SME (Small and Medium Enterprises) is increasingly becoming one of the most important businesses with the most significant change in the economic situation of many countries. The government has since realized the importance of this type of business and has started to develop the SME sector. SMEs have achieved a growth rate of 7 percent and represent approximately 40 percent of GDP (Gross Domestic Product). There are around 40,000 participants each year. SMEs account for 60 to 70 percent of most jobs, but also face challenges in the sector, such as limited access to bank credit. Small and medium-sized enterprises (SMEs) are a very diverse group. These are found in a wide range of commercial activities from the shop down the street to businesses located in well-established areas. The individuals who own these businesses may or may not be poor; businesses operate in very different markets (urban, rural, local, national, regional and international); embody different levels of skills, capital, sophistication and growth orientation, and may belong to the formal or informal economy. Statistically, in South Africa, SMEs are defined based on the number of employees, sales value and/or asset value. There are five key areas, namely: survival enterprise, micro enterprise, very small, small and medium enterprise. A survivalist business is a business whose revenues generated are below the minimum wage permitted by law. These are normally classified in the micro-enterprise sector. Street vendors are an example. Mic...... middle of article ......agency, Annual Review of the State of Small Business Development in South Africa. (2002) OECD. (2004, June 3-5). PROMOTION OF ENTREPRENEURSHIP AND INNOVATIVE SMES IN A GLOBAL ECONOMY: Towards a more responsible and inclusive globalization. 2ND OECD CONFERENCE of Ministers responsible for Small and Medium Enterprises (SMEs), Istanbul, Turkey.SEDA. (2013). Final Report of Analysis of the Needs, Status and Performance of Small and Medium Enterprises in the Agriculture, Manufacturing, ICT and Tourism Sectors in South Africa (pp. 1-107).Statssa . Manufacturing industry, 2008. (2009) Statistical publication P3002, December 10, 2009). Wiid, J. and Cant, M. (2013). Establish the challenges facing South African SMEs. Research Journal of International Business and Economics, Vol.12(6), pages 707-716. March 1, 2014, at http://journals.cluteonline.com/index.php/IBER/article/view/7869/7928