South Africa is a United Nations (UN) member state with one of the highest rates of unemployment and poverty, especially among its peer countries. In terms of the United Nations Millennium Development Goals (MDGs) poverty and unemployment should be halved in the country by 2014. In this regard, there is growing recognition of the important role that Small, Medium and Micro Enterprises (SMMEs) can play in job creation, poverty alleviation and economic development. SMMEs are often described as efficient and prolific job creators, the seeds of big businesses and the fuel of national economic engines. However, it is also reported that SMMEs have a high failure rate due to lack of access to finance. In South Africa, there are State-Owned Microfinance Institutions (MFIs) which report to the Department of Economic Development (EDD). The overseer of this sector is Parliament's Portfolio Committee on Economic Development (referred to here as the Committee).