Enterprise Resilience and Economic Justice: A Review of Small and Medium Enterprises (SMEs) Strategies in Eastern Cape, South Africa

Abstract

This study examines how small and medium enterprises (SMEs) in South Africa’s Eastern Cape Province build resilience in a context shaped by persistent poverty, high unemployment, and underdeveloped infrastructure. Employing a qualitative research approach, the study draws on a conceptual integrative literature review and thematic analysis of interdisciplinary literature from development economics, entrepreneurship, and innovation systems. The paper explores the role of SMEs in advancing economic justice through inclusive enterprise development and analyses how SMEs have responded to a range of structural and external disruptions, including digital transformation and energy insecurity. Key themes include township and rural entrepreneurship, digital adoption among informal enterprises, participation by youth and women-led SMEs, and the effectiveness of public and private support mechanisms. The review highlights the critical role of institutional factors such as access to finance, local government policy, and business development services in either enabling or constraining SME resilience. Emerging from the study SME resilience is not only a response to disruption but also a pathway toward addressing deeper issues of inequality and exclusion. However, the paper reveals significant gaps, particularly in longitudinal studies, digital capability-building in informal contexts, and the integration of indigenous knowledge into business practices. The research concludes that understanding SME resilience in the Eastern Cape requires attention to both structural barriers and place-based innovation. By linking resilience to economic justice, the paper contributes to broader debates on inclusive growth and the potential of SMEs to drive more equitable development in marginalised regions.