Answer to Question #248655 in Macroeconomics for Lutendo

Question

Briefly discuss the importance of (SMEs) small and medium-sized enterprises sector in the South African economy.

Answer 1

Small and Medium Enterprises (SMEs) have been identified as productive drivers of inclusive economic growth and development in South Africa and around the world. ... SMEs are considered an important contributor to the economy as drivers for reducing unemployment, especially since the formal sector continues to shed jobs.

Small enterprises employ between 50 and 60 percent of South Africa's work force and contribute around 34 percent of GDP.