They enhance competition, bring about innovation and efficiency, and ensure economic growth.
Globally, SMMEs account for 90% of all businesses and more than 50% of overall employment (*ACCA (2022). Mapping your business goals to relevant UN SDGs. www.accaglobal.com)
In South Africa, however, while SMMEs account for 98% of all formal firms, they create just 28% of the jobs in the economy*SPB (2014).
The number of formal micro, small & medium business in South Africa. Preliminary findings of stage 1 of the baseline study of small businesses in South Africa.
Reasons for the low job creation and performance of SMMEs in South Africa can be attributed to:
- Limited access to market.
- Lack of funding and/or limited access to finance.
- Absence of mentorship.
- Lack of access to skill workers.
- Cash flow management problems.
- Ineffective strategic management (formulation and implementation)
With the right environment and government policies, SMMEs can unlock the potentials of the South African economy and contribute immensely to job creation.
Are you an SMME struggling for growth or stuck in the transition phase? Perhaps, you have a platform for reaching many SMMEs but couldn’t figure out how to assist them to reach their potentials.
At Damilight, we offer strategy, accounting and tax services specifically tailored to the need of SMMEs in different industries to assist them overcome many of the challenges they face.
