Critical Factors for Growth and Sustainability of Small and Medium Enterprises: A Systematic Literature Review and Propositions for a Successful Transition into Large Corporate Organizations

Abstract

In today's contemporary business environment, small, and medium, enterprises (SMEs) play a vital role in driving a country's economic growth. However, despite their undeniable significance, SMEs often struggle to evolve into large corporate organisations (LCOs) in Africa. The factors and requirements involved in this transition have been a subject of much debate and contention within the research community. This analysis aims to understand factors influencing SMEs' transition into sustainable LCOs, contributing to achieving sustainable development goals (SDGs), the Africa Agenda 2063, and fostering sustainable growth. The study adopts a systematic literature review (SLR) approach. A comprehensive assessment of 647 scholarly scientific research articles published from 2012 to 2022 was conducted, followed by a meticulous statistical analysis of 108 selected studies. The RStudio application, an integrated development environment (IDE) programming tool was used for the analysis of the graphical representation. The findings of this study revealed that leadership, business models, and human capital were crucial factors in SMEs evolving into LCOs. This research endeavoured to bridge the gap in understanding the factors driving the growth of SMEs into LCOs, thereby enabling more informed decision-making and policy development aimed at fostering sustainable economic development in Africa and beyond.