Rural Small, Medium and Micro Enterprises And Role of Local Economic Development Agencies in the Vhembe District, Limpopo Province

Abstract

Small, Medium and Micro Enterprises (SMME) are vital factors in the economy of less developed countries. It has been a major source of employment, motive force for local economic development and poverty alleviation in developing countries including South Africa. It is agreed world wide that strong SMMEs give a country strong economic growth. In South Africa, SMMEs are not strong especially in rural areas, which comprise mainly of emerging SMMEs owned by Africans.

There are hosts of institutions in South Africa which are active in the development of rural SMMEs. Local Economic Development Agencies (LEDAs) in the study areas are engaged in helping rural SMMEs to flourish. However, rural SMMEs are still facing many problems and are unable to flourish.

This research is aimed at evaluating Local Economic Development (LED) support on local rural SMMEs in the study area in order to advance feasible strategies for support to enhance rural SMME's growth from the survival stage.

Social survey methods involving interview schedules were used, providing descriptive and analytic data. The qualitative and quantitative data was analysed using an SPSS programme.

The research findings indicate that LED support in the study area is failing to enhance rural SMME growth. The support does not cover the entire business requirement necessary for rural SMME growth. The study therefore advances strategies for LED support, which would be effective enough to enhance rural SMME growth and sustainability.