Managerment Essay Example | Topics and Well Written Essays - 1500 words

Managerment - Essay Example In South Africa, the private sector comprises of 2.7 million numbers of small enterprises. Majority of these employees are informal and micro enterprises. Only 12,000 of them are considered to be medium and large scale enterprises. 2.7 million enterprises in the country generate employment for 9.3 million people across the country. About three-fourth of these employees are engaged in the small and medium scale enterprises. These enterprises play a major role in uplifting the economic condition of the country, however their progress have remained substantially slow over the last few years. The employment generated according to the size of enterprises has been presented in the following diagram1. In fact the government of South Africa considers the development of small businesses as an important step towards strengthening the economy2. Small businesses are said to contribute significantly to the employment growth in Sub Saharan Africa. The small businesses have been able to absorb more than 40% of the labor force in the region. The most prominent improvements have been witnessed in the five countries, namely, Kenya, Malawi, Botswana, Zimbabwe and Swaziland. The increase in the number of start-ups specifically accounts for the improvement in the level of employment in the region. Only about 25% of these small businesses have grown substantially, but their contribution towards employment creation has is substantial. Only 1% of the start-ups has effectively transformed into the intermediate sized firms3. The small firms are said to the backbone of the sub Saharan economy. The size distribution among the firms existing in Africa is highly skewed with large number of small firms4. The small and medium enterprise sector in Nigeria comprises of 50% of the country’s employment and 50% of the country’s industrial output. The contribution of small economies to the economic growth of Africa is at par with the advanced nations of the