South Africa as a developing country faces many socio-economic problems like high
unemployment, low levels of working skills, poverty and rampant crime. In this
paper it is argued that by targeting SMMEs both in general and specifically in the
housing construction industry, there is meaningful scope for the creation of jobs in
the South African economy. This is mainly because SMMEs are labour intensive.
Using Endogenous Growth theory as a basis, it is argued that by employing greater
numbers of workers the level of skills in the economy can be raised too.