Enhancing small,medium and micro enterprise development: Exploring selective interventions by the Lesotho government

Through a survey conducted among 219 businesses in Lesotho, this paper reports small, medium and micro enterprise (SMME) owners' and managers' perceptions of strategies implemented by the government to enhance SMME development, as well as identify shortcomings, if any. It was ascertained that although there are a number of initiatives – inter alia, the creation of a ‘one-stop shop’ to simplify the procedures required for registering an enterprise – the respondents perceive that operating informally is the alternate solution, the consequence being possible loss of taxes by the government which impacts on economic growth. It also became evident that access to finance is still a hurdle to SMME establishment in Lesotho. SMMEs also find taxes too high and are therefore compelled to declare false turnover figures, to avoid being taxed or to pay minimum taxes. The findings of this research could assist SMMEs since there will be greater awareness of the initiatives by the Lesotho government to develop the sector.