An economic development policy implementation approach to creation of sustainable maritime SMMEs in the KwaZulu-Natal Province.

Abstract

This study aimed to develop a new innovative approach towards a modern economic policy implementation, anchored towards harnessing Small Medium and Micro Enterprises (SMME’s) development and sustainability within the maritime sector. The study was conducted in Durban in the KwaZulu-Natal (KZN) Province and the objectives of the study were to determine the challenges faced by SMMEs within the ocean economy in the KZN Province and explore the concept of ocean economy within the South African context. The study also assessed the approach for an economic policy implementation, on the development and sustainability of maritime SMMEs in the KZN Province. Furthermore, the study explored pioneering the concept of a sector specific special purpose vehicle (SPV) for the development and sustainability of ocean economy SMMEs in the KZN Province. The population size of this study consisted of 200 SMMEs that are in the maritime sector in KwaZulu-Natal that are listed on the Moses Kotane database. A sample of 132 participants were selected to participate in the study, however, 123 participated in the study. The findings revealed that SMMEs in the ocean economy face many challenges and continue to experience a high stagnancy and failure rate, despite elaborate government support programmes put in place to assist them. Furthermore, the study revealed that there is a lack of institutional capacity in KZN, to manage and coordinate the potential of the partnership arrangements and mismatches that exist between the various stakeholders. This study also revealed that there is an imperative need for a paradigm shift in exploring optimal available sources of investment for ocean economy initiatives from both the public and private sectors in the ocean economy. It further revealed that expanding the collaborative empowerment approaches of economic emancipation, funding, and investments for ocean economy initiatives and projects, requires the exploration of new innovative Public-Private Partnership (PPP) approaches. The study, amongst other things, recommends the establishment by the Government and the private sector of a provincial institutional framework in the form of a maritime Special Purpose Vehicle (SPV) as an implementer of initiatives and Comprehensive Maritime Transport Policy (CMTP) statements related to economic development within the maritime sector.