An exploratory study into the factors that impact sustainability-led innovation (SLI) in Small and Medium Enterprises (SME’s) within KZN

Abstract

South Africa faces a high SME failure rate due to the lack of understanding on the concept of sustainability-led innovation (SLI) and SME’s not being able to transform their businesses into sustainable ventures (Leboea, 2017). Failure factors are both internal and external (Leboea, 2017). The purpose of this research was to identify the factors that impact SLI within SMEs and to determine how these factors influence SME’s ability to implement SLI. The sample used for this study were, two owners and a senior manager of SMEs based in KwaZulu-Natal. The data was collected using a semi-structured interview schedule, this enabled the researcher to gain an in-depth understanding of the phenomenon through exploring the experiences, views and beliefs of the participants on how factors such as resources, skills, capabilities and leadership influenced SME’s ability to implement SLI. The research found that the process of acquiring capital, financing and funds is long and complicated for SME’s, and SLI is predominantly self-financed. In terms of skills and capabilities, SME’s rarely invest in up skilling staff in relation to SLI. The findings suggest that aristocratic leadership inhibits the fostering of innovative solutions. However, transformational and charismatic leadership improved implementations towards SLI. Recommendations were made towards the challenges faced, and areas for possible future research avenues were highlighted.