1. 1
ENTERPRISE
DEVELOPMENT

2. 10
1 http://communities.seepnetwork.org/edexchange/node/271
2 http://www.wbcsd.org/DocRoot/xocHECSIQPBR6idohN4G/PromotingSMEs_latest.pdf
3 The developing world is poorer than we thought, but no less successful in the fight against
poverty".
http://siteresources.worldbank.org/DEC/Resources/Poverty-Brief-in-English.pdf
4 International Labor Organisation
http://www2.ilo.org/dyn/empent/empent.portal?p_lang=EN
5 “Investing in Development: A Practical Plan to Achieve the Millennium Development Goals”
The International Labour Organisation (ILO) has
established a department on job creation and enterprise
development, focusing on cooperatives, corporate
citizenship, small enterprise development and local
economic development4.
In 2000, global leaders representing over 190 countries
agreed to the eight Millennium Development Goals
(MDGs). These were established as a framework for
development activities and were articulated into over
20 targets and over 60 indicators – all to be achieved
by 2015. Although not specifically mentioned, enterprise
development can have a direct influence on achieving
the MDGs, in particular:
• Goal 1: eradicating extreme poverty and hunger
by boosting economic growth and creating jobs.
• Goal 2: achieving universal primary education
by improving the self-sufficiency of households,
enabling parents to send their children to school.
• Goal 3: promoting gender equality and empowering
women by helping women provide for themselves
and their families.
And indirectly:
• Goal 6: combating HIV/AIDS, TB and malaria by
improving living conditions.
• Goal 7: ensuring environmental sustainability by
promoting economic development practices that
are compatible with environmental protection.
Access to microcredit and microfinance can provide
opportunities for women and men to earn a living
within their communities. Microfinancing underpins
the achievement of the MDGs and plays a key role in
many national MDG strategies. An example of this is
Bangladesh’s Grameen Bank, founded by 2006 Noble
Prize winner Mohammad Yunus, which has loaned more
than US$4.3 billion to nearly 3.4 million borrowers, half
of whom have now crossed the poverty line5.
South Africa
Recent studies show that inequality is worsening,
despite levels of economic growth6. Wealth creation
policies are having little impact on the marginalised
and the gap between rich and poor remains disturbingly
wide, with an unemployment rate of between 27 and
40%, depending on measurement mechanisms and
definitions.
Unemployment is one of the most pressing economic
and social problems facing the country. It has been
worsened by the fact that over the last two decades,
the formal economy (especially mining) has been
shedding jobs and many workers have been retrenched.
Introduction
Economic growth is essential to addressing
unemployment, gender equality, health and other
poverty-related issues worldwide. Without proper
financial and infrastructural support in the form of
loans, integrated support systems, increased
accessibility to finance or job creation, poverty
reduction strategies will not be achieved. Enterprise
development is key to economic growth. It is defined
as: investing time and capital in helping people
establish, expand or improve businesses or modest
income-generating activities that contribute to the
local economy.
Enterprise development helps people earn a living;
raising them out of poverty, creating jobs and
empowering individuals, as well as the communities
in which they live. It includes activities like market
development, business development services, value
chain development, commercial business services and
social enterprise1. Enterprise development encompasses
microfinance, entrepreneurship development,
investment, and growth in small, medium and micro-
enterprises (SMMEs). Enterprise development initiatives
range from providing equity for small start-up
businesses, to providing business skills development
through mentoring, and expansion loans for existing
businesses.
Key Facts
• The informal economy accounts for a
significant, but hidden, portion of Gross
Domestic Product (GDP) in many
developing countries – anywhere between
30% and 70%.
• In developing countries, more than 90% of
all firms outside the agricultural sector are
SMMEs, generating a significant portion of
GDP.
Source: Promoting Small and Medium Enterprise for Sustainable Development2
International
According to the World Bank, more than one billion
people live on less than US$1.25 per day. Roughly
three billion people, about 45% of the world’s
population, live on less than US$2 per day. While the
numbers of impoverished people have fallen in some
regions, they have almost doubled in Africa since 1981,
rising from 200 million to 380 million3.
