Supporting Small Medium and Micro Enterprises in South Africa

Abstract

The Local Government sphere in South Africa faces several cogent developmental
challenges. Several interventions have been introduced to confront these challenges, which
include poverty, unemployment and skills shortage, with partial success. In this article, a
conceptual framework is proposed for small, medium and micro enterprises (SMMEs) in
South Africa. The literature review includes an analysis of documents issued by four
municipalities as well by the former national Department of Provincial and Local
Government. In this regard, an explanation of the concept of SMMEs is provided so as to
contextualise the study. Apart from the lack of funding, SMMEs appear to suffer from a lack
of information, efficient production technologies, and the inadequate use of management
and control systems. To further contextualise this study, the debate on local economic
development (LED) in the South African local government sphere is presented to highlight
the current challenges. Common characteristics of LED and SMMEs are also enunciated so
as to establish the nexus. Finally, drawing from the above context and discussions, a
conceptual framework is articulated and presented, which is intended to assist
municipalities to ensure that viable SMME strategies are developed.