Small business promotion is essential for achieving inclusive growth in South Africa. This CDE reports sets out global lessons highlighted by Dr Ross Brown, a leading expert based at the School of Management, University of St Andrews, Scotland.
Research by Professor Neil Rankin shows that companies with 50 or fewer employees account for just 21% of formal sector jobs.
To raise the number of employment creating small businesses in SA it is important that government makes every effort to tackle excessive business regulations, weak property rights, and weakly developed market-supporting institutions.
Both private and public funders should also consider targeting their support at firms with high growth potential.