This APS is directed toward prospective grantees in order to provide them with fair opportunity to submit applications for funding consideration. This Strategic Objective is supported by two Intermediate Results that are aimed at promoting growth of SMMEs and small and medium agribusiness. Proposals responding to this APS shall contribute to the achievement of Intermediate Result 5.1 More rapid growth of existing SMMEs , and shall specifically target the microenterprise subsector. The term is restricted to enterprises with 10 or fewer workers including the entrepreneur and any unpaid family workers. SMME support strategy is further described below.
Unemployment is the major cause of widespread poverty in South Africa.
The growth of SMMEs is a primary vehicle for job creation. Increasing volume and profitability can be accomplished by expanding SMMEs markets, improving capacity to operate the business efficiently, providing capital for business expansion, and a supportive legal and regulatory environment enhancing growth prospects. Depending on business needs, SMME s targeted for assistance will receive an appropriate mix of marketing, capacity development, financing support. In a majority of cases and in order to maximize program impact, SMMEs will be selected in sub-sector clusters that represent greatest potential for growth. The targeted microentrepreneur will have the potential to develop, produce, and perhaps market low-volume but higher profit products, expand, and take on additional employees.