Research has shown that in first world countries, governments that have supported their SMMEs and entrepreneurs have grown and the economies have prospered. The contrary applies in countries that have imposed barriers and restrictions on the development of the SMMEs and entrepreneurs. There is a growing recognition of the importance of fostering SMMEs and entrepreneurial growth in South Africa. The small business sector has been identified as a very important sector and the government of the Western Cape has launched various strategies to improve the plight of the entrepreneur.