Dr Alfred Masakale, Dr Watson Munyanyi
Abstract
Small and Medium Enterprises play a vital role in South Africa’s economy, contributing significantly to employment creation, gross domestic product growth, and efforts to reduce poverty and inequality. This study systematically examines the role of entrepreneurial growth ambition as a catalyst for improving the operational performance of small and medium enterprises in South Africa. Using systematic literature review methodology and guided by Entrepreneurial Motivation Theory and Strategic Choice Theory, the paper explores the interplay between motivational drivers, systemic constraints, and strategic outcomes associated with growth ambition. The review integrates findings from peer-reviewed studies published between 2010 and 2024, revealing that high levels of entrepreneurial ambition are positively associated with innovation, revenue growth, market expansion, and job creation. However, the translation of ambition into tangible outcomes is frequently hindered by barriers such as limited access to finance, skills shortages, regulatory inefficiencies, and digital exclusion. The paper underscores that growth ambition is both a psychological disposition and a strategic orientation that significantly shapes SME trajectories. Practical recommendations include the development of targeted support programs that consider varying ambition profiles among entrepreneurs. This study contributes to entrepreneurial theory and SME development policy by offering a conceptual framework that links ambition to performance in resource-constrained contexts.