Abstract
Micro, Small and Medium Enterprises (MSMEs) are regarded as the vehicles for economic growth, employment creation and poverty reduction. However, recent reports and studies show that small businesses in South Africa are not creating jobs. The purpose of this study is to assess the effect of the support provided by the Gauteng Enterprise Propeller (GEP) on MSMEs in Gauteng. The study was conducted to understand the kind of support the GEP provides to MSMEs and the effect of that support on their annual turnover, employment and income level for employees. A descriptive research strategy using mixed methods of data collection was employed. Primary data was gathered through questionnaires which were sent to MSMEs while secondary data was obtained from the GEP’s reports. The study found that the support provided by the GEP is generic and does not respond to specific needs of the MSMEs. Furthermore, the support provided by the GEP was found to be supply-side driven as it is not informed by the needs of the MSMEs. With regards to the effect of the support on these enterprises, it was found that the support resulted in an increase in annual turnover and income levels for employees while employment remained stagnant. MSMEs prioritised higher productivity as opposed to increasing the number of employees.
M.Phil. (Industrial Policy)