SMMEs and the Human Resource Management Conundrum By IQbusiness Research Small, Medium and Micro-sized Enterprises (SMMEs) are critical contributors to job creation and economic growth in South Africa. According to the Small Enterprise Development Agency (Seda), the SMME sector accounts for 55 – 65% of employment, a percentage that is expected to increase in the coming years. A number of state-driven initiatives aimed at helping SMMEs grow and/or survive have been implemented over the years. These initiatives have been carried out through mediums such as Seda, the respective Sector Education Training Authorities (SETAs) and incubation centres. Naturally, when entrepreneurs start their businesses there is a tendency to focus on purely commercial aspects at the expense of other areas, such as Human Resource Management (HRM). And while some of the state-driven initiatives include HRM, much of the focus (understandably) tends to be on making the business a financial success – or even, simply, helping it to survive. Scholars on this topic have noted that although the majority of SMMEs focus on the finances and marketing of their business at the start, the need for effective HRM practices inevitably arises. For some businesses, though, it might be too late – since studies […]
In recent years, business has demonstrated its commitment to social upliftment by addressing many of the problems relating to poverty and underdevelopment that still haunt South Africa.