Worldwide, corporations, non-governmental
Organisations (NGOs) and international institutions are
recognising the importance of enterprise development
in addressing poverty. Investing in enterprise
development can create jobs and address social
exclusion, removing the barriers to wealth creation.
1 http://communities.seepnetwork.org/edexchange/node/271
2 http://www.wbcsd.org/DocRoot/xocHECSIQPBR6idohN4G/PromotingSMEs_latest.pdf
3 The developing world is poorer than we thought, but no less successful in the fight against
poverty".
http://siteresources.worldbank.org/DEC/Resources/Poverty-Brief-in-English.pdf
4 International Labor Organisation
http://www2.ilo.org/dyn/empent/empent.portal?p_lang=EN
5 “Investing in Development: A Practical Plan to Achieve the Millennium Development Goals”
ENTERPRISE DEVELOPMENT

3. The key to alleviating poverty is often not the
creation of ‘jobs’ ... but rather the encouragement
of self-employment for all individuals.
- Muhammad Yunus, Founder of the Grameen Bank
“
“
By creating jobs and stimulating productivity, enterprise development
can play a significant role in addressing these inequalities. Not only
is it a core component of the government’s Broad-Based Black
Economic Empowerment (BBBEE) strategy, it is also accepted at a
global level as an effective way to tackle poverty.
As large enterprises have restructured and downsised, SMMEs have
come to play an increasingly important role in South Africa's economy
and development. According to the Department of Trade and Industry
(DTI), small businesses represent 98% of the total number of firms and
employ 55% of the country’s labour force, contributing approximately
42% to the total wage-bill. Small firms account for 35% of GDP7 overall.
A. Broad-Based Black Economic Empowerment (BBBEE)
During apartheid, the majority of South Africans were restricted from
meaningful participation in the economy. Wealth was confined to a
racial minority, entrenching inequalities that persist today. To redress
these inequalities and widen access to wealth, income, skills and
employment, the government has introduced policies and enacted
legislation. BBBEE is defined as “an integrated and coherent socio-
economic process that directly contributes to the economic
transformation of South Africa and brings about significant increases
in the numbers of black people that manage, own and control the
country’s economy, as well as significant decreases in income
inequalities”8.
BBBEE is governed by legislation, and Codes of Good Practice are
in place to measure BBBEE compliance through a scorecard.
The seven elements of BBBEE on the scorecard are:
• Ownership
• Management
• Employment equity
• Skills development
• Procurement
• Enterprise development
• Socio-economic development (also referred to as corporate
social investment).
The Codes define three types of companies, based on annual turnover:
Exempt Micro Enterprise (EME); Qualifying Small Enterprise (QSE)
and Generic. Points are allocated for each type of company and each
element on the scorecard. All elements for QSEs are worth 25 points,
so companies can choose any four of the seven elements to focus
on, to achieve a maximum total of 100 points. Each element under
Generic, however, is worth between 5 and 20 points, so companies
are encouraged to comply with all seven elements. For the purposes
of the scorecard, 25 points are available for QSEs and 15 points for
Generic. EMEs are exempt and automatically given a BEE score of
65 points or, if majority black-owned, 75 points9.
Enterprise development is categorised as indirect
empowerment and comprises two elements:
• Investment in black-owned and black-empowered
enterprises.
• Joint ventures with black-owned and black-empowered
enterprises that result in skills transfer.
The main objective of enterprise development is to create sustainable
business enterprises that achieve growth, which in turn creates jobs
and contributes to economic growth. Investments in BBBEE enterprises
must result in real economic benefit flowing to the recipients, enabling
them to run on a sustainable basis and have active participation by
black people.
To score enterprise development points, businesses need to help
firms that are 50% or more black-owned, or, in the case of those with
an annual turnover of less than R35 million, that are 25% or more
black-owned. Earning points on the scorecard requires each company
to measure their contributions as a percentage of their net profits per
annum.
9 EconoBEE http://www.econobee.co.za/bbbee-information/index.php6 United Nations Habitat’s State of the World Cities 2008; Johannesburg Poverty and Livelihoods Study, University of
Johannesburg, 2008; Economic Assessment of South Africa, 2008. OECD Policy Brief
7 Department of Trade and Industry 2003: “National Strategy for the Development and Promotion of Small Business in
South Africa”, Pretoria, South Africa.
