The role of SMMEs in the socio-economic development of Buffalo City: SMMEs in the socio-economic development

South Africa is undergoing a transformation process and government seeks to reduce unemployment, redress past inequalities and create better life for all. Since 1994 elections economic empowerment and growth issues have been priorities on the government agenda. The current global economic meltdown where millions of jobs are lost, SMME sector serves as an alternative for income generation and wealth creation. Globally SMMEs play a vital role to absorb labour, penetrate new markets and expand economies in creative and innovative ways. S.A government engages in the stimulation of SMMEs as an integrated strategy to take economy onto a higher road in which it is diversified, productivity enhanced, investment stimulated and entrepreneurship flourishes (White Paper, 1995). The research results address the socio- economic impact of SMMEs in Buffalo City, S.A. Despite the constraints encountered by SMMEs the findings suggest that SMMEs play a vital role through employment creation, income generation, skill development and contribution towards HIV/Aids awareness campaigns.