Interaction between Seda and other small-business organisations as forerunner to integrated service delivery

ENGLISH ABSTRACT: The need for Small, Micro and Medium Enterprise (SMME) growth in South Africa isbeyond question. Government sees SMMEs as an important vehicle to boost theeconomy of the country because of the contribution they make to job creation.According to recent estimates by the Department of Trade and Industry (DTI), smallbusinesses represent 98% of the total number of registered firms, employ 55% of thecountry’s labour force and account for 35% of GDP.Unfortunately South Africa has a low survival rate among start-up businessescompared to other developing economies. Some believe that the reason for thefailure of government programmes to support small businesses is due to poordelivery. This is one of the key issues to be addressed by all business supportplayers. The key to success is to pursue a private sector led approach whereexperienced business advisors and mentors can add value to the businesses of customers.The research focuses solely on support organisations within the Siyanda region. Thefindings support the notion that Seda, as government’s small business supportvehicle, will have to utilise support organisations more in order to make a success ofits mandate.The investigation has identified some recommendations that may lead to animprovement in the current environment. The first approach is to ensure that peoplewho render small business support have business experience and understand smallenterprises. Secondly, to ensure that sector programmes are focused on a particularobjective and that the overall strategy remains integrated and focused. In order toachieve this, the private sector should participate and share the costs.In recommending measures to improve the promotion of small business support at alocal level, it is important to focus on what works best and that is ultimately privatesectororganisations.