Small and medium-sized enterprise brand development in an emerging economy: The view of the owner/manager

Abstract

Small business branding is a relatively under-researched field, and available research largely excludes the African region. As a result, the brand development of small and medium enterprises (SMEs) in emerging markets is a topical issue. The aim of this study was to analyse whether brand development factors such as brand barriers, brand characteristics, perceived advantage, and brand perceptions are perceived by owners/managers as having a positive effect on retail SME brand development. A cross-sectional survey method was used to obtain data from 265 owners/ managers of SMEs in South Africa using a self-administered questionnaire. Data were analysed using structural equation modelling, with the results showing that brand barriers, brand characteristics, and brand perceptions have a significant positive effect on brand development, while the effect of perceived advantage was found to be insignificant. It is recommended that SME owners/managers invest more resources in brand development efforts and management develop better attitudes towards branding, as the study revealed that owner/manager perceptions of the brand and the branding process have the biggest impact on brand development. Further, SMEs are encouraged to find innovative ways to engage in brand development, considering that brand barriers do not seem to particularly affect a firm’s ability to engage in brand development. This study contributes towards an understanding of SME brand development in emerging markets, hence SMEs in these markets can benefit from its findings. The practical findings of this study should be of interest to SME owners/managers, as they carry the responsibility for the SME brand development process.