Investigating the Role of Small and Medium-Sized Enterprises in Economic Development in South Africa

Abstract

This article investigates the pivotal role of Small and Medium-Sized Enterprises (SMEs) in driving economic development in South Africa. It explores the contributions of SMEs to job creation, innovation, and economic diversification, highlighting their significance in a country characterized by high unemployment and economic inequality. The research employs quantitative and qualitative methods to assess the challenges SMEs face, including access to finance, regulatory hurdles, and market competition. It further examines government policies and support programs aimed at fostering SME growth and sustainability. The findings underscore that while SMEs are vital for economic resilience and social stability, targeted interventions are necessary to enhance their capacity and competitiveness in the South African economy.