A Comparison of the Effectiveness of SMEs and Cooperative Subsidy and grant Programmes: Evidence from South Africa

Between 2012 and 2017, the South African government spent about 2.2 billion rands to support small, medium and cooperative enterprises through grant and subsidy programmes. This is a necessary condition for economic growth and development and becoming more significant where cooperatives and small enterprises face different obstacles, which include access to capital. However, the effective implementation of these programmes depends on the availability of efficient tools, manpower and mechanisms. This paper investigated and compared the effectiveness of two intervention programmes where a multiple case study methodology strategy was adopted by applying a balanced scorecard measurement framework using the two programmes data from 2012 to 2017. A two-perspective scorecard was developed, and key performance indicator approach was utilised to measure variables. The results showed that the effectiveness of the programmes was influenced by long turnaround time, bureaucratic weakness, the policy being overridden, and internal business process inconsistencies, among others. The lack of policy to encourage the state and its agencies to implement their support programmes adapted to the economic and sustainability condition of the small and cooperative enterprises suggests that the management of programmes required a proactive approach to fulfil their strategic and operational mandate. The results of the comparative study allowed for estimating the influence of state support programmes on the success indicators of small and cooperative enterprises in South Africa and beyond.