Value Creation on Government Impotency - Profiling Small, Medium and Micro Enterprise (SMMEs) in the Clothing Sector in South Africa

Abstract

It is recognized that SMMEs play a pivotal role in value creation from the perspective of job creation income generation and output growth. Self-initiated entrepreneurs act as catalysts to economic growth and therefore the need for the sustainable development of SMMEs. Hence, although SMMEs are important vehicles for value creation, their successful performance is inhibited by their limited scope. This paper empirically assesses the constraints faced by SMMEs in the clothing sector and the need for government intervention to harness this sector to add value to economic growth and to prevent SMMEs in the Industrial Council list of Clothing firms and the 2000/2001 CloFed handbook. A structured questionnaire, administered by mail was used to collect the primary data and a response rate of 52,29% was obtained. Some significant findings emerges, with the government seen to be impotent in suistaining this sector.