The role of skills and education in predicting microenterprise performance

OUTPUT TYPE: Policy briefs
PUBLICATION YEAR: 2016
KEYWORDS: SKILLS DEMAND, SKILLS DEVELOPMENT, SMALL MEDIUM AND MICRO ENTERPRISES
DEPARTMENT: Education and Skills Development (ESD)
Print: HSRC Library: shelf number 10859

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If you would like to obtain a copy of this Research Output, please contact Hanlie Baudin at researchoutputs@hsrc.ac.za.

Abstract

In the light of South Africa's high levels of unemployment and relatively small informal sector, enabling and supporting growth of small, medium and microenterprises (SMMEs) in the informal sector are of developmental importance as well as a policy priority. The associated benefits of SMME growth, such as employment creation, enhancement of economic growth, and poverty alleviation, provide further motivation for the prioritisation of this sector. Given the developmental importance of growth in the informal sector, and of SMMEs more generally, this policy brief examines the determinants of SMME performance in South Africa. Particular focus is placed on the role played by education and skills in driving the performance of firms.