Small, Medium and Micro-Enterprises in local economic development : a South African local government perspective

Abstract

The purpose of this article is to interrogate the role of Small, Medium and Micro-Enterprises (SMMEs) in the South African local government and their place in the application of Local Economic Development (LED). The article specifically focuses on the role of SMMEs in LED and the South African local government interventions for addressing the challenges confronting SMMEs in realising LED objectives. SMMEs can become key economic sectors that catalyse LED strategies thereby creating employment and alleviating poverty. LED units in municipalities as well as institutionalised LED in local government have to robustly understand and appreciate strategies LED implementation could take, as it seeks to nurture SMME development. Notwithstanding that municipalities are expected to create enabling LED environments that promote and support SMME initiatives, SMMEs in municipalities are not always linked to LED activities. Given that municipalities in South Africa are confronted with huge development challenges, it is imperative that they locate SMME development strategies alongside and within the context of LED functions for employment creation and poverty alleviation.