8 A Strategy for Broad-Based Economic Empowerment, Department of Trade and Industry
ENTERPRISE DEVELOPMENT

4. Examples of enterprise development initiatives outlined in the BBBEE
Codes include the provision of interest-free loans, grants, preferential
credit terms and mentoring to black enterprises10. Companies could
donate goods to individuals to start companies - for example, a vehicle
to start a delivery company. Companies could also loan capital to an
existing retail shop to expand into other areas, or provide business
advice to help areas of management.
Other examples of enterprise development initiatives are:
• Grants
• Investments in beneficiary entities
• Loans
• Guarantees/security
• ‘Seed’ capital
• Access to finance through provision of collateral/relaxed
security requirements
• Early payments for goods supplied
• Extended credit terms for procurement amounts owed by
beneficiary entity
• Infrastructure support to suppliers and other entities in the
same area or community
• Labour-intensive production and construction methods
• Investment and support to enterprises operating in rural
communities.11
Small, Medium and Micro-Enterprises (SMMEs)
The government is aware of the importance of the SMME sector as
an economic empowerment vehicle for previously disadvantaged
people. An SMME strategy was developed by the Department of
Trade and Industry (DTI) in 2003, outlining the government’s strategic
directions, and creating a new Small Enterprise Development Agency
(SEDA), as well as promoting BBBEE.
Responding to the need for small businesses to increase their
contribution to job creation, equity and access to markets, the new
strategy aims to reduce failure rates, create a positive entrepreneurship
culture, improve the contribution of small businesses to economic
growth, promote capacity among implementing agencies, and
strengthen public-private partnerships.
Aware of the need for an integrated approach across government
agencies, the Small Enterprise Agencies Forum was established to
develop and implement joint support services.
The following entities are part of the forum:
• Small Enterprise Development Agency (SEDA)
• The SA Micro-Finance Apex Fund (SAMAF)
• Umsobomvu Youth Fund (UYF)
• National Empowerment Fund (NEF)
• Industrial Development Corporation (IDC)
• National Productivity Institute (NPI)
• Tshimusano Trust
• Tourism Enterprise Programme (TEP)
• South African Revenue Service (SARS SMME Division)
• Sector education and training authorities (SETAs)
• Small-scale Mining Board
• Forestry Enterprise Development (FED) Programme
• Provincial Development Finance Institutions
• Provincial Small Business Development Agencies12
SMMEs encompass a broad range of firms, from traditional family
businesses to survivalist self-employed individuals. The National Small
Business Act (Government of South Africa, 1996b), defines and
categorises SMMEs into the following:
Survivalist enterprises
• Operate in the informal sector of the economy.
• Mainly undertaken by unemployed persons.
• Income generated below the poverty line, providing
minimum means to keep the unemployed and their families
alive.
• Little capital invested.
• Opportunities for growing the business are very small and
there is little training.
This category might be identified as pre-entrepreneurial and
includes hawkers, vendors and subsistence farmers.
Micro-enterprises
• Between one to five employees, usually the owner and
family.
• Informal – no license, tax registration, formal business
premises or compliance with labour legislation.
• Turnover is below the VAT registration level of R300,000
per year.
• Basic business skills and training.
• Potential to make the transition to a viable formal small
business.
Micro-enterprises include, for example, spaza shops, cafés,
home-based businesses, mini-taxis and small-scale construction
and textile manufacturing. The line between the smallest micro-
enterprises and survivalist enterprises is often blurred.
Very small enterprise
• Part of the formal economy – VAT registered.
• Less than 10 paid employees, except for mining, electricity,
manufacturing and construction sectors where the limit is
20.
• Use limited technology in business operations.
Examples of very small enterprise include self-employed artisans
(electricians, plumbers) and professionals.
Small enterprise
• Less than 100 employees.
• More established than very small enterprises, formal and
registered with fixed business premises.
• Owner-managed but with a more complex management
structure.
Medium enterprise
• Up to 100 employees (200 in mining, electricity,manufacturing
and construction sectors).
