Question NW2379 to the Minister of Small Business Development

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25 August 2022 - NW2379

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Small Business Development

What total number of South Africans in the respective age groups of (a) 15–23, (b) 24–34 and (c) 35–65 are employed in small-, medium and micro enterprises (details furnished)?”

Reply:

Statistics South Africa (Stats SA) does not currently dis-aggregate their reports on employment by sizes of enterprises. Both the Quarterly Labour Force Statistics (QLFS) and the Quarterly Employment Statistics (QES) reports do not disaggregate employment by large, medium or small enterprises and neither do they dis-aggregate by the different age groups.

Stats SA does however, in the Quarterly and Annual Financial Statistics (QFS and AFS) provide dis-aggregated statistics in terms of Employment Costs borne by Large, Medium and Small enterprises. The 2021 quarter 4 Quarterly Financial Statistics show that SMMEs accounted for a greater share of employment costs of all industries (QFS excludes agriculture) amounting to 55% of R 1,7 trillion.

Large enterprises accounted for a larger share of employment costs in three of the seven major industrial groupings; namely Mining and Quarrying at R33 billion (90%); Electricity, Gas and Water at R8,2 billion (92%) and Transport at R 31 billion (71%).

SMMEs accounted for a larger share of employment costs in Manufacturing at R54 billion (55%); Construction at R 10 billion (63%); Trade at R12 billion (60%); Business Services and Real Estate at R 104 billion (72%) and Community, social and personal services at R 11,8 billion (51%).

The Department of Small Business Development and its agency, the Small Enterprise Development Agency (Seda) have commissioned the Bureau for Economic Research to analyse and compile the ‘SMME Quarterly Update’ which uses statistics provided by Stats SA and other sources to give a clearer and much nuanced picture on the contribution and participation of SMMEs in the South African economy. According to 2021 quarter 3 SMME Update, SMMEs accounted for 9,7 million jobs for themselves and to others (see details in table below).

The Department is of the view that Stats SA should dis-aggregate Labour and Employment statistics in terms of the contribution of large, medium and small enterprises in the same way as in the Annual and Quarterly Financial Statistics.

STELLA NDABENI-ABRAHAMS

MINISTER: SMALL BUSINESS DEVELOPMENT

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