The perceived effectiveness of local economic development : a strategy of the Alfred Nzo District Municipality on entrepreneurship

Abstract

There is a significant discrepancy in the way SMME concerns are addressed in the Alfred Nzo district, according to numerous research. For starters, earlier research has focused mostly on SMME issues in the context of the medium sector, ignoring other types of SMMEs. Second, previous studies have primarily focused on how SMMEs can thrive, rather than the challenges they face. As the debate continues, this study aims to add to the conversation by examining the issues faced by all types of SMMEs in the Alfred Nzo district, as well as their contribution to local economic growth, and making recommendations for appropriate support programs. The data for this study was gathered using semi-structured interviews and a questionnaire. The findings demonstrated that SMMEs are an important aspect of economic development in the Alfred Nzo district, contributing to job creation, income, and poverty reduction in a local phase of economic growth and development. SMMEs, on the other hand, face a number of barriers to growth, including a lack of adequate technology, fierce market rivalry, government regulations, and a lack of managerial skills and education. The lack of access to funding continues to be a major constraint for most SMEs. Despite the fact that the government has implemented various programs to help SMMEs, the results of this study show that SMMEs in the Alfred Nzo district are unaware of these initiatives. As a result, government support efforts may be limited to a small number of SMMEs and/or industries. As a result, it is recommended that information on SMME government support programs be provided to all SMMEs in the Alfred Nzo district without discrimination.