Unemployment is one of the pressing issues that attract more attention in South Africa at the moment,
with over 25% of the population jobless and the number increases to 40% when including the people
who have totally given up the search for work. The South African government has continuously
highlighted that the SME sector will be the key to increasing job creation in the country. However, there
is evidence that the sector is characterized by high failure rates and low success, growth and survival
rates. It is therefore vital to develop a new and fresh perspective in addressing the challenges facing
the sector and establish policies to foster job creation in the SME sector. Evidence from around the
world show that the SME sector is always characterized by a small subset of high growth, high quality
firms that account for the bulk of job creation in the sector. This paper provides a review on the
literature of some key characteristics of the small subset of SMEs with high job creation potential, and
further appraises the potential of fostering these actors in the South African SME sector. The paper
culminates with some policy measures for enhancing high growth SMEs in South Africa as a means to
address the job creation saga.