The Role of SMEs in Economic Growth, Employment Creation, and Tax Base Broadening in Post-Conflict Countries: A Case of South Sudan

This study explores the role of small and medium enterprises (SMEs) in promoting economic growth, employment creation, and tax base broadening in post-conflict South Sudan. Utilizing a mixed methods approach, the research draws on quantitative data from 388 SMEs in Juba City and qualitative interviews with key stakeholders. Findings reveal that SMEs, particularly in retail trade and agriculture, are pivotal for livelihood provision and economic diversification but remain constrained by infrastructural deficits, regulatory complexity, and limited access to finance. Despite these challenges, there is strong willingness among SME owners to formalize operations if barriers are reduced, highlighting significant potential for expanding employment and domestic revenue. The study recommends targeted reforms—such as simplifying tax and registration procedures, improving infrastructure, fostering gender inclusion, and enhancing trust in institutions—to unlock the sector’s full potential. Recommendations for future research include sector-specific analysis, longitudinal studies, and deeper exploration of digitalization's impact on SME growth and formalization.