Challenges facing uMsunduzi local municipality in supporting SMMEs in Pietermaritzburg, South Africa

This paper aims to examine the challenges faced by uMsunduzi local municipality in supporting SMMEs and identify programmes offered by the municipality to stimulate the SMME sector. The study adopted a qualitative research method to collect data. A sample of 7 municipal workers was selected using the purposive sampling technique. Semi-structured interviews were used to collect data, and thematic content analysis was used to analyse the data. The results revealed that the business support programmes that the municipality offers to support SMMEs are insufficient to meet the demands of these enterprises in the region. The results further revealed that the lack of suitable business infrastructure, mainly due to deteriorating buildings in the city centre serving as the main business hub, poses a significant challenge for the municipality. Lastly, the insufficient allocation of resources and the lack of communication to raise awareness about business support programmes aimed at SMMEs also emerged as one of the challenges for the municipality. The study recommended that better policy reformations and better resource allocation be made by the municipality. Improvement in communication efforts to raise awareness of readily available business support programmes offered to SMMEs was also recommended. Lastly, municipal engagement with the upper government spheres was also recommended so that the municipality could obtain funding to refurbish the decaying infrastructure with the potential to house SMMEs for business use and improve business incubation and training centres that support SMMEs. Key Words:Eradication, Gross Domestic Product, Incubation, Mentorship, NYDA