Guidelines for SMME development in Hermanus

Abstract

Unemployment has economic and social effects. The main social threat is the stability of the family as an economic and social unit as family relationships suffer should basic needs not be met. The most practical way to combat this problem is through entrepreneurship, where small medium and micro enterprises can address issues such as job creation and economic growth. These enterprises are of particular importance to government and donors resulting in numerous studies being done in especially urban environments. Rural areas have, however, been neglected, owing to the lack of knowledge, funds and initiatives on the part of local authorities. Rural development differs from urban development owing to smaller markets, seasonal fluctuations and slower growth rates, especially in coastal towns. This study was therefore undertaken to provide guidelines to local authorities and community leaders, specifically in Hermanus, to enable them to support local small businesses. As a first step, existing government policy and strategies were investigated (Chapter 2), after which available assistance, on government and non-government level, was discussed (Chapter 3). The Department of Trade and Industry is the main role player in terms of small business development There are also institutions providing financial assistance (for example Khula and the Industrial Development Corporation), institutions providing services (such as NEPA, SABS and CSIR), and finally, institutions providing indirect support (such as SACOB and DBSA). Hermanus as the basis of the study has certain poIicies in place, namely the Integrated Development Plan, Spatial Development Framework and two tourism-related studies (Chapter 4). Individual interviews were held with certain role players in the area (Chapter 5) which resulted in the following: • Role players are not aware of government initiatives in terms of small, medium and micro enterprises in the region. • Role players are unsure if hives/craft: markets could contribute to job creation. • Role players are concerned about job creation but not through small, medium and micro enterprises as a vehicle. Chapter 6 concludes with two success stories, namely Stutterheim and Melkhoutfontein, and provides broad guidelines in terms of small business development in Hermanus.