Food sustains human life in any environment.
Small Enterprises(SE) are the backbone of contemporary
economies and they contribute immensely on jobs
creation. Botswana is not unique in this regard, with an
increasing number of small enterprises engaged in food
trading. The food sector is ripe for development,
particularly in Botswana's two main towns, Gaborone
and Francistown. Tight business competition, an inability
to meet ever-increasing customer service expectations,
cost control, particularly in the transportation sector, risk
identification and mitigation, supply chain visibility,
developing and preserving supplier and partner
relationships, and staying current with technological
advancements are the major challenges that SEs are
currently facing. With the addition of Supply Chain
Management (SCM), it is anticipated that company
operations will become more flexible and resilient,
allowing them to adjust quickly, efficiently, and
effectively to all types of market changes, hence increasing
business competitiveness. The study used a random
sample of 137 SE entrepreneurs in the food sector from
Gaborone and Francistown. The purpose of this study
was to determine the effect of SCM on business
performance (BP) and business competitiveness (BC).
The data were analysed using SMART PLS 3, which
utilised measurement and structural equation modelling
to demonstrate data validity, reliability, and construct
relationships. The findings indicate that there is a direct
positive correlation between SCM and both BP and BC.
However, the data indicated a negligible mediation effect
of BP on the relationship between SCM and BC.
Keywords : Supply Chain Management, Business Performance, Business Competitiveness, Small Enterprises, Informal Sector.