The paper aimed to reveal the factors that affect Small Medium and Micro Enterprises (SMME's) in the local government within the tourism destination of the coastal city of Durban of KwaZulu Natal province in South Africa. The City of Durban is regional and major economic player and powerhouse within the tourism, hospitality and leisure value chain and has consecutively hosted Africa Tourism Indaba Conferences for the past five years. This study originates from the continued low level of Total

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... trepreneurial Activity (TEA) in terms of SMME participation in the economic mainstream. The literature review looked at those concepts that focus on the economic growth environment that inspire entrepreneurial stimulus especially by the institutional intervention from authorities. The paper employed a quantitative methodology approach for its data collection. A questionnaire was constructed and self-administered by participants. The paper targeted a population of 800 SMME's in the selected municipality located in KwaZulu-Natal. However, a sample of 260 participants was drawn in the population. All data collected were analysed using the SPSS version 24. The result of the study revealed inter alia, a lack of systematic monetary and non-monetary economic growth enablers which contribute to the SMME prosperity. The recommendations point to the pivotal need for policy-makers and the relevant authorities to level the playing field on behalf of the SMMEs from an economic growth perspective.