The promotion and development of SMMEs is a key policy focus area of South Africa, identified in
1995 with the White Paper on Small Business and most recently in the NDP. The key rationale for the
promotion of SMMEs is the potential this sector offers the economy in terms of employment creation.
A wide range of policies, policy programs and initiatives have subsequently been initiated in this
respect. Given the current policy emphasis on SMME promotion, this paper seeks to shed light on the
nature of employment created by SMMEs.
This study utilises the Quarterly Labour Force Survey to investigate SMME employment in South
Africa. It analyses the characteristics of individuals employed in SMMEs, both formal and informal. It
considers the implications for policies directed towards SMME promotion and employment creation.