Small, medium and micro enterprises as an element
Date
2011-06-08
Authors
RAMODUMO, MADIDIMALO AARON
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Abstract
The development of Small, Medium and Micro Enterprises (SMMEs) has become
one of the major focal points for Local Economic Development (LED) in South
Africa. This is demonstrated by the National and Provincial policy as well as local
government initiatives wherein appropriate environment for small businesses to
flourish has become a central element for promoting entrepreneurship within
municipalities. However, the challenge is that the survival rate of the established
small business initiatives and their sustainability to realize the purpose for which they
have been established, that is, to promote sustainable entrepreneurship, to stimulate
economic growth and to create jobs is enormous.
The purpose of this research study was to examine the nature of support provided to
SMMEs as an element of LED strategy, its effectiveness in terms of job creation,
entrepreneurial development and the lessons learnt for SMME development in the
Greater Giyani Municipality, Limpopo Province of South Africa. Chicken farming
had been used as a unit of analysis.
The major findings of the study were that the development of small businesses in the
Greater Giyani Municipality is hindered by insufficient skills for the implementation
of LED strategy for small business development, lack of training on small business
development, inefficient and uncoordinated strategy within the local government
municipality as well as lack of penetration of small business development agencies
and above all, lack of training on small business management
The study recommends the following measures for effective small business
development in the Greater Giyani Municipality: proper management systems,
development of local economic development operation plan, good governance,
improvement of service delivery, the effectiveness of small business development
agencies and the need for performance measurements and monitoring
Description
MM - P&DM
Keywords
Small businesses, Medium sized businesses, Micro businesses