management (IJM), 11(10), pp. 320-331. DOI: https://iaeme.com/Home/article_id/10.34218/IJM.11.10.2020.190
Mpofu, O., & Sibindi, A. B. (2022). Informal finance: A boon or bane for African SMEs? Journal of Risk and Financial Management, 15(6), p. 270. DOI: https://doi.org/10.3390/jrfm15060270
Nautwima, J., P., & Asa, R., A, (2022). The Impact of Quality Service on Customer Satisfaction in the Banking Sector amidst Covid-19 Pandemic: A Literature Review for the State of Current Knowledge, International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 8(3), pages 31-38, March.
Ngibe, M. & Lekhanya, L. M. (2020). Environmental factors affecting innovative leadership towards sustainable growth of manufacturing small and medium enterprises, Journal of Contemporary Management, 17(2), pp. 1-14. DOI: https://doi.org/10.35683/jcm1910E.97
Njanike, K., (2019). The factors influencing SMEs growth in Africa: A case of SMEs in Zimbabwe. In Regional Development in Africa. IntechOpen, 493), pp. 1 - 23. DOI: 10.5772/intechopen.87192
OECD (2017). Enhancing Productivity in SMEs: Interim Report, OECD Working Party on SMEs and Entrepreneurship. New York: OECD.
Onwe, J. C., Agada, E. E., Onwe, O. C., Williams, O., & Ogba, R. C. (2024). Factors influencing business and entrepreneurial survival in Africa: A systematic review, African Journal of Economics and Sustainable Development, 7(2), pp. 101-113. DOI: 10.52589/AJESDKRB0EP
Pansiri, J. & Yalala, A.T., (2017). The evolution of entrepreneurship and small-to-medium business development in Botswana. Botswana Journal of Business, 10(1), pp.53-82.
Saunders, M., N., K., Lewis, P. & Thornhill, A. (2019). Research Methods for Business Students. 8th Edition, Pearson, New York.
Statistics Botswana (2015). South East District: Population and Housing Census Selected Indicators 2011. [Online]. Available from:
Svotwa, T. D., Jaiyeoba, O., Roberts-Lombard, M., & Makanyeza, C. (2022). Perceived access to finance, entrepreneurial self-efficacy, attitude toward entrepreneurship, entrepreneurial ability, and entrepreneurial intentions: A Botswana youth perspective. Sage Open, 12(2), pp. 1-19. DOI: http://dx.doi.org/10.1177/21582440221096437
Tebetso, T. T. (2021). Integrating Human Resource Development and Knowledge Management for Sustainable Botswana Public sector Performance, Revue Européenne du Droit Social, (4 (53), pp. 105-120. http:/dx.doi.org/10.53373/REDS.2021.53.4.044
Wach, K., (2020). A typology of small business growth modelling: a critical literature review. Entrepreneurial Business and Economics Review, 8(1), pp.159-184.
Ama, N., O. & Okurut, F., N. (2018). Micro, Small, and Medium-Sized Enterprises (MSMEs) and Open Collaborative Innovation in Botswana. Working Paper 15, Open African Innovation Research (Open AIR)
Bosire, E. N., & Muturi, W. (2020). Government Entrepreneurial Intervention and Growth of Micro, Small and Medium Youth Enterprises in Kisii County, Kenya. International Journal of Managerial Studies and Research (IJMSR), 8(2), pp. 55-63. DOI: https://doi.org/10.20431/2349-0349.0812006
CEDA. (2020). 2019 Annual Report. Gaborone: Botswana Government Printers.
Chaushi, B. A., & Imeri, R. (2021, October). Managerial skills and performance of small and medium enterprises–evidence from survey data. In 37th EBES Conference-Berlin Proceedings-Volume I (p. 102).
Chileshe, K. (2019). Rural credit and agricultural productivity; does access to credit matter? evidence from smallholder maize farmers in Zambia (Doctoral dissertation, University of Zambia).
Creswell, J. W. (2009). Mapping the field of mixed methods research, Journal of mixed methods research, 3(2), pp. 95-108.
https://doi.org/10.1177/1558689808330883
Ding, X. & Murinde, V., (2010). Simultaneous financial decision-making: evidence from UK firms. Strategic Change, 19(1-2), pp.45-56.