• Still mainly owner-managed, but decentralised management
structure with division of labour.
• Operates from fixed premises with all formal requirements.
10 A Strategy for Broad-Based Black Economic Empowerment http://www.dti.gov.za/bee/bee.htm
11 Broad-Based Black Economic Empowerment Act. The Codes of Good Practice
http://www.dti.gov.za/bee/InterpretiveGuide28june07doc.pdf
12 DTI Integrate Strategy on the Promotion of Entrepreneurship and Small Enterprises
http://www.dti.gov.za/smme/strategy.pdf
ENTERPRISE DEVELOPMENT

5. 7
Unlocking the potential of SMMEs is key to addressing
unemployment. The main difference between the
above categories is that the first two, survivalist and
micro-enterprise, are not considered to be job-creating
businesses.
There is a direct link between entrepreneurship and
economic development, but the reality is that most
entrepreneurial businesses in South Africa are survivalist,
where there are no regulations, no career opportunities,
or training and skill building. Most government policies
and civil society organisations’ activities focus on income
generation, but most of these businesses struggle,
merely existing to put food on the table. Policy should
take the needs of survivalist workers and the informal
economy into account. Research shows that DTI funding
allocations for the period 1994-2003 tended to favour
established SMEs rather than survivalist enterprises13.
According to the Global Entrepreneurship Monitor
(GEM) for 2008, there has been an increase in Total
Early-stage Entrepreneurial Activity (TEA)13 rates for
South Africa from 5.2% in 2006 to 7.8% in 200815.
However, this improvement must be seen in the global
context of South Africa’s low overall TEA rate, compared
to other emerging economies such as Brazil or Mexico.
This is partly attributable to a relatively high failure
ratio of start-ups, and the fact that they tend not to
progress beyond the nascent level. The ratio of
established-business activity follows a similar low trend:
South Africa ranked 41st out of the 43 countries, with
an established business rate of 2.3%. The average rate
for all GEM countries is 7.7%, while that for efficiency-
driven countries – characterised by an increasingly
developed industrial sector, higher productivity rates
and emerging banking sector – is three times the rate
of South Africa.
The concerning aspect of this rate is the fact that the
contribution of nascent entrepreneurial firms to
economic development is minimal. The low wages and
generally poor conditions of employment in these
enterprises means they are unlikely to make a significant
contribution to poverty alleviation either.
According to the GEM 2005 report, the mean
number of jobs in start-ups is 0.1 – in other
words for every 100 nascent firms, on average
only ten additional jobs will be created.
The poor sustainability of start-ups in South Africa
relative to other countries in the GEM sample also
highlights the need for policy interventions aiming at
supporting and mentoring entrepreneurs through the
difficult initial process of of a company's life cycle
A positive trend is the increased percentage of
opportunity-driven entrepreneurial activity, as opposed
o necessity-driven. The former accounted for 79% of
total entrepreneurial activity in 2008, which represents
a steady increase since 2004, when opportunity-driven
entrepreneurial activity only accounted for 53% of the
total.
Constraining factors
There is consensus among experts contacted by the
GEM report about key factors constraining
entrepreneurial activity, as well as the main areas where
interventions should be focused. Government policies,
education and entrepreneurial capacity have been
among the most frequently cited factors since the first
GEM report done in the country in 2001. Experts in
South Africa are more pessimistic than the majority of
efficiency-driven countries about the availability of
help for entrepreneurs outside the education system,
as well as the quality of school-level and post-school
entrepreneurship training. Although entrepreneurship
is meant to form part of the secondary school
curriculum, it is neither taught widely nor effectively.
Government performance ranks simultaneously, as a
limiting and a supportive factor of entrepreneurship.
Regulations related to starting up a business have
eased in recent years. However, South Africa’s restrictive
employment laws, crime policies, poorly-implemented
education policies, mismanagement of SETAs, and
ineffective adult literacy campaigns, are areas of
criticism.
