South Africa : Reducing Financial Constraints to Emerging Enterprises
South Africa's black enterprise sector is a residual employer with an important role to play in improving welfare and alleviating poverty. It is also a source of dynamic and potentially dynamic firms that create wealth and generate employment....
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| Format: | Brief |
| Language: | English |
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2012
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| Online Access: | http://documents.worldbank.org/curated/en/1995/09/12844980/south-africa-reducing-financial-constraints-emerging-enterprises http://hdl.handle.net/10986/9987 |
| Summary: | South Africa's black enterprise
sector is a residual employer with an important role to play
in improving welfare and alleviating poverty. It is also a
source of dynamic and potentially dynamic firms that create
wealth and generate employment. The challenge facing South
Africa is to design an institutional framework that accords
black enterprises much broader access to financial services,
training, and technical assistance. That framework is
contained in the government's policy paper, National
Strategy for the Development and Promotion of Small Business
in South Africa. Details of the institutional framework to
increase access to financial services by emerging
enterprises are discussed here. Like South Africa, many
countries in Africa, Asia, and Latin America face severe
unemployment, a stagnant formal economy and a burgeoning
informal economy made up of small enterprises which
constitute the only means of livelihood for a substantial
share of the population. South Africa's efforts to
develop its formal financial sector's capacity to serve
the needs of small, new businesses offers potentially
interesting lessons for other countries. |
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