Domeher, D., Abdulai, R., & Yeboah, E. (2019). Secure property right as a determinant of SMEs access to formal credit in Ghana: dynamics between Micro-finance institutions and universal banks, Journal of Property Research, 33(2), pp. 162-188. DOI: https://doi.org/10.1080/09599916.2016.1160948
Eldesouky, R., El Gazzar, S., & Waseem, M. (2023). Investigating the macroeconomic and firm specific determinants of the growth and survival of SMEs: an empirical study of the Egyptian listed SMEs. The Academic Journal of Contemporary Commercial Research, 3(1), pp. 24-41. DOI: https://dx.doi.org/10.21608/ajccr.2023.293121
Eresia-Eke, C. & Okerue, C., (2020). Owner-manager human capital and business coping ability in African immigrant small businesses in Southern Africa. Development Southern Africa, 37(2), pp.348-361.
Folajinmi, A.F. & Peter, A.O., (2020). Financial management practices and performance of small and medium scale poultry industry in Ogun State, Nigeria, Journal of Finance and Accounting, 8(2), p. 90. DOI: https://doi.org/10.11648/j.jfa.20200802.15
Guruwo P., T. (2020). Lack of full market potential exploitation by SMMEs in Botswana, European Journal of Business and Management, 10 (202), pp. 108-112.
https://www.statsbots.org.bw/sites/default/files/publications/South%20East%20District Population%20and%20Housing%20Census%202011%20Selected%20Indicators.pdf. [Date accessed: 30 May 2021].
Hussain, A. & Andronicieum, M. (2022). E-commerce and SME performance: The moderating influence of entrepreneurial competencies. Administrative Sciences, 12(1), 13.
Karedza, G. & Govender, K.., K., (2020). The Impact of Organizational Capabilities on SMEs Export Performance: Application of the Resource Based View Theory. International Journal of Entrepreneurial Research, 3(3), pp. 68-75. DOI: http://dx.doi.org/10.31580/ijer.v3i3.1543
Kubanji, T. T., Biza-Khupe, S., & Mapharing, M. (2021). The causality relationship between the financial sector profitability and the Botswana economy. In the 5th international conference on business innovation and growth (2019) proceedings & book of abstracts (p. 330).
Leech, N. L., & Onwuegbuzie, A. J. (2008). A Typology of Mixed Methods Research Designs. Quality & Quantity, 43, 265-275. https://doi.org/10.1007/s11135-007-9105-3
Mafoko, L. (2019). Assessing Factors Affecting the Performance of Youth Owned Manufacturing SMEs. A case of Kweneng District Council, The International Journal of Multi-Disciplinary Research, 1 (1), pp. 1-33.
Majama, N.S. & Magang, T, .I., T. (2017). Strategic planning in small and medium enterprises (SMEs): A case study of Botswana SMEs. Journal of Management and Strategy, 8(1), pp.74-103.
Mashavira, N., Guvuriro, S. & Chipunza, C., (2022). Driving SMEs’ Performance in South Africa: Investigating the Role of Performance Appraisal Practices and Managerial Competencies. Journal of Risk and Financial Management, 15(7), p. 283. DOI: http://dx.doi.org/10.3390/jrfm15070283
Matsongoni, H. & Mutambara, E., (2021). Assessing the role of informal manufacturing SMEs and the effectiveness of government economic programmes to enhance their performance in Zimbabwe. International Journal of Entrepreneurship, 25, pp.1-12.
Maziriri, E.T. & Chivandi, A., (2020). Modelling key predictors that stimulate the entrepreneurial performance of small and medium-sized enterprises (SMEs) and poverty reduction: Perspectives from SME managers in an emerging economy. ActaCommercii, 20(1), pp.1-15.
Mbogo, M., & David, C. (2021). Effect of budgeting practices on financial performance of manufacturing small and medium enterprises in Nairobi County, Kenya. Journal of Language, Technology & Entrepreneurship in Africa, 12(1), pp. 84-110. https://doi.org/10.4314/JOLTE.V12I1
Mokwana, R. M. (2021). Exploring the sustainability of SMEs in the textile and clothing industry to create employment in South Africa (Doctoral dissertation, North-West University, South Africa).
