The impact of the financing of small enterprises by the Mpumalanga Economic Empowerment Corporation.

Abstract

The purpose of this study was to explore the challenges facing Mpumalanga Economic Empowerment Corporation (MEEC) in its quest to funding the emerging small enterprises in Mpumalanga. The study was conducted in 2004-2005, in the Nkangala District Municipality in Mpumalanga. Interviews were conducted amongst the existing clients of MEEC and its predecessors. Senior Managers and Operational staff were also interviewed in order to solicit the effectiveness of the tools used to granting loans and guarantees. The findings have since shown that there are operational challenges facing MEEC, which are in nature similar to those faced by a number of Development Finance Corporations in this country and around the globe as the benchmarks showed in the study. It was therefore important to undertake this study considering the need to improve the role played by MEEC and the approaches to be adopted in improving the course in which parastatals do business.