The constraints of small business development on the selected country South Africa will create consciousness on the huge potential of small business in the South African Economy among the stakeholder agencies including the international bodies like the World Bank, national and local governments in cementing the holes by providing a positive and congenial environment for the small business development. This report will help in providing right direction to the efforts of the World Bank in abolishing the constraints specifically in South African tourism sector of the economy and its growth by providing a grant for deficient resources like finance, training, management, and technology.Before discussing the constraints of small business development, it would be pertinent to know the definition of small business. Category-wise, small business comes below medium-sized business and above micro business, determined by such factors like head-count and turnover or balance-sheet total.The European Commission has created new thresholds on the limits of headcount, turnover and balance sheets, the conditions for the enterprise categories of medium, small and micro businesses that come in the category of small and medium enterprises (SMEs). To be more accurate, a company can be considered SME if it fulfills the headcount factor and either of the other two factors – turnover or balance sheet total. The table below will further help to understand the exact meaning of SME.1The above table also provides comparative data on the previous limits of turnover and balance sheet total of the medium and small enterprises. The new increased limits on turnover and balance sheet have broadened the horizon of these enterprise categories.Government of South Africa has aimed to make this sector a medium of economic prosperity for the have-nots. The government has passed the National Small Business Act in 1996, which has helped in creating the support structure of providing funds and incentives through the Department of Trade .Industry (DTI).