A framework of key growth factors for small enterprises operating at the base of the pyramid

Abstract

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.