Challenges faced by SMMEs and sole proprietaries:
Studies prove that SMMEs do not play an integral role in the economy because of following:
  1. Difficulty to access adequate capital, and the cost of capital;
  2. Most government policies and incentives are favouring large businesses which have established track-records;
  3. Lack of technical and managerial skills; and,
  4. Insufficient physical and institutional support infrastructure.
  1. There are SMMEs which, have been awarded or are in the process of being awarded contracts for the supply of services or goods (in the context of “economic empowerment”), but they could not raise sufficient funds to honour their contractual obligations.
  2. Most SMMEs lack collaterals and assets to secure funding.
  3. PNTL intervention is to establish support for SMMEs in building their capacity in terms of financial support and business development to enable them to play a major role in the economy (creation of wealth, employment opportunities, contribution to GDP, etc.).