This study focuses in particular on thequestion of whether incentives and support programs have:(a) been correctly targeted to address the diverse andspecific needs of small, especially micro, enterprises; (b)been implemented efficiently by the responsible agencies interms of their delivery and impact, and (c) have beeneffective in helping smaller firms access a wider market fortheir products and services. The findings of themicro-enterprise survey, the review of the various incentiveprograms and the value chain analyses indicate that: (a)among specific constraints faced by the small, micro andmedium enterprises (SMME) sector, the skills gap and theissue of access to finance are of particular relevance; and(b) while the economic rationale that existed in 1995 forSMME support remains valid, there is a need to findcost-effective and well-targeted programs that meet thatrationale. The issue of skills development, in particular,is central to the medium-term agenda as a means of raisingproductivity and, hence, employment in segments of industry- both in the formal and informal sectors. As regards theDepartment of Trade and Industry (DTI) programs, there is aneed to improve the effectiveness of promotion,strengthening selection criteria, and modulate the processof scaling up of individual programs. As regards otherincentives, implementation of the Duty Credit CertificationScheme (DCCS) incentives has not been highly effective inensuring the compliance of beneficiaries with the trainingand skills development requirements of the scheme; and thiswill need to be tightened up in the future.
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