Why is it that we know and still act as if we do not know? SMEs are considered engines of job creation and therefore growth and generation of income but is it really true that the solo self-employed and micro entrepreneurs will become small or medium entrepreneurs, e.g. graduate? We knew in the 80’s that this assumption needed to be looked at critically. Research revealed that graduation hardly existed. Practitioners in MSME support and development programmes entertain few illusions about their programmes actually leading to graduation, while NGO and Government policy officers, from behind their desks, often presume that graduation occurs frequently. Actual graduation rates and the extent to which they can be attributed to interventions remain an unresolved and important issue.

After more than three decades it is justified to the question whether it is still true that graduation hardly exists? If that is the case one needs to take a critical look into prevailing policies and programs in support of the SME sector.