Research & Development

‘Creating Sustainable Livelihoods through Enterprise Development’

The SME sub sector continues to strengthen and make a contribution to national development, particularly in improving the quality of life of the socially and economically disadvantaged. Enormous untapped economic development opportunities remain for the sub sector to expand and grow, especially in the rural areas where natural resources remain underutilised.

1996 estimates indicate that a total of 170,000 people, representing 57 per cent of the entire labour force, were involved in various forms of activities which are classed as small or micro-enterprises. Small and micro-enterprises generate more livelihoods than paid or formal employment, which absorbed a total of just under 130,000 workers in both the public and private sectors at time of the estimate.

Although considerable progress is being made in the SME sub sector, the major constraints and challenges are:

- lack of sufficient business support services and infrastructure;
- poor financial management skills of SME operators;
- restrictive laws of the local councils;
- lack of knowledge about the existence of SME service – providers;
- a lack of data for the SME sector; and
- lack of finance for business start-ups
The R & D division aims to develop new business opportunities including running of pilot projects and to collect ideas of activities, information and data and to conceive, formulate, test and validate pilot schemes, methodologies, products and services. This division also looks after the development of technology for the use of small and micro enterprises.