SMME Development: Driving African Growth

SMME development – for small, medium and micro enterprises – is recognised as having a significant role economic growth in Africa. It is through this and enterprise development that employment opportunities are created and the empowering of local communities.

SMME development and enterprise development help with stimulating poorer communities and helps with the undoing social ills. SMME development can stimulate much needed economic development and reduce crime, poverty, unemployment, social dysfunction and disease.

SMME Development Through enterprise Development: How Is It Done?

SMME (small, medium and micro enterprises) development is achieved by allowing smaller, community based businesses to flourish. smme development in africa Through enterprise development, SMMEs are given the opportunity to develop and create jobs within the community.
But how can this be achieved? Here are some approaches to SMME development:

Business Development Services – Business development services aim to build markets in services that improve the performance of certain individual enterprises. This includes consultancy, training, marketing and information technology. Through this development it teaches emerging businesses to be self-sufficient.
Woman’s Development – Some areas see women still discriminated against and excluded from business. Enterprise development can help woman overcome the stigma and help them access the knowledge and skills to become entrepreneurs.
Green development – There is a massive shift in the approach to environmental changes. Going green is popular and many companies are raising funds and doing their part for climate change. This outlook can generate many jobs and empower the impoverished.
Community Development – Enterprise development aims to improve the community from a grass roots level. Community development starts with analysing what the community can offer and the economy of the region. Once the opportunities are identified, they can be targeted, enhanced and transformed into a self sustaining business.
Private Partnerships – Many emerging businesses are getting support from the private sector. These partners are working directly in businesses and offer development skills. By assisting with skills and providing financial aid, this partnership is resulting in some successful businesses.

The Benefits of Investing in SMME Development

By supporting small, medium and micro enterprises poverty and unemployment can be combated. Investing in enterprise development can have the following benefits:

Helping with providing vocational skills to marginalised people (rural people, women, the disabled and unemployed). This will create income generating opportunities.
Education on business to help informal traders and community members to know how to manage their business and finances. This is a building block to growing their business.
Growing opportunities from an idea to an actual living, breathing business. Practical advice and support is required to start up a business – advice on financing, tendering, business management and more.
Training programs to enhance business development and entrepreneurial skills. This kind of training programs adds skills and teaches the steps to evolve from basic subsistence to an income generating and growing business.

In Africa and South Africa SMME development is vital to empower the marginalised groups and teach basic practices. By empowering communities it can make a dent in poverty and allow potential business owners to reach their potential.