The impact of government incentive grants on small businesses : a case of Tshwane Metropolitan Municipality

Abstract: Small medium and micro enterprises (SMMEs) are among the vital sources contributing to economic growth, creating jobs, and eradicating poverty. This phenomenon is also one of the Local Economic Development (LED) pillars in developing the economy of South Africa. There are numerous SMMEs, both established and upcoming, but these enterprises encounter many problems which affect their progress. This technical research report aimed to analyse the impact of government incentive grants, with specific reference to SMMEs in the City of Tshwane Municipality that received a grant from the Department of Small Business Development (DSBD) through the Cooperative Incentive Scheme (CIS) and the black business supplier programme (BBSDP). The primary data were collected through a survey questionnaire, which was used to obtain information from SMME owners. Interviews were also conducted with DSBD officials involved in the monitoring of SMMEs. This was done to gain a deep understanding of the phenomenon under study. The results indicated that the SMMEs were small enterprises that have not been operating for long. These SMMEs have managed to create many employment opportunities. SMMEs encountered several common challenges, including market access, the grant not meeting all their needs, and a lack of skills development.M.Com. (Local Economic Development