Navigating the Fourth Industrial Revolution (4IR) Frontier: Strategic pathways for Artificial Intelligence (AI) adoption and entrepreneurial resilience in South African Small, Medium, and Micro Enterprises (SMMEs)

The Fourth Industrial Revolution (4IR) presents both opportunities and challenges for Small, Medium, and Micro Enterprises (SMMEs) in developing economies, particularly in South Africa, where the digital divide and resource constraints remain significant. This study examines how adopting Artificial Intelligence (AI) can enhance entrepreneurial resilience and foster sustainable competitive advantage in SMMEs. Using a desktop research design, 38 academic and industry sources were systematically synthesised to identify drivers, barriers, and strategic pathways for digital transformation. The findings reveal that while AI technologies have substantial potential to improve operational efficiency, decision-making, and market responsiveness, SMMEs are hindered by financial limitations, inadequate technological infrastructure, skills shortages, and regulatory challenges. The study highlights the pivotal role of entrepreneurial leadership and dynamic capabilities in enabling firms to adapt to technological disruptions and sustain performance in volatile environments. Moreover, integrating supportive innovation ecosystems, including entrepreneurial universities and collaborative networks, is critical for knowledge transfer, capacity building, and access to innovation resources. A strategic framework is proposed that emphasises digital transformation, capability development, and ecosystem collaboration, providing actionable pathways for SMMEs to navigate the 4IR frontier. The research contributes to theory by contextualising the Resource-Based View (RBV), Dynamic Capabilities Theory, and Diffusion of Innovation Theory within resource-constrained, rural environments, thereby addressing the limitations of predominantly Western-centric models. In practice, it offers policymakers, business owners, and practitioners guidance on fostering innovation-driven growth, narrowing the digital divide, and building resilience among SMMEs.