Access to finance is commonly mentioned as a major
limitation for potential entrepreneurs. Although South
Africa does have organisations that provide
finance to micro- and entry-level enterprises, many of
these initiatives are poorly marketed. They also tend
to be concentrated in the urban areas, and particularly
in Gauteng, limiting accessibility to other geographic
locations. South Africa has a need for micro-finance
structures along the lines of those developed in
countries such as Kenya, India and Bangladesh, where
lending institutions are able to manage the risk of
default and provide small loans to a number of small-
scale entrepreneurs16.
Other challenges faced by entrepreneurs include
limited business skills, education and training; lack of
infrastructure, such as a permanent business location,
electricity, telephone lines; inability to receive support
due to unregistered business status; and tough business
competition, due to the state of the South African
economy, governed by large, well-structured
businesses.
The research demonstrates the extent to which South
Africa’s history of unequal access to education, finance
and opportunity impacts on the job-creation capacity
of entrepreneurs.
While supporting entrepreneurs can facilitate job
growth, build personal confidence and stimulate
innovation, efforts must be accelerated to incorporate
survivalist entrepreneurs into the formal economy.
Survivalist entrepreneurs generally suffer from lack of
expansion possibilities, low productivity and an inability
to create decent jobs. The entrepreneurs themselves
are generally poor and lack education. The incentive
to move into the formal sector is marred when
accounting for added costs and lack of flexibility17.
13 The State of the informal economy. Judith Shier. School of Development Studies. University
of ZwaZulu Natal.
http://www.sanpad.org.za/portal/docs/policy/
The%20State%20of%20the%20Informal%20Economy%20Schier%20Policy%20Brief.pdf
14 Total Early-stage Enterpreneurial Activity (TEA): Index measuring the prevalence of business
start-ups and new firms (up to 3,5 years old) in the adult population (18 to 64 years of age)
in a particular country. In other words, it captures the level of dynamic entrepreneurial activity.
15 Global Entrepreneurship Monitor 2008. South African Report.
http://www.gemconsortium.org/national_reports.aspx
16 Ibid 14.
17 “Potential Winners and Losers from Business Formalization” Development Outreach. World
Bank Group.
http://www1.worldbank.org/devoutreach/article.asp?id=287
ENTERPRISE DEVELOPMENT

6. The challenges in developing and implementing any formal policy lie
in the lack of measurable data on survivalist entrepreneurs. As they
are outside the formal sector, they are often overlooked or fall below
existing structures for upliftment. While the government has established
the South African Micro-finance Apex Fund (SAMAF) to address poverty
and unemployment, targeting small and survival businesses to improve
access to finance, it is not clear what impact this has had.
Simply providing financial support to SMMEs does not necessarily
address the social problems caused by lack of education and high
unemployment. The concept of mentorship is seen as a way to ensure
skill transfer and the survival of a business beyond initial financial
support. This also applies to non-survivalist entrepreneurs. Mentoring
can provide much-needed guidance to help entrepreneurs become
successful in their own businesses. Mentoring essentially entails the
transfer of knowledge and skills from a more experienced individual
to those who are less experienced. It can lead to higher success rates
and a reduction in business risks. The skill transfer can help ensure a
sustainable business model.
C. Microfinance and women
It is widely believed that women are disproportionately represented
among the world’s poorest people. According to the World Bank’s
gender statistics database, women have a higher unemployment rate
than men in virtually every country. In response, microfinance has
become a central component of many donor agencies’ and national
governments’ gender, poverty alleviation and community development
strategies.
Microfinance is an effective starting point for women’s empowerment
and poverty alleviation. It can ensure sustainable benefits that have
the potential to break the cycle of poverty. By putting financial resources
in the hands of women, microfinance programs have the potential to
empower women not only by generating income which can pay for
school fees, buy food or start a business, but also by addressing
gender imbalances.
Increasing access to financial services for women through, for
example microcredit, can generate employment and economic
growth and in turn contribute to human development18. For women
entrepreneurs, credit is much more than access to money. In many
cases, it is the pathway out of poverty for themselves and their
children, by investing in health and education, and meeting other
cash needs. It can also bring greater autonomy within the home,
enabling them to renegotiate household relations. It can help to
reduce risk of HIV infection for women by reducing their financial
dependence on men and subsequently enable them to negotiate
safer sex.
