Perceived Impact of LED Support on MSME Growth in Madibeng, Moses Kotane and Moretele Municipalities: Community Participation and Empowerment Perspectives

Abstract Book of the 9th International Conference on Advanced Research in Management, Economics and Accounting

Year: 2026

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Perceived Impact of LED Support on MSME Growth in Madibeng, Moses Kotane and Moretele Municipalities: Community Participation and Empowerment Perspectives

Lucas Motlhamme, Prof. Zeleke Worku, Prof. Mammo Muchie

ABSTRACT:

This study examines the effectiveness of participatory Local Economic Development (LED) interventions in driving Micro, Small, and Medium Enterprise (MSME) growth within rural and peri-urban municipalities in South Africa, focusing on Madibeng, Moses Kotane, and Moretele. Positioned at the intersection of business, economics, governance, and behavioural sciences, it integrates participatory governance, empowerment, and institutional theories to assess how structural and perceptual dimensions of LED support influence enterprise performance.
A quantitative cross-sectional survey of 200 MSMEs was conducted, with data analysed using Pearson correlation, independent samples t-tests, and chi-square techniques in IBM SPSS (Version 28). Findings indicate that all participation dimensions awareness, utilisation, accessibility, type of support, and satisfaction are positively associated with MSME growth. Governance and behavioural factors emerge as most influential: accessibility (r = 0.56) and satisfaction (r = 0.61) outperform awareness, underscoring the importance of institutional efficiency and perceived service quality. MSMEs utilising LED support reported significantly higher growth outcomes (p < 0.001), with financial and market-access interventions showing the strongest impact.
From a business perspective, access to strategic resources and markets is critical for competitiveness. From a governance standpoint, institutional design, administrative accessibility, and service quality directly shape development outcomes. Psychologically, satisfaction, trust, and perceived responsiveness drive the translation of support into performance gains.
The study proposes a multidisciplinary participation–empowerment–performance framework, arguing that LED effectiveness depends on both policy provision and the quality of state–enterprise interactions. It recommends governance reforms to reduce bureaucratic barriers, improve service quality, and implement integrated support models to strengthen inclusive economic development.

Keywords: Empowerment; Institutional Effectiveness; Local Economic Development; MSMES; Participatory Governance