Perspectives on the success prospects of the Small Enterprise Development and Finance Agency

This study was an inquiry into a contemporary issue, the formation of the Small Enterprise Development and Finance Agency (SEDFA), following resolutions of the South African cabinet to merge the South African Development Agency (SEDA), the South African Small Enterprise Finance Agency (SEFA) and the Cooperative Development Bank (CDB). The purpose of the study was (1) to explore the prospects of success for SEDFA and (2) to determine what SEDFA can do to operate successfully. The study adopted a focus group discussion research design. It was based on the views of small enterprises in the Eastern Cape Province who were to benefit on the prospects of SEDFA, and what it should do to succeed. The study found mixed perspectives on the success of SEDFA, with some respondents suggesting that SEDFA may fail to impress as its predecessors did, while others took the view that it would definitely succeed if it operates differently. Respondents suggested the need to provide a supportive legal and policy framework, to support the entire small business ecosystem, and to promote both macro and micro level strategies for the success of small entities in South Africa.