n Africa Insight - An analysis of factors impeding SMME performance in South Africa

Volume 44, Issue 2
  • ISSN : 0256-2804


South Africa's flagship National Development Plan (NDP) recognises that measures must be implemented to revitalise the country's lacklustre SMME sector. Too many analyses ascribe the underperformance of this sector to challenging macroeconomic conditions. This article takes the view that underperformance, relative to other developing economies operating within the same macroeconomic conditions, points to deeper systemic issues being responsible for the current malaise within the SMME sector. The article reviews recent topical research and advances a number of more compelling factors at play that impact adversely on the SMME environment in South Africa. The review concludes with a number of caveats concerning current SMME-related research.

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