The primary objectives of the Centre for Real Economy Study (Crest) are to catalyse economic research with a sectoral focus, especially relatively under-researched service sectors, and to improve the flow of information on relevant research between the policy and academic communities. The Provincial Economic Intelligence Unit’s (PEIU’s) objectives are to develop sub-national economic analysis capacity so as to inform Provincial Growth and Development Strategy processes. The SADC Trade Development Project is a three-year partnership between AusAID and TIPS created to conduct a number of research projects on trade reform in Southern Africa. The project aims to develop research infrastructure in the region by creating new databases, formulate policy- and private sector-relevant information tools and publications to inform policy, and build capacity in the region. The Trade & Industry Monitor’s main objective is to disseminate policy-relevant economic research, from macroeconomic policy to competition and regulation policy, ‘development’ issues in general, as well as sub-national economic policy issues, in an accessible format to policy-makers and analysts. The Academic Data Access and Training facility (ADAT) seeks to reinvigorate the relationship between TIPS and the economics departments of tertiary institutions. The ADAT facility will provide post-graduate students with access to new economic data not readily available to Universities as well as provide Small Research Grants to researchers undertaking policy-oriented studies in TIPS’ programme areas. The Southern African Development Research Network is a broad-based policy and research network which aims to increase the supply of policy-relevant research in the region and strengthen evidence-based policy-making. SADRN will initially focus on industrial policy and sector development at the regional level, service sector development and the impact on poverty, and trade policy and its linkages to pro-poor growth. Under the Small Enterprise Development (SED) programme, TIPS as an independent, credible institution not directly involved in the delivery of SMME services has since 2004 undertaken a number of broad-ranging, qualitative assessments of the outcomes of government's policy, strategy and initiatives in small enterprise development. The purpose of this project is to contribute to reducing poverty and inequality in South Africa by supporting the government to develop a Strategy for the Second Economy, as part of its Accelerated Shared Growth Initiative of South Africa (Asgi-SA), located in the Presidency. Economic Regulation
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Working Paper 8 - 2005: The Role of Provincial Governments in Supporting Small Enterprise Development

Author(s): Orford, J.

This paper considers the role of provincial governments in supporting small enterprise development. It is based on research conducted by the University of Cape Town's (UCT's) Centre of Innovation and Entrepreneurship (CIE). It was sponsored by TIPS (Trade and Industrial Policy Strategies), an independent non-profit research institution that is committed to assist government and civil society make informed policy choices, specifically in the areas of trade and industrial policy. In addition to drawing on ongoing research conducted by the CIE, including the Global Entrepreneurship Monitor (GEM) study, the paper summarises the results of discussions with small enterprise development policy-makers and stakeholders in three provinces ? Gauteng, KZN(KZN) and the Western Cape.

The paper begins by summarising key findings from the GEM study. GEM is an annual survey of entrepreneurial activity in over 30 countries worldwide. SA (SA) has participated in the study since 2001 and it now appears that the GEM measure of entrepreneurial activity provides a reasonably accurate measure of entrepreneurial activity, which does not vary significantly from year to year. Furthermore, SA's ranking relative to other countries is stable. One of the key findings from the GEM study in SA has been that the rate of entrepreneurial activity in SA is significantly lower than in other developing countries included in the study.

There are reasonably stable international and national patterns of entrepreneurial activity. An important predictor of whether or not an individual will be involved in starting or running an enterprise is whether or not they believe they have the skills to start a business. An important finding in SA is that we have a very low number of people who believe they are capable of starting a business. This appears to be related to problems in the education system in SA. A major theme in the GEM study in SA has therefore been education.

Orford, J. (2005) Working Paper 8 - 2005: The Role of Provincial Governments in Supporting Small Enterprise Development [666.57 KB]

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