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role of SMMEs in the socio-economic development of Buffalo City
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South Africa is undergoing a transformation process §and government seeks to reduce unemployment, redress §past inequalities and create better life for all. §Since 1994 elections economic empowerment and growth §issues have been priorities on the government §agenda. The current global economic meltdown where §millions of jobs are lost, SMME sector serves as an §alternative for income generation and wealth §creation. Globally SMMEs play a vital role to absorb §labour, penetrate new markets and expand economies §in creative and innovative ways. S.A government §engages in the stimulation of SMMEs as an integrated §strategy to take economy onto a higher road in which §it is diversified, productivity enhanced, investment §stimulated and entrepreneurship flourishes (White §Paper, 1995). The research results address the socio-§economic impact of SMMEs in Buffalo City, S.A. §Despite the constraints encountered by SMMEs the §findings suggest that SMMEs play a vital role §through employment creation, income generation, §skill development and contribution towards HIV/Aids §awareness campaigns.
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