Evaluating effectiveness of the SME policy framework in the South African petroleum distribution sector.
Date
2014-07-24
Authors
Sibiya, Victor
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Abstract
ABSTRACT
Governments throughout the world have realised the significance of small businesses in the economic and social welfare of the nation. Even though the magnitude and nature of the contribution of small businesses continues to be debated, governments‟ awareness of the role of new enterprises has grown appreciably. In most advanced nations, the government has come out with very progressive policies encouraging new enterprises. In many developing and under-developed nations too, there is a lot of policy level support for new enterprises. In recognition of the importance of small and medium enterprise (SME) sector, the South African government has continued to design and implement a number of policies and programmes supportive to the development of the sector.
This research evaluates the effectiveness of the SME policy framework in the Petroleum Distribution Sector in South Africa. It specifically evaluates the broad SME policies delivered by the “main SME department of government”, the sector specific SME policies delivered by the “sector department of government” and other policies that influence the success and failure of SMEs but are not controlled by either departments. Policies which are not delivered by the main or sector specific SME departments may be more influential than the policies delivered by the main or sector specific SME policies. Two examples of such policies are: Public policies that target SMEs but where the policy is formulated and delivered by an organisation within government other than the main SME department of government. Policies which influence SMEs that are delivered by departments of government that do not view themselves as having SMEs as their prime, or often even partial focus.
It is important for policy makers responsible for SME issues to understand the impact of such mainstream policies on SMEs to help them in their role of “SME-proofing” of mainstream government polices and in influencing decisions on such policies so that they take into account the SME impacts. Evaluation assists policy makers to assess the relative effectiveness of these policies and programmes.
Description
MBA Thesis 2011
Keywords
Small business , Petroleum industry and trade