An Investigation Into The Specific Problems That Influence The...

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Issue:

Humanities

 

Written by:

Mary O

 

Date added:

August 28, 2012

 

Level:

University

 

Grade:

A

 

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114 / 31766

 

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6536 times

 

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The small- and medium-sized enterprise (SME) sector is globally recognized as the main driving force in economic growth, job creation and social stability (Ladzani and van Vuuren 2002:154). SMMEs encompass a very broad range of firms, from established traditional family businesses employing over a hundred people (medium-sized enterprises), down to the survivalist self-employed from the poorest layers of the population (informal microenterprises)...
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However, the upper end of the range is comparable to the SME population of developed countries. Erwin (2002), argues that, statistically a large majority of SMMEs are concentrated on the very lowest end. It is estimated that the SME sector is already contributing an estimated 35 percent to South Africa's Gross Domestic Product (GDP), and is currently absorbing more than 57 percent of people formerly employed in the private sector (Ntsika 2000:24)...
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