Volume 3, Number 1

The Local Government sphere in South Africa faces several cogent developmental challenges. Several interventions have been introduced to confront such challenges as poverty, unemployment and skills shortage, with partial success. In this article, a conceptual framework is proposed for small, medium and micro enterprises (SMMEs) in South Africa. The literature review includes an analysis of documents issued by four municipalities as well by the former National Department of Provincial and Local Government. In this regard, an explanation of the concept of SMMEs is provided so as to contextualise the study. Apart from the lack of funding, SMMEs appear to suffer from lack of information, efficient production technologies, inadequate use of management and control systems. To further contextualise this study, the debate on local economic develop- ment (LED) in the South African local government sphere is presented to highlight the current challenges. Common characteristics of LED and SMMEs are also enunciated so as to establish the nexus. Finally, drawing from the above context and discussions, a conceptual framework is articulated and presented, which is intended to assist municipalities to ensure that viable SMME strategies are developed.

Keywords: Municipalities; Local Economic Development; Small, Medium and Micro Enterprises