A systems dynamics approach to SME digitalization

In the current global scenario Small and Medium Enterprises (SME's) contribute to the GDP of nations through employment opportunity, productivity and growth. The small and medium business space is a challenge to operate, more especially in these times of COVID-19. The world of digital delivers opportunities for optimization in order to survive these challenges. The South African situation runs parallel to these observations despite formidable support from stakeholders in creation of "Innovation hubs" and other mechanisms to ameliorate. This calls for a close investigation of smart business solution enabled digitally to address the needs of the enterprise and provide support. This article aims to explore System Dynamics (SD) modelling to provide strategic business support to small business. The research presents an approach to SME support comprising skills development and digitalization as applied through an innovation hub. The SD model is adopted to simulate the impact to an SME's development.