The following examples show the direct benefits of
microfinancing on women’s empowerment:
• The Women’s Empowerment Program in Nepal found
that 68% of its members took over the decision-making
from their husbands on buying and selling property and
sending their daughters to school. In addition, the
literacy rate among its members rose from 21% to 85%
during the first 30 months of the programme.
• In Bangladesh, a survey of over 1,000 people
demonstrated that those receiving credit were
significantly more empowered than those not receiving
credit, on the basis of ownership and control over assets
and land, as well as involvement in decision-making and
political and legal awareness.
• The TSPI organisation in the Philippines found an increase
from 33 to 51% of women reporting being the primary
household fund manager after participating in a loan
programme.
• In India, Self Employed Women's Association (SEWA)
clients have lobbied for higher wages and the rights of
women in the informal sector19.
18 World Bank, Engendering Development: Through Gender Equality in Rights, Resources, and Voice—Summary
(Washington, D.C.: World Bank, 2001); www.worldbank.org/gender/prr/engendersummary.pdf.
19 Empowering Women through Microfinance
http://www.microcreditsummit.org/papers/empowerment.pdf
ENTERPRISE DEVELOPMENT

7. Successful sector practices
Research on the impact of enterprise development
projects, both in South Africa and internationally,
highlights key activities for achieving a higher impact
in the sector.
Among others, SASIX highlights:
• Business training can benefit poor women
entrepreneurs when the training is designed
to complement their existing skills and
address their most pressing needs. With the
help of market research and other tools to
ensure relevance for clients, business training
can be a valuable component of micro-
lending programmes.
• Repayment rates among customers of
microfinancing institutions (MFIs) receiving
training are considerably higher than those
not receiving any specific training; likewise,
client retention by MFIs is also positively
affected by this added offering.
• Integrated, far-reaching entrepreneurship
programmes have proved to be more
effective - for example, those providing
shared infrastructure in business incubators
and coaching by “business angels” from
successful companies.
• Strengthening inter-firm specialisation and
linkages has been successful in many African
countries, especially in agricultural value
chains. For example, an extensive group of
farmers benefit from contracts and
technology transfer from a transnational
manufacturing company.
715
20 “South Africa’s black women struggle to find job”, August 2008, http://www.hsrc.ac.za/News-
995.phtml
21 Using microfinance to fight poverty, empower women and address gender-based violence
and HIV. IDS Research Summary
http://www.ids.ac.uk/UserFiles/File/poverty_team/IMAGE_RSummary_2_2.pdf
ENTERPRISE DEVELOPMENT
7
In South Africa, one in nearly three women is jobless,
with the least access to economic and educational
resources, and the fewest skills to allow them entry
into broad economic participation20. Multiple micro-
financing programmes supporting women have proven
to be extremely successful. Women, particularly in
rural areas, run the household, often alone while their
husbands or partners are working in towns and cities
away from home. By severing the dependence on
men providing the financial support, women can take
their own initiative, earn an income and support their
children and extended families. Women are also more
likely to stay in their communities and not seek
employment in urban areas, and increasing access to
financing enables self-sufficiency, whether through
agriculture or small businesses. Women have been
shown to spend more of their income on the household,
so when women’s income increases, the whole family
benefits.
A good example is the IMAGE project (Intervention
with Microfinance for AIDS and Gender Equity) which
combines group-based microfinancing with training
and discussion about social norms, gender-based
violence and HIV/AIDS. The project has achieved
impressive results in boosting women’s confidence
and improved partner relations. This is evidenced by
a 55% decrease in violence against women, 24%
increase in use of condoms and a 60% increase in
voluntary counseling and testing for HIV21.
Promoting microfinance programmes leads to increased
financial savings and greater capacity for self-
investments (the ability to generate one’s own
livelihood), a reduction in poverty, improved allocation
of resources, increased economic growth, and a
reduction in social exclusion.
Why invest in enterprise development?
Investing in enterprise development is an effective
way to generate wealth, create jobs and improve social
and economic conditions. Improving the growth of
small businesses by unlocking access to financial
services can empower individuals and communities to
rise above the poverty line. Economic growth achieved
through enterprise development is a key component
to meeting the MDGs. In order for South Africa to
address not only economic disparities, but also gender
imbalances, there must be an increase in support for
microfinancing programmes and SMMEs.
