User:Donnie Blake/sandbox

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== Why SMME development and where to start == South Africa’s economy, 25 years after the official end of apartheid, is structurally imbalanced. The dominance of limited number of players in different sectors is a vestige of the apartheid era, a status quo that must be changed for South Africa to be able to address the triple challenges of unemployment, poverty and inequality. SMME (Small, Medium and Micro Enterprises) development is key to solving this challenge.

At present, the sector plays a disproportionately small role in the economy due to significant economic and cultural barriers. As a result, competition is reduced, innovation is stifled and South Africa’s economy is competent but not globally competitive.

Defining SMME
In South Africa small organizations are categorized into four categories namely micro enterprises including survivalist enterprises, very small enterprises, small enterprises and medium enterprises. The differentiating factor between these categories, excluding micro enterprises, is the number of employees. For micro enterprises the criterion is turnover level (Smith & Watkins, 2012).

Critical success and failures factors for the SMME entrepreneur
There are a number of factors that impact on the success or failure of any business and within the SMME market in particular. Research indicates that an entrepreneur requires certain characteristics in order to be successful within the SMME market. According to Neneh & Vanzyl (2012: 8328 – 8332) the lack of entrepreneurial competencies amongst other factors have been indentified to be reasons for the low survival rate of the SMMEs in South Africa.

Entrepreneurial Mindset
The current world view of the entrepreneurship is juxtaposed. Developed economies view entrepreneurial activities as a way of stimulating the economy, an incubator for technological progress, a product and market innovation, and a way of coping with unemployment problems, while developing economies see entrepreneurship as the engine for economic progress, job creation and social adjustment (Muller and Thomas, 2000; Jack and Anderson, 1999).