The role of local economic development (LED): some empirical findings on the small, medium and micro enterprises (SMMEs)

SK Mokoena - Journal of Public Administration, 2017 - journals.co.za
Journal of Public Administration, 2017journals.co.za
This paper examines the role of the Small, Medium and Micro Enterprises (SMMEs) as a
driver for Local Economic Development (LED). In view of the fact that South Africa is still
experiencing high levels of poverty and unemployment, LED is seen as a contemporary
approach in the local government development process. In connection to this, Statistics
South Africa has recently indicated that South Africa had an average unemployment rate of
25.31 percent from 2000 to 2016. This figure serves to qualify the fact that the country has …
This paper examines the role of the Small, Medium and Micro Enterprises (SMMEs) as a driver for Local Economic Development (LED). In view of the fact that South Africa is still experiencing high levels of poverty and unemployment, LED is seen as a contemporary approach in the local government development process. In connection to this, Statistics South Africa has recently indicated that South Africa had an average unemployment rate of 25.31 percent from 2000 to 2016. This figure serves to qualify the fact that the country has slightly decreased its unemployment rate by 1.6 percent from 26.7 to 25.1 percent in the June quarter of 2016. The promotion of the SMMEs remains an important priority for the South African Government. This paper argues that the government is committed to ensuring that small businesses contribute to the growth and development of the South African economy. Existing research confirms that the SMMEs are essential in creating employment opportunities. The research design used in this study was a mixed approach, namely qualitative and quantitative. In the qualitative method, data was collected by means of an extensive review of government and public documents, academic books and articles. In terms of the quantitative method, self-administered questionnaires were completed by SMME entrepreneurs in the former Umjindi Local Municipality, Mpumalanga Province. The outcomes point to the fact that LED can only contribute positively towards the growth of the economy of the country if the environment, in which SMMEs operate, is favourable for the SMMEs to prosper.
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