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As part of the dti-commissioned Annual Review of Small Business in 2004, TIPS prepared a provincial focus on SMMEs for Mpumalanga. Similar to other South African provinces with a high proportion of rural dwellers, the largest proportion of enterprises in Mpumalanga are informal rather than formal businesses (an estimated 15,000 formal businesses compared to 191,000 informal enterprises). Overall, the provincial government of Mpumalanga considers the SMME economy as ‘a vital part of the provincial economy’. Nevertheless, given the challenges faced in terms of SMME development, it has been described as ‘a marginalised sector of the regional economy, not contributing optimally to economic growth”. The aim of this report is to provide a profile of the status and development trajectory of Mpumalanga’s SMME economy and to highlight select issues concerning the development challenges faced by sections of this economy. More specifically, this report presents the findings of 90 interviews which were conducted from September to November 2005 with a cross-section of SMME entrepreneurs in the manufacturing and tourism sectors. For the full Annual Review of Small Business 2004, please visit www.tips.org.za/sed. |
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