The role of small, micro- and medium enterprises in employment creation: The case of the manufacturing sector in Botswana

Small, medium and micro-enterprises (SMMEs) are globally reputed for employment creation, which reduces poverty, empowers citizens economically and increases the gross domestic product (GDP). Most studies concentrate on SMMEs in general, but currently there is no study specifically concentrating on the role played by the manufacturing SMMEs in employment creation in Botswana, hence the need for this study. This paper explores Botswana manufacturing SMMEs' contribution to employment creation in the past decade by comparing the proportion of micro-, small and medium enterprises plus establishing the employment figures of each SMME category. Sampling was done using geographical clustering and snow-balling technique. A hundred participants returned the filled-in structured questionnaire. It has been concluded that the manufacturing SMMEs currently employ only a small percentage of the population of Botswana. It is recommended that the Government of Botswana should provide incentives to foreign manufacturing firms and also adopt flexible labour laws. Manufacturing SMMEs should hire enough employees, so that they can delegate, take advantage of and explore export opportunities for SMME growth. Entrepreneurship lessons should be infused into primary and secondary school curricula to train children from an early age to own businesses, thereby increasing employment creation. Colleges and universities should produce graduates who are industry-ready.