SME readiness for Industry 5.0: A systematic literature review

Background: The readiness of South African small and medium enterprises (SMEs) for Industry 5.0 plays a pivotal role in fostering economic growth, integrating advanced technologies and promoting sustainable practices. Despite their importance, the adoption of Industry 5.0 technologies among SMEs in South Africa varies significantly across sectors because of infrastructural, financial and workforce challenges. Aim: This study systematically reviews the readiness of South African SMEs for Industry 5.0, examining the adoption of advanced technologies such as artificial intelligence (AI) and Internet of Things (IoT) and their economic implications. It identifies key readiness factors, sector-specific challenges and opportunities to propose actionable strategies for improvement. Setting: Industry 5.0 technology adoption among SMEs in South Africa differs widely across sectors, influenced by variations in infrastructure, workforce skills and financial capacity. Methods: We conducted a systematic review of 10 studies using the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) approach to synthesise Industry 5.0 adoption rates, workforce capabilities, sustainability practices, and economic impacts. Results: South African SMEs are gradually adopting Industry 5.0 technologies, although progress varies across sectors. Workforce training, financial investment and digital infrastructure emerge as critical enablers. Conclusion: Industry 5.0 readiness is crucial for economic growth among South African SMEs. Sector-specific strategies and policy support are essential for overcoming existing challenges. Contribution: This study provides a framework for assessing Industry 5.0 readiness in South African SMEs and offers evidence-based recommendations for enhancing technological adoption in resource-constrained environments.