International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)


Government contribution towards the growth of small and medium-sized enterprises: owners perspective

Author(s): Melvin S. Mothoa, Edward M. Rankhumise

The South African government has adopted and applied the concept of Small and Mediumsized Enterprises (SMEs) development to enhance the economy of the country. Lack of support and general resources are among other challenges facing SMEs. Over the years, various initiatives have been set up in South Africa for boosting the development of SMEs in the country. The government understood that their interventions in supporting SMEs to grow will result in strengthening the economy and subsequently a reduction of unemployment. The primary aim of this study was to measure whether the use of these established government support initiatives contributes to the growth of SMEs in the area of Soshanguve. A quantitative method was adopted and a sample of 207 SME owners participated in this study. Data was obtained through structured questionnaires. Data were analysed using Stata v16. The findings revealed that the government’s SME support initiatives are not readily accessible and consequently not effectively utilised. These findings can be extended to government support institutions so that they can improve the quality design and cost-effectiveness of support services, which will result in the growth of SMEs in townships such as Soshanguve and other townships, ultimately the whole of South Africa.

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