Abstract:

The main purpose of the study was an investigation into the effectiveness of Small Medium Micro Enterprises (SMMEs) in reducing unemployment South Africa: A case study of Umsunduzi Local Municipality in Kwa Zulu Natal. The problem is that in South Africa there is a huge unemployment rate more and more people are looking for jobs and struggle to find employment. The large corporations are no longer employing a huge number of people some of them are even retrenching its employees. This study conducts an investigation SMMEs in reducing unemployment so that it can recommend to Umsunduzi local Municipality to invest more in SMMEs so that it will provide the solution to reducing the high unemployment rate.

A literature review was conducted on the different literature available journals and books on the numerous studies relating to the research topic based on SMMEs impact to society and what type of support is required by SMMEs to continuously grow into the right direction to promote local economic development of the municipality.

A qualitative research methodology was used during the study in order to achieve the research objectives. In this study population is Umsunduzi Local Municipality was used. In this study the target pollution were the municipal employees and also SMMEs owners in UMsunduzi Local Municipality. This was done by selecting a sample of the pollution not everyone could be selected due to the challenge of time and feasibility in selecting a sample Non probability sampling was used the study required participant that have specific knowledge about SMMEs in order to get the right quality of information and developing solid recommendation. In non-probability sampling purpose sampling was used as sampling techniques.

The results of the study shows SMMEs play a very important role in creating employment opportunities both for the skilled and unskilled labour forces its provides a platform people to find jobs because SMMEs are more labour intensive and require human capital to achieve objectives. SMMEs provides hope of employment people can be bale to provide for their families this can change the status quo for many families poverty reduction there is a breadwinner having a job can provide .The employment opportunities brought by SMMEs enable to deal with the social changes that people community faces not having a job increase of crime rate because people want money to survive poverty and all the social challenges.

The Umsunduzi Local Municipality should pay more attention to SMMEs to achieve local economic growth not by providing support into doing business plan but providing the infrastructure and having the budget to provide financial assistance to SMMEs this change enable SMMEs to grow and create more employment opportunities . The ULM must build proper infrastructure that can accommodate SMMEs can rent space from that building because renting a space from private individual is very costly and makes it difficult for the owner of the business to rent and pay good salary to his employees.This study contributes to the knowledge by starting the role SMMEs play in creating employment as a source of policy instrument to promote local economic development

Keywords:

Small Medium Micro Enterprises (SMMES), Unemployment, Employment Opportunities, Economic development.