Small, medium and micro enterprises (MSMEs) are often recognised for their potential to contribute to economic growth and employment creation. Yet, creating sustainable employment involves more than encouraging businesses to hire. It requires viable enterprises, capable workforces and systems that connect people to meaningful opportunities.
This was an important consideration at the South African Supplier Diversity Council's (SASDC) MSME Labour Market Dialogue, where discussions explored the challenges businesses face in employment creation, the readiness of young people for the workplace, and how learner placements and internships can become more meaningful pathways into employment.
The conversations raised an important question: Can we expect MSMEs to create sustainable jobs without addressing the conditions that enable businesses to grow and young people to participate effectively in the economy?
Employment creation starts with viable businesses
For MSMEs to create and sustain jobs, they need more than the intention to employ. They need the capacity to operate, grow and respond to the demands of their markets. During the Dialogue, the discussion on MSME growth and employment creation highlighted the importance of business viability and the need to think beyond short-term interventions.
As Gary Joseph's discussion emphasised, growth requires a stronger pipeline and the willingness to move beyond limited ambitions towards meaningful execution. This matters because employment creation and business development are closely connected. When businesses are better positioned to grow, they may be able to expand their operations, develop their teams and create opportunities for others.
However, the ability to employ is influenced by the conditions in which businesses operate. Skills shortages, capacity constraints and the practical demands of running an enterprise can affect how effectively MSMEs recruit, train and retain talent. Supporting employment creation therefore also means considering what businesses need to become more sustainable and better equipped to employ.
Workplace readiness requires more than qualifications
The Dialogue also explored an equally important part of the employment challenge: whether young people are adequately prepared for the realities of the workplace. Formal education and technical knowledge provide an important foundation. However, entering a professional environment often requires additional capabilities, including communication, adaptability, digital proficiency, problem-solving and an understanding of workplace expectations.
Discussions around youth readiness for corporate spaces highlighted the value of practical preparation before young people enter employment. Familiarity with tools such as Microsoft Word and Excel, exposure to different departments and a willingness to learn can help bridge the gap between academic learning and workplace practice. These considerations are relevant to MSMEs as well as larger organisations. Employers need people who can develop into productive members of their teams, while young people need environments where they can apply their knowledge, ask questions and learn through experience. Workplace readiness should therefore not be viewed solely as the responsibility of young people. Educational institutions, employers and development partners all have a role in helping prepare young people for the transition from learning to working.
Capability must work in both directions
One of the important considerations emerging from these discussions is that workplace capability is not solely about preparing young people to meet employer expectations. Businesses also need the capacity to recruit effectively, support developing talent and create environments where people can contribute and progress. Young people may require practical skills, professional networks, mentorship and workplace exposure. MSMEs may need stronger systems, capacity-building support, compliance guidance and access to the knowledge required to manage employment and workforce development effectively.
Rose Mageza's reflections highlighted the importance of skills development, capacity building, compliance support, professional networks and appropriate systems in enabling both young people and businesses to participate more effectively in the economy.These needs are interconnected. A young person may be willing to learn but struggle without guidance. A business may be willing to provide a placement but lack the systems to structure the experience effectively. A training programme may develop useful skills but have limited impact if there is no connection to a workplace where those skills can be applied. Addressing these gaps requires a broader approach to capability development one that recognises the needs of both employers and prospective employees.
Capability must work in both directions
One of the important considerations emerging from these discussions is that workplace capability is not solely about preparing young people to meet employer expectations. Businesses also need the capacity to recruit effectively, support developing talent and create environments where people can contribute and progress. Young people may require practical skills, professional networks, mentorship and workplace exposure. MSMEs may need stronger systems, capacity-building support, compliance guidance and access to the knowledge required to manage employment and workforce development effectively.
Rose Mageza's reflections highlighted the importance of skills development, capacity building, compliance support, professional networks and appropriate systems in enabling both young people and businesses to participate more effectively in the economy.These needs are interconnected. A young person may be willing to learn but struggle without guidance. A business may be willing to provide a placement but lack the systems to structure the experience effectively. A training programme may develop useful skills but have limited impact if there is no connection to a workplace where those skills can be applied. Addressing these gaps requires a broader approach to capability development one that recognises the needs of both employers and prospective employees.
Building stronger pathways requires collaboration
No single organisation can resolve the challenges surrounding youth employment and MSME growth in isolation. Educational institutions can strengthen practical workplace preparation. Employers can offer structured placements and provide feedback on the capabilities they need. Development organisations can support capacity building, while businesses and other stakeholders can work together to create stronger links between training and employment.
The MSME Labour Market Dialogue provided a space to examine these interconnected challenges and consider the actions required to strengthen employment pathways.
The focus must now extend beyond identifying barriers towards practical steps that businesses and their partners can implement, evaluate and improve. This includes considering how learner placements are structured, how workplace readiness is developed, how businesses receive the support they need, and how progress towards employment outcomes is monitored.
Collaboration becomes particularly important when the objective is not simply to place young people in temporary opportunities, but to help them develop the capabilities and experience required for sustained participation in the economy.
The MSME Labour Market Dialogue provided a space to examine these interconnected challenges and consider the actions required to strengthen employment pathways.
The focus must now extend beyond identifying barriers towards practical steps that businesses and their partners can implement, evaluate and improve. This includes considering how learner placements are structured, how workplace readiness is developed, how businesses receive the support they need, and how progress towards employment outcomes is monitored.
Collaboration becomes particularly important when the objective is not simply to place young people in temporary opportunities, but to help them develop the capabilities and experience required for sustained participation in the economy.
Moving from potential to participation
At SASDC, the conversation connects directly to the broader question of inclusive economic participation: how do we help businesses become better equipped to grow while creating meaningful opportunities for people to contribute to the economy? Supplier diversity, enterprise development and skills development each form part of this wider conversation. Their impact depends not only on creating access, but also on strengthening the capabilities, relationships and systems that help people and businesses make use of that access.
The MSME Labour Market Dialogue reinforces the importance of considering employment creation as a connected process. Businesses need conditions that support sustainable growth. Young people need practical preparation and opportunities to develop. Employers need effective ways to recruit, support and assess emerging talent. And stakeholders need to work together to connect these efforts.
Ultimately, the goal is not simply to encourage MSMEs to create jobs or young people to become workplace-ready. It is to strengthen the conditions that allow both to succeed.
As we explore CAPABILITY, Equipping People to Participate this October, the question remains:
What support do MSMEs need to create sustainable employment, and what must change to help more young people move from learning into meaningful work?