The role of Small, Medium and Micro Enterprises on youth employment creation in Carolina, Chief Albert Luthuli Municipality, Mpumalanga Province.

Abstract

Unemployment, particularly among the youth, is a major development challenge in many countries, including South Africa. This problem has been increasing, which has sparked a heated discussion on its nature and possible solutions. Thus, the emergence of Small, Medium and Micro Enterprises (SMMEs) is viewed as the potential solution for youth unemployment. This study used a qualitative research approach to explore the contribution of SMMEs towards youth employment creation in Carolina, South Africa. The study used hybrid theories, namely, the theory of change and institutional theory as a theoretical framework to interpret the emerging research findings. Two sampling methods, namely purposive sampling and convenient sampling, were used to recruit a total of 22 participants. The purposive sampling method was used to recruit two (2) municipal officials and ten (10) SMME owners. In addition, the convenience sampling method was used to recruit ten (10) employees. Data was collected through in-depth, semi-structured interviews. Thematic analysis was used to make sense of the data collected from the 22 participants. Subsequently, the study findings demonstrate that SMMEs play a significant role in fighting the issue of youth unemployment in Carolina. However, the sector still faces a plethora of challenges which make it difficult to strengthen its capacity and provide sustainable jobs for the youth. As a result, this study suggests relevant legislation and strategies to strengthen the SMME sector in South Africa.