With reference to a company of your choice, discuss how SMEs in South Africa can contribute to economic growth recovery and development
With reference to a company of your choice, discuss how SMEs in South Africa can contribute to economic growth recovery and development
A small medium enterprise (SME) can be defined as a business that is managed in a personalized way by its owners, a firm that is independent, as it is not part of a larger enterprise and it can be described as a business that has a relatively small share of the market place. In recent years there has been an increase in the awareness of the importance that SMEs play in economic development. This is due to the fact that they foster job creation, economic growth and poverty alleviation.2
In South Africa, the National Small Business Act 102 of 1996 has defined five different categories of businesses in South Africa. These are namely, survival enterprises, micro enterprises, very small enterprises, small enterprises and medium enterprises.2It is estimated that 91% of formal businesses are small, medium and micro enterprises (SMMEs), which contribute between 52% and 57% to the GDP and provide 61% of employment.2
The company that I have chosen to refer to in this document is called, Mendalf Construction, which is a construction company based in Gauteng. The company was established in 2007 by Alf Mendes, and offers services in construction, alterations, additions, painting, concrete slabs and other general construction work. According to The National Small Business Act 102 of 1996, this company would be classified as a small enterprise, as there are 30 full-time paid employees, and the company has a annual turnover of less than R5 million.
A small medium enterprise (SME) can be defined as a business that is managed in a personalized way by its owners, a firm that is independent, as it is not part of a larger enterprise and it can be described as a business that has a relatively small share of the market place. In recent years there has been an increase in the awareness of the importance that SMEs play in economic development. This is due to the fact that they foster job creation, economic growth and poverty alleviation.2
In South Africa, the National Small Business Act 102 of 1996 has defined five different categories of businesses in South Africa. These are namely, survival enterprises, micro enterprises, very small enterprises, small enterprises and medium enterprises.2It is estimated that 91% of formal businesses are small, medium and micro enterprises (SMMEs), which contribute between 52% and 57% to the GDP and provide 61% of employment.2
The company that I have chosen to refer to in this document is called, Mendalf Construction, which is a construction company based in Gauteng. The company was established in 2007 by Alf Mendes, and offers services in construction, alterations, additions, painting, concrete slabs and other general construction work. According to The National Small Business Act 102 of 1996, this company would be classified as a small enterprise, as there are 30 full-time paid employees, and the company has a annual turnover of less than R5 million.