Abstract
Abstract
According to Statistics South Africa (2022), the Quarterly Labour Force Survey (QLFS) released in February 2023 indicated the official unemployment rate for South Africa, which is 32.9%. This is the highest unemployment rate compared to other countries such as Brazil, Russia, India, China and South Africa (BRICS). One of the strategies the government has used to kerb the unemployment curve is the Small, Medium and Micro Enterprises (SMMEs) initiative. However, it is of paramount importance to note that SMMEs in South Africa are facing challenges such as access to finance and a lack of sufficient government support. The International Finance Corporation (IFC) stated that South African SMMEs employ between 50% and 60% of the total working population, while in the same bracket, contributing around 34% of the country’s Gross Domestic Product (GDP). The main objective of this paper is to evaluate the role of SMMEs in creating employment for South Africans. The study employed a qualitative research method by using secondary data solicited from journal articles, newspapers, online literature and books, among others. Thematic analyses were used as a tool to analyse the data. The study found that SMMEs experience a lack of access to funding, limited access to markets and red tape. These are the major challenges that hinder SMMEs from creating more employment in South Africa. Additionally, the paper provides recommendations that SMMEs can use to create more employment.