The readiness of small businesses to embrace the Fourth Industrial Revolution in Mamelodi Township

Abstract

The study sought to explore the readiness of small businesses for the Fourth Industrial Revolution (4IR) focussing on the township economy of Mamelodi. Small businesses are known to have a very high failure rate. Most studies conducted on the causes of the low survival rate of small businesses have focused on management-related issues. Such issues include poor financial, management and marketing practices which are compounded by lack of requisite skills and training. Empirical evidence confirms the link between the absence of training and support to the failure of small, medium, enterprises (SMEs). However, despite multi-pronged interventions in the sector, the failure rate has remained high. The study adopted the interpretivism philosophy. Qualitative research design and a case study approach were adopted to gather data to answer the research questions. Key findings revealed that this sector is substantial and despite its semi-informal nature it is capable of being used as a vehicle for township revitalization, empowerment and socio-economic upliftment of previously disadvantaged communities. This in turn has the potential to address the triple challenges of poverty, inequality and unemployment in the country. South Africa’s economy is a dichotomy reflecting first world represented by big business and the developing world as manifested in small businesses. Big business has successfully and fully embraced 4IR and is seemingly reaping a variety of benefits that digitization and automation encapsulate. There is potential for small businesses to also embrace the 4IR and achieve similar benefits, which is the knowledge gap that this study explores. To explore this phenomenon, the study focus on small business readiness for the information age and confined the analysis to financial, operational, physical and psychological paradigms as well as the negative and positive outcomes associated with the 4IR. The study concluded that small businesses operating in Mamelodi Township are ready for the 4IR.