Molefe, G. (2020). Factors hindering export performance in Botswana: a focus on SMMEs, pp. 1-155. (Doctoral dissertation University of Witwatersrand, Johannesburg, South Africa).
Molefi, B. M. (2021). Barriers of establishing profitable and sustainable pharmaceutical manufacturing firms in Botswana (Doctoral dissertation, University of Botswana).
Monyake, J.M. & Kuruba, G. (2020). Challenges of Managing Growing Small & Medium Businesses (SMES) In Botswana, International Journal of Innovative Science, Engineering & Technology, 8(2), pp. 12 - 30.
Monyake, J.M., Kuruba, G., Setibi, G., Mmereki, R., Boy, R. & Ditshweu, T., (2020). Entrepreneurship development as a strategic tool for poverty alleviation: Lessons for Botswana. International Journal of Management (IJM), 11(10), pp. 320-331. DOI: https://iaeme.com/Home/article_id/10.34218/IJM.11.10.2020.190
Mpofu, O., & Sibindi, A. B. (2022). Informal finance: A boon or bane for African SMEs? Journal of Risk and Financial Management, 15(6), p. 270. DOI: https://doi.org/10.3390/jrfm15060270
Nautwima, J., P., & Asa, R., A, (2022). The Impact of Quality Service on Customer Satisfaction in the Banking Sector amidst Covid-19 Pandemic: A Literature Review for the State of Current Knowledge, International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 8(3), pages 31-38, March.
Ngibe, M. & Lekhanya, L. M. (2020). Environmental factors affecting innovative leadership towards sustainable growth of manufacturing small and medium enterprises, Journal of Contemporary Management, 17(2), pp. 1-14. DOI: https://doi.org/10.35683/jcm1910E.97
Njanike, K., (2019). The factors influencing SMEs growth in Africa: A case of SMEs in Zimbabwe. In Regional Development in Africa. IntechOpen, 493), pp. 1 - 23. DOI: 10.5772/intechopen.87192
OECD (2017). Enhancing Productivity in SMEs: Interim Report, OECD Working Party on SMEs and Entrepreneurship. New York: OECD.
Onwe, J. C., Agada, E. E., Onwe, O. C., Williams, O., & Ogba, R. C. (2024). Factors influencing business and entrepreneurial survival in Africa: A systematic review, African Journal of Economics and Sustainable Development, 7(2), pp. 101-113. DOI: 10.52589/AJESDKRB0EP
Pansiri, J. & Yalala, A.T., (2017). The evolution of entrepreneurship and small-to-medium business development in Botswana. Botswana Journal of Business, 10(1), pp.53-82.
Saunders, M., N., K., Lewis, P. & Thornhill, A. (2019). Research Methods for Business Students. 8th Edition, Pearson, New York.
Statistics Botswana (2015). South East District: Population and Housing Census Selected Indicators 2011. [Online]. Available from:
Svotwa, T. D., Jaiyeoba, O., Roberts-Lombard, M., & Makanyeza, C. (2022). Perceived access to finance, entrepreneurial self-efficacy, attitude toward entrepreneurship, entrepreneurial ability, and entrepreneurial intentions: A Botswana youth perspective. Sage Open, 12(2), pp. 1-19. DOI: http://dx.doi.org/10.1177/21582440221096437
Tebetso, T. T. (2021). Integrating Human Resource Development and Knowledge Management for Sustainable Botswana Public sector Performance, Revue Européenne du Droit Social, (4 (53), pp. 105-120. http:/dx.doi.org/10.53373/REDS.2021.53.4.044
Wach, K., (2020). A typology of small business growth modelling: a critical literature review. Entrepreneurial Business and Economics Review, 8(1), pp.159-184.
Published
2025-03-01
How to Cite
Govender, K., Naude, M., & Munodawafa, T. (2025). AN EXPLORATORY QUALITATIVE STUDY OF COMPETITIVE STRATEGIES USED BY SMALL AND MEDIUM-SIZED ENTERPRISES IN BOTSWANA. Journal of Management : Small and Medium Enterprises (SMEs), 18(1), 11-37. https://doi.org/10.35508/jom.v18i1.16455
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Articles
