The SMME Economy in South Africa

Since 1994, South Africa has been faced with the challenges of re-integration into world markets as a global economy, while at the same time positioning itself to realise the high expectations of its populace regarding a successful transition towards a more democratic order. To achieve the objectives of economic growth through competitiveness on the one hand, and employment generation and income redistribution as a result of this growth on the other, SA's small-, micro- and medium-sized enterprise (SMME) economy has been actively promoted since 1995. Despite voluminous research, however, the extent to which SA's SMMEs contribute to poverty alleviation, economic growth or international competitiveness is still largely unclear.