×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

SA is a "complete outlier" internationally when it comes to employment creation by small and medium-sized enterprises, raising questions about possible policy and regulatory failure. Initial findings of a new study by the Small Business Institute (SBI) and the Small Business Project (SBP), released on Tuesday, found SA has only 250,000 formal SMEs, less than previous estimates of between 2-million and 6-million. "The situation is dire," Bernard Swanepoel, president of the SBI, said at the launch. "SMEs face extinction if we’re not careful," he added. While formal SMEs — defined as businesses employing fewer than 200 employees — account for 98.5% of the economy, they only employ 28% of the formal workforce. This is significantly lower than employment rates internationally.

In the Organisation for Economic Co-operation and Development countries, over 95% of businesses are SMEs, employing between 60% and 70% of the working population and contributing up to 60% to GDP, said Chris ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.