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Economic & Sector Work :: PSD, Privatization and Industrial Policy

South Africa : Enhancing the Effectiveness of Government in Promoting Micro, Small and Medium Enterprise

AFTERMARKET BENCHMARK BENCHMARKING BENCHMARKS BRAND BRAND NAME BUSINESS DEVELOPMENT CENTERS CENTRALIZATION COMPARATIVE ADVANTAGE COMPETITIVENESS COMPETITORS CORPORATIONS DECENTRALIZATION DEVELOPMENT AGENCY DEVELOPMENT STRATEGY DOMESTIC MARKET DRIVERS ECONOMIC INEQUALITY ECONOMIC OUTCOMES ECONOMIC TRENDS ECONOMIES OF SCALE ENTERPRISE DEVELOPMENT ENTERPRISE FINANCE ENTREPRENEURSHIP EXPANSION EXPORT MARKET EXPORT MARKETS EXPORTS FINISHED PRODUCT FIRM PERFORMANCE FIRM SURVEY FIRMS GARMENT PRODUCTION GDP HUMAN RESOURCES JOB CREATION JOBS LABOR COST LABOR FORCE LABOR LEGISLATION LABOR MARKET LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LARGE ENTERPRISES LICENSING MACROECONOMIC STABILITY MANUFACTURERS MARKET ACCESS MARKET ENTRY MARKET POSITIONING MARKET POTENTIAL MARKET POWER MARKET RESEARCH MARKET STRUCTURE MARKETPLACE MEDIUM ENTERPRISES MICROENTERPRISES MICROFINANCE PER CAPITA INCOMES PERFORMANCE INDICATORS PREMIUM PRICES PRICE COMPARISON PRIOR EVALUATION PRIVATE SECTOR PRODUCT QUALITY PRODUCTION COSTS PRODUCTION PROCESSES PRODUCTIVE AREAS PRODUCTIVITY PROGRAM BENEFICIARIES PROGRAM DESIGN PUBLIC SECTOR ASSISTANCE PUBLICITY REBATE REBATES RETAIL SALES SKILLS DEVELOPMENT SMALL BUSINESS SMALL BUSINESS DEVELOPMENT SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRMS SME STEEL SECTOR SUB-SAHARAN AFRICA SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SURVIVAL RATES TAXATION TECHNICAL ASSISTANCE TOTAL WAGE TRADE LIBERALIZATION TRAINING PROGRAMS TURNOVER UNEMPLOYMENT UNEMPLOYMENT RATE VOCATIONAL TRAINING WAGES WORKER WORKERS WORLD TRADE ORGANIZATION WTO
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Washington, DC
Africa | Southern Africa | Sub-Saharan Africa | South Africa
2012-06-14T15:16:43Z | 2012-06-14T15:16:43Z | 2007-02

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.

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