Exploring Empowerment Challenges Facing SMMEs in the Nelson Mandela Bay Automotive Industry : Implications for Youth Skills Development and Workforce Development Pathways

Rafani, Luthando and Sirayi, Siyabonga and Deliwe, Ayanda (2026) Exploring Empowerment Challenges Facing SMMEs in the Nelson Mandela Bay Automotive Industry : Implications for Youth Skills Development and Workforce Development Pathways. GILE JOURNAL OF SKILLS DEVELOPMENT, 6 (2). pp. 170-189. ISSN 2732-3781

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Abstract

Small, Medium and Micro Enterprises (SMMEs) play a critical role in South Africa's automotive industry by promoting economic growth, supplier development, and employment creation. However, persistent empowerment challenges continue to constrain their participation in automotive value chains and limit their contribution to youth skills development and workforce development pathways. This study aimed to explore the empowerment challenges facing SMMEs within the Nelson Mandela Bay automotive industry and to examine how these challenges influence opportunities for youth skills formation and sustainable workforce development. A qualitative case study design was adopted, employing purposive and snowball sampling to recruit 15 participants comprising SMME owners, Sector Development representatives, and Automotive Industry Development Centre (AIDC) officials. Data were collected through semi-structured interviews and analysed using six-phase thematic analysis. The findings identified six interrelated themes that constrain SMME empowerment: access and resources, skills and training, communication and information, policy and leadership, infrastructure and operations, and motivation and organisational culture. Collectively, these barriers restrict SMMEs' competitiveness, reduce their ability to participate in supplier development initiatives, and weaken their capacity to provide workplace learning opportunities, apprenticeships, and technical skills development for young people entering the automotive industry. The study concludes that strengthening institutional support, improving communication between stakeholders, expanding access to finance and infrastructure, and aligning empowerment initiatives with industry needs are essential to enhancing SMME sustainability and supporting inclusive workforce development. The study contributes to the growing body of knowledge on SMME empowerment by demonstrating the close relationship between enterprise development, youth employability, and regional workforce development within South Africa's automotive industry.

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