Small, medium and micro enterprises as an element

The development of Small, Medium and Micro Enterprises (SMMEs) has becomeone of the major focal points for Local Economic Development (LED) in SouthAfrica. This is demonstrated by the National and Provincial policy as well as localgovernment initiatives wherein appropriate environment for small businesses toflourish has become a central element for promoting entrepreneurship withinmunicipalities. However, the challenge is that the survival rate of the establishedsmall business initiatives and their sustainability to realize the purpose for which theyhave been established, that is, to promote sustainable entrepreneurship, to stimulateeconomic growth and to create jobs is enormous.The purpose of this research study was to examine the nature of support provided toSMMEs as an element of LED strategy, its effectiveness in terms of job creation,entrepreneurial development and the lessons learnt for SMME development in theGreater Giyani Municipality, Limpopo Province of South Africa. Chicken farminghad been used as a unit of analysis.The major findings of the study were that the development of small businesses in theGreater Giyani Municipality is hindered by insufficient skills for the implementationof LED strategy for small business development, lack of training on small businessdevelopment, inefficient and uncoordinated strategy within the local governmentmunicipality as well as lack of penetration of small business development agenciesand above all, lack of training on small business managementThe study recommends the following measures for effective small businessdevelopment in the Greater Giyani Municipality: proper management systems,development of local economic development operation plan, good governance,improvement of service delivery, the effectiveness of small business developmentagencies and the need for performance measurements and monitoring