Local economic development through small businesses in Dimbaza

This study was conducted in Dimbaza, a small town outside of King Williams Town. Dimbaza was created as a resettlement township during Apartheid in 1967. The study investigated local economic development through small businesses. The study described the state of the small business sector, it presented the contribution this sector has towards employment creation and income generation. Furthermore, it investigated the challenges that the small business sector in Dimbaza faces and the level of responsiveness from the local authorities in Buffalo City Metropolitan Municipality which Dimbaza falls under. The study was conducted using a survey questionnaire which was administered to small business entrepreneurs. Furthermore, a focus group with small business owners and semi-structured interviews were conducted with officials from the Buffalo City Metropolitan Municipality in the Business Development and Local Economic Development Directorate. The findings of the study suggest that Dimbaza has a large informal economy which has of survivalist entrepreneurs with small and micro businesses. It is evident from the study that the small business sector in Dimbaza is facing the following challenges: No access to funding opportunities, a lack of infrastructure, lack of proper running water and electricity and lack of economic development programmes from the municipality. There is a dire need for the intervention of local authorities in the small business sector in Dimbaza. Buffalo City Municipality needs to ensure the creation and implementation of programmes through Local Economic Development