How SMEs in South Africa can contribute to the recovery of economic growth and developmentEmpirical studies show that small and medium enterprises (SMEs) play an incredibly vital role in all economies, but more particularly in those of developing countries such as South Africa. because they are the main source of employment, innovation and the creation of new products. There is nothing small about SMEs as a whole, with a contribution of around 50%, employing 60% of the workforce and 22-50% of the country's gross domestic product (GDP). It could be argued that SMEs are big drivers of the South African economy. and play an important role in transforming South Africa from a third world country to a first world country. (Kim 2011: 1). Although it is clear from the statistics mentioned above that SMEs play a central role in South Africa's economic development, very little is known about them in terms of how they are defined, how they work, why they are important, the challenges they face and what the government is doing to support them. What are small and medium-sized enterprises (SMEs), well it depends on the country you come from, because the definition differs from one country to another. The lack of consensus is explained by the fact that the measures used to define size differ depending on the sector in question. In other words, what may be small for one sector is not necessarily small for another. (Mahembe 2011:24).Table 1EU USA ASIA GHANA RUSSIA INDIA CHINA EYGPT RSA Employer words SME SME SME SME SME SME SME Micro < 10 0 < 5 < 5 0 0 0 1-4 < 20Small < 50 <100 5 -50 6-29 15-100 0 1-300 5-14 50-99Average <250 <500 51-150 30-99 101-250 0 301-2000 15-49 100-200TurnoverMicro US$3 million 0 RM250 .000 $10,000 0Small $13 million 0 ...... middle of paper ...... South Africa. The UCT Center for Innovation and Entrepreneurship. Available online: http://www.gsb.uct.ac.za/files/GEM2011Report.pdf [Accessed February 12, 2014]. Financial Services and Regulation Policy Council Working Group. 2001. Report on SME Access to Finance in South Africa: A Review of Supply-Side Regulation. South Africa. Blueprint Strategy & Policy (Pty) Ltd. 2005. Promotion of small and medium enterprises in the South African chemical sector. Chemicals Summit NEDLAC.SBP (business environment specialists).Sbp SME Growth Index Main Report. 2013. Easier, harder for small businesses in South Africa. Saxonwold. Johannesburg. Siko-Shosha, S. 2014, January 28. Linda Olagunju on a mission to enlighten Africa. Young business leaders. Available online: http://www.ybl.co.za/linda-olagunju-on-a-mission-to-light-up-africa/ [Accessed February 12 2014].