Unemployment, poverty, high levels of illiteracy and low levels of production are some of the reasons why the South African economy is weak to foreign competition. South Africa is struggling to attract and retain foreign investment. Therefore, there is a need for entrepreneurial skills from individuals to develop, support and motivate others to increase productivity in this country. Starting a small business and managing it effectively arises from the need to build a culture for business development. This includes the ability to preserve, be goal-driven and be part of the company's social responsibilities. One of the most sustainable methods of creating employment is through the creation and development of entrepreneurial skills which will lead to an increase in the job market and ultimately decrease unemployment rates. The objective of this article will be to provide a better understanding of the operations of small and medium-sized enterprises (SMEs) in the South African market structure, as well as to ascertain the extent to which they thrive and contribute to the economy. SMEs have become a driving force in the economy. for many countries in recent years. This includes small businesses, which are developing and growing the economy, providing a source of employment, developing new investments, maximizing opportunities and inspiring people to become entrepreneurs. SMEs are mostly controlled by the business owner and have a limited number of employees. Although SMEs are good for the economy, if businesses are not guided or helped, statistics will show that they are part of the 75% of SMEs in South Africa that fail within 24 months (Fatoki & Odeyemi, 2010). Africa is a young country in the democratic era, it needs to implement more workshops to develop skills, include mentorship and place more emphasis on contributing to the Skills Development Levy. Another aspect is that SMEs can contribute to the recovery of the economy by ensuring that the allocated resources are used effectively and are able to produce to the maximum. In conclusion, it can be seen that SMEs play a vital and dynamic role in the economy. There is an upward trend in the share of employment in SMEs and in GDP growth. Since South Africa is a developing country, SMEs help reduce the unemployment rate, enable the learning and practice of skills, increase the level of production and ultimately act as a mechanism to increase GDP. Through increased access to finance, business infrastructure and human capital development, SMEs will be empowered to become the next economic engine of growth.