Chapter 12: Entrepreneurship and Small Businesses

Title: Evaluation of Khula Enterprise in the promotion of SMMEs in South Africa

Reference: WORLD SUSTAINABLE DEVELOPMENT OUTLOOK 2006 pp. 381 - 391

Abstract/Summary: In order to improve economical development and underpin unemployment, special attention is given to support Small, Medium and Micro Enterprises (SMMEs), which currently employ more than half of those formally employed in the private sector and contribute about 42% of the country's GDP. Black Economic Empowerment (BEE) is part of the government's endeavors to promote growth and development and as such a BEE Advisory Council was established in 2001. During the SMME Survey 2004, President Thabo Mbeki acknowledged that the government is not doing enough to support SMMEs on their way to economical success (World Wide Word, 2004). The research analyses Khula's influence in advancing BEE in SMMEs in South Africa. Supporting institutions were created to play an important role in encouraging SMMEs to acquire the mainstream of accommodating the retrenched, encouraged entrepreneurship and alleviate poverty. The research indicated that accessing funds for SMMEs is not a problem but the procedures and the requirements to be met for the banks such as 10% contribution is acting negatively towards them. The research established that for Khula to meet SMMEs requirements, it must have an information management system that is effective in the promotion of the customer center strategy. It must also specialise in the provision of finance to a particular sector as each enterprise needs differ from the other enterprise.

Order a copy of this article