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This study aims to provide compelling evidence demonstrating the effectiveness of local economic development (LED) in advancing economic and social development. The research undertook a systematic review of existing literature to assess whether LED strategies have effectively addressed the racially and gender-based socio-economic disparities between affluent and impoverished communities. The analysis revealed that municipal LED efforts have predominantly concentrated on community economic development projects, many of which have turned out to be economically unfeasible with minimal enduring impact on poverty alleviation. Moreover, the collaboration among government entities, local businesses, and the voluntary sector was frequently found to be weak or altogether absent. For significant socio-economic transformation in South Africa, LED policies must emphasize not only an increase in the number of job opportunities but also a diversification of economic activities. Local governments are called upon to play a proactive role in this transformative process. Furthermore, the LED strategy should be comprehensive and not reliant on a limited number of projects. This study This research is characterised by originality and great scientific value, as it underscores the necessity for the national government to take on a leadership position and devise LED guidelines that empower local authorities with the capacity to effectively foster LED activities.

South Africa is a developing country characterised by a high rate of unemployment. Unemployment is more prevalent among women and the youth, as they comprise a larger population in South Africa. This has created a higher demand for public services, burdening the government’s ability to provide services. Promotion and funding of community entrepreneurship can ensure that local communities are given the required skills and support to start their businesses to support their families while creating an impact in society. South Africa has many informal businesses in which community members operate, and street vendors are the noted portion that constitutes this informal trading in South Africa. This paper seeks to analyse how the government can implement local economic development (LED) initiatives in a way that promotes and encourages community entrepreneurship. The local government is a sphere closer to the people and is entrusted with implementing LED initiatives in South Africa. The local government has a vital role to play, but it has not done enough to enhance community entrepreneurship in local communities. Based on this premise, this paper will also analyse the key challenges the local government faces in ensuring that community entrepreneurship is encouraged and promoted. This paper is timely. Therefore, the country is currently faced with a higher unemployment rate, which is mostly prevalent among women and the youth, and effective LED initiatives can promote community entrepreneurship in local communities for the betterment of citizens’ lives.

This paper aims to examine the challenges faced by uMsunduzi local municipality in supporting SMMEs and identify programmes offered by the municipality to stimulate the SMME sector. The study adopted a qualitative research method to collect data. A sample of 7 municipal workers was selected using the purposive sampling technique. Semi-structured interviews were used to collect data, and thematic content analysis was used to analyse the data. The results revealed that the business support programmes that the municipality offers to support SMMEs are insufficient to meet the demands of these enterprises in the region. The results further revealed that the lack of suitable business infrastructure, mainly due to deteriorating buildings in the city centre serving as the main business hub, poses a significant challenge for the municipality. Lastly, the insufficient allocation of resources and the lack of communication to raise awareness about business support programmes aimed at SMMEs also emerged as one of the challenges for the municipality. The study recommended that better policy reformations and better resource allocation be made by the municipality. Improvement in communication efforts to raise awareness of readily available business support programmes offered to SMMEs was also recommended. Lastly, municipal engagement with the upper government spheres was also recommended so that the municipality could obtain funding to refurbish the decaying infrastructure with the potential to house SMMEs for business use and improve business incubation and training centres that support SMMEs.