Publication: South Africa : Enhancing the Effectiveness of Government in Promoting Micro, Small and Medium Enterprise
Date
2007-02
ISSN
Published
2007-02
Author(s)
World Bank
Abstract
This study focuses in particular on the
question of whether incentives and support programs have:
(a) been correctly targeted to address the diverse and
specific needs of small, especially micro, enterprises; (b)
been implemented efficiently by the responsible agencies in
terms of their delivery and impact, and (c) have been
effective in helping smaller firms access a wider market for
their products and services. The findings of the
micro-enterprise survey, the review of the various incentive
programs and the value chain analyses indicate that: (a)
among specific constraints faced by the small, micro and
medium enterprises (SMME) sector, the skills gap and the
issue of access to finance are of particular relevance; and
(b) while the economic rationale that existed in 1995 for
SMME support remains valid, there is a need to find
cost-effective and well-targeted programs that meet that
rationale. The issue of skills development, in particular,
is central to the medium-term agenda as a means of raising
productivity and, hence, employment in segments of industry
- both in the formal and informal sectors. As regards the
Department of Trade and Industry (DTI) programs, there is a
need to improve the effectiveness of promotion,
strengthening selection criteria, and modulate the process
of scaling up of individual programs. As regards other
incentives, implementation of the Duty Credit Certification
Scheme (DCCS) incentives has not been highly effective in
ensuring the compliance of beneficiaries with the training
and skills development requirements of the scheme; and this
will need to be tightened up in the future.
Citation
“World Bank. 2007. South Africa : Enhancing the Effectiveness of Government in Promoting Micro, Small and Medium Enterprise. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/8c40fe1b-11de-5bef-b915-662f1c136542 License: CC BY 3.0 IGO.”