The Role of Local Economic Development on Small, Medium and Micro Enterprises

Abstract

This article aims at exploring the role of Local Economic Development (LED) in reshaping
the economy of South Africa through the promotion of Small, Medium and Micro Enterprises (SMMEs)
in local government. This paper is built on the post 1994 South African government concept of
grassroots initiatives and community participation. With local government being viewed as a sphere of
government, this meant that it is allocated a range of roles and responsibilities with respect to economic
and social development. Therefore, the objective of the paper is to examine how the LED has
contributed to reshape the grass root economy of South Africa. The research design used in this article
was a mixed method approach. In the qualitative method, data were collected by means of an extensive
review of government and public documents, academic books and articles. In terms of the quantitative
method, SMME entrepreneurs in the Mbombela Local Municipality of the Mpumalanga Province,
South Africa (SA) completed self-administered questionnaires. The findings point to the fact that South
Africa needs to make the SMMEs environment conducive and favourable for business purposes. LED
does contribute positively towards the growth of the economy of South Africa.