Flourishing and thriving small, medium and micro enterprise (SMME) sectors have become one of the leading recognised cornerstones of economic development. The ability of these businesses to act as key drivers of economic growth, innovation and job creation make them valuable assets towards any nation’s strive for a more inclusive economic and social outlook. For South Africa in particular, burdened by an epidemic of unemployment, poverty and income inequality, SMMEs role in improving the socio-economic environment proves pivotal. Yet, despite their potential, these businesses face a myriad of challenges, emanating from both internal and external environments, that restricts their growth and development. The primary aim of this study is to identify and compare the main socio-economic challenges faced by SMMEs in two local areas within the Vaal Triangle region. The study made use of a quantitative research approach and a cross-sectional research design through means of the survey method. The sample consisted of a total of 198 SMME owners that resided in both the Emfuleni (ELM) (n = 100) and Midvaal (MLM) (n = 98) local municipal areas. Data analysis involved the use of descriptive statistics, cross tabulations and chi-square tests. Overall the results of the study revealed that amongst the biggest challenges faced by SMMEs included managerial as well as economic aspects such as a lack of skilled labour, insufficient business training and lacklustre local economic conditions. The comparative analysis further revealed more significant infrastructural challenges in the Emfuleni local municipal area while market challenges such as a lack of demand as well as higher transportation costs were experienced by SMMEs located in the Midvaal area. The findings of the study provide valuable insight towards fostering an enabling environment for SMME development, specifically on local levels. In this regard policy stakeholders should adopt a multi-sectoral SMME focus. Possible recommendations include enhanced macroeconomic stability, strong public-private partnership formation and the provision of strong business support structures that facilitate management skills development together with the provision of strategic finance facilities.

Orientation: The increasing number of young people not in employment, education or training (NEET) is a concerning global trend. Research purpose: This study aimed to identify the factors that contribute to young individuals being classified as NEET in South Africa. Motivation for the study: Given the rising NEET rates in South Africa and the potential loss of human capital, this study addresses a critical gap in understanding the drivers of youth unemployment and disengagement from education and/or training. Research approach/design and method: Employing cross-sectional data analysis techniques, the study used the Quarterly Labour Force Survey data with a sample of 14 338 youths aged 15–34 years from Statistics South Africa. Main findings: The study identified education level, race and age as significant predictors of NEET status. The research highlighted the role of social capital and geographical barriers in determining the NEET status of young individuals, with location and gender having an impact. Practical/managerial implications: The study’s findings have important implications for policymakers. Possible strategies can target the specific factors identified, such as improving access to education and training, addressing racial disparities and reducing gender-related barriers. Contribution/value-add: This study reveals the causes of NEET among South African youth. Policymakers can use this information to create targeted interventions, reduce the NEET population and promote socio-economic development. The research provides a valuable resource to guide efforts in reducing the NEET population and harnessing the potential of the country’s youth.

The primary objective of this study was to examine the impact of various dimensions of globalization on employment outcomes in the Southern African Customs Union (SACU) countries. A novel panel econometric approach was used, accounting for structural breaks, cross-sectional dependence, and heterogeneous slopes through cross-sectionally augmented panel-autoregressive distributed lag (ARDL) and dynamic common correlated effect (DCCE) estimation. The findings revealed that globalization, mainly through its economic and social dimensions, has induced additional employment capacity for the customs union. The prominence of de jure and de facto factors within this nexus was also confirmed. The results showed the benefits of foreign financial flows, tourism, technological knowledge spillovers, and trade facilitation in improving SACU labor market processes. Although the evidence here sheds light on the positive inducing effects, the presence of both adverse incorporation and skill-biased consequences was not discounted. Based on this, several recommendations are suggested. This includes the promotion of regional trade and greater integration within the wider sub-Saharan Africa (SSA), an industrial policy shift that promotes a more information and communication technology (ICT)-driven economy, developing industries without smokestacks (IWOSS), establishing sound regional institutions, and prioritizing export diversification, especially among the smaller states in the customs union. JEL Classification F63, F66, J2, R1

Background: Globalisation has brought significant benefits to countries’ industrialisation, but its impact has not been uniform. Policymakers in developing countries have increasingly focused on sound institutions’ role in offsetting the potential negative effects of an integrated economic structure. However, evidence of the mediating role of institutional quality in South Africa’s unique economic globalisation and industrial development relationship has been limited. Objective: This study had the primary objective to assess the mediating role of institutional quality within the globalisation and industrialisation nexus in South Africa. Method: The analysis used a quantitative research approach through a time series analysis, based on secondary data from 1980 to 2021. The long-run relationships between the variables were assessed through novel cointegration tests, while three different cointegration regression estimation techniques were employed to estimate the elasticities. Moreover, Toda-Yamamoto causality tests were utilised to evaluate the causal linkages between the variables. Results: The findings suggest that South Africa’s unique integration path has benefited industrial output significantly since its move to a more liberal and democratic structure. However, the level of institutional quality has contributed to a diminishing effect in this regard. This emanates primarily from a misalignment between institutional frameworks and the demands of globalisation, including increased competition and regulatory challenges. Conclusion: Based on this, the study recommends that policymakers prioritise developing a comprehensive industrial policy to promote key strategic sectors, regional integration, and public–private partnerships. Moreover, they should improve the business environment and infrastructure by means of reducing the costs of doing business, enhance the rule of law, ensure a stable financial system to attract foreign investment and foster sound regional partnerships.

The Journal of Economic and Financial Sciences promotes research in auditing, corporate finance, corporate governance, economics, econometrics, financial accounting, financial management, financial planning, investment management, management accounting and taxation in the emerging market field.

Globalisation is a deep-rooted phenomenon that has significantly shaped developed and developing economies alike. Characterised by its controversial past, South Africa provides a unique case when considering how global integration has affected the country’s economy. Among the more intriguing relationships has been the interlinkage between the country’s public debt levels and the manner in which it has globalised. On one hand, advocates suggest that economic integration has enabled the government to provide greater social assistance in the hope of rectifying its controversial past. On the other hand, however, globalisation is believed to increase pressure on the fiscal budget with increased levels of debt needed to mitigate the pressure of external shocks. The primary objective of this study was to analyse the relationship between public debt and economic globalisation in South Africa. It followed a quantitative research approach using secondary time-series data from 1980 to 2020. Long-run relationships were evaluated through the use of a Bayer–Hanck combined cointegration test, while FMOLS, DOLS and CCR estimation techniques were employed to estimate elasticity relationships. The results corroborate the existence of a positive relationship between higher levels of economic globalization and public debt. Moreover, the causality results revealed a unidirectional causal link between these variables emanating from the economic integration of the country. This implies significant consequences for fiscal policymakers towards balancing its role as a crucial macroeconomic role player. The findings in fact point to noteworthy implications surrounding the restricting effects of the integration process, pertaining to higher borrowing costs, increased external vulnerability and limited fiscal capability in the context of improving the country’s social environment.