Investing in small community projects can have an
enormous affect on the creation of jobs and ensure
local economic development in the short and long-
term. SASIX offers opportunities for investment in
entrepreneur education and training, small local
enterprises and agricultural businesses.
20 “South Africa’s black women struggle to find job”, August 2008, http://www.hsrc.ac.za/News-
995.phtml
21 Using microfinance to fight poverty, empower women and address gender-based violence
and HIV. IDS Research Summary
http://www.ids.ac.uk/UserFiles/File/poverty_team/IMAGE_RSummary_2_2.pdf
ENTERPRISE DEVELOPMENT

8. On the basis of these practices, SASIX supports projects
which:
• Promote the teaching of entrepreneurship skills in schools
and FET colleges through training teachers and lecturers
and providing support materials that allow for experiential
learning.
• Provide vocational skills and income-generation opportunities
for the marginalized, such as rural people, women, people
with disabilities and the unemployed.
• Educate informal traders and community members to
increase their business administration and financial literacy
skills and equip them to start or expand businesses.
• Provide practical, customised business advice and support
for start-up businesses in areas such as identifying
opportunities, developing a business plan, understanding
the regulatory environment, accessing finance, applying for
tenders, business management, financial management and
marketing.
• Provide a comprehensive and tailor-made business
development and entrepreneurship training programme
that adds value to other skills training programmes and
enables survivalist entrepreneurs to take the first steps from
basic subsistence to income-generation and small business
development and ultimately entry into the formal economy.
• Use mentoring as a means of business skills development
to encourage skill sharing and long-term personal
relationships between mentor and mentee, in particular
transferring decision-making, leadership and management
skills.
• Create community investment trusts and co-operatives that
undertake economic activity in poor and rural areas, ensuring
that jobs and money are recycled within those communities.
• Provide capital to start or expand a particular small or micro
business which will create jobs in an impoverished area,
where accessing a loan for the purpose is not feasible.
• Address gender imbalances by providing micro-financing
to women.
• Enable vulnerable women to increase their business
administration and financial literacy skills and equip them
to start their own businesses.
• Invest in existing businesses to help them become more
productive and maximise their financial income.
• Provide innovative credit schemes, for example, credit when
a tender or service is guaranteed.
• Promote partnership and collaboration between the public
and private sectors.
Links
International
Millennium Development Goals - Latest report
www.un.org/millenniumgoals/pdf/The%20Millennium%20Developmnt
%20Goals%20Report%202008.pdf
World Bank PovertyNet - Information about poverty, its assessment, its
impacts, and initiatives to reduce poverty internationally.
www.worldbank.org/poverty/
UN and Human Development Report
hdr.undp.org/en/
Grameen Bank
www.grameen-info.org/
Micro-financing and the MDG’s
www.uncdf.org/english/microfinance/pubs/newsletter/pages/2005_09
/update_redefining.php
ELDIS Resource guide – Enterprise Development and Entrepreneurship
www.eldis.org/index.cfm?objectID=9E30E520-D57D-1267-
5D09352C70E36631&qt=enterprise&search_type=&pg=1
South Africa
The Small Enterprise Development Agency
www.seda.co.za/
The GEM South Africa Report 2006
www.gemconsortium.org
South Africa – “Enhancing the effectiveness of government in promoting
micro, small and medium enterprise”. World Bank 2007
www.wds.worldbank.org:80/servlet/main?menuPK=64187510&pageP
K=64193027&piPK=64187937&theSitePK=523679&entityID=000020
953_20070320093206
Department of Trade and Industry’s Broad Based Black Economic
Empowerment web portal
196.31.61.237/
CIA World Fact Book - South Africa
www.cia.gov/library/publications/the-world-factbook/geos/sf.html#Econ
Microfinance in Africa: Combining the Best Practices of Traditional and
Modern Microfinance Approaches towards Poverty Eradication
www.un.org/esa/africa/microfinanceinafrica.pdf
The Small Enterprise Foundation (SEF)
www.sef.co.za/
ENTERPRISE DEVELOPMENT